First Maryland's earnings take a 5.4 percent jump Increase in new loans gives company a boost

April 18, 1996|By Bill Atkinson | Bill Atkinson,SUN STAFF

First Maryland Bancorp said yesterday that a surge in new loans sparked a 5.4 percent increase in first-quarter earnings to $30.1 million.

"We are pleased with that outcome, it is very much in line with our expectations," said Jeremiah Casey, chairman of the $10.5 billion-asset banking company, which is owned by Allied Irish Banks PLC of Dublin.

Mr. Casey said that earnings were driven in part by increases in revenues related to the company's trust business and mortgage banking operations.

Trust fees rose to $6.9 million, up 38 percent, and income from mortgage banking was up 30 percent to $5.2 million.

The company, however, still lags the industry in a key profitability ratio -- return on shareholder equity. First Maryland's ROE was 11.5 percent, which is lower than the industry's average of 14.68 percent at the end of 1995.

First Maryland's assets increased 13.1 percent to $10.5 billion, deposits were up 5.2 percent to $7 billion, and loans grew 10 percent to $6.2 billion.

"I'd have to say that there was a good solid pickup last year [in loans] and that has continued reasonably in the first quarter," Mr. Casey said.

He said its acquisition of 1st Washington Bancorp, a Herndon, Va.-based savings and loan holding company, is on track and should be completed within the next five months. He declined to comment on whether any other deals are in the works.

The 1st Washington deal was announced in January, and it will give First Maryland $801 million in assets and expand the company's franchise into Virginia for the first time. First Maryland will pay $83.5 million in cash to 1st Washington shareholders.

Pub Date: 4/18/96

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