Five directors of Baltimore Bancorp have resigned in the past seven weeks -- including three on Monday -- some apparently dissatisfied with the management of the company.
"Normally, people don't resign if they are happy with the way things are going. It wasn't any one thing, but there is a significant general dissatisfaction with management," said Charles J. Kelly, Jr., one of the three outside directors who resigned Monday.
Mr. Kelly declined to elaborate on the reasons for the resignations. "A number of directors have resigned," he said. "That event speaks for itself."
The three directors who resigned Monday made up a majority of the outside directors serving on the executive committee, Mr. Kelly said.
The bank announced the resignations late yesterday and said two of the seats already had been filled. Company spokesman David L. Spilman said Conrad H. C. Everhard of New York and Jay H. Gouline of Baltimore had been appointed to the 19-member board.
They replaced Richard E. Fasold, who resigned Feb. 18, and David S. Hungerford, who resigned March 18.
Mr. Spilman said the banking company would not necessarily fill the three openings created by the resignations Monday of Mr. Kelly, Joseph Richard Leon and David S. Smith.
Mr. Spilman would not comment on the resignations except to say, "We would not deny that on certain occasions" directors have had disagreements. "It is no big deal. . . . Doesn't make us worried. Heck no."
"The majority of the board has developed and approved a plan for profitability and that all begins to unfold" today when the bank reports its first-quarter earnings, he said. Baltimore Bancorp expects the first quarter to be profitable, he said.
The resignations are the latest sign of turmoil at a company that has suffered from a bitter takeover battle and troubled real estate loans over the past year.
Shareholders, led by local trucking company owner Edwin F. Hale, won a proxy fight for control of Baltimore Bancorp last year. Mr. Hale, who also owns the Baltimore Blast soccer team, installed his own management team and board late last year.
In December, federal regulators told the bank it wasn't being tough enough on some of its troubled real estate loans and had to increase its previously announced annual loss to $126.5 million.