8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) October 21, 2008

FIRST MARINER BANCORP

(Exact name of Registrant as specified in Charter)

Maryland	000-21815	52-1834860
(State or other Jurisdiction	(Commission File Number)	(IRS Employer Identification
of incorporation)		No.)

1501 S. Clinton Street, Baltimore, MD 21224

(Address of Principal Executive Offices/Zip Code)

Registrant's telephone number, including area code: (410) 342-2600

Not Applicable

(Former name or former address of Registrant, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

INFORMATION TO BE INCLUDED IN THE REPORT

Item 2.02 Results of Operations and Financial Condition

On October 21, 2008, First Mariner Bancorp (the “Registrant”) issued a press release reporting its financial results for the third quarter ended September 30, 2008. A copy of this press release is being furnished as Exhibit 99.1 and is incorporated by reference into Item 2.02.

The information contained in this Item 2.02 and in Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits.

99.1      Press release dated October 21, 2008 (furnished herewith)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIRST MARINER BANCORP
Date: October 23, 2008	By:	/s/ Joseph A. Cicero
		Joseph A. Cicero
		President and Chief Operating Officer

EXHIBIT INDEX

Exhibit No	Description
99.1	Press release dated October 21, 2008 (furnished herewith)

EX-99.1

Exhibit 99.1

FIRST MARINER REPORTS 3r^d QUARTER RESULTS

Loss narrows compared to third quarter of 2007; Book Value ends quarter at $8.81 per share

Baltimore, MD (October 21, 2008) — First Mariner Bancorp (Nasdaq: FMAR), parent company of First Mariner Bank and Mariner Finance, LLC, announced that its loss for the third quarter of 2008 narrowed to $2.282 million (-$.36 per diluted share) compared to a reported net loss for the quarter ended September 30, 2007 of $3.581 million (-$.56 per diluted share). For the nine months ended September 30, 2008, First Mariner reported a net loss totaling $6.029 million (-$.95 per diluted share), compared to a net loss of $7.345 million (-$1.14 per diluted share) for the same period last year. First Mariner reported its total assets ended the third quarter at $1.277 billion.

Edwin F. Hale, Sr., First Mariner’s chairman and chief executive officer said, “We continue to experience the negative impact from the severe downturn in the residential real estate market and the unprecedented turmoil in the financial sectors of the economy. While the downturn in the market continues to affect our performance, our results are improved when compared to the third quarter of 2007.”

“We are seeing progress as our expense levels continue to moderate and our loan portfolio grows at a steady pace. Our mortgage banking operations (excluding residual ALT A losses) have improved significantly, we are seeing steady activity in our commercial lending business, and our consumer finance operations remain healthy.”

Mr. Hale announced that the Company completed measures in the third quarter to further streamline operations and lower operating expenses. During the third quarter First Mariner closed its Towson branch and settled on the sale of its Ocean City location. Recently completed restructuring of mortgage operations, the retail banking group and administrative functions will begin to contribute significant cost savings at the start of the fourth quarter of 2008. Additionally, during the third quarter, a consolidated loan workout group was formed to provide for more expedited resolution of problem assets and insure more efficient use of collection processes.

Mr. Hale concluded, “While the Treasury Department and state and federal banking agencies are taking prudent steps to address the challenges in the current operating environment, we are aggressively moving forward independent of government action to strengthen and position the bank for the future.”

Operating Summary

Comparing balance sheet data as of September 30, 2008 to September 30, 2007, total assets were $1.277 billion, compared to $1.246 billion last year. Loans outstanding increased $86 million (+10%). Commercial Real Estate loans outstanding increased by $24 million (+8%), while Mariner Finance receivables increased by $16 million (+22%), and Bank consumer loans increased by $16 million (+13%). Residential mortgage loans grew by $48 million, while construction loans declined by approximately $20 million. Total mortgage loan originations totaled $295 million for the third quarter of 2008, compared to $270 million for the same period of 2007. Deposits totaled $910 million (+1%) compared to $902 million at September 30, 2007. Certificates of deposit increased $145 million, reflecting continued shift out of money market accounts that decreased by $98 million. Noninterest bearing checking accounts decreased $32 million.

