Provident posts 21.7% gain for quarter, to $9.7 million CEO Peter Martin credits mortgage performance


July 16, 1998|By Shanon D. Murray | Shanon D. Murray,SUN STAFF

Provident Bankshares Corp. reported yesterday a 21.7 percent increase in net income for the quarter that ended June 30 and raised its second-quarter cash dividend by half a cent, to 13.5 cents.

Net income in the quarter was $9.7 million, or 38 cents a diluted share, up from $8 million, or 33 cents a share, in the same period last year.

Assets, led by strong consumer loan growth, totaled $4.5 billion at the end of the quarter, 11.7 percent more than in the same quarter last year, the Baltimore-based banking company said.

The quarter's main strength rested in the company's mortgage business, said Peter M. Martin, chairman and chief executive.

Provident Mortgage Corp. originated $218 million in first mortgage loans during the period, compared with $71 million during the second quarter of 1997.

"We're pleased with the performance of our mortgage company and pleased with the quarter," Martin said.

"We put a lot of effort in our mortgage company over the last couple of years. We changed the way we operated and we think it's been a good formula."

Martin also credited the "tremendous refinancing marketing" for

the bank's increase in the mortgage business.

Provident exceeded the earnings estimate of Denis Laplante, an analyst at Fox-Pitt, Kelton Inc. in New York.

"We were looking for 36 cents and we've rated them attractive," Laplante said. "They've been growing the business locally and have stepped up things on the mortgage" side, he said.

"It looks like the quarter is in reasonably good shape," Laplante said.

Pub Date: 7/16/98

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