78 state-chartered banks see 1990 profits drop 53 percent


An article about state-chartered banks in some editions of yesterday's Money Today contained incorrect figures provided by the Office of the State Bank Commissioner.

Net income for 78 state-chartered banks declined by 52.8 percent in 1990 to $123 million and the Riverdale-based Citizens Bank & Trust Co. of Maryland had a net income of $25.9 million, according to the revised figures.

Hit by souring real estate loans, the 78 state-chartered banks saw their the consolidated net income drop by 49.2 percent in 1990, declining from $260.6 million to $132.4 million, according to report by the state bank commissioner's office.

The main reason for the drop was a nearly four-fold increase in provisions for loan and lease losses, which increased to $252.1 million from $64.3 million in 1989, according to the report.

The figures do not reflect the performance of Maryland's 26 federally-chartered banks, which include the two largest banks in the state, Maryland National Bank and First National Bank of Maryland.

Year-end figures for national banks as a group were not available.

Assets of state-chartered banks increased by 6 percent from $26 billion to $27.6 billion. Equity capital rose only 1.5 percent from $1.96 billion to $1.99 billion.

"They made money, that is the important thing," commented Maryland Bank Commissioner Margie H. Muller.

She said the large provisions for loan losses come as the banks are scrutinizing their portfolios for bad loans. Muller said she believes the banks will not have to add to their loan loss reserves if the recession is over in the next four to six months.

The biggest money loser of the state-chartered banks was the Towson-based Bank of Maryland, which lost 10 million.

The most profitable state-chartered bank was the Riverdale-based Citizens Bank & Trust Co. of Baltimore with $29 million in earnings. Next was Riverdale-based Citizens Bank & Trust Co. of Maryland, which had a net income of $25.9 million.

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