Higher 1Q Originations Do Not Offset 1st Mariner’s Asset Disposition Losses

1^st Mariner Bancorp saw its mortgage origination volume increase 56% in 1Q13 on a year-over-year basis, contributing nearly $10 million to the company’s non-interest income during the period.

However, the bank holding company still had a net loss of $2.3 million, compared with net income of $1.8 million one year prior.

Included in the 1Q13 loss are $4 million of charges related to the disposition of non-performing assets. 1^st Mariner disposed of $14.4 million of NPAs during the period. It ended the quarter with $42.1 million of NPAs.

During 1Q13, it originated nearly $721 million in residential mortgages, while application volume was $759 million. One year earlier, origination volume was $461 million and application volume was $677 million.

Marketing expenses of $442,000 and postage of $1.1 million in 1Q13 were up from $188,000 and $259,000, respectively, in 1Q12 because of the cost of direct mailings to solicit refinance and purchase mortgage customers.

Salaries and benefits increased by $1.1 million over the previous year because of the additional staff hired to meet higher mortgage origination volume.

Interest-bearing deposits stood at $1.1 billion on March 31, up from $910 million one year prior; the bank said the increase was due to the need for additional liquidity to support the high level of residential mortgage originations.

1^st Mariner reported net charge-offs of $1.5 billion, up 18% over 1Q12, while costs related to foreclosed properties more than doubled over the time frame to $2.7 million.