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ESSEX FINANCIAL PARTNERS, L.P. ANNOUNCES SECOND QUARTER DISTRIBUTION

ESSEX FINANCIAL PARTNERS, L.P. ANNOUNCES SECOND QUARTER DISTRIBUTION
 VIRGINIA BEACH, Va., March 19 /PRNewswire/ -- Essex Financial Partners, L.P. (AMEX: ESX) will increase its reserves and specific write-downs in the fourth quarter of 1991. These charges to earnings will occur in three segments of its income statement and will allow the Partnership to enter 1992 with realistic loan reserves, both specific and in unallocated general valuation reserves. It also allows Essex Financial Partners, L.P. to reflect appropriate carrying values on its portfolios of purchased mortgage servicing rights (PMSRs).
 The Partnership now services over $2 billion in mortgage loans throughout the country and owns PMSRs in Essex Savings Bank, Inc., North Carolina (ESB/NC), Essex Home Mortgage Servicing Corporation and Essex Mortgage Corporation which has acquired PMSRs with the proceeds of the Essex 11s of '96 notes. At year end, the Partnership engaged a third party independent appraiser, Hamilton, Carter, Smith & Co. to provide market values for its PMSRs. Although the market value of the aggregate PMSRs for the partnership was in excess of book value as a whole, the market value of the PMSRs in the ESB/NC, which owns older mortgage servicing portfolios, was valued at less than book. These older PMSRs at ESB/NC were purchased during 1988 and 1989 at higher market prices on average than the more recently acquired PMSRs. The adjustment anticipated for the ESB/NC PMSRs, will be approximately $500,000. With long term interest rates having increased 60 basis points since year end 1991 and refinancings having peaked in the first quarter, management believes these adjustments represent appropriate carrying values. Management does not anticipate any adjustments in the values of PMSRs held by Essex Mortgage Corporation or Essex Home Mortgage Servicing Corporation.
 The Partnership will increase its unallocated general valuation reserve approximately $750,000 and its specific loan reserves approximately $1,700,000 in the fourth quarter. General valuation reserves have increased in the partnerships during 1991 from approximately $1,700,000 to $3,800,000 at year end and will be in excess of 1 percent of total loans. Troubled assets, real estate owned and in substance foreclosure (loans) have decreased 20 percent from their peak in September 1991 to approximately $8,400,000 at year end. These assets have been marked to fair value including anticipated selling costs.
 The net result will be an anticipated loss in the fourth quarter of approximately $2.5 million reducing the book value of the Partnership to approximately $11.40 per unit as of Dec. 31, 1991. Management anticipates that these adjustments should have a favorable impact on 1992 results.
 The Partnership anticipates that 1992 should return to profitable levels, the assets of the partnership are realistically valued and the first quarter is on track. ESB/NC, Essex Savings Bank, Florida, and Essex Savings Bank, Virginia, anticipates meeting current core and tangible capital requirements. ESB/NC because of the adjustments in PMSRs and specific reserves will be risk based capital deficient at year end by approximately $950,000 and this deficiency should be corrected in the near future.
 Based on current cash flows the Partnership announces that the cash distribution to be paid on a current basis in the second quarter of 1992 will be 25 cents per Class A Cumulative Preferred Unit. The distribution will be payable on May 15, 1992, to limited partners of record on April 1, 1992.
 -0- 3/19/92
 /CONTACT: Lisa Nasis, investor relations, Essex Financial Partners, L.P., 800-274-9900, ext. 308/
 (ESX) CO: Essex Financial Partners, L.P. ST: Virginia IN: FIN SU:


SB -- DC004 -- 9545 03/19/92 09:32 EST
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Date:Mar 19, 1992
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