Local bank unloading data operations

October 30, 1992|By David Conn | David Conn,Staff Writer

The Bank of Baltimore joined an industrywide wave yesterday by agreeing to send most of its data processing operations, including 45 employees, to a unit of Mellon Bank Corp.

The five-year contract with Mellon Information Systems in Pittsburgh is expected to save the Baltimore Bancorp subsidiary as much as $3 million a year by 1994. The savings would come "through the elimination of investments in excess capacity, obsolete equipment and outmoded computer software," the company said in a statement.

Mellon expects to take over the existing data processing department in Baltimore until about June 1993, when the operation is to be fully converted into one of its own centers in Pittsburgh or Philadelphia, said Debra DeCourcy, a Mellon spokeswoman.

Ms. DeCourcy declined to talk about employment details until Monday, when Mellon officials are scheduled to meet with the 45 Bank of Baltimore data processing workers who will be offered jobs with the Pittsburgh-based company.

The remaining 14 workers would stay with Baltimore Bancorp.

The agreement marks the second time in three months the company has restructured in an effort to cut expenses.

Last month, Baltimore Bancorp laid off 32 employees, including vice presidents, senior vice presidents and members of the support staff, as part of a realignment of several departments. The move was expected to save $1 million a year eventually.

Baltimore Bancorp, which lost more than $100 million last year, has reported profits in each of this year's first three quarters, totaling $14.2 million. Its stock rose 12.5 cents a share yesterday, to $7.25 on the New York Stock Exchange.

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