In contrast to the financial woes of other banks, Baltimore Bancorp, the parent company of the Bank of Baltimore, eked out slightly improved earnings in the third quarter.
The bank holding company had third quarter net income of $5.02 million, just $2,000 more than earnings for the third quarter in 1989. The earnings per share was 39 cents for both quarters.
However, this quarter's results got a special boost from an extraordinary credit of $1.1 million, which the bank received after repurchasing some long-term bonds, which it bought at a discount on the original amount. The bank had a similar credit of $70,000 in the third quarter of 1989.
Without those extraordinary credits, third quarter net income for the bank would have declined to $3.9 million from $4.9 million.
For the first nine months, the bank holding company had a net income of $15.5 million, or $1.21 per share, compared with $15.7 million, or $1.21 a share, for the same period a year ago.
The bank holding company is the fifth largest banking operation in Maryland with total assets of $3.5 billion as of Sept. 30, down 0.1 percent from a year ago.
jTC Baltimore Bancorp, which is traded on the New York Stock Exchange, closed at $7 a share yesterday, down 12 1/2 cents. The earnings report was released at 5:30 p.m. after the stock market had closed.
Gerald D. Kracke, a spokesman for Baltimore Bancorp, said there was "no particular reason" for releasing the report after normal business hours. "We release it as soon as we get it approved [by the board of directors.]"
Kracke said the bank has been not examined by regulators since March when the Federal Deposit Insurance Corp. did an inspection.
The bank holding company has been the object of a takeover bid by First Maryland Bancorp, the state's second largest banking operation and the parent company of First National Bank of Maryland.
In April, First Maryland, which is owned by Allied Irish Banks PLC of Dublin, Ireland, offered $17 a share, or a total of $217 million, for Baltimore Bancorp.
But Baltimore Bancorp's directors rejected the offer on May 16 over the vocal opposition of some shareholders. Though there has been little activity lately, First Maryland officials have said the offer still stands.
In a press release, Harry L. Robinson, chairman and chief executive officer of Baltimore Bancorp, attributed the earnings to gains in net interest margins, significant growth in other operating income from fees and mortgage banking operations and continued low levels of net credit losses.
A drop in investment gains was compensated by the extraordinary credit from the purchase of the debt, Robinson said.
As of Sept. 30, non-performing loans were 0.81 percent of total loans compared with 0.65 percent a year ago. Net loan charge-offs on an annualized basis were 0.23 percent of average loans versus 0.19 percent in the third quarter of 1989.