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First Mariner Bancorp Chairman Edwin F. Hale, Sr. plans to make a move to buy out Glen Burnie Bancorp before long because his bank is getting a little worried about its investment in the Glen Burnie. Canton, OH-based First Mariner, which is now Glen Burnie's largest shareholder after acquiring almost 20% of the bank's outstanding stock, is worried over Glen Burnie's continued loss of loans and deposits, despite having settled several of its financial problems three years ago. Hale also denied rumors that he has plans to sell his bank. On the contrary, the bank is intent on expansion. But First Mariner is prevented from making any moves because Glen Burnie has stated that it will be an unwilling partner to First Mariner.

First Maryland Corp. Chairman Jeremiah E. Casey, who is also a director of Dublin, Ireland-based Allied Irish Bank (AIB), has announced his plan to step down from his post and retire. The announcement clears the way for First Maryland President and CEO Frank P. Bramble to become the bank's top official in the US. Casey, who is nearing AIB's compulsory retirement age of 60, will formally replaced by Bramble as chief executive of AIB's USA Division on Nov. 1, 1998. Casey will keep his posts as chairman and bank director until some time in 1999.

Key Capital Corp. of Owings Mills, MD, has filed a registration statement with the Securities and Exchange Commission for an initial public offering intended to raise $15 million to $18 million. The bank officials reported that the IPO will be scheduled at the time when the market becomes more attractive. Key Capital intends to use one-third of the IPO proceeds towards the creation of a new banking subsidiary in Northern Virginia. The bank is one of the remaining closely-held firms in Maryland, with Key Capital's 12-member board holding to 70% of the just more than 100,000 outstanding shares offered by the bank when it converted into a stock corporation from a mutual thrift in 1976.

Almost two-thirds of companies in Maryland posted an increase in sales during the third quarter of 1998, while almost half expected recruiting more employees during the same period, according to a survey. The gains are still lower than the figures posted in the previous year, but still represent a significant improvement over the second quarter of 1998. Economists are also presenting a brighter outlook about the state's future economy. A survey official says Maryland is not trade-reliant, which can be a probable explanation for the state's better position compared to other states.

Sterling Bancorp based in Baltimore, MD, has merged with Mason-Dixon Bankshares based in Westminster, MD, under a cash deal worth over $10 million. The merger will provide a chance for some large shareholders of Sterling Bancorp a chance to get out of the banking business. Capital ratios of Mason-Dixon will be reduce due to the all-cash agreement. Branches of Sterling located at Annapolis and Timonium in Maryland will remain operational following the merger, which is scheduled to close by December 31, 1998.

Bank of America's mid-Atlantic president John Morton III has been selected as chairman of the bank's committee aimed at promoting Maryland as the site for the Olympics 2012 aside for maintaining the bank's leadership in the state. Morton is familiar with Maryland after spending 17 years as a commercial banking executive with MNC Financial. Previously, he had supervised NationsBank's private client group in St. Louis, MO. Morton quickly projects potential benefits of over $5 billion, 80,000 new jobs as well as over $200 million in state and local taxes for Maryland if its is selected as the Olympic 2012 site. The bid is a joint undertaking between Baltimore, MD, and Washington, DC.

BGE Corp., which has been hoping for a delay in the probe of its rate structure, encountered a minor setback on Oct. 8, 1998, when the Maryland Public Service Commission (PSC) decided to recommend the conduct of the hearings for the week of Mar. 1, 1998. The new schedule will be at least a month earlier than the scheduled conclusion of the PSC hearing on the company's electric restructuring transition plan. M. Catherine Dowling, counsel for the PSC, found BGE's proposal to combine the rate probe and its stranded coast hearings to be without merit.

Efforts to unionize more than a third of BGE Corp.'s work force has heated up with the launch of radio ads criticizing the company's anti-union position. The International Brotherhood of Electrical Workers (IBEW) has no less than two 'campaign-style' ads airing over seven Maryland radio stations. In addition, a number of billboards have been launched designed to convince workers of the Baltimore, MD-based utility to vote for union membership during the union election, which will commence on Oct. 14, 1998.

