Total Assets Increase 14%; Loans Grow 16%
BALTIMORE, July 20 /PRNewswire-FirstCall/ -- First Mariner Bancorp
(Nasdaq: FMAR), parent company of First Mariner Bank and Finance Maryland,
LLC, today announced its net income for the 2nd quarter of 2004 increased 3%,
totaling $1.373 million ($.22 per diluted share) compared to net income for
the quarter ended June 30, 2003 of $1.328 million ($.23 per diluted share).
For the six month period ended June 30, 2004, net income totaled
$2.680 million ($.42 per diluted share), an increase of 8% from $2.483 million
($.43 per diluted share) for the same period last year. The Company also
reported its total assets reached a record level, increasing 14% to
$1.143 billion from last year's 2nd quarter.
Edwin F. Hale, Sr., First Mariner's Chairman and Chief Executive Officer
said, "Continued growth in our commercial and consumer lines of business and
solid asset quality have allowed us to continue to grow our earnings, despite
the anticipated decline in our revenues derived from mortgage banking
activities. Overall loan demand remained strong in the second quarter, with
total loans increasing $86 million (+16%) from June 30, 2003. Demand for our
deposit products also continued, as our deposits increased $45 million (+6%),
and fee income from deposit products and ATMs also grew."
First Mariner also announced that its Board of Directors has approved a
share repurchase program of up to 300,000 shares (approximately 5%) of the
company's outstanding common stock. The repurchase program will consist of
open market or private purchases of stock over the next 24 months.
Mr. Hale continued, "The approval of our common stock repurchase program
reflects our Board's commitment to enhancing shareholder value, and provide
additional flexibility in capital management."
Comparing June 30, 2004 balances to June 30, 2003, total assets grew to a
record level of $1.143 billion, an increase of $139 million (+14%). Loans
outstanding increased $86 million (+16%), fueled by growth in commercial loans
of $50 million (+16%), bank consumer loans totaling $19 million (+35%), and
Finance Maryland receivables which increased by $11 million (+66%).
Residential construction and residential mortgage loans increased by
$6 million (+4%). Total mortgage loan originations totaled $227 million for
the second quarter of 2004, compared to $352 million for the same period of
2003. Total deposits increased by $45 million (+6%) as non-interest bearing
checking accounts increased by $15 million (+12%), savings accounts grew by
$12 million (+22%), and Certificates of Deposit increased $25 million (+7%).
Interest bearing checking accounts decreased $6 million (-7%).
Financial Highlights for the second quarter of 2004 include:
-- Growth in loans and deposits fueled growth in total revenue of
$1.232 million (+9%) compared to the 2nd quarter of 2003. Net
interest income increased by $1.783 million (+21%), while fee income
declined by $551 thousand (-11%).
-- Growth in earning assets of $192 million (+23%) drove an increase in
net interest income of $1.783 million (+21%). First Mariner's net
interest margin decreased nominally to 3.92% from 3.95% for the 2nd
quarter of 2003.
-- Credit quality continued to be strong. The provision for loan
losses totaled $489 thousand compared to $902 thousand in the same
quarter last year. The allowance for loan losses increased to
$9.020 million from $8.206 million at June 30, 2004, and totaled
1.42% of loans outstanding compared to 1.50% last year.
Non-performing assets decreased to $2.406 million (.21% of total
assets) improving from $4.509 million (.45% of total assets) last
year. Accruing Loans 90 days or more past due decreased to
$6.177 million (.97% of total loans) from $9.688 million (1.77% of
total loans) last year.
-- Non-interest income decreased by $551 thousand or 11%, reflecting an
anticipated decline in fees earned through mortgage banking
activities. Gains on sales of mortgage loans and other mortgage
banking revenue decreased $603 thousand (-33%), as higher mortgage
interest rates have curtailed a significant amount of refinance
activity that was experienced in 2003. Deposit service charge and
ATM income increased $75 thousand, while income from bank-owned life
insurance increased $107 thousand. First Mariner had no income from
sales of investment securities in the second quarter of 2004
compared to $143 thousand in the same quarter last year.
-- Non-interest expenses increased by $1.706 million or 16%. Salaries
and benefit expenses increased by $982 thousand due to higher staff
levels to support growth, staff additions for expansion of Finance
Maryland, and increased health insurance costs. Other non-interest
expenses increased $596 thousand due to increases in ATM and debit
card costs, marketing and business development costs, and lower
gains from the disposition of other real estate owned.
-- Stockholders' Equity increased by $3.954 million (+7%). Growth in
stockholders' equity reflects the retention of earnings for the
twelve months ($5.5 million), purchases of common stock through the
exercise of options, warrants, and participation in stock purchase
plans totaling $3.3 million. These increases were partially offset
by a decrease in the market value of securities classified as
available for sale of $4.9 million. Capital Ratios were as follows:
Leverage Ratio = 7.3%; Tier 1 risk-based ratio = 10.1%; Total
Capital Ratio = 14.5%. All capital ratios exceed levels to qualify
for "Well Capitalized" status under current regulatory definitions.
First Mariner Bancorp is a bank holding company with total assets of
$1.143 billion. Its wholly owned banking subsidiary, First Mariner Bank,
(total assets $1.107 billion) operates 23 full service bank branches in
Baltimore, Anne Arundel, Harford, Howard, Talbot, and Worcester counties in
Maryland, and the city of Baltimore. First Mariner Mortgage, a division of
First Mariner Bank, operates 13 offices in Central Maryland, the Eastern Shore
of Maryland, and Northern Virginia. Finance Maryland, LLC, (total assets
$27.5 million) is a consumer finance subsidiary that currently operates
13 branches in Baltimore, Cecil, Frederick, Harford, Wicomico, and Washington
counties in Maryland and three branches in Delaware. First Mariner Bancorp's
common stock is traded on the Nasdaq National Market under the symbol "FMAR."
First Mariner's web site address is http://www.1stMarinerBancorp.com, which
includes comprehensive level investor information.
In addition to historical information, this press release contains
forward-looking statements that involve risks and uncertainties, such as
statements of the Company's plans and expectations regarding efficiencies
resulting from new programs and expansion activities, revenue growth,
anticipated expenses, and other unknown outcomes. The Company's actual
results could differ materially from management's expectations. Factors that
could contribute to those differences include, but are not limited to, changes
in regulations applicable to the Company's business, successful implementation
of the Company's branch expansion strategy, its concentration in real estate
lending, increased competition, changes in technology, particularly Internet
banking, impact of interest rates, possibility of economic recession or slow
down (which could impact credit quality, adequacy of loan loss reserve and
loan growth) and control by and dependency on key personnel, particularly
Edwin F. Hale, Sr., Chairman of the Board of Directors and CEO of the Company.
FINANCIAL HIGHLIGHTS (UNAUDITED)
First Mariner Bancorp
(Dollars in thousands, except per share data)
For the three months ended June 30,
$ %
2004 2003 Change Change
Summary of Earnings:
Net interest income $10,227 $8,444 1,783 21%
Provision for loan losses 489 902 (413) -46%
Noninterest income 4,673 5,224 (551) -11%
Noninterest expense 12,519 10,813 1,706 16%
Income before income taxes 1,892 1,953 (61) -3%
Income tax expense 519 625 (106) -17%
Net income 1,373 1,328 45 3%
