T. Rowe Price Associates Inc.
Hit by the slumping activity in the stock market, this Baltimore-based mutual-fund company's profits dropped sharply during the fourth quarter, to $3.96 million, or 27 cents a share, from $7.4 million, or 50 cents a share, in the same period a year earlier.
The company, which acts as investment adviser to 34 T. Rowe Price mutual funds and private clients, blamed the decrease in earnings primarily on a decrease in investment income and other effects of a generally lower stock market.
For the last three months, the company reported that revenues from investment advisory and administrative fees collected from its mutual funds and private clients increased in the last quarter of 1990 compared with the amount collected in 1989's final three months. The higher earnings stemmed primarily from an increase in total assets under management to $29.4 billion at the end of last year from $28.2 billion a year earlier.
Investments and other income, however, were down $793,000 in the last quarter of last year, in contrast to income of $2.5 million in 1989's fourth quarter.
The company attributed its quarterly loss in that category to losses sustained by certain limited partnerships in which the company had investments. T. Rowe Price also had less cash available for investment during the second half of the year, leading to less income generated from those investments, said spokesman Steven E. Norwitz.
The decrease in cash reserves stemmed from an acquisition in April of $64.6 million in debt securities that had been issued by Mortgage and Realty Trust. The trust filed for bankruptcy protection in April.
For the year that ended Dec. 31, T. Rowe Price said, it had record revenues of $170 million, up nearly 7 percent from $159.5 million the year before. The company earned $20.9 million, or $1.42 a share last year, down from $29.7 million, or $2 a share, in 1989.
Three months ended 12/31/90
Revenue...............Net..........Share
'90 40,053,000.......3,964,000.....0.27
'89 42,614,000.......7,419,000.....0.50
% change...-6.0...........-46.6....-46.0
Twelve months ended 12/31/90
Revenue...............Net...........Share
'90 170,031,000.....20,921,000.....1.42
'89 159,531,000.....29,671,000.....2.00
% change... +6.6..........-29.5...- 29.0
Atlanfed Bancorp Inc.
This Baltimore-based parent of Atlantic Federal Savings Bank reported a large drop in earnings yesterday as the company moved to protect against a possible rise in troubled home mortgages.
Atlanfed, with 10 branches in Maryland, said its earnings dropped to $160,191, or 19 cents a share, for its third fiscal quarter, which ended Dec. 31, compared with income of $250,405, or 29 cents a share, for the same period a year earlier.
The thrift blamed the drop on a large increase in the amount it set aside to cover the cost of potentially souring loans. Unlike many of the large banking companies in the area, however, Atlanfed has virtually no commercial real estate loans. More than 90 percent of its loans are in home mortgages, the remainder primarily in consumer loans.
The company's earnings per share for 1989 have been restated toto reflect a 10 percent stock dividend paid in June.
Three months ended 12/31/90
...........Income......Share
'90......$160,191......$0.19
'89......$250,405......$0.29
% change.....36.0.......34.5
.......Assets.............Deposits
'90...$232,110,005....$171,821,592
'89...$222,620,835....$169,114,672
% change......+4.3............+1.6
Nine months ended 12/31/90
.........Income..........Share
'90.....$657,239..........0.77
'89.....$517,959..........0.60
% change...+26.9.........+28.3
Loan portfolio
Three months ended 12/31/90
........Loans outstanding... Net charge-offs
'90..........$212,933,523............$1,368
'89..........$200,679,344.........$(1,226)*
% change.............+6.1................--
.....Addition to allowance............Allowance
...........for loan losses......for loan losses
'90...............$179,919.............$501,311
'89.................$8,575.............$375,434
% change..........+1,998.2................+33.5
* The amount recovered on loans that had already failed exceeded the amount of loans written off during the quarter.