Madison National Bank stockholders yesterday ratified reorganization of the bank to make it a subsidiary of the newly formed James Madison Ltd. holding company.
The reorganization, ratified during the bank's annual shareholder's meeting, is subject to approval by the comptroller of the currency and the board of governors of the Federal Reserve System. The board of governors approved the reorganization on March 6, the bank said in its proxy statement.
The bank's board of directors proposed the reorganization to allow more financial services for customers. For example, the bank would be able to expand operations outside the District and enter into activities including mortgage banking and equipment leasing. But the bank's directors have no specific plans for the bank's future activities, said the company, and the reorganization will not result in any immediate changes in services.
Bank Chairman K. Donald Menefee told stockholders that in a recent survey of the District's seven largest banks, Madison National ranked first in compounded annual increases in earnings within the last five years, price of stock as a percentage of 1980 book value and percent increase in deposits from 1979 to 1980. The bank was second or third in other categories. dThe survey was conducted by Johnston, Lemon & Co.
National Savings and Trust Co. had the highest bid price as of Feb. 20 at $86 and paid the highest dividends last year at $4.75, the survey said. Riggs National Bank had the most assets at $3.2 billion, the most net loans at $1.5 billion, largest total deposits as of Dec. 31 at $2.5 billion and the highest net operating income after taxes and security gains transactions at $24.3 million. National Savings and Trust had the largest net income per share last year at $9.33.
A Madison National branch, under construction at 29th and M streets NW, is making progress, and the bank plans to file for approval for a branch at 12th and G streets NW in a new building that should be completed by summer of 1982, Menefee said.