SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 3, 1996
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Essex Bancorp, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-10506 54-1721085
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(State or other juris- (Commission (I.R.S. Employer
diction of incorporation) File Number) Identification No.)
Reflections II, Suite 200
200 Golden Oak Court
Virginia Beach, Virginia 23452
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(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (804) 486-8700
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______________________________________________________________________________
(Former name or former address, if changed since last report.)
ESSEX BANCORP, INC.
Item 5--Other Events
The Registrant issued a press release dated July 3, 1996 announcing that
its thrift subsidiary, Essex Savings Bank, F.S.B. (the "Bank"), had signed an
agreement to sell its Norfolk, Portsmouth, Hampton, Newport News, and Grafton
retail bank branches (the "Branches") to CENIT Bank, FSB, a federal savings
bank headquartered in Norfolk, Virginia. The sale of the Branches, which
aggregated approximately $70 million in deposits as of June 30, 1996, is
anticipated to close in the third quarter of 1996 and is dependent upon
regulatory approval. This sale, in addition to the separate completed sale of
the Bank's Charlotte, North Carolina branch in March 1996 and the upcoming
sale to Centura Bank, Inc. of its Raleigh, Greensboro, and Wilmington, North
Carolina branches (for which all regulatory approvals have been received),
brings the total deposits sold and anticipated to be sold by the Bank during
1996 to approximately $171 million. As a result of the decision to sell the
Branches, the Registrant plans to write down the net asset value of the
Branches, including goodwill, to their estimated net realizable value through
a second quarter charge to earnings of approximately $6 million.
In addition to the sale of the Branches, the Registrant announced an
increase during the second quarter of 1996 in the specific loss allowance on
the Bank's problem credit secured by a low-income apartment complex in
Richmond, Virginia. Management anticipates that a charge to earnings of
approximately $800 thousand, before any additions to general loan loss
reserves, will be required to increase the loan loss allowance to an adequate
level. Management is of the opinion that after the branch sales and the
additional loss provisions, the Bank will be well-capitalized from a
regulatory capital standpoint.
The disclosures contained within the press release are deemed
significant to stockholders. Therefore, these disclosures are incorporated
by reference to the press release, which is included herein as Exhibit 99.1.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Essex Bancorp, Inc.
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Registrant
Dated: July 12, 1996 By: /s/ Mary-Jo Rawson
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Vice President and Chief
Accounting Officer
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
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10.1 Branch Purchase and Deposit Assumption Agreement dated
July 2, 1996 between Essex Savings Bank, F.S.B. and CENIT
BANK, F.S.B., including Exhibits A, B and C
99.1 Essex Bancorp, Inc. press release dated July 3, 1996
E-1