Bank Maryland Corp., the newly created parent of Bank of Maryland, returned to profitability during the fourth quarter last year, reporting slight income as the company rebounded at the end of an otherwise difficult year.
The Towson-based company, with 13 branches in the state, said it earned $8,806, or less than 1 cent a share, in contrast to a loss of $1.4 million, or 74 cents a share, during the same period the year before.
For all of 1990, Bank Maryland lost nearly $11 million, or $5.40 a share, compared with a loss of $1.3 million, or 70 cents a share, in 1989. The company has about 2 million shares outstanding.
With the level of bad loans tapering off during the fourth quarter, the company's profit came after a relatively small addition Bank Maryland made to its reserves earmarked for additional souring loans.
The company said it set aside $33,000 for future loan losses, compared with $2.1 million in the third quarter last year and $1.2 million in the final three months of 1989.
Bank Maryland's troubled loans fell by the end of 1990 to $2.5 million from $3.5 million a year earlier as bad loans were either written off or restructured during the year.
In all, Bank Maryland, with $156 million in total loans outstanding, set aside $3.8 million during 1990 to protect against the possibility of additional loan losses.
"If we took anything more [in fourth-quarter loan-loss reserves], then we really would be over-reserved," said Terri D. Livesey, chief financial officer of Bank Maryland.