1st Mariner Reports 2009 Results

Deposits Rise, Non-Performing Assets Stabilize Record Date Set for Proposed Rights Offering


BALTIMORE, Feb. 2  /PRNewswire-FirstCall/ -- 1st Mariner Bancorp (NASDAQ: FMAR), parent company of 1st Mariner Bank, reported a net loss from continuing operations for the fourth quarter of 2009 of $3.7 million, or $(0.57) per share, which represented a 61% improvement over the loss of $9.4 million, or $(1.46) per share, for the fourth quarter of 2008. For the year ended December 31, 2009, the Company's net loss from continuing operations was $13.2 million, compared to $16.8 million, a decrease of 21%. Including the loss from the sale of the Company's consumer finance subsidiary "Mariner Finance" in the third quarter of 2009, the net loss for the full year ended December 31, 2009 totaled $22.3 million compared to $15.1 million for the full year ended December 31, 2008.

Edwin F. Hale, Sr., 1st Mariner's chairman and chief executive officer, said, "We continue to execute on our plan to increase our capital levels. The recent completion of the sale of Mariner Finance helped boost the Bank's total capital ratio to 9.1% compared to 8.4% at the end of September 2009 and 8.8% at December 31, 2008.  Although the sale impacted earnings, it was a necessary and beneficial step to increasing the regulatory capital ratios of 1st Mariner Bank."

Mr. Hale added, "We are encouraged by the stabilization in our asset quality during the year and a decrease in our loan delinquencies during the final quarter of the year. We have been focused on resolving prior problem assets and improving the balance sheet of 1st Mariner. The figures reported for the fourth quarter reflect that effort."

Operating Summary

The net loss for the fourth quarter of 2009 included $4.5 million in credit-related charges to earnings, including a $3.3 million provision for loan losses and $1.2 million in expenses related to foreclosed properties. This represents a 38% decrease in credit related costs when compared to the fourth quarter of 2008, when the provision for loan losses was $4.2 million and the expenses on foreclosed properties was $3.1 million.

  --  Total revenue for the 4th quarter 2009 was $13.8 million, an increase
      of $6.8 million over the 4th quarter of 2008's revenue of $7.0
      million. Revenue totals for 2008 reflected $4.7 million in write-downs
      on securities for other than temporary impairments compared to $650
      thousand in the 4th quarter of 2009.  Also included in the improvement
      was lower interest expense on borrowings and deposits that helped
      increase the Company's net interest margin.

  --  Net interest income increased  $2.0 million in the 4th quarter of 2009
      compared to the 4th quarter of 2008.  The net interest margin for the
      4th quarter of 2009 was 2.72%, an increase of 60 basis points from
      2.12% in the 4th quarter of 2008. This was the result of a lower cost
      of funds and higher investment yields in 2009 when compared to 2008.

  --  Average earning assets grew by $56.6 million, or 5.4%, compared with
      last year's 4th quarter, reflecting growth in portfolio loans and
      loans held for sale.

  --  The provision for loan losses totaled $3.3 million for the 4th quarter
      of 2009, a decrease of 21% over the provision of $4.2 million in the
      corresponding quarter last year.  Net charge-offs declined $1.3
      million to $2.7 million for the 4th quarter of 2009 from $4.0 million
      of 4th quarter of 2008. The allowance for loans losses at the end of
      the fourth quarter of 2009 was $11.6 million, a decrease of 31% over
      the prior year's figure of $16.8 million. The decrease was primarily
      attributable to the removal of the allowance for loan losses that was
      related to Mariner Finance's loan portfolio. The allowance for loan
      losses as a percentage of total loans was 1.31% as of December 31,
      2009, compared to 1.71% as of December 31, 2008. Non-performing assets
      remained relatively flat when compared to the fourth quarter of 2008,
      with $57.8 million in 2008 versus $57.4 million in 2009. While the
      non-performing assets and loans 90 or more days past due have
      stabilized year to year, there has been an improvement in the fourth
      quarter of 2009 when compared to the third quarter of 2009. Loans 90
      days or more past due have decreased 54% from September 30, 2009 to
      December 31, 2009, moving from $20.2 million to $9.2 million.

