The parent of Sovran Bank/Maryland said yesterday that it expects to add between $225 million and $250 million during the fourth quarter to its reserves for souring loans, wiping out the banking company's earnings for the three months.
C&S;/Sovran Corp., based in Atlanta, said the provision resulted primarily from a deteriorating real estate market in the Washington area that was pushing up the level of troubled assets -- including loans -- by about $200 million, to a total of $700 million. About $1.6 billion in loans, out of $33 billion in total loans, have been made in the Washington metropolitan area, said Scott Scredon, a company spokesman.
The company, with more than $50 billion in assets, said it expects to earn about $210 million, or $1.60 a share, for the year.
Sovran Bank/Maryland, which has about 2,100 employees in the state, had $4.35 billion in assets as of Sept. 30.
Bennett A. Brown, chairman and chief executive of C&S;/Sovran, also said the board, at its meeting Tuesday, "expressed its intention" to declare a regular quarterly dividend of 39 cents a share when it meets in January.