Profitability and Productivity:
Return on average assets 0.50% 0.58% - -15%
Return on average equity 9.61% 9.78% - -2%
Net interest margin 3.92% 3.95% - -1%
Net overhead ratio 2.83% 2.51% - 13%
Efficiency ratio 84.02% 79.95% - 5%
Mortgage loan production 226,510 351,755 (125,245) -36%
Average deposits per branch 35,401 34,963 438 1%
Per Share Data:
Basic earnings per share $0.24 $0.25 (0.01) -4%
Diluted earnings per share $0.22 $0.23 (0.01) -4%
Book value per share $10.04 $9.97 0.07 1%
Number of shares outstanding 5,765,543 5,408,574 356,969 7%
Average basic number of
shares 5,743,659 5,401,633 342,026 6%
Average diluted number of
shares 6,347,448 5,866,415 481,033 8%
Summary of Financial Condition:
At Period End:
Assets $1,143,250 $1,004,700 138,550 14%
Investment Securities 336,162 125,393 210,769 168%
Loans 633,589 547,141 86,448 16%
Deposits 814,224 769,195 45,029 6%
Borrowings and repurchase
agreements 220,915 128,981 91,934 71%
Stockholders' equity 57,898 53,944 3,954 7%
Average for the period:
Assets $1,115,202 $915,516 199,686 22%
Investment Securities 328,818 111,602 217,216 195%
Loans 635,425 544,820 90,605 17%
Deposits 796,785 713,568 83,217 12%
Borrowings 257,457 143,732 113,725 79%
Stockholders' equity 57,492 54,463 3,029 6%
Capital Ratios:
Leverage 7.3% 7.5% - -3%
Tier 1 Capital to risk
weighted assets 10.1% 9.8% - 3%
Total Capital to risk
weighted assets 14.5% 15.0% - -3%
Asset Quality Statistics and Ratios:
Net Chargeoffs 253 194 59 30%
Non-performing assets 2,406 4,509 (2,103) -47%
90 Days or more delinquent loans 6,177 9,688 (3,511) -36%
Annualized net chargeoffs to
average loans 0.16% 0.14% - 12%
Non-performing assets to
total assets 0.21% 0.45% - -53%
90 Days or more delinquent
loans to total loans 0.97% 1.77% - -45%
Allowance for loan losses to
total loans 1.42% 1.50% - -5%
FINANCIAL HIGHLIGHTS (UNAUDITED)
First Mariner Bancorp
(Dollars in thousands, except per share data)
For the six months ended June 30,
$ %
2004 2003 Change Change
Summary of Earnings:
Net interest income $20,148 $16,584 3,564 21%
Provision for loan losses 789 1,452 (663) -46%
Noninterest income 9,394 9,945 (551) -6%
Noninterest expense 25,048 21,437 3,611 17%
Income before income taxes 3,705 3,640 65 2%
Income tax expense 1,025 1,157 (132) -11%
Net income 2,680 2,483 197 8%
Profitability and Productivity:
Return on average assets 0.50% 0.57% - -12%
Return on average equity 9.15% 9.34% - -2%
Net interest margin 3.99% 4.04% - -1%
Net overhead ratio 2.99% 2.67% - 12%
Efficiency ratio 85.77% 81.39% - 5%
Mortgage loan production 424,396 610,237 (185,841) -30%
Average deposits per branch 35,401 34,963 438 1%
Per Share Data:
Basic earnings per share $0.46 $0.46 - 0%
Diluted earnings per share $0.42 $0.43 (0.01) -2%
Book value per share $10.04 $9.97 0.07 1%
Number of shares outstanding 5,765,543 5,408,574 356,969 7%
Average basic number of
shares 5,728,560 5,398,331 330,229 6%
Average diluted number of
shares 6,357,339 5,824,534 532,805 9%
Summary of Financial Condition:
At Period End:
Assets $1,143,250 $1,004,700 138,550 14%
Investment Securities 336,162 125,393 210,769 168%
Loans 633,589 547,141 86,448 16%
Deposits 814,224 769,195 45,029 6%
Borrowings and repurchase
agreements 220,915 128,981 91,934 71%
Stockholders' equity 57,898 53,944 3,954 7%
Average for the period:
Assets $1,076,840 $880,716 196,124 22%
Investment Securities 300,840 115,957 184,883 159%
Loans 625,865 539,352 86,513 16%
Deposits 777,445 681,101 96,344 14%
Borrowings 235,849 142,258 93,591 66%
Stockholders' equity 58,895 53,615 5,280 10%
Capital Ratios:
Leverage 7.3% 7.5% - -3%
Tier 1 Capital to risk