Bank of Maryland, Mason-Dixon Bancshares' subsidiary in Baltimore, MD, area, has announced President and CEO H. David Shumpert is expected to left his post by end of 1998 and will be replaced by Hunter F. Calloway. The change is part of an internal restructuring plan of Mason Dixon that aims to establish a more efficient structure while allowing Bank of Maryland to grow. Shumpert joined Bank of Maryland in 1991 after leaving MNC Financial's commercial lending division where he worked for 25 years. He also helped realized the sale of Bank of Maryland to Mason-Dixon in 1995.

Provident Bankshares Chairman and CEO Peter Martin stated that his company is presently not seeking a partner to merge its operations with, although it is not eliminating the possibility of consolidating in the future. Industry experts have long touted Provident as a superior acquisition target due to assets worth $4.5 billion despite intense denials from the bank's management, who earlier hoped that Provident's purchase of First Citizens Financial Corp. would verify the firm's claim to be an acquirer and not a seller.

First Mariner Bancorp of Canton, MD, finally received permission from federal regulators to acquire almost 20% of outstanding stock owned by Glen Burnie Bancorp's stockholder Ethel D. Webster. First Mariner will become the biggest single stockholder in Glen Burnie Bancorp after this deal. But First Mariner Chairman and CEO Edwin F. Hale Sr., who has been open in his intent to use the stock acquisition to purchase the entire bank, only has until October 14, 1998 and December 27, 1998 to buy Glen Burnie Bancorp.

Provident Bankshares of Baltimore, MD, is preparing to send its stockholders a four-page financial report that may disprove claims made by dissident investor Jerry Shearer. Provident Chairman and CEO Peter M. Martin stated that he believes the company's present growth strategy is the right one for shareholders as the plan ensures the bank's success in the future. Shearer, who holds approximately 500,000 Provident shares, revealed his impassiveness with Provident's growth strategy on Sep. 28, 1998.

Maryland Public Service Commission (PSC) chairman Glenn F. Ivey prepared a list of reforms concerning the state's retail electric market deregulation voluntarily set by 2000. Ivey spoke at a joint hearing of the Maryland's House of Environmental Matters and Ways and Means committees. Among the reforms in the wish list are the granting of additional authority to the PSC in order to develop and enforce consumer safeguards, adoption of a universal service mechanism as well as the license of electricity suppliers. Ivey stated that the PSC should continue transitioning customers to an open retail competition structure to meet the July 2000 deadline.

First Frederick Financial Corp., the parent firm of First Bank of Frederick in Maryland, is preparing to expand its ATM network to more than triple by December 1998 through its new contract with Kmart Corp. As part of the deal, First Bank of Frederick will install its ATM machines in 26 Super Kmart stores in Maryland and Virginia to increase its fee-income related operations, said First Frederick CEO and president Jack Goldstein. The deal also expands First Bank of Frederick's $100-million exposure outside of its namesake mostly through small-business loans. The bank is modeling its expansion on the successful retail model of Carrollton Bancorp.

The stock market's volatility is slowing down the pace of mergers and acquisitions in the banking industry. As of Sept. 17, 1998, 91 bank mergers have been announced during the third quarter of 1998, a drop from the 119 deals signed a year ago and the 135 deals announced in the previous quarter. Pending deals are also being affected, including that between Crestar Financial Corp. of Richmond, VA, and SunTrust Banks Inc. of Atlanta, GA. When the deal was announced, Crestar was trading at $73.21 and SunTrust $79. On Sept. 17, 1998, Crestar's stock has plunged to $55.69 and SunTrust's to $60.32.