  --  Non-interest income for the fourth quarter of 2009 increased $4.8
      million over the same quarter in 2008 mainly due to lower write-downs
      of investment securities.

  --  Non-interest expenses decreased $1.9 million, or 10%, in the fourth
      quarter of 2009 when compared to the corresponding period last year. 
      The costs related to foreclosed properties decreased $1.9 million, or
      62%, in the fourth quarter of 2009 when compared to 2008. Although
      non-interest expenses decreased overall, there were significant
      increases in FDIC Insurance premiums and professional fees. FDIC
      Insurance premiums increased $0.75 million, or 229%, in the fourth
      quarter of 2009. Professional fees increased $0.78 million in the
      fourth quarter of 2009, and were the result of increased costs
      associated with regulatory compliance issues and expenses associated
      with the planned capital raise and other strategic initiatives.



Comparing balance sheet data as of December 31, 2009 and 2008, total assets increased to $1.38 billion, 6% over the prior year's $1.31 billion.

  --  Total loans outstanding decreased $87.7 million, or 9%, to $890.9
      million as of December 31, 2009. The decrease is fully attributable to
      the sale of the assets of Mariner Finance in 2009, which represents
      $103.2 million of the decrease. Excluding the prior Mariner Finance
      loans, total loans increased by $14.4 million, primarily in
      residential mortgages.

  --  Total deposits grew to $1.15 billion as of December 31, 2009, and
      increase of $196.3 million, or 21%, over December 31, 2008's deposits
      of $950.2 million. An increase in Certificates of Deposit was the
      primary reason for the overall increase in deposits. Total
      Certificates of Deposit were $811.4 million as of December 31, 2009,
      an increase of $200.1 million, or 33%, over December 31 2008's balance
      of $611.2 million. NOW accounts increased $1.6 million and savings
      accounts increased $1.8 million. Non-interest bearing checking
      accounts decreased $2.6 million and money market accounts decreased
      $4.7 million.

  --  Stockholders' Equity was $26.9 million as of December 31, 2009,
      resulting in a book value per share of $4.18, a decrease of $2.95,
      compared to the book value of $7.13 at December 31, 2008. Capital
      Ratios in the 4th quarter of 2009 for First Mariner Bank were as
      follows: Leverage Ratio = 6.2%; Tier 1 risk-based ratio = 7.9% Total
      Capital Ratio = 9.1%. This is an improvement over the capital ratios
      as of December 31, 2008 which were: Leverage Ratio = 5.8%; Tier 1
      risk-based ratio = 6.8% Total Capital Ratio = 8.8%. The increase in
      the capital ratios for the Bank is attributable to the sale of Mariner
      Finance and the recent tax law change allowing companies to carryback
      their net operating losses further. Management will continue efforts
      to further increase these ratios in the first quarter of 2010.

  Record Date For Proposed Rights Offering



1st Mariner Bancorp has set February 12, 2010 as the record date for its previously disclosed proposed rights offering of common stock.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective.  The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.  You may obtain a written prospectus, when available, for the proposed rights offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended, by writing to the Company, 1501 S. Clinton Street, Baltimore, Maryland  21224, Attention: Eugene A. Friedman, Corporate Secretary.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.  Securities may not be sold nor may offers to buy be accepted prior to the effectiveness of a registration statement, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.

1st Mariner Bancorp is a bank holding company with total assets of $1.38 billion.  Its wholly owned banking subsidiary, 1st Mariner Bank, with total assets of $1.37 billion, operates 24 full service bank branches in Baltimore, Anne Arundel, Harford, Howard, Talbot, and Carroll counties in Maryland, the City of Baltimore, and Shrewsbury, Pennsylvania.  1st Mariner Mortgage, a division of 1st Mariner Bank, operates retail offices in Central Maryland and the Eastern Shore of Maryland.  1st Mariner Mortgage also operates direct marketing mortgage operations in Baltimore County.  1st Mariner Bancorp's common stock is traded on the NASDAQ Global Market under the symbol "FMAR".  1st Mariner's Website 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, profitability of mortgage banking operations, 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 slowdown (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 December 31,
                                       2009        2008  $ Change  % Change 
                                       ----        ----  --------  -------- 
  Summary of Earnings:                                                      
    Net interest income              $7,674      $5,722     1,952        34%
    Provision for loan losses         3,300       4,155      (855)      -21%
    Noninterest income                6,082       1,280     4,802       375%
    Noninterest expense              16,959      18,842    (1,883)      -10%
    Income before income taxes       (6,503)    (15,995)    9,492       -59%
    Income tax expense               (1,335)     (6,551)    5,216       -80%
    Net loss - Continuing                                                   
     Operations                      (3,699)     (9,444)    5,745       -61%
    Discontinued Operations -                                               
     Mariner Finance                   (119)        384      (503)     -131%
    Net income                       (3,818)     (9,060)    5,242        58%
                                                                            
