SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )

Filed by the Registrant (X)
Filed by a Party other than the Registrant ( )

Check the appropriate box:

( ) Preliminary Proxy Statement ( ) Confidential, for Use of the
Commission Only (as permitted
by Rule 14a-6(e)(2))
(X) Definitive Proxy Statement
( ) Definitive Additional Materials
( ) Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12

ESSEX BANCORP, INC.
(Name of Registrant as Specified in its Charter)

(Name of Person(s) Filing Proxy Statement, if other than Registrant)

Payment of Filing Fee (Check the appropriate box):

(X) No fee required

( ) Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

1) Title of each class of securities to which transaction applies:

2) Aggregate number of securities to which transaction applies:

3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):

4) Proposed maximum aggregate value of transaction:

5) Total fee paid:

( ) Fee paid previously with preliminary materials.

( ) Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.

1) Amount Previously Paid:

2) Form, Schedule, or Registration Statement No.:

3) Filing Party:

4) Date Filed:

Essex Bancorp, Inc. Gene D. Ross
Corporate Office President and
The Koger Center Chief Executive Officer
Building #9 ESSEX LOGO
Norfolk, Virginia 23502 BANCORP, INC.
(757) 893 -1300

April 12, 1999

Dear Stockholder:

You are cordially invited to attend the Annual Meeting of Stockholders (the
"Meeting") of Essex Bancorp, Inc. (the "Company"), the holding company for Essex
Savings Bank, F.S.B. (the "Bank"), which will be held at The Koger Center,
Building #5, 1st Floor Conference Room, Norfolk, Virginia, on May 27, 1999 at
1:00 p.m.

The attached Notice of the Meeting and the Proxy Statement describe the formal
business to be transacted at the Meeting.

The Board of Directors of the Company unanimously recommends a vote "FOR" each
person who has been nominated to serve as a director of the Company.

YOUR VOTE IS IMPORTANT. You are urged to sign, date and mail the enclosed Proxy
Card promptly in the postage-paid envelope provided. If you attend the Meeting,
you may vote in person even if you have already mailed in your Proxy Card.

On behalf of the Board of Directors and all of the employees of the Company and
the Bank, I wish to thank you for your continued support. We appreciate your
interest.

Sincerely yours,

/s/ Gene D. Ross

Gene D. Ross
President and Chief Executive Officer

ESSEX LOGO
BANCORP, INC.
The Koger Center
Building #9
Suite 200
Norfolk, Virginia 23502
(757) 893-1326

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held on May 27, 1999

NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders (the "Meeting")
of Essex Bancorp, Inc. (the "Company") will be held at The Koger Center,
Building #5, 1st Floor Conference Room, Norfolk, VA, on May 27, 1999, at 1:00
p.m.

A proxy statement and a proxy card for the Meeting are enclosed. The Meeting is
for the purpose of considering and voting upon the following proposals:

1. The election of two directors for a term of three years; and

2. Such other matters as may properly come before the meeting,
or any adjournment thereof. The Board of Directors is not
aware of any other business to come before the meeting.

The Board of Directors has established March 31, 1999 as the record date for the
determination of stockholders entitled to notice of and to vote at the Meeting
and at any adjournments thereof. Only record holders of the Common Stock of the
Company as of the close of business on that date will be entitled to vote at the
Meeting or any adjournment thereof. A list of stockholders entitled to vote at
the Meeting will be available at Essex Bancorp, Inc., The Koger Center, Building
#9, Suite 200, Norfolk, Virginia 23502, for a period of ten days prior to the
Meeting and also will be available for inspection at the Meeting itself.

EACH STOCKHOLDER, WHETHER HE OR SHE PLANS TO ATTEND THE MEETING, IS REQUESTED TO
SIGN, DATE AND RETURN THE ENCLOSED PROXY CARD WITHOUT DELAY IN THE ENCLOSED
POSTAGE-PAID ENVELOPE. ANY PROXY GIVEN BY A STOCKHOLDER MAY BE REVOKED AT ANY
TIME BEFORE IT IS EXERCISED. A PROXY MAY BE REVOKED BY FILING WITH THE SECRETARY
OF THE COMPANY A WRITTEN REVOCATION OR A DULY EXECUTED PROXY BEARING A LATER
DATE. ANY STOCKHOLDER PRESENT AT THE MEETING MAY REVOKE HIS OR HER PROXY AND
VOTE PERSONALLY ON EACH MATTER BROUGHT BEFORE THE MEETING. HOWEVER, IF YOU ARE A
STOCKHOLDER WHOSE SHARES ARE NOT REGISTERED IN YOUR NAME, YOU WILL NEED
ADDITIONAL DOCUMENTATION FROM THE RECORD HOLDER OF YOUR SHARES TO VOTE
PERSONALLY AT THE MEETING.

