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Bad Loans

BUSINESS
By Bill Atkinson and Bill Atkinson,SUN STAFF | July 17, 2001
Provident Bankshares Corp. warned yesterday that its second-quarter earnings report will be delayed and the company will write off about $6 million in bad second-mortgage loans and another $1 million in interest on loans that it has already booked. The Baltimore-based banking company also said that it has identified $7 million worth of under-collateralized second-mortgage loans that could result in further write-offs. The company, which was scheduled to release second-quarter earnings tomorrow, postponed them until Aug. 6. "It is obviously a setback," said Peter M. Martin, chairman and chief executive of Provident.
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BUSINESS
By Bill Atkinson and Bill Atkinson,SUN STAFF | January 21, 2001
A nervous banker is a good banker, and there are plenty of nervous bankers these days. After eight years of surging profits and rapid loan growth, bankers are worried this year that the slowing economy will result in more problem loans and a stunted bottom line. Already, they are seeing signs of trouble, even though the Federal Reserve Board recently cut interest rates. Bad loans are growing, profit margins are shrinking, and income from fees charged consumers and corporate borrowers is declining.
BUSINESS
By KENNETH HARNEY | August 20, 2000
THE NATION'S largest source of mortgage money, Fannie Mae, quietly has terminated a loan program that brought the company into the rapidly appreciating equity stakes of older homeowners. The program has the potential to cost some borrowers 30 percent or higher per year in combined fees and interest. Though Fannie Mae made no formal public announcement, it ceased financing new "equity-share" reverse mortgages for seniors 62 years and older Aug. 10. Under the equity-share concept, a senior pays not only a regular interest rate but gives the lender the right to as much as 10 percent of the total value of the home at sale.
BUSINESS
By Bill Atkinson and Bill Atkinson,SUN STAFF | July 20, 2000
Provident Bankshares Corp., which has struggled with souring health care loans, said yesterday that second-quarter profit fell 15.9 percent after the company set aside $13 million for problem loans. The company made $9.2 million in the quarter that ended June 30, or 35 cents per diluted share, compared with $10.99 million, or 40 cents per diluted share, in the corresponding period a year earlier. Shares of Provident fell 25 cents to close at $14.125. Provident's recent problems stem from $30 million in loans to two large nursing home operators, Sparks-based Integrated Health Services Inc. and Genesis Health Ventures of Pennsylvania.
BUSINESS
By Bill Atkinson and Bill Atkinson,SUN STAFF | January 19, 1996
Crestar Financial Corp., which last month captured a chunk of Baltimore's banking market with the acquisition of Loyola Capital Corp., said yesterday that it earned a record $209.1 million for the year.Full-year earnings were up 14 percent from 1994 excluding nonrecurring merger charges associated with the Loyola acquisition, the company said.Crestar earned $55.6 million, or $1.28 a share, excluding the one-time charge of $29.3 million in the fourth quarter.Richard G. Tilghman, Crestar's chairman and chief executive, said the year was a success because the company completed five acquisitions and increased profits.
BUSINESS
By New York Times News Service | February 21, 1995
Remember the credit crunch, when executives and entrepreneurs around the country squawked that banks had raised standards so high that no one could get a loan?Well, the only crunch today is the sound of bankers slamming into each other as they race to shower loans on business and consumers.But now that banks are lending again with gusto, helping to fuel the rebound in the economy, banking officials warn that the industry is getting caught up in another frenzy likely to end badly. The fear is that banks are taking too many risks and losing sight of some cautious practices instituted after the collapse of the commercial real estate market in the late 1980s.
NEWS
By Jason DeParle and Stephen Engelberg and Jason DeParle and Stephen Engelberg,New York Times News Service | June 20, 1993
WASHINGTON -- After what its own auditors call years of neglectful management, the Department of Housing and Urban Development expects to lose as much as $11.9 billion as hundreds of apartment building owners default on their government-insured mortgages.Most of the losses, which are expected to occur in the next few years, would be borne by taxpayers through congressional appropriations. The troubled loans represent more than a quarter of the $43 billion in mortgages insured by the department under programs to encourage the construction of apartment buildings.
NEWS
By Knight Ridder News Service | March 5, 1993
WASHINGTON -- Ask investigators to name the best government computer systems and long silences are likely to follow. Ask for horror stories and the response is rapid.What follows are some of the worst cases cited by computer experts at the General Accounting Office, the House Government Operations Committee and agency inspectors general:* The Veterans Benefit Administration, concerned about taking an average of 151 days to decide whether a veteran was disabled, spent $94 million on a computer system to speed up claims.
BUSINESS
By New York Times News Service | January 20, 1993
Five of the nation's 10 largest banks reported higher tha expected earnings yesterday, leading banking experts to say that the end is in sight for the banking industry's troubles with real estate loans.The billions of dollars of loans, most of them made in the late 1980s for office buildings and other projects,had seemed so shaky just two years ago that government officials, bank executives and industry analysts had issued dire warnings.They said the banking industry might be in danger of a rash of failures similar to those that had earlier plagued savings and loans, forcing a costly federal bailout.
NEWS
By Joan Jacobson and Joan Jacobson,Staff Writer Staff writer Sandy Banisky contributed to this article | August 2, 1992
For two decades, Baltimore has struggled to rebuild itself from the waterfront to the inner city, luring developers with hundreds of millions of dollars in loans.The aid was targeted for projects that bankers deemed too risky to finance on their own, projects that helped create jobs and stabilize neighborhoods as Baltimore transformed itself from a dowdy old port city into a national attraction. Today, many of those projects are flourishing -- the glitzy hotels near the Inner Harbor, a Charles Street shopping arcade, an East Baltimore textile company, senior citizens' housing in North Baltimore.
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