weighted assets 10.1% 9.8% - 3%
Total Capital to risk
weighted assets 14.5% 15.0% - -3%
Asset Quality Statistics and Ratios:
Net Chargeoffs 461 434 27 6%
Non-performing assets 2,406 4,509 (2,103) -47%
90 Days or more delinquent loans 6,177 9,688 (3,511) -36%
Annualized net chargeoffs to
average loans 0.15% 0.16% - -9%
Non-performing assets to
total assets 0.21% 0.45% - -53%
90 Days or more delinquent
loans to total loans 0.97% 1.77% - -45%
Allowance for loan losses to
total loans 1.42% 1.50% - -5%
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
First Mariner Bancorp
(Dollars in thousands)
As of June 30,
$ %
2004 2003 Change Change
Assets:
Cash and due from banks $33,644 $57,549 (23,905) -42%
Interest-bearing deposits 31,159 97,745 (66,586) -68%
Available-for-sale investment
securities, at fair value 336,162 125,393 210,769 168%
Loans held for sale 48,158 132,158 (84,000) -64%
Loans receivable 633,589 547,141 86,448 16%
Allowance for loan losses (9,020) (8,206) (814) 10%
Loans, net 624,569 538,935 85,634 16%
Other real estate owned 42 1,902 (1,860) -98%
Restricted stock
investments, at cost 7,015 3,040 3,975 131%
Property and equipment 17,457 18,063 (606) -3%
Accrued interest receivable 5,651 4,542 1,109 24%
Deferred income taxes 4,942 1,553 3,389 218%
Prepaid expenses and other
assets 34,451 23,820 10,631 45%
Total Assets $1,143,250 $1,004,700 138,550 14%
Liabilities and Stockholders' Equity:
Liabilities:
Deposits $814,224 $769,195 45,029 6%
Borrowings 195,915 103,981 91,934 88%
Repurchase agreements 25,000 25,000 - 0%
Junior subordinated
deferrable interest debentures 47,939 47,299 640 1%
Accrued expenses and other
liabilities 2,274 5,281 (3,007) -57%
Total Liabilities 1,085,352 950,756 134,596 14%
Stockholders' Equity -
Common Stock 288 270 18 7%
Additional paid-in-capital 51,407 48,088 3,319 7%
Retained earnings (deficit) 8,976 3,437 5,539 161%
Accumulated other
comprehensive income (loss) (2,773) 2,149 (4,922) -229%
Total Stockholders' Equity 57,898 53,944 3,954 7%
Total Liabilities and
Stockholders' Equity $1,143,250 $1,004,700 138,550 14%
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
First Mariner Bancorp
(Dollars in thousands) For the three For the six
months ended months ended
June 30, June 30,
2004 2003 2004 2003
Interest Income:
Investments and interest-
bearing deposits $3,392 $1,715 $6,429 $3,571
Loans 12,306 12,053 24,410 23,374
Total Interest Income 15,698 13,768 30,839 26,945
Interest Expense:
Deposits 3,140 3,447 6,250 6,640
Borrowings and repurchase
agreements 2,331 1,877 4,441 3,721
Total Interest Expense 5,471 5,324 10,691 10,361
Net Interest Income Before Provision
for Loan Losses 10,227 8,444 20,148 16,584
Provision for Loan Losses 489 902 789 1,452
Net Interest Income After Provision
for Loan Losses 9,738 7,542 19,359 15,132
Noninterest Income:
Service fees on deposits 1,693 1,668 3,241 3,203
ATM Fees 719 669 1,343 1,253
Gains on sales of mortgage loans 769 1,339 1,695 2,634
Other mortgage banking revenue 477 510 842 941
Gains on sales of investment
securities - 143 340 189
Gains on sales of non-deposit
investment products 179 145 417 355
Income from bank owned life
insurance 282 175 515 370
Other 554 575 1,001 1,000
Total Noninterest Income 4,673 5,224 9,394 9,945
Noninterest Expense:
Salaries and employee benefits 6,413 5,431 12,952 10,853
Net occupancy 1,490 1,463 3,025 2,785
Furniture, fixtures and
equipment 746 708 1,465 1,396
Advertising 321 289 677 585
Data Processing 530 511 1,045 986
Professional services 238 226 429 539
Other 2,781 2,185 5,455 4,293
Total Noninterest Expense 12,519 10,813 25,048 21,437
