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Baltimore Federal sale gives thrift needed cash

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Baltimore Federal sale gives thrift needed cash BFF, From C12 "This will permit Baltimore Federal to continue its presence and service to the community in an enthusiastic way. As far as the management and staff of the association are concerned, there will be no changes. Services to customers will continue with the same standard of care as in the past," Hecht said. Hecht said Baltimore Federal will continue to be a member of the Federal Home Loan Bank of Atlanta. All the association's insured savings accounts would continue to be insured by the Federal Savings and Loan Insurance Corp. up to the $100,000 limit per depositor allowed by law, Hecht said. Hecht said Baltimore Federal's board of directors unanimously voted to accept a conversion plan by which Baltimore Federal would convert from a federally chartered mutual savings and loan association to a federally chartered capital stock savings and loan association. Hecht said Home Shopping will acquire 100 percent of Baltimore Federal stock once it converts. Home Shopping will put up $30 million in cash and will also purchase $10 million of newly issued Baltimore Federal subordinated debentures. "The $40 million cash infusion would be used to increase the net worth of the association and provide Baltimore Federal Financial with enhanced working capital," Hecht said in a statement. Roy M. Spear, chairman and chief executive officer of Home Shopping Network, said the proposed purchase of Baltimore Federal would be the company's first entry into the financial services market and the "beginning of the establishment of a Home Shopping financial network." Spear said Home Shopping Network expects to use Baltimore Federal to develop and sell consumer financial products to its "growing number of nationwide customers." Baltimore Federal's core business of making residential and commercial real estate loans will continue, Home Shopping Network said in a news release. The network recently purchased UHF Channel 24 in Baltimore for approximately $15.6 million and "thus already has a presence in the Baltimore market," the release continued. The network broadcasts its order-by-phone products on the station 24 hours a day. Its merchandise includes jewelry, housewares, china, appliances and electronics. Home Shopping Network, which began operating in April 1982, reported net sales of $160.1 million for the fiscal year that ended Aug. 31. Net earnings were $17 million, or 44 cents per share. Home Shopping has shown a profit since 1983. For the three months that ended Nov. 30, the latest date for which figures are available, net sales were $103.4 4 million with net earnings of $9.5 million. Mark Bomster and States News Service contributed to this article.
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