Community Banks

WASHINGTON -- Listen to urban activists talk about the 22-year-old law that directs banks to make loans in distressed neighborhoods, and you'll hear rhapsodies about how well lenders do by doing good.Listen to Sen. Phil Gramm of Texas, the new chairman of the Senate banking committee, talk about the same requirements, and you'll hear a single word: "Extortion." And Gramm is willing to tie up major banking reform in an effort to do something about it."Phil's a strong leader," said Sen. Rick Santorum of Pennsylvania, a fellow Republican on the banking committee who is more supportive of the community lending laws.

J. Clarence Jameson III swore he would never start another community bank after he sold his second in May 1995 for a handsome profit.His promise didn't last long. Three months later, he was hustling to raise money from friends and business associates for a third bank. "It was too good a transaction" to pass up, Jameson said.Two-and-a-half months ago, AmericasBank opened on East Lombard Street with about $10 million in assets, and with Jameson, a 66-year-old accountant, as its chairman.AmericasBank is part of a small bank revival.

OCCASIONALLY, the little guy wins. After a year of resisting a takeover from First Mariner Bancorp, Glen Burnie Bancorp was able to chase off the larger banking company and its principal shareholder, Edwin F. Hale Sr.The cost of Glen Burnie's independence was considerable, however. First Mariner received $5.6 million, allowing it to reap a $1 million profit on the stake it bought a year ago. The payment reduced Glen Burnie's capital by 27 percent, substantial for any financial institution.

The buyer of the Taneytown bank that has served the community for 114 years is promising to continue Taneytown Bank & Trust Co.'s role as a supporter of community organizations and as a small town bank where tellers and senior vice presidents know their customers by name.But the corporate headquarters will be in Frederick, not Taneytown.F&M Bancorp of Frederick announced Friday that it will acquire Monocacy Bancshares Inc. of Taneytown, parent company of the Taneytown bank, for 2.22 million shares of F&M stock, valued at $81 million, based on yesterday's closing price.

Mercantile Bankshares Corp. said yesterday that it has entered into a definitive agreement to acquire Marshall National Bank and Trust Co. in a deal valued at $22.7 million.The move by Mercantile, which is Maryland's largest independently owned banking company, with $7 billion in assets, expands its Virginia franchise where it already operates three affiliated banks."It is exactly the kind of bank were are looking for in our family of community banks," said H. Furlong Baldwin, Mercantile's chairman and chief executive.

RICHMOND, Va. -- Signet Banking Corp. has retained J. P. Morgan & Co. to manage the sale of 39 of the bank's 233 branches, a bank spokeswoman said yesterday.Signet announced a restructuring Tuesday that includes buying back 5 percent of the bank's stock, eliminating 1,135 jobs and selling some branches.Morgan, the nation's 11th largest money manager, will spend the next six to nine months preparing for the branch sale, said Kitty Griffith, a spokeswoman for the Richmond, Va.-based bank.The branches are in southwest and northern Virginia and along the Virginia and Maryland shores.

Now that national interstate banking is imminent, state lawmakers were warned yesterday by bankers that Maryland had better jump into the fray now or risk putting the state's banks years behind the curve against out-of-state competitors.But some legislators questioned whether throwing open the state's doors to out-of-state banks will doom the small community lender."The financial implications of this bill may imply that down the road there may not be community banks," said Del. David Rudolph, a Democrat from Cecil County.

The Center for Affordable Housing, a nonprofit group that helps people with tarnished or no credit become mortgage-worthy, is negotiating with about 20 lenders to originate and approve mortgage loans.Such a move could make it easier for qualified clients of the center to obtain mortgages and buy homes, and could help lenders extend credit to poor and minority areas, said Charles Jeffries, executive director of the center."Banks haven't been able to reach these community members," Mr. Jeffries said.

Mercantile Bankshares Corp. continued yesterday to add to its system of community banks by announcing an agreement to buy the Sparks State Bank, a five-branch Baltimore County operation with nearly $190 million in assets.Mercantile, parent of the Mercantile-Safe Deposit & Trust Co. and 20 other banking units, has agreed to pay 2.33 shares for each of the 771,300 shares of Sparks that will be outstanding after Dec. 31. That is when Sparks plans to pay a 20 percent stock dividend to its shareholders.

What a difference a few months make.When Maryland Bank Commissioner Margie Muller was preparing her annual report on the effects of regional interstate banking, just a handful of large Maryland-based banks had two-fifths of the state's banking assets (about $21 billion), while the dozen or so banks owned by out-of-state companies had close to half that much (about $11 billion).That was June 30.Now, with the invasion from North Carolina -- the NationsBank/MNC merger, and the acquisition of the First American Banks by First Union Corp.

