THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, August 18, 1995 TAG: 9508180360
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 41 lines
Essex Bancorp Inc., which reported a $1.6 million loss in the first three months of 1995, said it lost another $1.2 million in the April-through-June quarter.
The Virginia Beach-based parent of thrift Essex Savings Bank attributed its latest quarterly deficit to additional reserves for loan losses, reduced net interest income from loans and investments, and lower income from mortgage banking.
In the second quarter of 1994, Essex earned $22,000.
Although Essex Savings has cut its operating expenses, federal regulators have barred the company's thrift from expanding in asset size, which has hurt earnings, Essex said.
Earlier this year, Essex Savings was told by regulators that it was ``significantly under capitalized'' and ordered to raise additional capital by June 30.
At the end of June, Essex Savings needed an additional $4.4 million of core capital and $4.2 million of risk-based capital to meet the federally imposed minimum requirements.
The Office of Thrift Supervision told Essex Savings in late June that it would be seized and handed over to the Resolution Trust Corp. unless it provided evidence by June 30 of a plan for restoring its capital.
After trying for several months to raise $15 million of additional capital through a private placement of securities, Essex announced June 30 that it had agreed to acquire Home Bancorp Inc., the parent of thrift Home Savings Bank in Norfolk. Having Home Bancorp's capital would enable its Essex Savings subsidiary to meet its capital requirements, Essex said.
The acquisition agreement still must be approved by Home Bancorp shareholders, who are scheduled to meet later this month, and by federal regulators. by CNB