- Total revenue increased $1.894 million (+11%) (excluding net securities gains and losses)compared with the third quarter of 2007, primarily due to increased net interest income, and strong growth in fee based revenue.

- Average earning assets grew by $40 million, which, when coupled with an expansion of the Company’s net interest margin to 4.06% from 3.93% last year, resulted in an increase in net interest income of $819 thousand (+8%). The improvement in the margin resulted from a higher mix of loans as a percentage of earning assets.

- The provision for loan losses totaled $3.098 million compared to $2.411 million in the same quarter last year. Net charge-offs decreased $609 thousand reflecting lower charge-offs of mortgage loans. The allowance for loan losses was increased to $15.195 million from $11.906 million (+28%) at September 30, 2007, and totaled 1.62% of loans outstanding compared to 1.40% last year. The increase in the allowance is primarily related to higher levels of nonperforming loans and increased allowance coverage for residential real estate exposures. Non-performing assets increased to $55.702 million (4.36% of total assets) from $36.443 million (2.93% of total assets) last year. The increase is primarily attributable to higher levels of non-performing residential mortgage loans and residential construction and development loans. Accruing loans 90 days or more past due increased to $11.643 million (1.24% of total loans) from $7.792 million (.91% of total loans) last year.

- Non-interest income increased by $1.075 (excluding security gains and losses) million (+19%) due to increases in income from origination and sales of mortgages (+$445 thousand), reduced trading account losses (+$354 thousand), and the gain recognized on the sale of the Ocean City office (+$350 thousand).

- The Company recorded $745 thousand in losses on securities activities in the third quarter of 2008 compared to a gain of $56 thousand for the same period of last year. The Company recorded Other Than Temporary Impairment charge of approximately $1.0 million relating to a senior note of a large financial institution. Somewhat offsetting this charge was the sale of a portion of the Company’s trading account securities at recorded gains of $279 thousand.

- Noninterest expenses declined by $630 thousand (-3%). Provisions for valuation allowances and secondary marketing reserves and losses for the writedown or sales of foreclosed properties decreased by $2.148 million. Excluding these items, expenses increased $1.518 million, reflecting the impact of expanding consumer finance operations, increases in collection expenses, FDIC deposit insurance and compliance related expenses.

- Stockholders’ Equity decreased by $11.5 million, which decreased First Mariner’s book value per share to $8.81 compared to $10.79 as of September 30, 2007. Capital Ratios at the end of the quarter were as follows: Leverage Ratio = 6.3%; Tier 1 risk-based ratio = 7.4%; Total Capital Ratio = 13.3%. All capital ratios exceed levels to qualify for “Well Capitalized” status under current regulatory definitions.

ALT A Update

First Mariner results for the third quarter of 2008 included approximately $2.0 million in losses relating to its exposure to ALT A residential loans originated by its wholesale division which was closed in July of 2007. These charges included $814 thousand for losses on the sales of foreclosed assets or the writedown of foreclosed assets awaiting sales and $1.012 million for the chargeoff of loans previously repurchased or transferred. These charges totaled $1.8 million and $2.6 million in the second and first quarter of 2008, respectively, and $4.1 million in the third quarter of 2007. At the end of the third quarter, the Company had $7.7 million of ALT A residential loans in foreclosed assets awaiting sale which have been written down to approximately 60% of their original appraised values. Approximately 50% of the loans are for single family residential properties located in Northern Virginia, with the remainder made up of single-family properties in various other states. Additionally, the Company has $7.2 million of ALT A non performing loans with specific reserves totaling $1.8 million.

First Mariner Bancorp is a bank holding company with total assets of $1.277 billion. Its wholly owned banking subsidiary, First Mariner Bank, (total assets $1.216 billion) operates 25 full service bank branches in Baltimore, Anne Arundel, Harford, Howard, Talbot, and Carroll counties in Maryland, the City of Baltimore, and Shrewsbury, Pennsylvania. First Mariner Mortgage, a division of First Mariner Bank, operates retail offices in Central Maryland, the Eastern Shore of Maryland, and Massachusetts. First Mariner Mortgage also operates direct marketing mortgage operations in Baltimore City. Mariner Finance, LLC, (total assets $93 million) is a consumer finance subsidiary that currently operates branches in Maryland, Delaware, Virginia, New Jersey, and Tennessee. First Mariner Bancorp’s common stock is traded on the Nasdaq National Market under the symbol “FMAR”. First Mariner’s Web site address is 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.

