Provident's first-quarter earnings nearly tripled

April 21, 1994|By Timothy J. Mullaney | Timothy J. Mullaney,Sun Staff Writer

In earnings charts published in yesterday's Business section for Provident Bankshares Corp. and First Maryland Bancorp, the date on which the first quarter ended was reported incorrectly. The first quarter at both banking companies ended March 31. The name of Robinson Humphrey Co. Inc. was also misstated.

+ The Sun regrets the errors.

Provident Bankshares Corp. said yesterday its first-quarter earnings nearly tripled, as the bank took no provision for new bad loans for the second quarter in a row and continued a huge shift of its assets out of the bond market and into new loans.

The Baltimore-based parent of Provident Bank of Maryland earned $2.6 million, or 39 cents a share, in the three months that ended in March. That figure compares to $870,000, or 14 cents a share, in the same period last year, but the 1993 figure was held down by a $733,000 charge for an accounting change.

FOR THE RECORD - CORRECTION

The results for this year were slightly better than analysts had predicted; the Atlanta firm of Robinson Humphrey FORMAL had projected that the company would earn 35 cents.

The company's stock price closed yesterday at $24.50, down 50 cents.

The absence of any charge for loan losses reflects an improved real estate market that is allowing borrowers either to resume payments on their loans or to obtain long-awaited refinancing commitments that allow them to pay off Provident. Provident set aside $865,000 for loan losses in last year's first quarter.

The bank's earnings report said Provident now has three times as much money in its loan loss reserve, $20.7 million, as it has in nonperforming and past-due loans. The $865,000 saved by not adding to the reserve, plus the absence of the nonrecurring accounting charge, accounted for nearly all of the company's profit increase.

The company also had higher interest income and its income from fees rose sharply, but on a small base. Fee income in banking is most often made from commercial accounts, most of which prefer bigger banks than Provident, which has $1.8 billion in assets.

But those increases and other smaller-scale improvements in revenue were largely offset by a 19 percent jump in noninterest expenses.

Provident also reported that $1.2 billion of its assets, on average, were in loans during the quarter, up 60 percent over the year. The company's securities portfolio fell 40 percent to $437 million.

PROVIDENT BANKSHARES CORP.

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

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

.. .. .. .. .. . PBKS .. .. .. .. .. 24 1/2 ..+ 1/2

Period ended 1/31/94 .. .. .. .. .. 1st qtr. .. .. ... Year ago .Chg.

Net Income .. .. .. .. .. .. .. .. . $2,605 .. .. .... $870 .. . +199.4%

Primary EPS .. .. .. .. .. .. .. .. . $0.39 .. .. . .. $0.14 .. .+176.6%

Annualized return on assets .. .. .. .. .60 .. .. . . .22 .. .. .. .. .

Add. to allowance for loan losses .. .. . 0 .. .. .. ..865 .. . (100.0)

.. .. .. .. .. ..Balances as of ..1/31/94 .. .. .. .. 1/31/93

Assets .. .. .. .. .. .. .. .. .. .. $1,817 .. .. .. . . $1,672 . .+8.7%

Deposits .. .. .. .. .. .. .. .. .. $1,296 .. .. .. ... .$1,223 .. +5.9 %

Loans outst. .. .. .. .. .. ... .. . $1,188 .. .. .. .. .. $719 .. +65.3%

Loan loss reserve .. .. .. .. .. .. 20,658 .. .. .. .. . 20,603 .. +0.3

Figures in thousands (except per share data.)

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