By Order of the Board of Directors

/s/ Jennifer L. DeAngelo

Jennifer L. DeAngelo
Norfolk, Virginia Corporate Secretary
April 12, 1999 Essex Bancorp, Inc.

- --------------------------------------------------------------------------------
IMPORTANT: THE PROMPT RETURN OF PROXIES WILL SAVE THE COMPANY THE EXPENSE OF
FURTHER REQUESTS FOR PROXIES IN ORDER TO ENSURE A QUORUM AT THE MEETING. A
SELF-ADDRESSED ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE. NO POSTAGE IS REQUIRED
IF MAILED IN THE UNITED STATES.
- --------------------------------------------------------------------------------

Essex Bancorp, Inc.
The Koger Center
Building #9
Suite 200
Norfolk, Virginia 23502

PROXY STATEMENT
ANNUAL MEETING OF STOCKHOLDERS
May 27, 1999

Solicitation of Voting Proxy

This proxy statement is being furnished to stockholders of Essex Bancorp, Inc.
(the "Company"), in connection with the solicitation by its Board of Directors
of proxies to be used at the Annual Meeting of Stockholders (the "Meeting") to
be held at The Koger Center, Building #5, 1st Floor Conference Room, Norfolk,
Virginia, at 1:00 p.m. on May 27, 1999, and at any adjournments thereof. The
1998 Annual Report to Stockholders, including the consolidated financial
statements for the year ended December 31, 1998, accompanies this proxy
statement, which is first being mailed to stockholders on or about April 12,
1999.

Regardless of the number of shares of Common Stock of the Company (the "Common
Stock") owned, it is important that stockholders be represented by proxy or
present in person at the Meeting. Stockholders are requested to vote by
completing the enclosed proxy card and returning it signed and dated in the
enclosed postage-paid envelope. Stockholders are urged to indicate their vote in
the spaces provided on the proxy card. Proxies solicited by the Board of
Directors of the Company will be voted in accordance with directions given
therein. Where no instructions are indicated, proxies will be voted FOR the
election of the nominees for directors named in this proxy statement.

The Board of Directors knows of no additional matters that will be presented for
consideration at the Meeting. Execution of a proxy, however, confers on the
designated proxyholders discretionary authority to vote the shares in accordance
with their best judgment on such other business, if any, that may properly come
before the Meeting or any adjournments thereof.

A proxy may be revoked at any time prior to its exercise by filing written
notice of revocation with the Secretary of the Company, by delivering to the
Company a duly executed proxy bearing a later date, or by attending the Meeting,
filing a notice of revocation with the Secretary and voting in person. However,
if you are a stockholder whose shares are not registered in your name, you will
need additional documentation from the record holder of your shares to vote
personally at the Meeting.

The cost of solicitation of proxies in the form enclosed will be borne by the
Company. Proxies may also be solicited personally or by telephone, fax, or
telegraph by directors, officers, and regular employees of the Company or Essex
Savings Bank, F.S.B. (the "Bank"), without additional cost to the Company or the
Bank. The Company will also request persons, firms and corporations holding
shares in their names, or in the name of their nominees, which are beneficially
owned by others, to send proxy material to and obtain proxies from such
beneficial owners, and will reimburse such holders for their reasonable expenses
in doing so.

Voting Securities and Principal Stockholders

The securities that may be voted at the meeting consist of shares of Common
Stock of the Company, with each share entitling its owner to one vote on all
matters to be voted on at the Meeting, except as described below.

The close of business on March 31, 1999 has been established by the Board of
Directors as the record date (the "Record Date") for the determination of
stockholders entitled to notice of and to vote at the Meeting, and any
adjournments thereof. The total number of shares of Common Stock outstanding on
the Record Date was 1,060,642.

The presence, in person or by proxy, of at least a majority of the total number
of shares of Common Stock entitled to vote is necessary to constitute a quorum
at the Meeting. The Meeting may be adjourned in order to permit the further
solicitation of proxies in the event there are not sufficient votes for a quorum
at the time of the Meeting or for such other purposes as may be considered
proper. The affirmative vote of the majority of those shares voting on an action
will be required to take any action at the Meeting.

Securities Ownership of Certain Beneficial Owners

The following table sets forth the amount of Common Stock of the Company held by
each director, certain executive officers and by all directors and executive
officers of the Company as a group, as of March 31, 1999. No persons or entities
were known to the Company to be the beneficial owners of more than 5% of the
outstanding Common Stock on such date.

Amount of
Common Stock
Beneficially Owned Percent of Common
Beneficial Owner at March 31, 1999 Stock Outstanding
- ---------------- -------------------- -----------------

Roscoe D. Lacy, Jr. 250 .02%
Gene D. Ross 2,085(1) .20
All directors and executive
officers as a group 4,145(1) .39

- -----------------------------

(1) Mr. Ross and other executive officers acquired their shares through the
Company's Employee Stock Purchase Plan.

