First Maryland Bancorp, the second largest banking operation in the state, reports a third-quarter net income of $16.3 million, which is 18 percent less than it reported for the same quarter a year ago when the company earned $19.9 million, which included $4 million in non-recurring gains.
First Maryland, the parent company of First National Bank of Maryland, is owned by Allied Irish Banks PLC of Dublin, Ireland.
"Earnings for the quarter represented a solid performance in a difficult business climate and compared well with the third quarter of 1989," said Charles W. Cole Jr., president and chief executive officer of First Maryland.
For the first nine months, the bank holding company had a net income of $42 million compared with $50.6 million during the same period a year ago.
First Maryland also maintained its strong capital position, with a total capital ratio of 11.17 percent, which is almost twice the 6 percent requirement of the Federal Reserve System.
However, the company did add $17.5 million to its loan-loss reserve, nearly double the $9.3 million it added in the 1989 third quarter.
A spokeswoman for First Maryland also said the company's offer to buy Baltimore Bancorp at $17 a share, pending an examination of the financial books, is still on the table. The board of directors of Baltimore Bancorp, the parent company of the Bank of Baltimore, has rejected the offer.
As of Sept. 30, First Maryland had assets of $7.7 billion, deposits of $5.3 billion, net loans of $5.3 billion and stockholders' equity of $531.2 million.