Farm Credit posts $3.7 million loss

November 11, 1994|By Ted Shelsby | Ted Shelsby,Sun Staff Writer

The Farm Credit Bank of Baltimore, the state's largest agriculture lender, yesterday reported a third- quarter loss of $3.7 million.

The loss resulted primarily from a $15.5 million restructuring charge related to the bank's planned merger with the Farm Credit Bank of Columbia, S.C.

The deficit compared with a profit of $8.6 million during the three months that ended Sept. 30, 1993.

Without the restructuring charge, the bank would have posted net income of $11.8 million for the quarter that just ended.

As a result of its planned merger, 41 employees of the local bank have accepted an offer for early retirement.

Those reduced the number of workers to about 120, according to Reider J. White, vice president of communications for the Sparks-based cooperative agriculture lender.

The bank anticipates that only about 20 of the employees will be offered jobs with the Columbia bank when the merger is completed early next year.

The proposed merger is being reviewed by the Farm Credit Administration.

For the first nine months of the year, the bank had net income of $15.8 million, down from $31.4 million in the same period a year ago. Without the restructuring charge, the bank said, year-to-date earnings would have been $31.2 million.

The local Farm Credit Bank serves farmers in Maryland, Delaware, Pennsylvania, Virginia, West Virginia and Puerto Rico.

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