Loyola Capital Corp., the holding company for Loyola Federal Savings and Loan, reports that its profit dropped by half in the fourth quarter.
The Baltimore-based company reports earnings of $1.2 million, or 26 cents a share, compared with $2.6 million, or 52 cents a share, during the fourth quarter of 1989.
Net income for 1990 was $8.6 million, or $1.82 a share, compared with $10.5 million, or $2.08 a share, in 1989.
A $3 million gain on the sale of investment securities partially offset a higher loan-loss provision, the company reports.
Loyola says it added $7.1 million to its allowance for losses on loans and investments in real estate during the fourth quarter, up from $1.7 million in 1989.
The higher provision for losses reflects a conservative move to allow for possible future losses, as well as recognition of the potential effects of the slowdown in the mid-Atlantic economy, the company says.
The decision to increase the allowance for losses did not result from regulatory examinations, the company says.
During 1990, total assets declined by 2 percent to $2.1 billion and total deposits increased by 2.9 percent to $1.6 billion, Loyola says. Stockholders' equity of $135.9 million at year-end represented 6.5 percent of assets.