SunTrust Banks Inc.'s proposed acquisition of Richmond, VA-based Crestar Financial Corp. faces major stumbling blocks as a result of the decline in the two companies' share prices. The depreciating stock prices of the firms has resulted to an approximately-28% decline in the proposed deal's initial $9.5-billion face value. Declining stock prices may also have an impact on the companies' stockholders, whose votes are required for the agreement to come into fruition. Another complication is the absence of a provision that will enable SunTrust Banks and Crestar Financial to simply eliminate the proposed deal depending on the gravity of the share-price decline.

Chevy Chase Bank, the largest thrift in Maryland, has declared the $1.06 billion it received from the sale of its credit card business to BancOne, will be used to support its strategy to expand its retail network into the Baltimore, MD, region. Chevy Chase Chief Financial Officer Stephen Halpin Jr., countered rumors that the thrift sold its credit card business to generate enough money to fund a possible acquisition. However, analysts are not convinced that the sale will help the company improve its bottomline, contending the credit card unit has been a major contributor to Chevy Chase's earnings.

Frederick, MD-based F&M Bancorp agreed to acquire Monacacy Bancshares for $83 million, and noted that the deal will be accretive to the earnings of the bank by the end of 1999. The natural synergies of the deal was welcomed by analysts, who believe will furnish F&M with an established franchise in the fast-growing Carroll and Howard county markets. Analysts, while questioning the generous amount being paid for Monacacy, also said the deal will give F&M access to a lucrative commercial real estate portfolio and mortgage banking business.

FCNB Corp. has purchased Frederick, MD-based insurance firm Frederick Underwriters Inc. in a stock agreement valued at around $10.7 million. The acquisition could be a benchmark for similar deals in the state, setting pricing standards for transactions between banks and insurance companies. FCNB's purchase of the dominant insurance agency in central Maryland current worth of slightly under $11 million is about 1.8 times the $6 million revenue the latter in 1997. FCNB will run the insurance agency as a division under the leadership of Jacob R. Ramsburg III and continue to operate primarily with its current book of business.

Interest in the loan and savings association business is renewed despite Congress' move to eliminate the thrift charter. Not only are customers going to Maryland's 65 thrifts, but new thrifts are also sprouting in the industry. Among them are Community First Bank in Pikesville, MD, and Maryland for AmericasBank Corp in Baltimore, MD. According to William Fulwider, spokesman for the US Office of Thrift Supervision (OTS), the federal agency that regulates the thrift industry, there is a renewed interest in the business because of its versatility.

Guardian Savings and Loan Association, a $1.4 billion thrift based in Houston, TX, will expand its banking operations in Maryland's Baltimore/Washington market by acquiring a retail office complex in Cockeysville, MD. Meanwhile, Commercial Savings Bank of Western Maryland will be opened by a group of prominent Western Maryland business leaders. These developments show that there is a renewed confidence in the thrift charter operation not only in Maryland, but also across the US. In the case of Commercial Savings Bank, it decided to open due to the lower capital threshold.

AmericasBank Corp. intends to hold a secondary offering in a move to generate at least $3.5 million in additional capital and convert into a commercial bank by the end of 1998. The stock sale is set to increase the company's overall shareholder's equity to over $5 million, which is the minimum level preferred by regulators when considering a commercial bank charter application. AmericasBank stated that approximately $205,000 of the proceeds is to be allotted for leasing, upgrading and equipping its new 7,000-sq-ft branch in downtown Towson, MD.

First Maryland Bancorp of Baltimore, MD, has introduced a new line of checking accounts that provides incentives to customers based on certain conditions. Customers who avail themselves of the bank's new five accounts can lower their monthly service charge if they perform such banking functions as making a direct deposit or banking electronically. Each of the accounts is tailored to a specific customer profile. Thus, those with low balances are offered a basic checking account, while those with high balances and multiple accounts are offered an interest-bearing account.

First Maryland Bancorp and its primary subsidiary, First National Bank of Maryland, have convinced James T. Brady, Maryland's former secretary of the Department of Business and Economic Development (DBED), to become a member of their boards. Brady will be an important resource for both banks, not so much for his experience in the banking industry, but for his ties to the area business community and extensive knowledge of business development issues. Brady is held in high-esteem in Maryland business circles because of his staunch lobbying for industry concerns at the State House while he was DBED secretary.

