Profits rose 93% at First Maryland in first quarter

April 23, 1992|By David Conn | David Conn,Staff Writer

First Maryland Bancorp, coming off a year with record earnings, reported a strong first quarter yesterday as profits nearly doubled compared with the year-ago period.

The company, parent of the First National Bank of Maryland, earned $20 million in the three months that ended March 31, compared with earnings of $10.4 million a year ago. Earnings in the fourth quarter of last year were $23.4 million.

First Maryland, a subsidiary of AIB Group of Dublin, Ireland, doesn't report per-share income.

The positive results in the latest quarter came from "increases in fee income, lower provisions for possible credit losses and continued attention to expense control," said Charles W. Cole Jr., First Maryland's president and chief executive officer.

The company said it wrote off $12 million in bad loans during the quarter, about the same amount as last year, but new reserves set aside for future bad loans dropped 40 percent this year, to $14.3 million. Those additions to reserves are deducted from earnings.

Although upbeat about his company, Mr. Cole had little positive to say about the economic climate. "Confidence in a tentative improvement in economic indicators remains weak," he said in a statement.

"Economic growth will falter until the national budget deficit is reduced and a strategically designed tax policy is implemented at both the national and state levels to foster economic growth."

First Maryland, with $9 billion in assets, was among the shrinking group of banking companies in the region that grew over the past year. It assets were up 16 percent compared with the 1991 first quarter, while deposits rose 19.2 percent, to $6.9 billion.

Both figures were boosted by the company's $130 million cash purchase last year of York Bank and Trust Co. in York, Pa., which had $1.5 billion in assets and 22 branches. First Maryland also acquired $163 million in deposits of the failed Vermont Federal Savings Association F.A. last year.

The banking company's Irish-owned parent is expected to sell $100 million in subordinated notes this quarter, in part to help pay the debt incurred in the acquisitions.

Three months ended 3/31/92

.. .. .. .. Income .. .. .. .. Share

'92 . .. ..19,987,000 . .. .. .. --

'91 . .. ..10,366,000 . .. .. .. --

% change .. .. . +92.8 . .. .. .. --

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

'92 . .. .9,052,263,000 .. ..6,940,384,000

'91 . .. .7,803,625,000 .. ..5,821,185,000

% change .. .. ... +16.0 .. .. .. .. . +19.2

Loan portfolio

Three months ended 3/31/92

.. .. .. .. Loans outstanding .. .. .. .. Net charge-offs

'92 . .. ..5,270,025,000 ... .. .. .. ..12,022,000

'91 . .. ..4,853,420,000 ... .. .. .. ..12,292,000

% change .. .. .. .. +8.6 .. .. .. .. .. .. .. . 2.2

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

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

'92 . .. ..14,308,000 .. .. .. .. .. .. . 206,684,000

'91 . .. ..23,908,000 .. .. .. .. .. .. .170,029,000

% change .. .. .. 40.2 .. .. .. .. .. .. .. .. . +21.6

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