  Profitability and Productivity:                                           
    Return on average assets          -1.13%      -2.95%        -        62%
    Return on average equity         -48.78%     -63.75%        -        23%
    Net interest margin                2.72%       2.12%        -        28%
    Net overhead ratio                 3.03%       4.21%        -       -28%
    Efficiency ratio                 117.80%     161.97%        -       -27%
    Mortgage loan production        278,504     254,345    24,159         9%
    Average deposits per branch      47,771      39,593     8,178        21%
                                                                            
  Per Share Data:                                                           
    Basic earnings per share -                                              
     Continuing Operations           $(0.57)     $(1.46)     0.89        61%
    Diluted earnings per share -                                            
      Continuing Operations          $(0.57)     $(1.46)     0.89        61%
    Basic earnings per share -                                              
     Discontinued Operations         $(0.02)      $0.06     (0.08)      131%
    Diluted earnings per share -                                            
      Discontinued Operations        $(0.02)      $0.06     (0.08)      131%
    Basic earnings per share         $(0.59)     $(1.40)     0.81        58%
    Diluted earnings per share       $(0.59)     $(1.40)     0.81        58%
    Book value per share              $4.18       $7.13     (2.95)      -41%
    Number of shares outstanding  6,452,631   6,452,631         -         0%
    Average basic number of                                                 
     shares                       6,452,631   6,452,772      (141)        0%
    Average diluted number of                                               
     shares                       6,452,631   6,452,772      (141)        0%
                                                                            
  Summary of Financial Condition:                                           
    At Period End:                                                          
    Assets                       $1,384,552  $1,307,497    77,055         6%
    Investment Securities            39,143      52,232   (13,089)      -25%
    Loans                           890,951     978,696   (87,745)       -9%
    Deposits                      1,146,504     950,233   196,271        21%
    Borrowings and repurchase                                               
     agreements                     122,038     220,996   (98,958)      -45%
    Stockholders' equity             26,987      46,015   (19,028)      -41%
                                                                            
    Average for the period:                                                 
    Assets                       $1,339,847  $1,219,288   120,559        10%
    Investment Securities            40,192      59,373   (19,181)      -32%
    Loans                           891,134     862,584    28,550         3%
    Deposits                      1,104,844     945,905   158,939        17%
    Borrowings and repurchase                                               
     agreements                     196,514     216,613   (20,099)       -9%
    Stockholders' equity             31,055      56,383   (25,328)      -45%
                                                                            
  Capital Ratios: 1st Mariner Bank                                          
    Leverage                            6.2%        5.8%        -         7%
    Tier 1 Capital to risk                                                  
     weighted assets                    7.9%        6.8%        -        16%
    Total Capital to risk                                                   
     weighted assets                    9.1%        8.8%        -         3%
                                                                            
  Asset Quality Statistics and Ratios:                                      
    Net Chargeoffs                    2,714       4,055    (1,341)      -33%
    Non-performing assets            57,428      57,757      (329)       -1%
    90 Days or more delinquent                                              
     loans                            9,224       9,679      (455)       -5%
    Annualized net chargeoffs                                               
     to average loans                  1.21%       1.87%        -       -35%
    Non-performing assets to                                                
     total assets                      4.15%       4.42%        -        -6%
    90 Days or more delinquent                                              
     loans to total loans              1.04%       0.99%        -         5%
    Allowance for loan losses                                               
     to total loans                    1.31%       1.71%        -       -24%



  FINANCIAL HIGHLIGHTS (UNAUDITED)                                        
  First Mariner Bancorp                                                   
  (Dollars in thousands, except per share data)                           

