Bank Maryland ekes out profit

January 24, 1991

Bank Maryland Corp., a Towson-based bank-holding company, eked out a $8,806 profit, 0.44 of 1 cent per share, during the fourth quarter. However, it was an improvement over the 1989 fourth quarter when the company had a $1.4 million loss, or 74 cents a share.

For the year, the company had a loss of $11 million, or $5.40 a share, an eight-fold increase in red ink over 1989 when the company lost $1.3 billion, or 70 cents a share.

Bank Maryland is the parent company of Bank of Maryland, which has 13 branches in the state and had total assets of $218.7 million at the end of last year. The company has not had an annual profit since it was formed in January 1987.

Bank Maryland added $33,000 to its loan-loss reserves during the fourth quarter, compared with $2.1 million in the 1989 fourth quarter. The bank's total loan-loss reserves stood at $3.8 million, or 2.43 percent of total loans and 152 percent of non-performing loans. E. Neil Jacobs, president and chief executive officer of Bank Maryland, said this level is "prudent."

Even though the company will save money from the consolidation last year of its six affiliated banking operations, Jacobs warned of potential problems ahead. "Further deterioration in the economy creates concerns as to the ability to forecast continued favorable operating results," he said.

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