ELECTION OF TWO DIRECTORS FOR A TERM OF THREE YEARS

Pursuant to its bylaws, the number of directors of the Company is set at four
unless otherwise designated by the Board of Directors.

The Board of Directors of the Company is divided into three classes serving
staggered three-year terms. The terms of office of Roscoe D. Lacy, Jr. and
Robert G. Hecht expire in 1999, and the terms of Gene D. Ross and Harry F.
Radcliffe expire in 2000. Each of the staggered terms expire at the annual
meetings of the stockholders of the Company. There are no directors of the
Company presently elected to the Board with a term expiring in 2001.

The nominees proposed for election at the Meeting are Messrs. Lacy and Hecht.
Both nominees are presently directors of the Company and the Bank. The Board of
Directors believes that the nominees will stand for election and will serve if
elected. However, in the event that either nominee is unable to serve or
declines to serve for any reason, it is intended that proxies will be voted for
such other person(s) as may be designated by the present Board of Directors.
Unless authority to vote for the directors is withheld, it is intended that the
shares represented by the enclosed Proxy will be voted FOR the election of the
nominees.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE ELECTION OF THE NOMINEES NAMED
IN THIS PROXY STATEMENT.

Information with Respect to Nominees and Continuing Directors

The following table sets forth certain information regarding the Board of
Directors of the Company.

Term
Name Age(1) Position Held Director Since Expires
- ---- ------ ------------- -------------- -------

Nominees

Roscoe D. Lacy, Jr. 58 Director 1984(2) 1999
Robert G. Hecht 58 Director 1995 1999

Continuing Directors

Harry F. Radcliffe 48 Director 1995 2000
Gene D. Ross 53 Chairman, President and Chief
Executive Officer 1992(2) 2000

- ----------
(1) As of March 31, 1999.

(2) Reflects year in which director became a director of the Company's
predecessor entities. All references herein to the Company are deemed to
include the Company's predecessor entities.

Set forth below is additional information with respect to the directors of the
Company:

Roscoe D. Lacy, Jr. Mr. Lacy is Vice President and General Manager for Miles
Jennings Industrial Supply Co., Inc., an industrial supply company located in
Elizabeth City, North Carolina. Mr. Lacy became a director of the Company in
1984 and has been a director of the Bank and one of its predecessor institutions
since 1980. Mr. Lacy also served as a director of the Company's former Florida
savings bank until its merger with and into the Bank in May 1993.

Robert G. Hecht. Mr. Hecht is Chief Executive Officer of Trumbull Corporation, a
highway construction company in Pittsburgh, Pennsylvania, an Executive Vice
President of P.J. Dick Incorporated, a building construction firm also located
in Pittsburgh, Pennsylvania, and President of Allegheny Asphalt Manufacturing,
Inc. in Pittsburgh, Pennsylvania. Mr. Hecht previously served as President of
Century Steel Erectors, a steel erection company in Pittsburgh, Pennsylvania,
until July 1990. He has also served as Vice Chairman and a director for Miami
Computer Supply, Inc. since 1996. Mr. Hecht served as a director of First Home
Bancorp, Inc., a privately-held savings institution holding company in
Pittsburgh, Pennsylvania, until its sale in April 1996. He previously served as
Director of First South Savings from September 1990 to December 1993. Mr. Hecht
became a director of the Company on September 15, 1995 and also serves as a
director of the Bank.

Harry F. Radcliffe. Mr. Radcliffe became a director of the Company on September
15, 1995 and also serves as a director of the Bank. He has been President and
Chief Executive Officer of Fort Pitt Capital Management, Pittsburgh,
Pennsylvania, a private investment management company, since September 1995 and
was the President and Chief Executive Officer of First Home Bancorp, Inc., a
publicly-held savings institution holding company until its sale in April 1996.
He is a director of Hawthorne Financial Corporation, Los Angeles, California, a
savings institution holding company which is traded on the Nasdaq National
Market, and First Fidelity Bancorp, Irvine, California, a privately held thrift
and loan holding company. He has also been a director of Miami Computer Supply,
Inc. since 1996. From 1989 to 1993, Mr. Radcliffe was the President and Chief
Executive Officer of First South Savings Association, a Pennsylvania-chartered
stock savings association located in Pittsburgh, Pennsylvania. Mr. Radcliffe
received his degree in economics from Ohio Wesleyan University.

