Baltimore Bancorp this month will pay its first dividend in two years, winning praise from analysts for the extent of its recovery after real estate losses caused the Baltimore-based community bank, the biggest in Maryland, to lose $126 million in 1991.

Though the new quarterly dividend is a modest 5 cents, the holding company for the $2.3 billion Bank of Baltimore had to get approval from the Federal Reserve to pay it to shareholders. The dividend comes from a moderate cash flow at the the holding company level, and is not from upstreamed dividends from the Bank of Baltimore, the company said.

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