Whenever chaos rules the economy and financial markets, I try to find financiers who have fended off the storm and resisted the temptations that brought down their competitors. It's always a bit of a risk. The company that appears strong today may be on the ropes tomorrow. Amid the turmoil of 2002-2003 I repeatedly portrayed T. Rowe Price as a disciplined, upright firm that had avoided the mistakes and crimes of its mutual fund rivals. That portrait held up.
A year ago I wrote that Baltimore's Provident Bankshares "will be harmed if we head into a recession, but so far it has navigated the housing storm better than many of its rivals." That probably overstated the case. Today's financial hero is Old Line Bank, based in Bowie. Let's hope for their sake and the economy's that the column is not the kiss of future writedowns. From today's column:
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. It doesn't even have a loan that is 30 days overdue.
There's no guarantee that it won't take some lumps. But Old Line's performance so far in the greatest financial crisis in decades is up there with pitching a perfect game against the 1927 Yankees or bowling 300 wearing mittens.
Source
No comments:
Post a Comment