Mariners Bank Records 123% Increase in Profits

Taking advantage of a home construction spurt, Mariners Bank of San Clemente posted a record profit Thursday of $105,415 for the third quarter, a 123% increase over the $47,180 quarterly earnings recorded a year ago. Net income for the first nine months was $204,152, up 31% from the $155,772 for the same period in 1984.

The 2 1/2-year-old institution, which concentrates on financing custom home construction, found a more active market this year as lower interest rates spurred borrowers to build homes in south Orange County, said President and Chief Executive Officer Richard Korsgaard.

About 75% of the bank’s construction loans are made to owner-builders and the rest are made on a “conservative” speculative basis. “We have not had a problem with a construction loan since we opened,” Korsgaard said.

The bank listed total loans as of Sept. 30 at $17.2 million, up from $14.6 million at the same time a year ago. Total assets increased to $27.8 million from $19.7 million last year.

Construction loans, Korsgaard said, are typically in the range of $200,000 to $300,000 and, with low interest rates on permanent loans, are usually repaid before the one-year maturity.

Total deposits also increased to $25.3 million, up from $17.6 million a year ago, with demand deposits almost doubling to $16.6 million from $8.4 million.