Gene D. Ross. Mr. Ross was President and Chief Executive Officer ("CEO") of the
Company's predecessors from May 1992 until their merger with the Company in
1995, and has been the President and CEO of the Company since its organization
in August 1994. Mr. Ross also serves as a director and CEO and President of the
Bank and various other subsidiaries of the Company. Prior to joining the Company
in 1992, Mr. Ross was President and CEO of Southern Federal Savings and Loan
Association of Georgia. He was hired in a turnaround capacity to seek strategies
for the recapitalization of the institution. From October 1990 through November
1991, Mr. Ross served as an independent consultant and Regional Director of the
Ralph Edgar Group, Inc., an RTC asset management contractor. In March 1988, Mr.
Ross joined First Liberty Financial Corp. in Atlanta, Georgia, a $1.2 billion
publicly-traded thrift holding company, as President and Chief Operating
Officer. Mr. Ross played a key role in negotiating the sale of First Liberty's
Atlanta-based thrift franchise. Prior to March 1988, Mr. Ross was President and
CEO of The Empire Savings Building and Loan Association in Denver, Colorado.
During his tenure, Mr. Ross oversaw the reorganization and repositioning of the
$2 billion thrift until its sale to an out-of-state financial institution.
Previously, Mr. Ross held audit manager positions with two nationally recognized
certified public accounting firms. Mr. Ross is a Certified Public Accountant and
has a Bachelor of Arts and Sciences from Florida State University.

Meetings of the Board and Committees of the Board

During 1998, the Board of Directors of the Company held regular meetings each
month. The Board of Directors of the Bank and the Company have established
various committees, including the Audit, Executive Compensation, and Strategic
Evaluation Committees. Each of the directors of the Company attended at least
75% of the Company's board meetings and the meetings of board committees on
which such director served.

The Audit Committee is comprised of directors Lacy and Hecht, and is chaired by
Mr. Lacy. This Committee meets periodically with the Bank's internal auditor,
and periodically with the Company's and the Bank's external auditors, and
reports to the Board of Directors and to senior management on the Company's and
the Bank's financial condition and internal auditing practices and procedures.
During the year ended December 31, 1998, the Audit Committee met twice.

The Executive Compensation Committee (the "Compensation Committee") consists of
directors Lacy, Hecht and Radcliffe. The Compensation Committee meets
periodically to evaluate the compensation and fringe benefits of the Company's
and the Bank's directors, officers, and employees. During the year ended
December 31, 1998, the Compensation Committee met three times.

The Strategic Evaluation Committee was formed in January 1996 to evaluate
strategic direction as a means to enhance shareholder value. This Committee is
comprised of directors Hecht, Ross and Radcliffe. During the year ended December
31, 1998, meetings of the Strategic Evaluation Committee were held in connection
with regular board meetings and the Company's strategic planning meeting.

Directors Fees

Effective July 1, 1998, the non-employee directors of the Company received an
increase in fees from $250 to $350 for each joint board meeting of the Company
and the Bank that they attend and $350 for any separate board committee meeting
that they attend. Additionally, an annual retainer fee of $5,500 was authorized
to be paid to non-employee directors. The retainer fees are paid in quarterly
increments.

EXECUTIVE COMPENSATION

The following table sets forth a summary of certain information concerning the
compensation paid by the Company and its subsidiaries for services rendered in
all capacities during the periods indicated to Gene D. Ross, President and Chief
Executive Officer of the Company and the Bank, and Earl C. McPherson, President
and Chief Executive Officer of Essex First Mortgage, a division of the Bank.
Messrs. Ross and McPherson were the only executive officers whose salary and
bonus compensation during 1998 exceeded $100,000.

Summary Compensation Table

Long Term Compensation
----------------------
Awards Payouts
----------------------------------
Securities
Name and Principal Restricted Underlying LTIP All Other
Position Year Salary Bonus Stock Options(2) Payouts Compensation(2)
------------------ ---- ------ ----- ---------- ---------- ------- ---------------

Gene D. Ross 1998 $194,088(1) N/A -- -- -- $13,933
Chief Executive Officer of 1997 $204,615(1) N/A -- -- -- $12,355
the Company and the Bank 1996 $208,750(1) $20,000 -- -- -- $12,378

Earl C. McPherson 1998 $109,620 N/A -- -- -- $8,649
President and CEO of Essex 1997 $114,695 N/A -- -- -- $6,626
First Mortgage, a division 1996 $121,800 $10,000 -- -- -- $6,582
of the Bank (3) and
Executive Vice President of
the Bank

(1) Salary includes payouts for unused vacation.
(2) Represents the Company's accrued expense under the Essex Savings Bank,
F.S.B. Supplemental Executive Retirement Plan ("SERP"), the Company's
matching contribution to the Essex Bancorp, Inc. 401(k) Retirement
Savings Plan, and imputed income on group-term life insurance. As of
the fiscal year-end 1997 the contributions and accruals had fully
vested. Interest on the SERP accrues at a return equal to the interest
rate on a one-year certificate of deposit. Effective December 1, 1998,
the SERP was amended to modify the vesting schedule so that each year's
contribution following 1998 (and income thereon) will be subject to a
three year vesting provision. A member must complete all three years of
service to avoid forfeiture of Company contributions made after
December 31, 1998.
(3) Effective December 31, 1998, Essex First Mortgage Corporation was
merged into the Bank and operates as a division of the Bank.

Neither Mr. Ross nor Mr. McPherson held or exercised any stock options or stock
appreciation rights at any time during 1998.

