Baltimore Bancorp's 3rd-quarter earnings nearly flat Provident reports 5 percent increase

October 18, 1990

Baltimore Bancorp, parent of the Bank of Baltimore, reported virtually flat net income yesterday for the third quarter, which ended Sept. 30, compared with the same period a year ago.

The small gain -- 0.04 percent to $5.02 million -- resulted from a $1.1 million extraordinary credit realized from the bank's purchase of outstanding debt at an "advantageous price," said Gerald B. Kracke Sr., company spokesman.

The bank, with $3.5 billion in assets, said that it earned 39 cents a share in the quarter, unchanged from a year ago. Excluding the extraordinary credit, Baltimore Bancorp would have posted a 22.4 percent decline in net earnings compared with the year-ago period.

Chief Executive Harry L. Robinson said in a prepared statement that major contributors to earnings were gains in net interest margins, growth in income from fees and mortgage banking operations, and low net credit losses.

"The earnings seem to be pretty well on target," Mr. Kracke said.

The bank increased its provision for loan losses by 13 percent in the quarter, to $1.4 million, and its loans outstanding for the quarter were up 3 percent, to $2.3 million, compared with the same period a year ago.

In April, the bank received what it has called a hostile takeover bid from First Maryland Bancorp, owner of First National Bank of Maryland.

The company's stock closed down 12.5 cents yesterday, to $7 a share, on the New York Stock Exchange. The stock price is down more than $5 since second-quarter earnings were reported in July.

Baltimore-based Provident Bankshares Corp., parent of the 38-branch Provident Bank of Maryland, announced yesterday that its third-quarter net income was $1 million, or 17 cents a share, a 5 percent increase over the $956,000, or 16 cents a share, in the same quarter last year.

The third-quarter earnings reduced Provident's net loss for the first nine months of 1990 to $4.9 million, or 82 cents a share.

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