Loyola Capital Corp. said yesterday that its third-quarter earnings were flat compared with a year ago and that shareholders overwhelmingly approved its merger with Crestar Financial Corp. at a special meeting.
Loyola, Baltimore's largest independently owned savings and loan company, reported earning $3.7 million, or 41 cents per share, in the third quarter, down 2.6 percent from a year ago because of $575,000 in merger-related expenses.
Those expenses included legal, accounting and financial analysis costs, the company said.
Loyola earned $12.1 million, or $1.38 per share for the first nine months of the year, up 11 percent from a year ago.
Earnings grew because the spread between interest rates paid on loans and those paid to consumers for deposits widened.
The company also made progress cleaning up problem loans.
Loans that were 90 days past due on principal and interest fell to $20.3 million from $28.9 million at the beginning of the year, the company said.
Loyola's merger with Richmond, Va.-based Crestar is expected to be completed around year's end, but the companies still need approval from regulators.
Loyola, a $2.5 billion-asset thrift, will exchange its stock for Crestar common stock following the closing at a ratio based on the price of Crestar at that time.
More than 98 percent of the shareholders returning proxies voted in favor of the merger, according to the company.