Contact: Mark A. Keidel - SVP/CFO 410-558-4281

FINANCIAL HIGHLIGHTS (UNAUDITED)

First Mariner Bancorp

(Dollars in thousands, except per share data)

	For the three months ended September 30,
	2008			2007			$ Change			% Change
Summary of Earnings:
Net interest income	$	11,698		$	10,879			819			8	%
Provision for loan losses		3,098			2,411			687			28	%
Noninterest income		6,083			5,809			274			5	%
Noninterest expense		19,382			20,012			(630	)		-3	%
Loss before income taxes		(4,699	)		(5,735	)		1,036			-18	%
Income tax benefit		(2,417	)		(2,154	)		(263	)		12	%
Net loss		(2,282	)		(3,581	)		1,299			36	%
Profitability and Productivity:
Return on average assets		-0.71	%		-1.15	%		-			38	%
Return on average equity		-14.92	%		-19.78	%		-			25	%
Net interest margin		4.06	%		3.93	%		-			3	%
Net overhead ratio		3.94	%		4.64	%		-			-15	%
Efficiency ratio		104.62	%		120.32	%		-			-13	%
Mortgage loan production		295,573			269,714			25,859			10	%
Average deposits per branch		36,399			33,417			2,982			9	%
Per Share Data:
Basic loss per share	$	(0.36	)	$	(0.56	)		0.20			36	%
Diluted loss per share	$	(0.36	)	$	(0.56	)		0.20			36	%
Book value per share	$	8.81		$	10.79			(1.98	)		-18	%
Number of shares outstanding		6,452,775			6,336,284			116,491			2	%
Average basic number of shares		6,388,109			6,398,165			(10,056	)		0	%
Average diluted number of shares		6,388,109			6,398,165			(10,056	)		0	%
Summary of Financial Condition:
At Period End:
Assets	$	1,276,708		$	1,245,506			31,202			3	%
Investment Securities		60,916			85,114			(24,198	)		-28	%
Loans		939,592			853,263			86,329			10	%
Deposits		909,987			902,264			7,723			1	%
Borrowings and repurchase agreements		224,762			190,379			34,383			18	%
Stockholders' equity		56,830			68,362			(11,532	)		-17	%
Average for the period:
Assets	$	1,276,780		$	1,233,532			43,248			4	%
Investment Securities		79,882			87,828			(7,946	)		-9	%
Loans		926,491			835,122			91,369			11	%
Deposits		939,078			886,776			52,302			6	%
Borrowings and repurchase agreements		276,182			267,573			8,609			3	%
Stockholders' equity		60,696			71,809			(11,113	)		-15	%
Capital Ratios:
Leverage		6.3	%		7.5	%		-			-16	%
Tier 1 Capital to risk weighted assets		7.4	%		8.9	%		-			-17	%
Total Capital to risk weighted assets		13.3	%		14.9	%		-			-11	%
Asset Quality Statistics and Ratios:
Net Chargeoffs		2,446			3,055			(609	)		-20	%
Non-performing assets		55,702			36,433			19,269			53	%
90 Days or more delinquent loans		11,643			7,792			3,851			49	%
Annualized net chargeoffs to average loans		1.06	%		1.45	%		-			-27	%
Non-performing assets to total assets		4.36	%		2.93	%		-			49	%
90 Days or more delinquent loans to total loans		1.24	%		0.91	%		-			36	%
Allowance for loan losses to total loans		1.62	%		1.40	%		-			16	%

FINANCIAL HIGHLIGHTS (UNAUDITED)

First Mariner Bancorp

(Dollars in thousands, except per share data)

