Leeds Federal dividend to rise after stock split

MARYLAND WATCH

October 24, 1997

Leeds Federal Savings Bank said yesterday that it will increase its dividend by 10 percent after a 3-for-2 stock split.

The company also announced earnings of $865,000, or 25 cents a share, for the first quarter ended Sept. 30.

That compares with $741,000, or 22 cents a share, for the same period in 1996 before a one-time charge.

Dale Douglas, vice president of the 74-year-old Baltimore-based bank, said the company decided to split its stock after the price rose recently to more than $32. "At that price, it gets a little pricey and it is not as easily traded," he said.

The company expects the stock price to settle at about $20 a share after the split takes place Nov. 5. The bank went public in 1994.

"Since September, the stock has gone up in price quickly and the trading volume has been high," Douglas said, "and I don't think that is sustainable."

The bank issued a dividend of 19 cents a share yesterday, and said that after the split it plans to pay 14 cents a share -- a 10 percent increase.

Leeds Federal has total assets of $285.4 million and one location.

Pub Date: 10/24/97

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