James Madison says it expects substantial losses in quarter

April 18, 1991|By Peter H. Frank

James Madison Ltd., disclosing it is the subject of a federal bank examination, said late Tuesday that it expects to suffer substantial losses that "could deplete the company's equity capital" when it reports its fourth-quarter figures.

The Washington-based banking company, parent of Madison Bank of Maryland, said that until the federal examination was complete, it would not be able to release its financial statement for last year.

The announcement apparently signaled the latest blow to the beleaguered banking company as souring real estate loans have taken an increasing toll over recent months.

James Madison, which also owns Madison National Bank, Madison National Bank of Virginia and the James Madison Mortgage Co., warned in early January that it would be forced to set aside $15 million in the fourth quarter to cover mounting troubled loans, primarily tied to the weakened real estate market.

James Madison, which had $892 million in assets as of Sept. 30, lost $16.3 million in the third quarter of last year.

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