Compensation Committee Interlocks And Insider Participation

There are no known potential conflicts of interest or interlocks involving
Executive Compensation Committee members and executive officers of the Company,
the Bank, or its subsidiaries.

COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION

The Essex Bancorp, Inc Executive Compensation Committee (the "Committee") makes
this report on executive compensation for the fiscal year ended December 31,
1998.

The Committee's "mission" philosophy is to provide competitive levels of
compensation, integrate management's pay with the achievement of the Company's
strategic and performance goals, reward above-average corporate performance,
recognize individual initiative and achievement, align management's and
stockholder's interests in the enhancement of stockholder value through stock
and stock option awards, and assist the Company in attracting and retaining
qualified management. These factors are taken into account by the Committee in
assessing executive compensation generally and the compensation of the Chief
Executive Officer in particular.

The components of executive compensation are base salary, incentive stock
options and restricted stock, discretionary cash bonus performance awards,
contributions by the Company to its retirement plan, the Essex Bancorp, Inc.
401(k) Retirement Savings Plan ("401(k) Plan") and the Supplemental Executive
Retirement Savings Plan ("SERP"). Since the basis for determining Company
contributions to the 401(k) Plan and SERP were no different for executive
officers than they were for other participants in those plans during fiscal
1998, such plans will not separately be discussed in this report.

It is our policy to determine the salary components of executive compensation
principally upon the basis of corporate and individual performance. Among the
corporate performance factors which we consider are corporate profitability,
capital levels, and corporate performance relative to such industry standards as
problem asset levels, loan production , regulatory compliance, and
asset-liability management. We do not use a formula to calculate the relative
weight of theses performance factors, but do give significant subjective weight
to the increase in the overall value of the Company from year to year. We also
take into account how the overall level of the Company's executive compensation
compares with the executive compensation levels of similar-sized and
characteristic bank and thrift holding companies in the Company's geographic
market. While comparable market ranges based upon position and responsibilities
are used as guides, salaries are also based upon a subjective evaluation of the
individual performance of each officer, the overall contribution of the
executive to the attainment of the Company's financial goals, and the
executive's record of achievement in directing the activities for which the
executive is responsible. With respect to executive officers other than the
Chief Executive Officer, the Committee also consulted with the Chief Executive
Officer as to the appropriate salary level.

During fiscal 1998, the base compensation of Mr. Ross and Mr. McPherson was
unchanged as a result of the decision reached in fiscal 1997 to reduce salaries
consistent with the Company's initiative to achieve core profitability. However,
based upon the performance of the Company in fiscal 1998 both officers received
an increase in base compensation of 5% effective January 1, 1999 and a cash
bonus award approximating 5% of 1998 base salary paid in January 1999. While an
objective formula was not applied, the Committee did take into account the
performance factors, among others, listed below in setting such base
compensation and bonus levels.

1. During fiscal 1998, the Company earned $1 million; the Company's first
profitable year ever based on achieving core profitability from
operations.

2. The Company's total assets increased by approximately 19% from fiscal
1997 to fiscal 1998.

3. The Company's non-performing assets declined by approximately 44% to a
ratio to total assets of .79%; the lowest in the Company's history.

4. The Company's regulatory relationship and overall risk profile has
strengthened and improved significantly from fiscal 1997.

During fiscal 1998, neither Mr. Ross nor Mr. McPherson were awarded options or
related rights under the Company's Stock Option Plan or restricted stock under
the Company's Management Recognition Plan. Neither Mr. Ross nor Mr. McPherson
received any compensation from the Company or its subsidiaries in 1998 other
than in their capacities as officers and employees.

ESSEX BANCORP, INC.
EXECUTIVE COMPENSATION COMMITTEE
Robert G. Hecht, Chairman
Roscoe D. Lacy, Jr.
Harry F. Radcliffe

Neither the Committee report above nor the stock performance graph that follows
is incorporated by reference in any prior or future Securities and Exchange
Commission (the "SEC") filings, directly or by reference to the incorporation of
Proxy Statements of the Company, unless such filing specifically incorporates
the report or the stock performance graph. SEC rules provide that the
compensation committee report and the stock performance graph are not deemed to
constitute "soliciting material" or to be filed with the SEC, and are not
subject to SEC Regulations 14A or 14C, except as provided in SEC regulations, or
to the liabilities under Section 18 of the Exchange Act.

Stock Performance Graph

The following graph provides a comparison with the stated indices of the
percentage change in the Company's cumulative total stockholder return on its
Common Stock for the period beginning January 19, 1995, the date the Company's
Common Stock began trading on the American Stock Exchange. The Company's Common
Stock performance is compared to the Total Return Index for the Nasdaq Stock
Market (U.S. Companies) which is a broad market equity index. This index
comprises all domestic common shares traded on the Nasdaq National Market and
the Nasdaq Small Cap Market.

