Baltimore Bancorp says it needs offering to meet FDIC standard

Baltimore Bancorp, which consented to a cease-and-desist order last week issued by the Federal Deposit Insurance Corp., said in a report to the Securities and Exchange Commission that it will need to complete a public stock offering by the end of June 1993 to meet an FDIC requirement on capital adequacy.

The order requires the company's main subsidiary, the Bank of Baltimore, to have an adjusted leverage capital ratio of at least 4.5 percent by Dec. 31, 6 percent by June 30, 1993, and 6.5 percent by June 30 of the following year.

Baltimore Bancorp noted in its SEC filing that it expects to meet the requirements of the order but that there is little margin for error in those projections.

Also last week, the banking company made an agreement with the Federal Reserve Bank of Richmond, Va., and the office of the Maryland bank commissioner that prohibits the payment of cash dividends and certain other transactions without prior regulatory approval.

The agreement also requires Baltimore Bancorp to provide updates regarding its capital adequacy and liquidity, among other things.