John Hanson branches soldThe Resolution Trust Corp...

BUSINESS DIGEST

June 11, 1994

John Hanson branches sold

The Resolution Trust Corp. approved the sale of the branches and some of the assets of the failed John Hanson Federal Savings Bank of Beltsville to four financial institutions, federal officials announced yesterday.

The RTC said John Hanson's nine branches have been split among:

* First Fidelity Bank, a subsidiary of Lawrenceville, N.J.-based First Fidelity Bancorporation. First Fidelity, which also agreed this spring to buy Baltimore Bancorp, has acquired three branches and assumed $66 million in deposits.

* Industrial Bank of Washington, a new minority-owned bank, which has acquired two branches and assumed $39.3 million in deposits.

* Harbor Bank of Maryland, also a minority-controlled company, which has acquired two branches and $34.8 million in deposits; and

* Wilmington Trust F.S.B. in Salisbury, which has acquired one branch and $10.1 million in deposits.

All nine branches will reopen Monday under their new ownership, and customer accounts will not be affected, according to the Resolution Trust Corp. The RTC estimates the April 1991 takeover of John Hanson, once Maryland's fifth-largest savings and loan, will end up costing the taxpayers about $150 million.

Morgan report boosts steel stocks

Bethlehem Steel Corp. shares rose almost 7 percent yesterday, and other steel stocks got a boost, after analysts at J. P. Morgan Securities Inc. said integrated steel stocks should outperform the market in the next 18 months.

Two analysts said in a report that integrated steel stocks should trade at 8 to 10 times per-share earnings at their peak, and that a four-month decline in steel stock prices is over.

Shares in Bethlehem Steel, mentioned favorably in the report, jumped $1.375, to $21.125, in heavy trading. The company operates the Sparrows Point mill in Baltimore County.

Strike hits Arundel gravel yards

Sixteen members of the Union of Operating Engineers Local 37 are striking the Arundel Corp. gravel yards at the Greenspring quarry in Baltimore County and in Brooklyn, the union said yesterday. Union spokesman John Singleton said the members put up picket lines because the company has demanded wage cuts and other concessions. Arundel Corp. officials did not return telephone messages asking for comment yesterday.

Citibank cleared for S. Africa office

Citibank received clearance from the Reserve Bank of South Africa to open its first office there, a Citibank spokesman said yesterday. Initially, Citibank intends to open a representative office providing advisory services to corporate clients.

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