Maryland aviation officials hope to force a major airline to start passenger service from BWI to Cumberland, MD, by early 1999. The service would include expanded carrier service from BWI to Hagerstown, St. Mary's County and Salisbury, all in Maryland. The plan was prompted by a demand by Baltimore's business community for easier access to Rocky Gap Resort and Conference Center. If the state gets to attract a major airline to sponsor the service, it would be another step in the state's effort to rejuvenate its economy to one driven by tourism and high technology.

Consumers must benefit via lower electric rates achieved through electric utility deregulation, indicated state regulators. Maryland Department of Assessments and Taxation director Ronald W. Wineholt stressed that deregulation may also produce lower tax revenues. Local governments presently get almost $200 million tax revenues per year from utilities shouldering 100% of assessed property value on facilities. This amount is equivalent in certain areas to over 20% of the overall tax base of a county.

Analysts do not see any significant merger or acquisition deals in the Baltimore, MD-area, following SunTrust Banks Inc.'s acquisition of Crestar Financial Corp. The lack of significant deals may be a result of a dried-up market which has very few attractive banks to sell to potential buyers. However, Vernon Plack, an analyst with Scott & Stringfellow in Richmond, VA, said that banks in the area are still vulnerable. Provident Bankshares Corp. in Baltimore is the most possible target. Provident, which has assets of $4.5 billion and 68 branches, would make a good acquisition for a new entrant in Baltimore.

First Mariner Bancorp's plan to acquire Glen Burnie Bancorp shareholder Ethel D. Webster's 19.8% stake in the company is stalled. The company is still waiting for the approval of the Federal Reserve System's highest board to go through with the deal. The case, which was originally filed with the Federal Reserve Bank of Richmond, VA, was moved to the federal agency's Board of Governors in Washington, after Glen Burnie official opposed the deal. The board recently asked for more information about the case, but a decision is expected to come out soon.

First Mariner Bancorp's stock continued to decline for the second straight day, despite a report indicating its earnings were up over 140% for the second quarter than ended Jun. 30, 1998. The Canton-based bank's stock dropped as low as $12.88 on Jul. 21, 1998, before rebounding and finally close at $13.85 over trading of 39,000 shares. First Mariner's stock is currently 22% below it s 52-week high of $16.88. One industry insider attribute the latest price drop partially to the sell-off of 5,000 shares by Advest Inc., a First Mariner institutional investor. First Mariner officials, on the other hand, attribute the drop to short-term investors who are looking for a quick profit.

SunTrust Banks Inc. of Atlanta, GA, has bought Crestar Financial Corp. of Richmond, VA, for $9.5 billion in stocks on Jul. 20, 1998. The acquisition, which banking industry analysts say will be good for the region's local markets, including the state of Maryland, surprised many industry observers because of the sudden nature of the move. Crestar, with almost 400 branches and $18 billion in deposits from clients from Baltimore, MD, to Richmond, is the first major purchase for SunTrust in over ten years.

Legg Mason, a top investment advisor, has posted a record earnings of $24.4 million for the first quarter ended June 30, 1998. The Baltimore, MD-headquartered brokerage firm reported overall revenues of $249 million that increased to 33% for the period. Legg Mason also saw its assets under management rose by 54% to $74 billion. The company's $26 billion gain in assets under management is prompted by new inflows of investment funding, according to Legg Mason Chief Financial Officer F. Barry Bilson.

FCNB Corp. of Frederick, MD, has surpassed $1 billion in assets in June 1998 but is preparing for lower margins in the coming months. The bank, which posted 1998 second-quarter earnings of $2.48 million, a 9% from the $2.2 million it posted for the same quarter in 1997, blamed the overheated loan market for this year's single-digit growth. FCNB, which has grown accustomed to double-digit increases prior to the past quarter's performance, has implemented programs designed to enhance its fee earnings and efficiencies to combat the effects of the slowdown.

