Bank Maryland logs 1st quarter, '91 losses But results show performance has improved.

April 22, 1992|By David Conn | David Conn,Staff Writer

Towson-based Bank Maryland Corp. reported losses yesterday for 1991 and the first quarter of 1992, though each was about half the size of the comparable year-earlier loss.

The banking company, which owns the Bank of Maryland, blamed its 1991 loss of $4.5 million, or $2.25 a share, on the weak economy and the cost of its bad loans.

But the loss -- reported late because of a legal dispute concerning deposits purchased from another company -- was less than half the 1990 loss of $11 million, or $5.40 a share. The 1991 fourth-quarter loss was $1.2 million, in contrast to an $8,000 profit the year before.

For the first three months of this year, Bank Maryland reported a loss of $83,000, or 4 cents a share, compared with a loss of $165,000, or 8 cents a share, a year ago. The quarterly results were helped by a gain of $115,000 from loan recoveries previously classified as non-performing.

The first-quarter loss came primarily from the $425,000 added to reserves to cover bad loans, compared with $37,000 set aside a year ago. At the same time, the company realized a $537,000 gain from the sale of securities.

Bank Maryland's continued weak finances led to an informal agreement with state regulators and the Federal Deposit Insurance Corp., said Chief Financial Officer A. Gary Rever, that requires the company to boost capital to 6 percent of assets by Sept. 30, up from 3.86 percent.

He said his company has been working with investment bankers to identify assets for sale. In the last year, assets have been cut 7 percent to $196 million, and deposits have fallen 5.6 percent to $178 million.

The company has not reported an annual profit since 1987. But officials pointed to the shrinking pool of red ink as a benefit of last year's consolidation of Bank Maryland's six bank subsidiaries.

"Overall, we are beginning to see paybacks from our efforts to bring the organization to profitability," H. David Schumpert, Bank Maryland's president said yesterday.

Three months ended 3/31/92

.. .. .. .. .. ..Income (Loss) .. .. .. ..Share

'92 .. .. .. .. ..(83,000) .. .. .. .. (0.04)

'91 .. .. .. .. ..(165,000) .. .. .. ..(0.08)

% change .. .. .. .. -- .. .. .. .. .. .. .. --

.. .. .. .. .. ..Assets .. .. .. .. .. Deposits

'92 .. .. .. ..196,058,000 .. .. .177,588,000

'91 .. .. .. ..210,761,000 .. .. .188,164,000

% change .. .. ..-7.0 .. .. .. .. .. .. .. -5.6 TC 12 months ended 12/31/91

.. .. .. .. .. ..Income (Loss) .. .. .. ..Share

'91 .. .. .. .. .(4,541,000) .. .. .. .(2.25)

'90 .. ... .. .. (10,956,000) .. .. .. (5.40)

% change .. .. .. .. ..-- .. ... ... ... ... --

Loan portfolio

Three months ended 3/31/92

Loans outstanding Net charge-offs (recoveries)

'92 .. .. .. .. ..133,507,000 .. ..(115,000)

'91 .. .. .. ... .154,415,000 .. .. ..37,000

% change .. .. .. ..-13.5 .. .. .. .. .... .--

Addition to allowance .. .. .. .. .. Allowance

for loan losses .. .. .. .. .. for loan losses

'92 .. .. .. .. ..425,000 .. .. .. 4,443,000

'91 .. .. .. .. ..37,000 .. .. ... 3,798,000

% change .. .. .. .+1,048.6 .. .. .. .. .+17.0

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