Income Before Income Taxes 1,892 1,953 3,705 3,640
Income Tax Expense 519 625 1,025 1,157
Net Income $1,373 $1,328 $2,680 $2,483
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (UNAUDITED)
First Mariner Bancorp
(Dollars in thousands)
For the three months ended June 30,
2004 2003
Average Yield/ Average Yield/
Balance Rate Balance Rate
Assets:
Loans
Commercial Loans and LOC $77,502 5.87% $67,636 6.33%
Comm/Res Construction 48,759 7.22% 33,579 6.78%
Commercial Mortgages 251,651 6.86% 213,597 7.36%
Residential Constr - Cons 117,345 7.16% 119,179 8.01%
Residential Mortgages 41,284 6.55% 40,501 7.87%
Consumer 98,884 10.51% 70,328 10.91%
Total Loans 635,425 7.37% 544,820 7.83%
Loans held for sale 43,966 4.75% 106,712 4.90%
Available for sale
securities, at fair value 328,818 4.00% 111,602 5.18%
Interest bearing deposits 18,455 0.94% 75,122 1.17%
Restricted stock investments,
at cost 6,984 3.45% 3,364 4.18%
Total earning assets 1,033,648 6.05% 841,620 6.48%
Allowance for loan losses (8,888) (7,747)
Cash and other non earning
assets 90,442 81,643
Total Assets $1,115,202 $915,516
Liabilities and Stockholders'
Equity:
Interest bearing deposits
NOW deposits 65,409 0.30% 63,195 0.53%
Savings deposits 67,975 0.33% 55,859 0.74%
Money market deposits 150,385 0.76% 149,130 1.06%
Time deposits 370,482 2.99% 328,661 3.51%
Total interest bearing
deposits 654,251 1.93% 596,845 2.32%
Borrowings 257,457 3.64% 143,732 5.24%
Total interest bearing
liabilities 911,708 2.41% 740,577 2.88%
Noninterest bearing demand
deposits 142,534 116,723
Other liabilities 3,468 3,753
Stockholders' Equity 57,492 54,463
Total Liabilities and Stockholders'
Equity $1,115,202 $915,516
Net Interest Spread 3.63% 3.60%
Net Interest Margin 3.92% 3.95%
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (UNAUDITED)
First Mariner Bancorp
(Dollars in thousands)
For the six months ended June 30,
2004 2003
Average Yield/ Average Yield/
Balance Rate Balance Rate
Assets:
Loans
Commercial Loans and LOC $76,952 5.87% $64,568 6.37%
Comm/Res Construction 48,123 7.16% 34,520 6.81%
Commercial Mortgages 246,809 6.94% 208,101 7.39%
Residential Constr - Cons 118,150 7.20% 122,627 7.92%
Residential Mortgages 40,708 6.87% 42,703 7.79%
Consumer 95,123 10.63% 66,833 10.31%
Total Loans 625,865 7.43% 539,352 7.75%
Loans held for sale 42,366 4.76% 96,382 5.06%
Available for sale
securities, at fair value 300,840 4.13% 115,957 5.44%
Interest bearing deposits 23,128 0.91% 57,820 1.13%
Restricted stock investments,
at cost 6,281 3.45% 3,446 4.32%
Total earning assets 998,480 6.15% 812,957 6.61%
Allowance for loan losses (8,790) (7,515)
Cash and other non earning
assets 87,150 75,274
Total Assets $1,076,840 $880,716
Liabilities and Stockholders'
Equity:
Interest bearing deposits
NOW deposits 62,985 0.39% 60,943 0.54%
Savings deposits 65,473 0.40% 52,113 0.75%
Money market deposits 151,789 0.81% 147,243 1.04%
Time deposits 361,336 3.00% 309,792 3.60%
Total interest bearing
deposits 641,583 1.96% 570,091 2.35%
Borrowings 235,849 3.79% 142,258 5.27%
Total interest bearing
liabilities 877,432 2.45% 712,349 2.93%
Noninterest bearing demand
deposits 135,862 111,010
Other liabilities 4,651 3,742
Stockholders' Equity 58,895 53,615
Total Liabilities and Stockholders'
Equity $1,076,840 $880,716
Net Interest Spread 3.70% 3.68%
Net Interest Margin 3.99% 4.04%
SOURCE First Mariner Bancorp
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Related links:
http://www.1stMarinerBank.com
CONTACT:
Mark A. Keidel, SVP/CFO of First Mariner
Bancorp, +1-410-558-4281
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