	For the nine months ended September 30,
	2008			2007			$ Change			% Change
Summary of Earnings:
Net interest income	$	35,579		$	33,544			2,035			6	%
Provision for loan losses		9,425			5,464			3,961			72	%
Noninterest income		18,659			18,167			492			3	%
Noninterest expense		57,249			58,136			(887	)		-2	%
Loss before income taxes		(12,436	)		(11,889	)		(547	)		5	%
Income tax benefit		(6,407	)		(4,544	)		(1,863	)		41	%
Net loss		(6,029	)		(7,345	)		1,316			18	%
Profitability and Productivity:
Return on average assets		-0.64	%		-0.79	%		-			-19	%
Return on average equity		-12.67	%		-13.16	%		-			-4	%
Net interest margin		4.20	%		3.99	%		-			5	%
Net overhead ratio		4.01	%		4.39	%		-			-9	%
Efficiency ratio		104.12	%		114.51	%		-			-9	%
Mortgage loan production		1,072,783			840,623			232,160			28	%
Average deposits per branch		36,399			33,417			2,982			9	%
Per Share Data:
Basic loss per share	$	(0.95	)	$	(1.14	)		0.19			17	%
Diluted loss per share	$	(0.95	)	$	(1.14	)		0.19			17	%
Book value per share	$	8.81		$	10.79			(1.98	)		-18	%
Number of shares outstanding		6,452,775			6,336,284			116,491			2	%
Average basic number of shares		6,368,985			6,416,247			(47,262	)		-1	%
Average diluted number of shares		6,368,985			6,416,247			(47,262	)		-1	%
Summary of Financial Condition:
At Period End:
Assets	$	1,276,708		$	1,245,506			31,202			3	%
Trading and available for sale securities		60,916			85,114			(24,198	)		-28	%
Loans		939,592			853,263			86,329			10	%
Deposits		909,987			902,264			7,723			1	%
Borrowings		224,762			190,379			34,383			18	%
Stockholders' equity		56,830			68,362			(11,532	)		-17	%
Average for the period:
Assets	$	1,262,609		$	1,246,309			16,300			1	%
Trading and available for sale securities		80,759			104,224			(23,465	)		-23	%
Loans		886,399			846,216			40,183			5	%
Deposits		928,599			901,964			26,635			3	%
Borrowings		268,367			259,744			8,623			3	%
Stockholders' equity		63,619			74,644			(11,025	)		-15	%
Capital Ratios:
Leverage		6.3	%		7.5	%		-			-16	%
Tier 1 Capital to risk weighted assets		7.4	%		8.9	%		-			-17	%
Total Capital to risk weighted assets		13.3	%		14.9	%		-			-11	%
Asset Quality Statistics and Ratios:
Net Chargeoffs		7,019			5,957			1,062			18	%
Non-performing assets		55,702			36,433			19,269			53	%
90 Days or more delinquent loans		11,643			7,792			3,851			49	%
Annualized net chargeoffs to average loans		1.06	%		0.94	%		-			13	%
Non-performing assets to total assets		4.36	%		2.93	%		-			49	%
90 Days or more delinquent loans to total loans		1.24	%		0.91	%		-			36	%
Allowance for loan losses to total loans		1.62	%		1.40	%		-			16	%

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

First Mariner Bancorp

(Dollars in thousands)

