Bank of Maryland parent reports improved quarter Towson company still not in the black

November 03, 1992|By David Conn | David Conn,Staff Writer

Bank Maryland Corp., the Towson-based parent of the Bank of Maryland, said its results are continuing to improve compared with a year ago, despite the fact the company has yet to break into profitability.

The company said it lost $90,000, or 4 cents a share, in its third quarter ended Sept. 30, compared with a $2.5 million loss, or $1.24 a share, in the third quarter of 1991.

For the first nine months of the year, Bank Maryland lost $323,000, or 16 cents a share, compared with a loss of $3.4 million, or $1.66 a share a year ago.

The company's stock, which typically trades thinly over the counter, did not trade yesterday, but rose 75 cents a share, to close at $4.25, on Friday when the results were announced.

Much of the improvement came from a sharp decrease in the amount the company added to its reserves for possible loan losses -- to $100,000, from $2.48 million in the third quarter of 1991.

Still, the company continues to have a shortage of capital, which represents the cushion of money that financial institutions keep to protect stockholders and federal deposit insurance against losses.

Under an agreement with state and federal regulators signed this spring, the company agreed to raise its ratio of capital to assets to 6 percent by Sept. 30. But president and chief executive H. David Schumpert said yesterday that his company's capital on Sept. 30 amounted to only 4.26 percent of assets.

"We have approached the regulators and asked for an extension," Mr. Schumpert said, adding that the Federal Deposit Insurance Corp. is considering the bank's request to restructure some assets so they count toward regulatory capital.

The company lost $150,000 in the second quarter, and $83,000 in the first quarter. Earnings in those periods were improved by extraordinary gains that did not recur in the third quarter, Mr. Schumpert said.

, Three months ended 9/30

. ...................Income.,..................... Share

92..................(90,000)......................(0.04)

91....... .........(2,504,000)...................(1.24)

% change................. NA.........................NA

Annualized return on assets 92.....................(0.19%)

.........Addition to allowance.. ............ Net

.........for loan losses............. charge-offs

92.............100,000.................526,000 91..............2,475,000...............1,401,000

% change............-96.0................. ..-62.5

Nine months ended 9/30

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

92............(323,000)............... ....(0.16)

91.............(3,365,000)................,(1.66)

% change.............. NA......................NA

Balances as of /30/92

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

92............187,560,000...........169,522,000

91............207,611,000............186,089,000

% change............ -9.7...................-8.9

...................Loans............. Allowance

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

92...............123,883,000...........3,819,000

91................145,989,000...........5,043,000

% change................-15.1................-24.3

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.