Hale: First Mariner stock at lowest point

First Mariner Bancorp CEO Edwin F. Hale Sr. said he believes the bank's stock has reached its lowest point and could soon rebound, despite concerns about the continued fallout of the national credit crisis and the bank's 2007 performance.

During the bank's annual shareholders meeting, held at the Clarence "Du" Burns Arena Friday morning, Hale said he is optimistic about the coming year, an outlook that runs contrary to the Canton-based lender's stock trading at 50 percent less than book value.

"We don't understand it," Hale told stockholders of the stock's activity.

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For the year, First Mariner posted a net loss of about $10 million, or $1.57 per share, down from a profit of $1.9 million, or 29 cents a share, in 2006.

Shares of First Mariner (NASDAQ: FMAR) closed at $4.13 May 1.

Touching on the extent of the housing slump, Hale noted First Mariner was forced to lay off about 150 people and close the wholesale lending operations of First Mariner Mortgage in 2007.

The bank plans to close its Ocean City, Randallstown and Towson branches in the coming year, Hale said, but has been pleased with the performance of its Hickory branch in Harford County.

The layoff news did not appear to trouble shareholders. In fact, Hale's comments drew only one response from a shareholder, who questioned why few of the bank's directors hold more than $1,000 in First Mariner stock. About three dozen people, including company directors, attended the early-morning meeting.

The shareholders also voted down what has been an annual shareholder proposal to require the positions of chairman and CEO to be held by two different people. Hale holds both positions.

The proposal to separate the jobs, by Charlotte, N.C., shareholder John F. Maas, failed with about 60 percent of votes cast in favor of the proposal and 40 percent against it.