                                  For the twelve months ended December 31,
                                     2009        2008  $ Change  % Change 
                                     ----        ----  --------  -------- 
  Summary of Earnings:                                                    
    Net interest income           $27,112     $28,441    (1,329)       -5%
    Provision for loan losses      11,660      10,855       805         7%
    Noninterest income             28,271      17,228    11,043        64%
    Noninterest expense            67,834      65,254     2,580         4%
    Income before income taxes    (24,111)    (30,440)    6,329       -21%
    Income tax expense            (10,912)    (13,632)    2,720       -20%
    Net loss - Continuing                                                 
     Operations                   (13,199)    (16,808)    3,609       -21%
    Discontinued Operations -                                             
     Mariner Finance               (9,085)      1,721   (10,806)     -628%
    Net Loss                      (22,284)    (15,087)   (7,197)       48%
                                                                          
  Profitability and Productivity:                                         
    Return on average assets        -1.69%      -1.16%        -       -45%
    Return on average equity       -53.81%     -24.37%        -      -121%
    Net interest margin              2.43%       2.74%        -       -11%
    Net overhead ratio               2.82%       3.29%        -       -14%
    Efficiency ratio               117.16%     127.84%        -        -8%
    Mortgage loan production    1,663,952   1,385,448   278,504        20%
    Average deposits per                                                  
     branch                        47,771      39,593     8,178        21%
                                                                          
  Per Share Data:                                                         
    Basic earnings per share -                                            
      Continuing Operations        $(2.05)     $(2.63)     0.58       -22%
    Diluted earnings per                                                  
     share - Continuing                                                   
     Operations                    $(2.05)     $(2.63)     0.58       -22%
    Basic earnings per share -                                            
      Discontinued Operations      $(1.41)      $0.27     (1.68)     -623%
    Diluted earnings per                                                  
     share - Discontinued                                                 
     Operations                    $(1.41)      $0.27     (1.68)     -623%
    Basic earnings per share       $(3.45)     $(2.36)    (1.09)       46%
    Diluted earnings per share     $(3.45)     $(2.36)    (1.09)       46%
    Book value per share            $4.18       $7.13     (2.95)      -41%
    Number of shares                                                      
     outstanding                6,452,631   6,452,631         -         0%
    Average basic number of                                               
     shares                     6,452,631   6,390,046    62,585         1%
    Average diluted number of                                             
     shares                     6,452,631   6,390,046    62,585         1%
                                                                          
  Summary of Financial Condition:                                         
    At Period End:                                                        
    Assets                     $1,384,552  $1,307,497    77,055         6%
    Trading and available for                                             
     sale securities               39,143      52,232   (13,089)      -25%
    Loans                         890,951     978,696   (87,745)       -9%
    Deposits                    1,146,504     950,233   196,271        21%
    Borrowings                    122,038     220,996   (98,958)      -45%
    Stockholders' equity           26,987      46,015   (19,028)      -41%
                                                                          
    Average for the period:                                               
    Assets                     $1,315,891  $1,296,252    19,639         2%
    Trading and available for                                             
     sale securities               48,274      75,501   (27,227)      -36%
    Loans                         889,345     821,700    67,645         8%
    Deposits                    1,056,179     935,090   121,089        13%
    Borrowings                    213,012     208,096     4,916         2%
    Stockholders' equity           41,415      61,916   (20,501)      -33%
                                                                          
  Capital Ratios: 1st Mariner Bank                                        
    Leverage                          6.2%        5.8%        -         7%
    Tier 1 Capital to risk                                                
     weighted assets                  7.9%        6.8%        -        16%
    Total Capital to risk                                                 
     weighted assets                  9.1%        8.8%        -         3%
                                                                          
  Asset Quality Statistics 
   and Ratios:                                    
    Net Chargeoffs                 12,166      11,072     1,094        10%
    Non-performing assets          57,428      57,757      (329)       -1%
    90 Days or more delinquent 
     loans                          9,224       9,679      (455)       -5%
    Annualized net chargeoffs to
     average loans                   1.37%       1.35%        -         1%
    Non-performing assets to 
     total assets                    4.15%       4.42%        -        -6%
    90 Days or more delinquent 
     loans to total loans            1.04%       0.99%        -         5%
    Allowance for loan losses to 
     total loans                     1.31%       1.71%        -       -24%




  CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)              
  First Mariner Bancorp                                                   
  (Dollars in thousands)   
                                                 
                                              As of December 31,         
                                   2009        2008   $ Change   % Change 
                                   ----        ----  ----------  -------- 
  Assets:                                                                 
    Cash and due from banks    $166,374     $21,045     145,329       691%
    Interest-bearing                                                      
     deposits                     7,329      46,294     (38,965)      -84%
    Available-for-sale                                                    
     investment securities,                                               
     at fair value               28,394      39,666     (11,272)      -28%
    Trading Securities           10,749      12,566      (1,817)      -14%
    Loans held for sale         122,085      60,203      61,882       103%
    Loans receivable            890,951     978,696     (87,745)       -9%
    Allowance for loan                                                    
     losses                     (11,639)    (16,776)      5,137       -31%
                                -------     -------       -----           
    Loans, net                  879,312     961,920     (82,608)       -9%
    Other real estate owned      21,630      18,994       2,636        14%
    Restricted stock                                                      
     investments, at cost         7,815       7,066         749        11%
    Property and equipment       44,504      49,964      (5,460)      -11%
    Accrued interest                                                      
     receivable                   4,960       6,335      (1,375)      -22%
    Deferred income taxes        28,214      26,057       2,157         8%
    Bank owned life                                                       
     insurance                   34,773      36,436      (1,663)       -5%
    Prepaid expenses and                                                  
     other assets                28,413      20,951       7,462        36%
                                 ------      ------       -----           
  Total Assets               $1,384,552  $1,307,497      77,055         6%
                             ==========  ==========      ======           
                                                                          
  Liabilities and 
   Stockholders' Equity:                                   
  Liabilities:                                                            
    Deposits                 $1,146,504    $950,233     196,271        21%
    Borrowings                  122,038     220,996     (98,958)      -45%
    Junior subordinated                                                   
     deferrable interest                                                  
     debentures                  73,724      73,724           -         0%
    Accrued expenses and                                                  
     other liabilities           15,299      16,529      (1,230)       -7%
                                 ------      ------      ------           
  Total Liabilities           1,357,565   1,261,482      96,083         8%
                                                                          
  Stockholders' Equity                                                    
    Common Stock                    323         323           -         0%
    Additional paid-in-                                                   
     capital                     56,771      56,741          30         0%
    Retained earnings           (26,621)     (5,485)    (21,136)      385%
    Accumulated other                                                     
     comprehensive loss          (3,486)     (5,564)      2,078       -37%
                                 ------      ------       -----           
  Total Stockholders Equity      26,987      46,015     (19,028)      -41%
                                 ------      ------     -------           
  Total Liabilities and                                                   
   Stockholders' Equity      $1,384,552  $1,307,497      77,055         6%
                             ==========  ==========      ======



  CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)                       
  First Mariner Bancorp  
  (Dollars in thousands)
                                                   
                                        For the three     For the twelve  
                                         months ended       months ended  
                                         December 31,       December 31, 
                                        2009     2008      2009      2008 
                                        ----     ----      ----      ---- 
  Interest Income:                                                        
    Investments and interest-                                             
     bearing deposits                   $715   $1,067    $3,071    $6,026 
    Loans                             14,358   13,715    56,739    57,299 
                                      ------   ------    ------    ------ 
  Total Interest Income               15,073   14,782    59,810    63,325 
                                                                          
  Interest Expense:                                                       
    Deposits                           5,897    6,371    24,874    24,584 
    Borrowings and repurchase                                             
     agreements                        1,502    2,689     7,824    10,300 
                                       -----    -----     -----    ------ 
  Total Interest Expense               7,399    9,060    32,698    34,884 
                                       -----    -----    ------    ------ 
                                                                          
  Net Interest Income Before                                              
   Provision for Loan Losses           7,674    5,722    27,112    28,441 
                                                                          
  Provision for Loan Losses            3,300    4,155    11,660    10,855 
                                       -----    -----    ------    ------ 
                                                                          
