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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;(1)&lt;/font&gt;&lt;/b&gt;&lt;b&gt;&lt;font style="FONT-SIZE: 3pt; FONT-WEIGHT: bold;" size="1"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;/font&gt;&lt;/b&gt; &lt;b&gt;&lt;font style="FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;Summary of Significant Accounting Policies&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-INDENT: 35.1pt; MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;i&gt;&lt;font style="FONT-STYLE: italic; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;Basis of Presentation&lt;/font&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 35.1pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The accompanying consolidated financial statements for First Mariner Bancorp have been prepared in accordance with the instructions for Form&amp;#160;10-Q and, therefore, do not include all information and notes necessary for a full presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (&amp;#8220;U.S.&amp;#8221;) (&amp;#8220;GAAP&amp;#8221;).&amp;#160; The consolidated financial statements should be read in conjunction with the audited financial statements included in First Mariner Bancorp&amp;#8217;s Annual Report on Form&amp;#160;10-K as of and for the year ended December&amp;#160;31, 2012.&amp;#160; When used in these notes, the terms &amp;#8220;the Company,&amp;#8221;&amp;#160; &amp;#8220;we,&amp;#8221;&amp;#160; &amp;#8220;us,&amp;#8221; and &amp;#8220;our&amp;#8221; refer to First Mariner Bancorp and, unless the context requires otherwise, its consolidated subsidiary.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 35pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The consolidated financial statements include the accounts of First Mariner and its wholly owned subsidiary, First Mariner Bank (the &amp;#8220;Bank&amp;#8221;). All significant intercompany accounts and transactions have been eliminated in consolidation. Events occurring after the date of the financial statements were considered in the preparation of the financial statements.&amp;#160; Certain reclassifications have been made to amounts previously reported to conform to classifications made in 2013.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 35.1pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The consolidated financial statements as of June&amp;#160;30, 2013 and for the three and six months ended June&amp;#160;30, 2013 and 2012 are unaudited but include all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of financial position and results of operations for those periods. The results of operations for the three and six months ended June&amp;#160;30, 2013 are not necessarily indicative of the results that will be achieved for the entire year or any future interim period.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 35pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The preparation of the financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses (the &amp;#8220;allowance&amp;#8221;), loan repurchases and related valuations, real estate acquired through foreclosure, impairment of AFS securities, valuations of financial instruments, and deferred income taxes. In connection with these determinations, management evaluates historical trends and ratios and, where appropriate, obtains independent appraisals for significant properties and prepares fair value analyses. Actual results could differ significantly from those estimates.&lt;/font&gt;&lt;/p&gt;
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