In addition, the Company's Common Stock performance is compared to the
Asset-Size Index of Thrifts, under $250 million in total assets compiled by SNL
Securities, a company providing broad-based financial information services to
banks and thrifts.

The following graph is designed to be only a general depiction of one measure of
corporate performance to be used by stockholders in evaluating the performance
of the Company.

01/19/95 12/31/95 12/31/96 12/31/97 12/31/98
-------- -------- -------- -------- --------

Essex Bancorp, Inc. 100 37.50 43.76 78.76 28.75

Nasdaq Total US 100 138.16 169.90 208.43 293.00

SNL Thrift (under $250M) 100 137.45 152.49 234.61 190.66
Index

EMPLOYMENT AND OTHER EXECUTIVE SERVICES AGREEMENTS AND PLANS

Employment Agreement

Gene D. Ross is subject to a Restated Employment Agreement (the "Employment
Agreement") with the Company, Essex Mortgage Corporation, and the Bank (the
"Employers"). The Employers approved the Employment Agreement effective January
1, 1998. The Employment Agreement provides for the employment of Mr. Ross as the
President and Chief Executive Officer of each of the Employers, and is renewable
year-to-year by the Boards of Directors of each of the Employers. The respective
Boards of Directors have renewed the Employment Agreement through December 31,
1999. Mr. Ross is presently entitled to base salary at the rate of $198,450 per
year, as well as to bonuses established from time to time by the Board of
Directors of the Company based on standards of financial performance. The
Employment Agreement is currently terminable for cause by the Boards of
Directors of the Company or any of the Company's subsidiaries. For purposes of
the Employment Agreement, "cause" includes personal dishonesty, gross
incompetence, willful misconduct, breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than non-material violations) or final cease and
desist order, or a material breach of any provisions of the Employment
Agreement. In the event of a termination for cause, Mr. Ross will be paid only
his salary and vacation pay accrued and prorated to the date of termination. The
Employment Agreement is also terminable without cause by the Board of Directors
of the Company or any of its subsidiaries upon 45 days advance written notice.
In the event of a termination without cause, Mr. Ross will be paid his salary
and vacation pay through the date of termination, plus the severance benefit
described below. The Employment Agreement also provides for the indemnification
of Mr. Ross for losses and expenses arising out of the performance of his duties
under the Employment Agreement, to the extent permitted by applicable corporate
law and Federal regulations.

The Employment Agreement provides for a lump sum payment within thirty (30) days
of a Change in Control of an amount equal to two hundred percent (200%) of his
highest rate of annual salary in effect during the period commencing on May 1,
1997 and ending on the date of a change in control. For this purpose, a "Change
in Control" shall occur if and only if after December 31, 1997 a "person" or
"group" (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934), directly or indirectly, first becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of
securities of the Company representing twenty percent (20%) or more of the
combined voting power of the then outstanding securities of the Company. The
Employment Agreement also provides that upon termination of Mr. Ross without
cause prior to a Change in Control (including non-renewal of his agreement by
the Company), Mr. Ross will be entitled to a lump sum within thirty (30) days of
termination of an amount equal to one hundred and fifty percent (150%) of his
highest rate of annual salary in effect during the period commencing on May 1,
1997 and ending on the date of his termination. In the event of Mr. Ross'
termination without cause following a Change in Control, however, he will only
be entitled to the Change in Control payment. In either event, termination
without cause or a Change in Control, Mr. Ross would be entitled to continuing
health and medical insurance, disability insurance and life insurance coverage
for periods not exceeding two (2) years on the same basis as was in effect
immediately prior to the effective date of termination or Change in Control, as
appropriate.

Other Executive Services Agreement

As of January 1, 1999, the Bank entered into a restated executive services
agreement with Earl C. McPherson. Mr. McPherson's agreement is substantially
similar to Mr. Ross's. In the event of termination of his agreement or
employment without cause prior to a Change in Control, Mr. McPherson would be
entitled to a lump sum payment equal to one hundred and fifty percent (150%) of
his highest rate of annual salary in effect during the period commencing on May
1, 1997 and ending on the date of his termination. The Employment Agreement also
provides for a lump sum payment within thirty (30) days of a Change in Control
of an amount equal to two hundred percent (200%) of his highest rate of annual
salary in effect during the period commencing on May 1, 1997 and ending on the
date of a Change in Control.

Supplemental Executive Retirement Plan

The Bank maintains the Essex Savings Bank, F.S.B. Supplemental Executive
Retirement Plan ("SERP") for certain of the highly compensated officers of the
Bank and its subsidiaries. The present participants in the Plan include Messrs.
Ross, McPherson, and four other officers. The SERP was implemented in 1993 for
the purpose of attracting and retaining key management personnel. The SERP is a
non-qualified deferred compensation plan.

