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Second National cuts, then suspends dividends
More banks, S&Ls expected to follow emerging trend
Second National Federal Savings Bank in Annapolis, stinging from a recently ended exam by federal regulators, will dramatically increase its loan loss reserves and suspend the quarterly dividend on its common stock.
The move mirrors one taken only by a small number of local financial institutions this year as the real estate market and new regulations make capital too valuable to give up in the form of dividends. Some analysts say the suspension of dividends could be on the rise.
In Second National's case, the move was prompted by a recent …