First Md.'s 4th quarter profits drop

January 16, 1991|By Michelle Singletary | Michelle Singletary,Evening Sun Staff

First Maryland Bancorp, the second largest bank holding company in the state, has reported a 93.4 percent drop in its profit for the fourth quarter. The company reported earning $1.5 million compared with $22.7 million for the 1989 fourth quarter.

For the year, earnings dropped 40.7 percent, falling to $43.5 million from $73.3 million in 1989.

First Maryland, the parent company of First National Bank of Maryland, is owned by Allied Irish Banks PLC of Dublin, Ireland.

"Within the context of the recessionary economy, we are pleased to report continued profitability in 1990," said Charles W. Cole Jr., president and chief executive officer of First Maryland.

Cole said First Maryland's deposits grew by $1 billion in 1990, a 21 percent increase, and that the deposits were an important factor in First Maryland's "high level of liquidity."

Reserves for possible loan losses stood at $155 million, representing a 234 percent coverage of non-performing loans, which were $66 million as of Dec. 31.

At the end of December, First Maryland had assets of about $8.2 billion, deposits of nearly $6 billion, net loans of almost $5 billion and stockholders' equity of $525 million.

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