Baltimore Bancorp ekes out a profit, pares troubled assets

EARNINGS

January 28, 1993|By David Conn | David Conn,Staff Writer

Baltimore Bancorp barely eked out a profit in the fourth quarter last year while the banking company took steps to clean its books of a large amount of troubled assets.

But the company, parent of the Bank of Baltimore, easily exceeded capital requirements of federal and state regulators and turned in a profit during a year that began with fears that Maryland's fifth-largest banking company might not overcome its financial problems.

For the three months that ended Dec. 31, Baltimore Bancorp earned $312,000, or 2 cents a share, in contrast to a loss of $94.6 million, or $7.42 a share, a year earlier. But the numbers were disappointing compared with the $3.3 million third-quarter profit.

Earnings for 1992 reached $14.5 million, or $1.13 a share, contrasted with a loss of $126.5 million, or $9.94 a share, in 1991, a year that saw large amounts of loan problems.

Chairman and Chief Executive Officer Edwin F. Hale Sr., while celebrating the success of the company's one-year-old turnaround plan, said in a statement that "we clearly understand the challenges which remain and that our progress will be measured one quarter at a time."

Along with the lower-than-expected earnings, Baltimore Bancorp reported that reductions in the value of problem assets grew sharply in the quarter.

These write-offs amounted to $28.7 million in the quarter, the bulk from commercial and residential real estate construction loans, compared with less than $12 million in the first three quarters.

Treasurer David L. Spilman said the increase reflected "a flurry of activity and an attempt to get a lot of deals closed before the end of the year."

Analyst John Bailey, of Ferris, Baker Watts Inc., said he preferred focus on the company's progress in increasing its capital, which is the cushion of money that financial institutions must keep reserved to protect stockholders and the federal deposit insurer against possible losses.

"I'm looking at a bank that has honest-to-goodness strong capital ratios . . . and they've got real, positive operating income," Mr. Bailey said.

Investors, who had pushed Baltimore Bancorp's stock up more than 50 percent in the past two months, drove the stock down 75 cents a share yesterday, to a close of $8.375.

"There were higher expectations for fourth-quarter earnings," Mr. Spilman said, "and they're registering their disappointment."

Baltimore Bancorp

.. .. .. .. .. .. Ticker .. ..Yesterday's

... . ... .. .. ..Symbol

Cls... Chg.

.. .. .. .. .. .. BBB .. .. ..8 3/8 .. ..- 3/4

Period ended

Dec. 31 .. .. .. 4th qtr. Year ago .. Chg.

Net Income .. .. $312 .. .$(94,589) ..NA

Primary EPS .. ..$0.02 .. $(7.42) .. .NA

Annualized return

on avg. assets ..0.05% .. (11.5)%

Add. to allowance

for loan losses .$6,000 ..$71,116 ... -91.6%

.. .. .. .. .. ..12 mos. .. Year ago .. ..Chg.

Net Income .. .. $14,510 .. .$(126,489) .. NA

Primary EPS .. ..$1.13 .. .. $(9.92) .. .. NA

Annualized return

on avg. assets ..0.51% .. .. (3.77)%

Add. to allowance

for loan losses .$29,881 .. .$125,368 .. .- 76.2%

.. .. .. .. ... .. ... .. Balances as of .. .. .. .. .. .. 12/31/92 .. .. .. ..12/31/91

Assets .. .. .. ..$2,429,329 .. .. .. $3,186,293 .. -23.8%

Deposits .. .. .. $2,236,370 .. .. .. $2,947,978 .. -24.1%

Loans outst.* .. .$1,521,450 .. .. .. $1,949,233 .. -21.9%

Loan loss

reserve .. .. .. .$65,899 .. ... .. ..$77,368 .. .. -14.8%

Figures in thousands (except per share data.)

* Loans are net of unearned income.

Micros Systems Inc.

.. ... .. .. .. ... .. Ticker .. ..Yesterday's

.. .. .. .. .. .. .. ..Symbol .. ..Cls... Chg.

.. ... ... .... ... MCRS .. .. .20 1/2 .. -1 1/4

Period ended

Dec. 31 .. .. ..2nd qtr. .. ..Year ago .. .Chg.

Revenue .. .. .. $13,113 .. .. $11,770 .. ..+11.4%

Net Income .. .. $1,282 .. .. .$1,202 .. .. +6.7%

Primary EPS .. ..$0.16 .. .. ..$0.16 .. .. ..0.0%

.. .. .. .. .. ..6 mos. .. ... Year ago .. ..Chg.

Revenue .. .. .. $24,540 .. .. $20,236 .. .. +21.3%

Net Income .. .. $2,382 .. .. .$1,802 .. .. .+32.1%

Primary EPS .. ..$0.31 .. .. ..$0.24 .. .. ..+29.2%

Figures in thousands (except per share data.)

Citizens Bancorp

.. .. .. .. .. .. ..Ticker .. ..Yesterday's .. .. .. .. .. .. ..Symbol .. ..Cls. ..Chg.

... .... .... ...CIBC .. ... 24.. .. .+ 3/8

Period ended

Dec. 31 .. .. .. .. 4th qtr. .. ..Year ago .. ...Chg.

Net Income .. .. .. $5,900 .. .. .$1,000 .. ..+490.0%

Primary EPS .. .. ..NA .. .. .. ..NA .. ... .. ... NA

Annualized return

on assets .. .. .. . 0.73% .. .. . 0.13%

Add. to allowance

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

.. .. .. .. .. .. Year .. .. ... Year ago .. ... Chg.

Net Income ... ...$23,298 .. ... $20,269 .. .. +14.9%

Primary EPS .. .. $1.62 .. .. .. $1.44 .. ... .+12.5%

Annualized return

on avg. assets .. 0.75% .. .. .. 0.72%

Add. to allowance

for loan losses ..$14,514 .. .. .$15,044 .. .. -3.5%

.. .. .. .. .. .. .Balances as of .. .. ... ... ..... ..12/31/92 .. .. .. 12/31/91

Assets .. .. ... .. $3,243,206 .. .. ..$2,981,547 .. +8.8%

Deposits .. .. .. ..$2,838,203 .. .. ..$2,599,875 .. +9.2%

Loans outst. .. .. .$1,769,840 .. .. ..$1,856,300 .. -4.7%

Loan loss

reserve .. .. .. .. $24,058 .. .. .. ..$18,979 .. ..+26.8%

Figures in thousands (except per share data.)

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