  Net Interest Income After                                               
   Provision for Loan Losses           4,374    1,567    15,452    17,586 
                                                                          
  Noninterest Income:                                                     
    Service fees on deposits           1,269    1,552     5,261     6,319 
    ATM Fees                             772      779     3,072     3,188 
    Gains on sales of mortgage loans   2,617    3,044    12,169     6,730 
    Other mortgage banking revenue       739      540     3,943     2,680 
    (Loss)/gain on sales of                                               
     investment securities, net         (640)  (4,631)   (2,516)   (5,376)
    Commissions on sales of                                               
     nondeposit investment products      117      120       540       816 
    Income from bank owned life                                           
     insurance                           372      374     1,377     1,505 
    Income (loss) on trading assets                                       
     and liabilities                     799     (740)    3,038      (814)
    Other                                 37      242     1,387     2,180 
                                          --      ---     -----     ----- 
  Total Noninterest Income             6,082    1,280    28,271    17,228 
                                                                          
  Noninterest Expense:                                                    
    Salaries and employee benefits     6,788    6,472    26,469    27,901 
    Occupancy                          2,165    2,472     8,974     9,369 
    Furniture, fixtures and                                               
     equipment                           645      857     2,941     3,425 
    Advertising                          184      200       915       922 
    Data Processing                      458      548     1,880     2,149 
    Professional services              1,447      670     3,866     1,669 
    Costs of other real estate owned   1,162    3,071     6,832     5,801 
    Valuation and secondary                                               
     marketing reserves                    -       93         -       355 
    FDIC Insurance                     1,069      324     3,480       887 
    Other                              3,041    4,135    12,477    12,776 
                                       -----    -----    ------    ------ 
  Total Noninterest Expense           16,959   18,842    67,834    65,254 
                                                                          
  Income Before Income Taxes          (6,503) (15,995)  (24,111)  (30,440)
                                                                          
  Income Tax Benefit                  (2,804)  (6,551)  (10,912)  (13,632)
                                      ------   ------   -------   ------- 
                                                                          
  Net Loss From Continuing                                                
   Operations                        $(3,699) $(9,444) $(13,199) $(16,808)
                                     =======  =======  ========  ======== 
                                                                          
  Discontinued Operations - Mariner                                       
   Finance                             $(119)    $384   $(9,085)   $1,721 
                                       =====     ====   =======    ====== 
                                                                          
  Net Loss                           $(3,818) $(9,060) $(22,284) $(15,087)
                                     =======  =======  ========  ========



  CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (UNAUDITED)            
  First Mariner Bancorp                                                  
  (Dollars in thousands)   
                                                
                                  For the three months ended December 31, 
                                           2009                2008 
                                     Average  Yield/     Average  Yield/ 
                                     Balance    Rate     Balance    Rate 
                                     -------    ----     -------    ---- 
  Assets:                                                                
    Loans                                                                
    Commercial Loans and LOC         $78,300    4.05%    $80,056    5.68%
    Comm/Res Construction             99,896    5.22%    113,357    5.75%
    Commercial Mortgages             352,818    6.59%    314,363    6.83%
    Residential Construction          47,805    6.75%     76,180    4.84%
    Residential Mortgages            160,984    5.48%    134,349    5.81%
    Consumer                         151,331    4.64%    144,279    5.30%
                                     -------             -------         
    Total Loans                      891,134    5.69%    862,584    5.99%
                                                                         
    Loans held for sale              118,044    5.06%     42,444    5.69%
    Trading and available for                                            
     sale securities, at fair                                            
     value                            40,192    6.62%     59,373    6.38%
    Interest bearing deposits         52,144    0.27%     81,266    0.50%
    Restricted stock                                                     
     investments, at cost              7,934    0.77%      7,137    0.99%
                                       -----               -----         
                                                                         
    Total earning assets           1,109,448    5.37%  1,052,804    5.54%
                                                                         
    Allowance for loan losses        (11,557)            (11,398)        
    Cash and other non earning                                           
     assets                          241,956             177,882         
                                     -------             -------         
                                                                         
  Total Assets                    $1,339,847          $1,219,288         
                                  ==========          ==========         
                                                                         
