Printer Friendly

BALTIMORE BANCORP REPORTS THIRD CONSECUTIVE QUARTERLY PROFIT; EXCEEDS REQUIRED TIER 1 LEVERAGE CAPITAL RATIO

 BALTIMORE BANCORP REPORTS THIRD CONSECUTIVE QUARTERLY PROFIT;
 EXCEEDS REQUIRED TIER 1 LEVERAGE CAPITAL RATIO
 BALTIMORE, Oct. 21 /PRNewswire/ -- Baltimore Bancorp (NYSE:BBB), parent company of The Bank of Baltimore, today reported its third consecutive quarterly profit with net income of $3.301 million, or $.26 per share, for the quarter ended Sept. 30, 1992, compared with a net loss of $39.983 million, or $3.14 per share, for the third quarter of 1991.
 The interest margin rose to 3.30 percent for the third quarter of 1992, compared with 2.07 percent for the third quarter of 1991.
 For the nine months ended Sept. 30, 1992, net income amounted to $14.198 million, or $1.11 per share, compared with a net loss of $31.900 million, or $2.50 per share, for the first nine months of 1991. The nine-month return on average assets was .64 percent for 1992 versus a negative return of 1.26 percent for the corresponding 1991 period. The third quarter and nine month losses in 1991 reflected substantial loan loss provisions and interest income reversals related to the identification of nonperforming assets by new management.
 Alan M. Leberknight, chief executive officer of The Bank of Baltimore and president of Baltimore Bancorp, said, "Of particular significance in reporting these results is that the bank's adjusted Tier 1 leverage capital ratio for regulatory purposes rose to 4.53 percent at September 30, 1992, a level which already exceeds the 4.50 percent specified by bank regulators as the minimum ratio required by December 31, 1992. We are pleased that current performance is tracking our Business Plan and has allowed us to reach this important goal ahead of schedule."
 The adjusted Tier 1 leverage capital ratio is computed by dividing the bank's stockholder's equity at Sept. 30, 1992, by average assets for the quarter ended Sept. 30, 1992. Based upon the bank's assets at Sept. 30, however, the capital-to-assets ratio was 4.68 percent. The adjusted Tier 1 leverage capital ratio was 3.34 percent at Dec. 31, 1991.
 Edwin F. Hale Sr., chairman of the board, added, "In addition to our continued solid performance for the third quarter, we are encouraged by the early interest in our new Dividend Reinvestment and Stock Purchase Plan. Although dividends were suspended indefinitely in October 1991, stockholders invested over $550 thousand in September to purchase 93,000 shares of common stock, which will be issued in October. We expect to see even greater participation in the months ahead, which would help us consummate our capital plan sooner."
 The new Plan offers stockholders the ability to make optional cash deposits for the direct purchase of additional shares of Baltimore Bancorp Common Stock at a 5 percent discount to an average market price without payment of any brokerage commission or service charge. The company registered 2,000,000 shares under the Plan, which became effective in September.
 Core earnings (calculated as income before the provision for possible loan losses, other real estate owned expense, nonrecurring items and income taxes) amounted to $8.814 million for the quarter ended September 30, 1992, compared with $1.710 million for the third quarter of 1991. Core earnings for the nine months ended September 30, 1992 amounted to $26.359 million, 56 percent higher than core earnings of $16.940 million for the first nine months of 1991. The increase related principally to increases in net interest income and mortgage banking revenues.
 Other operating income for the third quarter of 1992 included $1.2 million of income from the sale of mortgage servicing and an additional $4.6 million from a final income tax settlement following a favorable U.S. Supreme Court decision. This latter issue related to a previously disallowed loss deduction on a mortgage loan swap in 1981, and has involved complex calculations of taxes and interest credits for the intervening years. The second quarter of 1992 included $7.0 million of estimated interest income from the same tax settlement, and a preliminary estimate of $2.9 million was recognized in the second quarter of 1991. Other operating income was reduced, in the third quarter of 1992, by a $1.2 million provision for possible losses on a joint venture project secured by residential real estate.
 Nonperforming assets were $230.5 million at Sept. 30, 1992, compared with $226.1 million at June 30, 1992, and $237.3 million at Dec. 31, 1991. Real estate owned expense was $3.710 million for the third quarter of 1992 compared with $5.967 million a year earlier. Real estate owned has been written down, on a cumulative basis, to approximately 57 percent of the original loan amounts.
 Loans charged off, net of recoveries, amounted to $5.9 million for the third quarter of 1992, compared with $5.1 million for the second quarter of 1992 and $9.5 million for the third quarter of 1991. The allowance for possible loan losses was $88.6 million at Sept. 30, 1992, compared with $88.5 million at June 30, 1992, producing a coverage ratio of 50.9 percent of nonperforming loans at Sept. 30, 1992, compared with 52.3 percent at June 30, 1992.
 Baltimore Bancorp is a $2.7 billion Baltimore-based bank holding company. Its principal subsidiary, The Bank of Baltimore, founded in 1818, operates 47 branches within the Baltimore-Washington Common Market.
 BALTIMORE BANCORP
 (In thousands, except per-share data)
 Quarter Ended September 30 1992 1991 Pct.
 change
 Results of Operations:
 Net interest income $21,877 $16,368 34
 Provision for poss.loan losses 6,000 46,982 (87)
 Other operating income 13,592 4,800 183
 Investment securities gains (442) (3,936) 89
 Other operating expenses 25,702 28,984 (11)
 Income taxes (benefit) 24 (18,736) 100
 Income before extraord. item 3,301 (39,998) 108
 Extraordinary item (A) 0 15 (100)
 Net income (loss) 3,301 (39,983) 108
 Per Share:
 Income before extraord. item $ 0.26 $ (3.14) 108
 Extraordinary item (A) 0.00 0.00 --
 Net income (loss) 0.26 (3.14) 108
 Cash dividends declared -- 0.10 (100)
 Average Balances:
 Investment securities $ 460,233 $ 750,613 (39)
 Loans (net of unearned income) 1,648,374 2,309,286 (29)
 Earning assets 2,664,607 3,205,211 (17)
 Total assets 2,788,453 3,396,365 (18)
 Core deposits (B) 2,055,848 2,186,614 (6)
 Total deposits 2,565,264 2,804,399 (9)
 Stockholders' equity 119,331 229,861 (48)
 Earnings Ratios: PCT. PCT.
 Return on average total assets 0.47 (4.71) --
 Return on average equity 11.07 (69.58) --
 Yield on avg. earning assets 3.30 2.07 --
 Credit Ratios:
 Net loan losses to avg. loans 1.44 1.64 --
 (A) Gain, net of taxes, from early extinguishment of debt.
 (B) Total deposits excluding certificates of deposit $100,000 and over and broker deposits.
 BALTIMORE BANCORP
 (In thousands, except per share data)
 Nine Months Ended September 30 1992 1991 Pct.
 change
 Results of Operations:
 Net interest income $65,111 $57,833 13
 Provision for poss.loan losses 23,881 54,252 (56)
 Other operating income 39,566 18,007 120
 Investment securities gains 2,313 (1,159) 300
 Other operating expenses 68,523 69,652 (2)
 Income taxes (benefit) 388 (17,110) 102
 Income before extraord. item 14,198 (32,113) 144
 Extraordinary item (A) -- 213 (100)
 Net income (loss) 14,198 (31,900) 145
 Per Share:
 Income before extraord. item $ 1.11 $ (2.52) 144
 Extraordinary item (A) -- 0.02 (100)
 Net income (loss) 1.11 (2.50) 144
 Cash dividends declared -- 0.40 (100)
 Book value 9.53 15.84 (40)
 Common stock mkt. value (NYSE) 6.500 7.250 (10)
 At September 30:
 Investment securities $ 476,069 $ 749,784 (37)
 Loans (net of unearned income) 1,672,553 2,295,023 (27)
 Earning assets 2,547,000 3,192,434 (20)
 Total assets 2,687,797 3,367,191 (20)
 Core deposits (B) 2,022,709 2,154,394 (6)
 Total deposits 2,468,954 2,766,838 (11)
 Stockholders' equity 121,397 201,982 (40)
 Common shares outstanding 12,737 12,748 --
 Average Balances:
 Investment securities 594,187 751,552 (21)
 Loans (net of unearned income) 1,744,452 2,265,033 (23)
 Earning assets 2,826,192 3,204,886 (12)
 Total assets 2,971,915 3,381,917 (12)
 Core deposits (B) 2,153,490 2,170,302 (1)
 Total deposits 2,736,487 2,866,528 (5)
 Stockholders' equity 113,806 235,151 (52)
 Earnings Ratios: PCT. PCT.
 Return on average total assets 0.64 (1.26) --
 Return on average equity 16.63 (18.09) --
 Yield on avg. earning assets 3.09 2.44 --
 Credit Ratios:
 Nonperform loans/total loans 10.41 7.92 --
 Nonperform assets/total assets 8.57 6.60 --
 Allowance to total loans 5.30 3.14 --
 Allowance to nonperform loans 50.89 39.63 --
 Net loan losses to avg. loans 0.97 1.05 --
 Capital Ratios (period-end):
 Equity to total assets 4.52 6.00 --
 Tier 1 risk-based cap. (1992) 5.42 5.89 --
 Total risk-based cap. (1992) 7.01 7.41 --
 (A) Gain, net of taxes, from early extinguishment of debt.
 (B) Total deposits excluding certificates of deposit $100,000 and over and broker deposits.
 -0- 10/21/92
 /CONTACT: David L. Spilman, treasurer and director of Investor Relations, 800-722-8823/
 (BBB) CO: Baltimore Bancorp ST: Maryland IN: FIN SU: ERN


