Mason-Dixon gets Rose Shanis Cos. Banking company to pay cash for consumer lender

More branches planned

Banking

November 29, 1997|By Bill Atkinson | Bill Atkinson,SUN STAFF

Mason-Dixon Bancshares, Inc., said yesterday that it has agreed to buy Rose Shanis Cos., a Baltimore-based, family-owned consumer finance company, in a cash deal for an undisclosed price.

The acquisition will help the Westminster-based banking company build its consumer loan portfolio and tap moderate-income borrowers.

"It is a natural extension of our balance sheet," said Mark A. Keidel, Mason-Dixon's chief financial officer. "We saw it as a chance to more significantly participate in consumer lending."

Rose Shanis has $47 million in outstanding loans, about 80 employees, and 12 branches in cities that include Baltimore, Bel Air, Easton and Annapolis.

The privately owned company, which was founded in 1932, specializes in making small-ticket consumer loans on everything from musical instruments and used cars to furniture and backyard fencing.

Norman J. Glick, president of Rose Shanis, said he put the company up for sale in March, and 14 firms expressed interest. He struck a deal with Mason-Dixon Wednesday.

The transaction is expected to close in January.

Glick said he decided to sell the company after his brother Stephen, its chief executive officer, died unexpectedly last January.

"There are no children or grandchildren who were interested in maintaining" the business, Glick said. "If Steve was still alive, we would still be in business."

NTC The business has been in Glick's family since 1932, when it was founded by his mother, Rose Shanis Glick.

Glick said the business is profitable, but he declined to say how much it makes.

"They [Mason-Dixon] saw our locations, they met our staff, and they were impressed with us and our performance," he said.

Glick, 64, will remain with the company, but it is not clear how long he will stay. He said Mason-Dixon has indicated that it will keep Rose Shanis' employees and branches.

Mason-Dixon runs two banking subsidiaries, Carroll County Bank and Trust Co., and Towson-based Bank of Maryland. It has 22 branches in Central Maryland and on the Eastern Shore.

Keidel expects to expand Rose Shanis' branches and add more consumer loan products.

"They had some expansion plans prior to their decision to sell," Keidel said. "We thought they were pretty exciting."

Pub Date: 11/29/97

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