Bell Atlantic-Maryland took issue against the Public Service Commission in the state for releasing an order that sets the charges that Bell may impose on its rivals. Sherry F. Bellamy, Bell Atlantic president and chief executive officer, said it will be forced to drastically cut its investments in the state if this order were to be pursued. Bell Atlantic, which presently has a monopoly on the Maryland market, is being asked to unbundle its local telephone exchange markets. Bellamy lashed at the regulatory body for scheduling rates, that the company thinks to be below its actual costs.

Friedberg Mercantile, which was established 27 years ago in Toronto, Canada, is managed by a father-and-daughter team. Founder Albert D. Friedberg continues to supervise overseas operations of the worldwide enterprise from its Canadian birthplace. Daughter Ezra Friedberg, who manages the Owing Mills, MD-base office of the niche money management firm, regularly maintains contact with her father. The Owing Mills office is the only US office based outside New York of the firm, which is ranked as one of the most successful among similar firms whose philosophy emanate from the Austrian School of Economics.

BGE Corp. officials are trying to iron out with state regulators a compromise plan, that will help utilities recover stranded costs in the face of deregulation. The executives are trying to meet the timetable ahead of the schedule by close to a year in January 1999. BGE wants to come up with such a formula to prevent a possibly contentious issue in the next session of the Maryland General Assembly. BGE hopes to be able to come up with even with a tentative agreement so utilities could cope with an anticipated rejection by consumer advocates.

First United National Bank of Oakland, MD, has made public that it had filed with Maryland officials to withdraw from its federal charter in favor of the regulatory oversight process of the state. The move by First United is aimed to further boost Maryland's ability to advocate its charter as a more capable alternative to over 70 thrift in the region. First United President and CFO Robert W. Kurtz stated that the decision was brought about by the less political approval process of regulators in Maryland.

FCNB Corp., a Frederick, MD-based bank, is acquiring Rockville, MD-based Capital Bank N.A. for a hefty price of $40 million in stock. Industry analysts consider the purchase price as relatively high for a bank such as Capital, a $170 million bank that made $1.2 million in 1997. As a response to the purchase price issue, FCNB President and Chief Executive Officer A. Patrick Linton noted Capital's upward earnings momentum and the possible cost savings with the integration of the two banks' back office operations. FCNB expects to take a one-time $1.75 million charge immediately after the completion of the deal. The deal would open up the Washington and Northern Virginia markets for FCNB, as Capital owns a total of three branches in the two markets.

Charlotte, MD-based NationsBank Corp. achieved the role of the major financing vehicle for a proposed office building and retail center at the Lexington Terrace business complex. The bank pledged over $5.3 million or almost 80% of the total funding needed for the three-level, 53,000-sq-ft business center project located at West Baltimore, MD. The business center will accommodate an 11,000-sq-ft Rite Aid drug store and over 41,000 sq ft of office space. The Lexington Terrace redevelopment is the highest-profile urban renewal project in the city of Baltimore, MD.

Maryland's credit unions hopes to improve the expansion capabilities of banks and strengthen their meager ranks with a plan to revise a substantial portion of the state's banking code. The changes in the state's banking code would revise the 70-year-old banking code preventing Maryland banks from venturing outside their mandated common-bond membership. The plan is intended to convert the state's credit union charter into a more appealing alternative and at the same time encourage other institutions into joining Maryland's 12 active charters.

Glen Burnie Bancorp, a financial services provider headquartered in Glen Burnie, MD, has been released from a Memorandum of Understanding (MOU) with regulatory agencies due to its improved financial performance. The move, which comes after the bank enhanced the condition of its loan portfolio, will enable the institution to be relieved from monthly assessment of its balance sheets by regulators. Glen Burnie Bancorp has been subjected to the constant evaluation after it wrote off large amounts of loans issued in favor of Brian H. Davis, who was convicted for tax evasion and fraud.

