Still working its way out of bad commercial real estate loans, MNC Financial Inc., the state's largest bank holding company, reported a loss for the third quarter while Signet Banking Corp. and Provident Bankshares Corp. reported profits.
MNC Financial Inc., the parent company of Maryland National Bank and American Security Bank in Washington, yesterday reported it lost $59 million in the third quarter ended Sept. 30. But it made a profit for the first nine months, thanks to the sale of its credit-card subsidiary.
The quarterly loss, which amounts to 70 cents a share, is an improvement over the previous quarter, when MNC lost $82 million or 96 cents a share, and $114 million lower than the $173 million it lost during the third quarter of 1990.
For the first nine months of the year, MNC earned $12 million, or 8 cents a share, on the strength of its first-quarter earnings of $154 million, which were buoyed by proceeds from the sale of MBNA Corp., its credit-card operation.
The company's equity at the end of September was $1.1 billion, far above the federal government's requirements for equity-to-assets ratios.
MNC said the third-quarter loss was due primarily to foreclosure expenses and increases in credit loss reserves associated with its real estate portfolios.
The bank holding company said the amount of bad loans grew to $1.863 billion at the end of the quarter, up from $1.818 billion June 30, $1.793 billion March 31 and $1.822 billion at the end of 1990.
Richmond-based Signet bank, which has an extensive operation Maryland, had a third quarter net income of $11.2 million, or 41 cents a share, a 148 percent increase over the 1990 third quarter when the bank earned $4.5 million, or 17 cents a share.
For the first nine months, Signet had a net income of $25.9 million, or 96 cents a share, compared with $34.6 million, or $1.30 a share, for the same period a year ago.
Provident Bankshares, the parent of Provident Bank of Maryland, had a net income of $602,000, or 10 cents a share, a drop of 39.8 percent from 1990 third quarter earnings of $1 million, or 17 cents a share.
The third quarter results were the fifth consecutive profitable quarter for the Baltimore bank holding company.
The bank also declared a dividend of 5 cents a share, payable on Nov. 8 to stockholders of record at the close of business Oct. 28.
As did the other banks, Provident saw its earnings hurt by the continuing weak commercial real estate market.