Community Banks

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.

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 the day last week that Bank of America announced sweeping cost-cuts, including the elimination of 30,000 jobs, executives at BlueRidge Bank celebrated a milestone for the three-year-old financial company. The Frederick-based community bank opened a retail branch in Towson, doubling its staff and adding to its existing commercial lending business in the Baltimore region. "We're expanding in contrast to other banks that are downsizing," said J. Brian Gaeng, chief executive of BlueRidge Bank.

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.

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.

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.

Columbia Bancorp, parent company of the Columbia Bank, is seeking to sell 925,000 shares of common stock at $10 a share in order to start a new bank in Baltimore County.The bank would cost an estimated $5 million and would be near Towson in the York Road corridor.According to a 55-page prospectus, "It is the intention of the company's management to transfer the bank's Glenmore branch and certain other customer relationships to the new bank."The stock offering will end Oct. 31 and the stock is expected to be traded in early November, according to a spokesman for the underwriter, Ferris, Baker, Watts Inc.If the stock sale does not produce enough revenue to capitalize the new bank, the company will continue to expand its Baltimore County business through the Glenmore office, the prospectus said.

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.

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.

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.