	As of September 30,
	2008			2007			$ Change			% Change
Assets:
Cash and due from banks	$	25,241		$	32,507			(7,266	)		-22	%
Interest-bearing deposits		50,310			83,950			(33,640	)		-40	%
Available-for-sale investment securities, at fair value		47,081			47,720			(639	)		-1	%
Trading Securities		13,835			37,394			(23,559	)		-63	%
Loans held for sale		58,784			54,395			4,389			8	%
Loans receivable		939,592			853,263			86,329			10	%
Allowance for loan losses		(15,195	)		(11,906	)		(3,289	)		28	%
Loans, net		924,397			841,357			83,040			10	%
Other real estate owned		16,466			19,404			(2,938	)		-15	%
Restricted stock investments, at cost		7,516			5,983			1,533			26	%
Property and equipment		50,822			52,611			(1,789	)		-3	%
Accrued interest receivable		6,783			7,305			(522	)		-7	%
Deferred income taxes		14,278			9,049			5,229			58	%
Bank owned life insurance		36,062			34,557			1,505			4	%
Prepaid expenses and other assets		25,133			19,274			5,859			30	%
Total Assets	$	1,276,708		$	1,245,506			31,202			3	%
Liabilities and Stockholders' Equity:
Liabilities:
Deposits	$	909,987		$	902,264			7,723			1	%
Borrowings		224,762			190,379			34,383			18	%
Junior subordinated deferrable interest debentures		73,724			73,724			-			0	%
Accrued expenses and other liabilities		11,405			10,777			628			6	%
Total Liabilities		1,219,878			1,177,144			42,734			4	%
Stockholders' Equity
Common Stock		323			317			6			2	%
Additional paid-in-capital		56,731			56,303			428			1	%
Retained earnings		3,574			12,454			(8,880	)		-71	%
Accumulated other comprehensive loss		(3,798	)		(712	)		(3,086	)		433	%
Total Stockholders Equity		56,830			68,362			(11,532	)		-17	%
Total Liabilities and Stockholders' Equity	$	1,276,708		$	1,245,506			31,202			3	%

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

First Mariner Bancorp

(Dollars in thousands)

	For the three months						For the nine months
	ended September 30,						ended September 30,
	2008			2007			2008			2007
Interest Income:
Investments and interest-bearing deposits	$	1,590		$	2,271		$	4,959		$	7,005
Loans		19,361			19,805			58,741			59,441
Total Interest Income		20,951			22,076			63,700			66,446
Interest Expense:
Deposits		6,039			6,999			18,213			20,908
Borrowings and repurchase agreements		3,214			4,198			9,908			11,994
Total Interest Expense		9,253			11,197			28,121			32,902
Net Interest Income Before Provision for Loan Losses		11,698			10,879			35,579			33,544
Provision for Loan Losses		3,098			2,411			9,425			5,464
Net Interest Income After Provision for Loan Losses		8,600			8,468			26,154			28,080
Noninterest Income:
Service fees on deposits		1,650			1,625			4,785			4,738
ATM Fees		804			813			2,409			2,384
Gains on sales of mortgage loans		1,922			1,429			3,686			3,479
Other mortgage banking revenue		613			661			2,490			2,010
(Losses) gains on sales of investment securities, net		(745	)		56			(745	)		943
Commissions on sales of nondeposit investment products		181			293			696			843
Commissions on sales of other insurance products		769			674			2,229			2,007
Income from bank owned life insurance		385			365			1,131			1,065
(Loss) on trading assets and liabilities		(73	)		(427	)		(73	)		(491	)
Other		577			320			2,051			1,189
Total Noninterest Income		6,083			5,809			18,659			18,167
Noninterest Expense:
Salaries and employee benefits		9,472			8,935			28,368			27,252
Occupancy		2,851			2,745			8,253			7,308
Furniture, fixtures and equipment		950			914			2,899			2,683
Advertising		134			95			722			1,015
Data Processing		538			505			1,601			1,419
Professional services		263			379			1,182			1,178
Costs of other real estate owned		1,032			2,039			2,730			2,962
Valuation and secondary marketing reserves		28			1,169			262			3,521
Other		4,114			3,231			11,232			10,798
Total Noninterest Expense		19,382			20,012			57,249			58,136
Loss Before Income Taxes		(4,699	)		(5,735	)		(12,436	)		(11,889	)
Income Tax Benefit		(2,417	)		(2,154	)		(6,407	)		(4,544	)
Net Income	$	(2,282	)	$	(3,581	)	$	(6,029	)	$	(7,345	)

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (UNAUDITED)

First Mariner Bancorp

(Dollars in thousands)

