Alex. Brown Inc. today announced it has selected A.B. "Buzzy" Krongard as the new chief executive officer of the venerable Baltimore investment banking firm. The company also reported its highest quarterly and six-month earnings in it 191-year history.
Krongard, who was the chief operating officer, was named CEO and vice-chairman by Alex. Brown's board of directors. The board also named Mayo A. Shattuck 3rd the new president and chief operating officer and elected him to the board of directors. Shattuck had been the San Francisco-based co-head of corporate finance.
The position of chief executive officer has been vacant since May 1990, when Donald B. Hebb Jr., stepped down from that position. In place of a CEO, a management committee consisting of Alex. Brown chairman Benjamin H. Griswold, Krongard and Hebb had operated as a collective chief executive officer.
Hebb then relinquished his role as president earlier this year and returned to the company's investment banking division.
Krongard, 54, has workee for Alex. Brown for 20 years and has been chief operating officer since 1988. Before joining Alex. Brown, he had worked for two years for Stein Brothers & Boyce, a Baltimore investment banking firm acquired by Bache in 1970.
Alex. Brown's net income in the second quarter was $14.2 million, or 87 cents per share, a 213 percent increase over the 1990 second-quarter earnings of $4.5 million, or 28 cents a share. Revenues for the second quarter were $105.1 million , up 36 percent from revenues of $77.2 million for the same period a year ago.
For the first six months, the investment banking firm earned $24.8 million, or $1.53 a share, a 252 percent increase over the 1990 second quarter net income of $7 million, or 43 cents a share. Revenues in the first half of the year were $198.7 million, 36 percent above the $145.7 million in revenues received during the same period a year ago.
The company announced a quarterly dividend of 7 cents per share, payable on Aug. 13 to shareholders of record as of Aug. 2.
Griswold said all operating divisions of the company contributed to the earnings. Record commission revenues, reflecting a 45 percent increase from the same period a year ago, were the result of continued strong retail and institutional activity, he said.
Krongard credited the improved results to good business, good cost controls and "there were no snakes in the grass that bite you."