1st Mariner Bancorp reported a net loss of $12.956 million, or $2.01 per share, in the third quarter of 2009. The bank attributed most of the loss to problems with Mariner Finance, a consumer finance subsidiary that is slated for sale.
The net loss included an impairment charge of $10.584 million to recognize a write down in value of the bank’s investment in Mariner Finance. 1st Mariner Bancorp has reached an agreement to sell Mariner Finance, bringing the carrying value of Mariner Finance to approximate the amount that it is being sold for. The sale is expected to close in the fourth quarter of 2009.
Edwin F. Hale, Sr., the CEO said, “While the sale of Mariner Finance negatively impacted our third quarter results, the proceeds to be generated from the sale are expected to provide a key step to increasing regulatory capital ratios of First Mariner Bank.”
1st Mariner Bancorp is a holding company that owns 1st Mariner Bank, a banking subsidiary with $1.25 billion in assets. 1st Mariner Bank has 24 branches in Maryland, and also owns 1st Mariner Mortgage, an underwriter of residential mortgages.