Marine Midland Posts Loss Of $37 Million in Quarter
Continuing its string of weak results, Marine Midland Banks Inc. reported a loss Tuesday of $37 million in the second quarter.
Marine, a wholly owned subsidiary of Hongkong and Shanghai Banking Corp., has been plagued by problem real estate loans in the Northeast and loans to lesser-developed countries. Last year, its parent replenished its dwindling capital with a $300 million infusion.
$109.3 Million First-Half Loss
It recently ousted is chairman, Geoffrey A. Thompson, and replaced him with John R.H. Bond, a 30-year veteran of Marine's parent. For the first half of 1991, the Buffalo-based banking company reported a loss of $109. 3 million.
Mr. Bond attributed the quarterly losses to real estate and the cost of reserving against credit losses. "These results are disappointing," he said.
Its provision for loan losses was $31.9 million, compared to $109.4 million in the first quarter and $111 million in the year-ago quarter, when it lost $25.8 million.
But Marine wrote off $202 million of bad loans in the latest quarter, resulting in a net reduction of its loan-loss reserve. Marine's allowance now stands at $702.7 million, down from $873.4 million at the end of the first quarter.
The results include a $15.1 million writedown of a preferred stock investment in an undisclosed U.S. regional bank holding company.
Excluding sovereign debt, nonperforming loans stood at $985.9 million, up 13% from yearend. It did not break out the quarterly figures.
The company has made progress in reducing costs. Operating expenses, excluding restructuring and credit costs, were down 13.1% from the year-ago quarter, and 5.4% below the first quarter of 1991, the company said.