BGE Corp., a utility company headquartered in Maryland, has signed a compromise agreement with the Maryland state government and with state legislators, Senate President Thomas V. Mike Miller Jr. and House Speaker Casper R. Taylor Jr. in support of industry deregulation. Under the terms of the agreement, the utility will lend their full support to the efforts towards deregulation of the utility industry. In exchange, the state officials have agreed to reform the utility industry's tax code and adopt measures geared towards softening the impact of stranded costs to utilities.

I.C. Isaacs & Co., an apparel manufacturing company headquartered in Baltimore, MD, has reacquired more than 870,000 shares of its own stock for $3 million. The purchase has enabled the firm to enhance its stockholdings by another 10%. The stock repurchase program is part of the efforts of the apparel production firm to correct the perceived undervaluation of I.C. Isaacs shares of stock, according to Robert J. Arnot, the company's chairman and co-chief executive officer. Arnot also maintained that the move reflects the firm's commitment and confidence on its product line.

FCNB Corp. of Frederick, MD, indefinitely postponed on Jun. 9, 1998, the company's proposed $35-million trust preferred securities offering pending FCNB's purchase of another financial institution. Executives of the company declined to reveal further details regarding the pending acquisition. But according to filings with the US Securities and Exchange Commission, FCNB is poised to purchase a company that has assets of less than $200 million. The agreement is not anticipated to negatively affect the earnings or cash flow of FCNB.

General Motors Corp.'s (GM) production plant in Baltimore, MD, might close if a strike at GM's Flint Metal Center in Flint, MI, continues. The potential closing, according to Charlie Alfred, president of the United Automobile Workers (UAW) Local 239 in Baltimore, will be due to the fact that the striking truck assembly plant supplies the necessary parts for the operation in Baltimore. The strike in Flint, the maker of the parts for pickup trucks, sport utility vehicles and minivans, began on Jun. 5, 1998.

First National Bank of Maryland's operations are expected to be reorganized by its parent organization, First Maryland Bancorp. The restructuring, which is spearheaded by First Maryland's chief executive officer, Frank Bramble, includes the improvement in the marketing of the bank's retail products, as well as the concentration of resources to the banking institution's core markets. First Maryland also plans to pursue the acquisition of another bank in Pennsylvania and enhance the bank's branch operation in Washington. The move reflects the efforts of First Maryland to ensure First National Bank of Maryland's survival in a highly-competitive banking market.

Monocacy Bancshares' former president and CEO Frank W. Neubauer has resigned from his position in the company for a career change, and not because of lingering conflicts between him and the board of directors. Neubauer said that he is working on a unique opportunity at the moment and that this is affecting his regular duties at the Taneytown, MD-based bank. Aside from resigning as the bank's chief executive, Neubauer was compelled to give up his position in the Maryland Bankers Association Board.

First Maryland Corp. is seeking bids for its investment division Hopper Soliday & Co. as part of its strategic restructuring to become a more focused banking company. First Maryland President and Chief Executive Frank P. Bramble acknowledged that the company is presently seeking for companies interested in buying the Hopper Soliday, the section 20 division gained as a result of First Maryland's purchase of Dauphin Deposit Corp. in 1997. Hopper Soliday is fairly huge in size but it is mainly a niche player in the Pennsylvania, PA, market that is not suited to First Maryland's strategic objective of becoming a regional player in that market.

BGE Corp. has launched a huge energy trading operation in Candler Building in downtown Baltimore, MD, another sign of the utility's execution of its plans to effectively compete in an open electricity market. The operation, managed by BGE division Constellation Power Source, is a one-of-a-kind joint venture formed by BGE with Goldman, Sachs & Co. of New York, NY. The 56,000-sq-ft operation will be involved in active trading of futures options, electricity and other associated energy services for electricity providers and municipalities across the country. Through the joint venture, BGE hopes to gain another source of revenues via its unregulated subsidiary, Constellation Power.