	For the three months ended September 30,
	2008						2007
	Average			Yield/			Average			Yield/
	Balance			Rate			Balance			Rate
Assets:
Loans
Commercial Loans and LOC	$	74,681			5.38	%	$	70,653			7.51	%
Comm/Res Construction		114,498			5.40	%		131,782			8.09	%
Commercial Mortgages		316,848			7.26	%		283,638			7.26	%
Residential Constr - Cons		90,749			5.52	%		91,919			8.16	%
Residential Mortgages		103,148			6.07	%		66,623			4.07	%
Consumer		226,567			12.70	%		190,507			13.26	%
Total Loans		926,491			7.90	%		835,122			8.63	%
Loans held for sale		47,649			6.21	%		87,336			6.75	%
Trading and available for sale securities, at fair value		79,882			6.24	%		87,828			5.92	%
Interest bearing deposits		64,302			1.85	%		68,310			5.15	%
Restricted stock investments, at cost		6,555			2.88	%		5,983			5.98	%
Total earning assets		1,124,879			7.33	%		1,084,579			8.02	%
Allowance for loan losses		(14,492	)					(12,129	)
Cash and other non earning assets		166,393						161,082
Total Assets	$	1,276,780					$	1,233,532
Liabilities and Stockholders' Equity:
Interest bearing deposits
NOW deposits		13,683			0.69	%		9,368			0.20	%
Savings deposits		56,130			0.31	%		55,731			0.31	%
Money market deposits		190,849			1.29	%		291,496			3.66	%
Time deposits		548,098			3.88	%		369,914			4.57	%
Total interest bearing deposits		808,760			2.97	%		726,509			3.82	%
Borrowings		276,182			4.64	%		267,573			6.22	%
Total interest bearing liabilities		1,084,942			3.39	%		994,082			4.47	%
Noninterest bearing demand deposits		130,318						160,267
Other liabilities		824						7,374
Stockholders' Equity		60,696						71,809
Total Liabilities and Stockholders' Equity	$	1,276,780					$	1,233,532
Net Interest Spread					3.94	%					3.55	%
Net Interest Margin					4.06	%					3.93	%

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (UNAUDITED)

First Mariner Bancorp

(Dollars in thousands)

	For the nine months ended September 30,
	2008						2007
	Average			Yield/			Average			Yield/
	Balance			Rate			Balance			Rate
Assets:
Loans
Commercial Loans and LOC	$	75,425			5.95	%	$	73,299			7.67	%
Comm/Res Construction		118,514			6.27	%		136,527			7.78	%
Commercial Mortgages		292,568			7.46	%		295,827			7.27	%
Residential Constr - Cons		91,422			6.68	%		92,604			8.44	%
Residential Mortgages		93,478			6.01	%		63,336			4.32	%
Consumer		214,992			13.15	%		184,623			13.34	%
Total Loans		886,399			8.31	%		846,216			8.62	%
Loans held for sale		65,577			5.74	%		83,054			6.95	%
Trading and available for sale securities, at fair value		80,759			5.84	%		104,224			5.43	%
Interest bearing deposits		69,559			2.30	%		64,865			5.12	%
Restricted stock investments, at cost		6,161			4.75	%		6,170			5.90	%
Total earning assets		1,108,455			7.58	%		1,104,529			7.97	%
Allowance for loan losses		(13,298	)					(12,104	)
Cash and other non earning assets		167,452						153,884
Total Assets	$	1,262,609					$	1,246,309
Liabilities and Stockholders' Equity:
Interest bearing deposits
NOW deposits		15,452			0.53	%		9,779			0.22	%
Savings deposits		55,742			0.31	%		58,329			0.31	%
Money market deposits		222,196			1.53	%		291,106			3.72	%
Time deposits		499,555			4.13	%		374,892			4.52	%
Total interest bearing deposits		792,945			3.07	%		734,106			3.81	%
Borrowings		268,367			4.94	%		259,744			6.17	%
Total interest bearing liabilities		1,061,312			3.54	%		993,850			4.43	%
Noninterest bearing demand deposits		135,654						167,858
Other liabilities		2,024						9,957
Stockholders' Equity		63,619						74,644
Total Liabilities and Stockholders' Equity	$	1,262,609					$	1,246,309
Net Interest Spread					4.04	%					3.54	%
Net Interest Margin					4.20	%					3.99	%