Each SERP participant who is continuously employed by the Bank or its
subsidiaries for an entire calendar year is credited under the SERP for that
calendar year with a pension credit of 5 percent of such participant's
compensation for the year and such profit-sharing credit, if any, as the
Compensation Committee of the Board of Directors of the Bank determines, not in
excess of 5 percent of such participant's compensation for the calendar year.
Amounts credited to the bookkeeping accounts of participants under the SERP
remain general assets of the Bank and are not funded through a separate trust or
other investment vehicle. Each participant's account under the SERP is also
credited annually with a deemed investment rate of return equal to the interest
rate in effect on the last day of the prior plan year on a one-year certificate
of deposit issued by the Bank.

Participants in the SERP fully vest upon death, permanent disability or
retirement at or after age 65 or upon any earlier change in control, as
described in the SERP. In the event of a termination of a participant's
employment prior to death, permanent disability, attainment of age 65 or a
change in control, the participant's vested interest in his account under the
SERP is based upon his completed years of employment with the Bank or its
subsidiaries after 1992. As of the fiscal year end 1997, all SERP accruals have
fully vested. Effective December 1, 1998, the SERP was amended so that each
year's accrual for plan years after 1998 and the deemed investment rate of
return thereon will vest only if the participant remains an employee of the Bank
through December 31, 2001. All amounts payable under the SERP are payable in a
lump sum. Amounts accrued under the SERP are not taxable to participants, or
deductible to the Bank, until paid. During the year ended December 31, 1998, the
Company accrued $38,808 of expense pursuant to the SERP and all participants
were fully vested therein.

TRANSACTIONS WITH CERTAIN RELATED PERSONS

In the ordinary course of business, the Bank and its subsidiaries have made
loans, and may continue to make loans in the future, to non-executive officers
and employees. Under the Bank's policy, such loans are made on substantially the
same terms, including interest rates and collateral, as are available to the
general public. Other than on an exception basis requiring Board of Directors'
approval, the Bank's policy does not permit the Company's or the Bank's
directors or executive officers to borrow from the Bank or its subsidiaries.
During 1998, the Bank approved loans to two executive officers, consisting of a
mortgage loan later sold to a third party investor and a residential

construction loan. These loans were made on substantially the same terms,
including interest rates and collateral, as those prevailing at the time for
comparable transactions with other persons, were made in the ordinary course of
business, and did not involve more than the normal risk of uncollectibility or
present other unfavorable features.

Furthermore, management of the Company does not believe that any director or
officer or affiliate of the Company, or any record or beneficial owner of more
than 5% of the Common Stock of the Company, or any associate of any such
director, officer, affiliate or stockholder, is a party adverse to the Company
or any of its subsidiaries or has a material interest adverse to the Company or
any of its subsidiaries in any material proceeding.

COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

Section 16(a) of the Exchange Act requires the Company's executive officers and
directors, and persons who own more than ten percent of a registered class of
the Company's equity securities, to file reports of ownership and changes in
ownership with the SEC and the American Stock Exchange. Executive officers and
directors and greater than ten percent stockholders are required by SEC
regulation to furnish the Company with copies of all Section 16(a) forms they
file.

During 1998, based solely on its review of the copies of such forms received by
it, the Company is unaware of any executive officer, director, or person who
owns more than ten percent of the Company's Common Stock, or of any executive
officer or director who has failed to file required notices on a timely basis.

INDEPENDENT ACCOUNTANTS

The Board of Directors has selected the accounting firm of
PricewaterhouseCoopers LLP, independent accountants, to be the Company's
independent accountants for the year ended December 31, 1998. The Board of
Directors has not yet made a determination regarding the selection of
independent accountants for the year ending December 31, 1999. Under the
Company's Certificate of Incorporation and Bylaws, stockholders are not required
to ratify or confirm the selection of independent accountants made by the Board
of Directors. It is anticipated that a representative of PricewaterhouseCoopers,
LLP will be present at the Meeting to answer questions concerning the financial
statements presented and to make a statement if he so desires.

STOCKHOLDER PARTICIPATION

In the event that a stockholder wishes to submit a proposal for consideration by
the stockholders of the Company at the 2000 Annual Meeting of Stockholders (the
"2000 Annual Meeting"), then in order for the proposal to be includible in the
proxy statement for the 2000 Annual Meeting, such proposal must be received by
the Secretary of the Company no later than December 14, 1999.

The Bylaws of the Company provide a procedure for certain business to be brought
before the annual meetings of the Company's stockholders, and such proposals may
be properly brought before the meeting even if they are not includible in the
proxy statement for the meeting, so long as the proposing stockholder complies
with the advance notice provisions of the Bylaws. The 2000 Annual Meeting is
scheduled to be held on May 25, 2000. If written notice of business proposed to
be brought before the 2000 Annual Meeting is given to the Secretary of the
Company, delivered or mailed to and received at the principal executive offices
of the Company not later than February 25, 2000, such business may be brought
before the 2000 Annual Meeting. Information regarding the contents of the
required notice to the Company is to be found in the Company's Bylaws, which are
available from the Company upon request.