CC -- PH029 -- 2888 10/21/92 12:25 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1992
Words:1585
Previous Article:CP&L REPORTS THIRD QUARTER EARNINGS
Next Article:STONE & WEBSTER REPORTS EARNINGS
Topics:


Related Articles
CAPITAL BANCORP REPORTS 48 PERCENT INCREASE IN THIRD-QUARTER EARNINGS
BALTIMORE BANCORP REPORTS FOURTH QUARTER PROFIT; EXCEEDS REQUIRED CAPITAL RATIOS; REDUCES NONPERFORMING ASSETS
BALTIMORE BANCORP RAISES ADDITIONAL CAPITAL; REPORTS INSIDER BUYING AND CONCLUSION OF BANK EXAMINATION
CAPITAL BANCORP REPORTS 49 PERCENT INCREASE IN EARNINGS DURING 1992
CAPITAL BANCORP REPORTS RECORD EARNINGS IN FIRST QUARTER 1993
BALTIMORE BANCORP REPORTS FIRST QUARTER PROFIT; PLANS TO RAISE ADDITIONAL CAPITAL
CAPITAL BANCORP REPORTS 44 PERCENT INCREASE IN SECOND-QUARTER EARNINGS
BALTIMORE BANCORP REPORTS THIRD QUARTER EARNINGS; REDUCES NONPERFORMING ASSETS BY 25 PERCENT; MEETS FINAL C&D TARGET
CAPITAL BANCORP REPORTS 44% INCREASE IN EARNINGS DURING 1993
CAPITAL BANCORP REPORTS $4.2 MILLION THIRD-QUARTER EARNINGS Highest Quarterly Earnings in Company's History

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters