With the sale of its Essex branch, Irvington Federal Savings and Loan Association of Baltimore today said it is now in compliance with two of three federal capital requirements.
"Having served its communities for the last 100 years, Irvington will be able to continue to serve those communities," said Irvington president William J. Ottey.
The Essex branch at 809 Eastern Blvd. was sold to First National Bank of Maryland, the state's second largest bank. The sale, which was completed today, includes the real estate and $27 million in deposits, Ottey said.
The gross profit from the branch sale was $1.9 million, he said.
The agreement calls for the continued employment of the seven workers at the branch, he said.
Irvington last month sold its branch operation and deposits at 5109 York Road to Harbor Bank, a Baltimore commercial bank. However, it still owns the real estate at the branch and leases it to Harbor Bank, Ottey said.
A third branch at Jumpers Hole Mall on Ritchie Highway had been sold in June 1989 to Greater Baltimore Savings and Loan, which later became Greater Altantic Federal Savings Bank, Ottey said.
The branches that were sold were acquired by Irvington in 1985 when it took over the troubled Germania Federal Savings and Loan.
The sales leave Irvington with three branches at 4106 Frederick Ave. in Baltimore, 7711 Quarterfield Road in Glen Burnie, and 4179 Mountain Road in Pasadena.
With the completion of the Essex branch sale and the two previous branch sales, Irvington meets federal requirements on core capital and tangible capital, he said. The thrift expects to meet the third requirement for risk-based capital in 1991, Ottey said.
Capital, which generally is defined as assets minus liabilities, is critical in determining the health of a financial institution.
Tangible capital is the common stock and retained earnings of the company. Core capital is the tangible capital plus goodwill, which is the difference between the actual value and the sale price of a previous acquisition. Risk-based capital is a more complex standard based on the riskiness of loans in a company's portfolio.
First National, which is owned by First Maryland Bancorp, said the acquisition of the Essex branch will strengthen its position in Eastern Baltimore County.