Baltimore?s two major local banks reported losses in the first quarter, tied to ongoing troubles in the residential housing market, and national banks with a significant local presence all posted gains.
Provident Bankshares Corp. reported a net loss Thursday of $17.6 million for the quarter ending March 31. The bank said it wrote down $42.7 of its real estate investments, better than a previously projected $47.7 million. Provident saw a net profit of $16.1 million in the first quarter of 2007.
1st Mariner Bancorp announced Wednesday a first-quarter net loss of $3.27 million, down from a net profit of $100,000 during the same quarter in 2007. In a statement, the bank attributed the loss to nonperforming mortgage loans, though it said those losses were lower than in previous quarters.
“We?re still pretty cautious about the next three quarters,” said Gary Geisel, Provident chairman and chief executive officer. “I think we?re going to be pretty sluggish here in the second quarter and the rest of 2008.”
National banks rode out the turbulent market, each posting net gains for the first quarter. Earlier this week, M&T Bank reported first-quarter net income of $202 million, up from $176 million the year before. Bank officials attributed the increase to strong growth in commercial real estate loans and increases in the bank?s portfolios and deposits.
PNC Financial Services Group, which last year completed its buyout of Mercantile Bank, reported Tuesday net income of $377 million, up 37 percent from a year before and up 8 percent from the fourth quarter of 2007.
“We continued to execute on our long-term growth strategies and grew average loans, deposits, and assets,” PNC Chairman and CEO James Rohr said in a statement. “Despite a slower economy, we believe our diverse revenue mix, moderate risk profile and disciplined expense control will continue to serve us well.”
BB&T Corp. reported net income of $428 million for the first quarter, up from $421 million earned during the same period a year before.
Chairman and CEO John Allison said the bank experienced “significant credit deterioration” during the first quarter but was buoyed by strength in its core businesses.
“While we expect first increases in nonperforming assets and charge-offs going forward, we continue to believe that these issues will be manageable.”
