James Madison Ltd., parent of Madison National Bank, said yesterday that because of the deteriorating real estate market it will set aside $15 million to cover past and future loan losses at the bank. It also said that one-third of its board of directors has resigned.

Analysts said the $15 million addition to the District-based bank's reserves will result in a sizable loss for the fourth quarter, the firm's third consecutive quarterly loss. The company expects to report those results for the quarter, which ended Dec. 31, by the end of the month.

As a result of the continued losses, James Madison said it has signed a supervisory agreement with the Federal Reserve, which oversees bank holding companies. The firm already had entered into supervisory agreements with the federal Office of the Comptroller of the Currency, which oversees Madison's bank subsidiaries.

The agreements require the company and its banks to improve operations and find ways to shore up capital, the cash and assets that are held in reserve to protect the federal deposit insurance fund from losses.

As of Sept. 30, James Madison complied with those capital requirements. However, it is unclear where the company's capital levels stand today. To satisfy the regulatory agreements, James Madison said it plans to sell consumer loans, reduce expenses and find investors to provide additional capital.

Earlier this year, developer Dominic F. Antonelli Jr. resigned from the holding company's board to avoid conflicts of interest.

The other directors' resignations follow a management restructuring in which the president, the chief administrative officer, the chief financial officer and the director of corporate development all left the company.

Of the 21 members of the board, the following seven directors resigned: Richard S. Cohen, developer; William C. Eacho Jr., chairman of Atlantic Holdings; Henry H. Goldberg, chairman, the Artery Organization; Richard A. Kirstein, president, Richmarr Construction Corp.; Estelle S. Gelman; Caspa Harris; and Wilmer Schantz.