In recent speeches, President-elect Barack Obama has called for an economic recovery plan that "helps both Wall Street and Main Street." Main Street may seem like an abstract concept to some, but in communities across Southern Maryland, it is not. When I drive down the main streets of towns such as Waldorf, Leonardtown and Prince Frederick, I see not only homes but also businesses, churches and professional offices that were built and supported by a...

As the economy slumps, one Maryland bank has not only stayed out of trouble but has burnished the kind of 24-karat lending record that rivals would covet even in a boom. Bowie-based Old Line Bank has lent more than $200 million to local homebuilders, hoteliers, auto repair shops, lawyers, homebuyers and landscapers. But as banks fail nationwide at the greatest rate since 1993, so far every one of Old Line's borrowers is paying interest and principal as planned. A church that was behind on payments is catching up. Other than that, Old Line has zero "nonperforming" loans, defined as at least 90 days overdue.

Back in its day, Mercantile-Safe Deposit and Trust Co. was affiliated with just about every important family and cultural institution in Baltimore and others below the Mason-Dixon Line. Created as a repository of Southern wealth in 1864, it was a place where executives served their elite clientele quietly and ran their business conservatively. It was a place where vault security rivaled Fort Knox and federal insurance for deposits was considered a sign of banking weakness. It's no longer the largest trust company east of the Mississippi River and south of Philadelphia.

On April 8, 2006, DON RIDDLE, 44, of Red Lion, PA formerly of Essex, MD. Father of Brittany Riddle of Felton, PA; son of Betty (Blevins) Riddle of Essex, MD and the late Charles Riddle; brother of Robert Riddle of Essex, MD, the late Carol Riddle and the late Roger Riddle; good friend of Dwight Prall of Jacobus, PA. Don was born on January 20, 1962 in Baltimore, MD. He was a Manufacturing Supervisor at CNH in New Holland, PA and at AAI in Hunt Valley, MD....

Office Depot opens on Englar Road in Westminster Office Depot held a grand opening and ribbon-cutting Thursday for its store at 402 A Englar Road in Westminster. Local officials welcomed the store and heard about the company's community outreach programs. The store is donating $500 each to Family and Children's Services of Central Maryland, the Carroll County Public Library to reach disadvantaged children, and Carroll County Food Sunday food bank. Also, 120 backpacks with school supplies will be donated to Carroll County public schools for at-risk children.

Two Maryland community banks reported second-quarter earnings results yesterday, with Columbia Bancorp posting a 9.7 percent increase in net income and Olney-based Sandy Spring Bancorp recording a 27 percent decrease as low interest rates and a suffering securities portfolio sapped profits. Sandy Spring had net income of $6.4 million, or 43 cents per share, in the quarter that ended June 30, down from $8.7 million, or 60 cents per share, posted for second-quarter 2003. Year over year, deposits were up 6 percent to $1.7 billion and total assets climbed 2 percent to $2.4 billion.

Howard hospital appoints Cservek to public relations post Kevin M. Cservek has been named senior communications project manager, assigned to the public relations department of Howard County General Hospital. He will work on internal and external communications, and will help to implement a new physician portal on the hospital's Web site. Cservek joined the hospital this year after five years as senior public relations specialist at Harbor Hospital in Baltimore. He is a graduate of Towson University.

Annapolis consultant named to roundtable of black caucus Alexander and Cleaver government relations consultant Ivan Lanier was appointed to the Corporate Roundtable of the National Black Caucus of State Legislators. The round table is made up of business people from around the country and was organized to provide policy advice on business issues to the caucus. The caucus was founded in 1977 and consists of more than 600 legislators from 46 states representing more than 20 million voters.

Carrolltown Center plans back-to-school event Carrolltown Center in Eldersburg will hold a Back-to-School Celebration on Saturday with activities for children and their parents. The event will feature children's book characters Clifford, Curious George, Spot and Maisey from noon to 4 p.m. in the center court gazebo. Free photos with the costumed characters will be available. Also, Arena Sport Cards & Games, Little Professor Book Center and Talent Express will have entry forms for a drawing for 20 prizes of four tickets each to see Sesame Street Live: Out of This World Sept.

You can already buy groceries, school supplies and lawn mowers at mega-department stores - not to mention that puppy the kids have been begging for. Now Congress is considering allowing retail behemoths to handle your checking and savings accounts, too. The change could create The First National Bank of Wal-Mart. How about Sears Bank & Trust? Or Volkswagen Commerce Bank? Banks inside supermarkets and some department stores have become commonplace. But those are existing banks partnering with stores.