First Mariner Bancorp in Baltimore said Wednesday that it lost $3.3 million, or 52 cents a share, in the first quarter as a result of continued chargeoffs in its alternative-A mortgage loan portfolio.
The $1.3 billion-asset First Mariner earned $100,000 in the first quarter of last year.
Edwin F. Hale, the chairman and chief executive officer of First Mariner, said in a news release that even though its First Mariner Bank had further losses in alt-A loans, they were lower than previous quarters.
"Most significantly, our nonperforming alt-A loans decreased when compared to the fourth quarter of 2007, and we repurchased no alt-A loans for the second consecutive quarter," Mr. Hale said.
First Mariner also increased its loan-loss allowance 8% from the fourth quarter, to $13.8 million. The company said the increase was necessary, "given the significant and prolonged weakness in the residential housing sector."