  Liabilities and Stockholders' 
   Equity:                                  
    Interest bearing deposits                                            
    NOW deposits                       7,150    0.72%      6,549    0.92%
    Savings deposits                  53,539    0.29%     51,841    0.34%
    Money market deposits            167,575    0.87%    171,407    1.23%
    Time deposits                    763,832    2.85%    597,861    3.85%
                                     -------             -------         
    Total interest bearing                                               
     deposits                        992,096    2.36%    827,658    3.06%
                                                                         
    Borrowings                       196,514    3.03%    216,613    4.94%
                                     -------             -------         
                                                                         
    Total interest bearing                                               
     liabilities                   1,188,610    2.47%  1,044,271    3.45%
                                                                         
    Noninterest bearing demand                                           
     deposits                        112,748             118,247         
    Other liabilities                  7,434                 387         
    Stockholders' Equity              31,055              56,383         
                                      ------              ------         
                                                                         
  Total Liabilities and                                                  
   Stockholders' Equity           $1,339,847          $1,219,288         
                                  ==========          ==========         
                                                                         
  Net Interest Spread                           2.90%               2.09%
                                                                         
  Net Interest Margin                           2.72%               2.12%



  CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (UNAUDITED)             
  First Mariner Bancorp                                                   
  (Dollars in thousands)  
                                                  
                                   For the twelve months ended December 31,
                                            2009                2008 
                                      Average  Yield/     Average  Yield/ 
                                      Balance    Rate     Balance    Rate 
                                      -------    ----     -------    ---- 
  Assets:                                                                 
    Loans                                                                 
    Commercial Loans and LOC          $87,421    5.05%    $79,533    6.01%
    Comm/Res Construction             102,097    5.24%    117,539    6.23%
    Commercial Mortgages              337,803    6.73%    298,864    7.40%
    Residential Construction           58,498    5.73%     87,831    6.26%
    Residential Mortgages             152,280    5.87%    104,167    5.92%
    Consumer                          151,246    4.54%    133,767    5.97%
                                      -------             -------         
    Total Loans                       889,345    5.81%    821,700    6.55%
                                                                          
    Loans held for sale                99,503    5.11%     59,925    5.75%
    Trading and available for                                             
     sale securities, at fair                                             
     value                             48,274    6.09%     75,501    5.94%
    Interest bearing deposits          71,963    0.15%     72,701    1.79%
    Restricted stock investments,                                         
     at cost                            7,770    0.28%      6,424    3.69%
                                        -----               -----         
                                                                          
    Total earning assets            1,116,855    5.36%  1,036,251    6.11%
                                                                          
    Allowance for loan losses         (11,979)            (10,301)        
    Cash and other non earning                                            
     assets                           211,015             270,302         
                                      -------             -------         
                                                                          
  Total Assets                     $1,315,891          $1,296,252         
                                   ==========          ==========         
                                                                          
  Liabilities and Stockholders' Equity:                                   
    Interest bearing deposits                                             
    NOW deposits                        6,784    0.65%     13,249    0.58%
    Savings deposits                   55,122    0.32%     54,898    0.33%
    Money market deposits             163,910    0.84%    210,003    1.47%
    Time deposits                     713,855    3.26%    525,700    4.04%
                                      -------             -------         
    Total interest bearing                                                
     deposits                         939,671    2.65%    803,850    3.06%
                                                                          
    Borrowings                        213,012    3.67%    208,096    4.94%
                                      -------             -------         
                                                                          
    Total interest bearing                                                
     liabilities                    1,152,683    2.84%  1,011,946    3.45%
                                                                          
    Noninterest bearing demand                                            
     deposits                         116,508             131,240         
    Other liabilities                   5,285              91,150         
    Stockholders' Equity               41,415              61,916         
                                       ------              ------         
                                                                          
  Total Liabilities and                                                   
   Stockholders' Equity            $1,315,891          $1,296,252         
                                   ==========          ==========         
                                                                          
  Net Interest Spread                            2.52%               2.66%
                                                                          
  Net Interest Margin                            2.43%               2.74%


DATASOURCE: 1st Mariner Bancorp



CONTACT:  Mark A. Keidel - EVP/COO, [phone]



Web Site:  http://www.1stmarinerbank.com/ 

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