Stockholders are also permitted to submit nominations of candidates for the
Board of Directors. If a stockholder wishes to nominate a candidate to stand for
election as a director at the 2000 Annual Meeting, the nomination shall be made
by written notice to the Secretary of the Company, which must be delivered or
mailed to and received at the principal executive offices of the Company not
later than February 25, 2000. The requirements regarding the form and content of
the stockholder nominations for directors are also set forth in the Company's
Bylaws.

OTHER MATTERS WHICH MAY PROPERLY COME BEFORE THE MEETING

The Board of Directors knows of no business which will be presented for
consideration at the Meeting other than as stated in the Notice of Annual
Meeting of Stockholders. If, however, other matters are properly brought before
the Meeting, it is the intention of the persons named in the accompanying proxy
to vote the shares represented thereby on such matters in accordance with their
best judgment.

Whether or not you intend to be present at the Meeting, you are urged to return
your proxy promptly. If you are present at the Meeting and wish to vote your
shares in person, your proxy may be revoked by voting at the Meeting.

ANNUAL REPORT ON FORM 10-K AND ADDITIONAL INFORMATION

A copy of Form 10-K as filed with the Securities and Exchange Commission is
available upon written request. Requests for this or other financial information
about the Company should be directed to Investor Relations, Essex Bancorp, Inc.,
The Koger Center, Building #9, Suite 200, Norfolk, Virginia 23502, Telephone
(757) 893-1326.

By Order of the Board of Directors

/s/ Jennifer L. DeAngelo

Jennifer L. DeAngelo
Corporate Secretary
Essex Bancorp, Inc.

Norfolk, Virginia
April 12, 1999

YOU ARE CORDIALLY INVITED TO ATTEND THE MEETING IN PERSON. WHETHER OR NOT YOU
PLAN TO ATTEND THE MEETING, YOU ARE REQUESTED TO SIGN AND PROMPTLY RETURN THE
ACCOMPANYING PROXY IN THE ENCLOSED POSTAGE-PAID ENVELOPE.

ESSEX BANCORP, INC.
REVOCABLE PROXY

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF ESSEX BANCORP,
INC., FOR USE ONLY AT THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON MAY 27,
1999 AND ANY ADJOURNMENT THEREOF.

The undersigned hereby acknowledges prior receipt of the Notice of the Annual
Meeting of Stockholders (the "Meeting") and the Proxy Statement describing the
matters set forth below, and indicating the date, time and place of the
Meeting, and hereby appoints the Board of Directors of Essex Bancorp, Inc. (the
"Company"), or any of them, as proxy, each with full power of substitution to
represent the undersigned at the Meeting, and at any adjournment or
adjournments thereof, and thereat to act with respect to all votes that the
undersigned would be entitled to cast, if then personally present on the
matters referred to on the reverse side in the manner specified.

THIS PROXY, IF EXECUTED, WILL BE VOTED AS DIRECTED, BUT, IF NO INSTRUCTIONS ARE
SPECIFIED, THIS PROXY WILL BE VOTED FOR THE PROPOSAL LISTED. PLEASE DATE AND
SIGN THIS PROXY ON THE REVERSE SIDE AND RETURN IT IN THE ENCLOSED ENVELOPE.
THIS PROXY MUST BE RECEIVED BY THE COMPANY NO LATER THAN MAY 26, 1999.

This Proxy is revocable and the undersigned may revoke it at any time prior to
the Meeting by giving written notice of such revocation to the Secretary of the
Company. Should the undersigned be present and want to vote in person at the
Meeting, or any adjournment thereof, the undersigned may revoke this Proxy by
giving written notice of such revocation to the Secretary of the Company on a
form provided at the Meeting.

(CONTINUED AND TO BE SIGNED ON REVERSE SIDE)

THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" PROPOSAL 1.

(1) Election of Directors of nominees listed.

Roscoe D. Lacy, Jr.; Robert G. Hecht [ ] FOR (except as marked to the contrary) [ ] WITHHOLD AUTHORITY

INSTRUCTIONS: To withhold your vote for any individual nominee, write that
nominee's name on the line provided below:

- --------------------------------------------------------------------------------
(2) To vote, in its discretion, upon any other matters that may properly come
before the Annual Meeting or any adjournment thereof. Management is not
aware of any other matters that will come before the Annual Meeting.

Date_________________________________ , 1999

--------------------------------------------
Signature

Please sign your name exactly as it appears
hereon. Joint accounts need only one
signature, but all stockholders should sign
if possible. When signing as an
administrator, agent, corporation, officer,
executor, trustee, guardian or similar
position or under a power of attorney, please
add your full title to your signature. PLEASE
RETURN THIS PROXY CARD PROMPTLY USING THE
ENCLOSED POSTAGE-PAID ENVELOPE.