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SEABOARD BANCORP, INC. ANNOUNCES YEAR END OPERATING RESULTS

 SEABOARD BANCORP, INC. ANNOUNCES YEAR END OPERATING RESULTS
 VIRGINIA BEACH, Va., March 3 /PRNewswire/ -- Seaboard Bancorp, Inc. (NASDAQ: SEAB), the holding company for Seaboard Savings Bank, F.S.B., Virginia Beach, Va., announced today a consolidated net loss of $29,000 or $.03 per share for the three months ended Dec. 31, 1991 and a consolidated net loss of $2.9 million or $3.26 per share for the year then ended. This compares to a net loss of $69,222 or $.04 per share for the fourth quarter of 1990, and a net loss of $368,575 or $.41 per share for the year ended Dec. 31, 1990. Net losses for the year ended Dec. 31, 1991 were primarily due to provisions for loan losses of $1.86 million and provisions for losses on real estate acquired in settlement of loans of $882,690 taken by the Savings Bank. These provisions compared to $32,576 for loan losses and $260,000 for losses on real estate acquired in settlement of loans for the year ended Dec. 31, 1990. During the year, real estate acquired in settlement of loans averaged $5.9 million and other non-performing loans averaged $3.2 million. Gross interest income not recorded on these non-earning assets for the year ended Dec. 31, 1991 totalled approximately $810,000.
 Clarence W. Keel, President and Chief Executive Officer of Seaboard Bancorp, Inc., stated that the Savings Bank, like many other financial institutions in the mid-Atlantic region that invested heavily in commercial real estate loans in the early to mid-1980s, is suffering from the decline in market value of these assets. Keel added that the Savings Bank's ability to return to profitability will continue to be significantly influenced by the general state of the economy, particularly in the commercial real estate market.
 Total assets declined $7.7 million or 7.1 percent from $109.2 million at Dec. 31, 1990 to $101.5 million at Dec. 31, 1991 and by $4.9 million or 4.6 percent from $106.4 million at Sept. 30, 1991. This decrease in assets was due primarily to a reduction of cash and interest-bearing deposits which were used to fund savings deposit outflows and the repayment of short-term borrowings. This reduction in assets is in accordance with the Savings Bank's business plan of reducing assets in an attempt to meet current capital requirements. Assets also decreased by the total amount of loss provisions for the year. Stockholders' equity decreased by $2.9 million or 45.3 percent, from $6.4 million at Dec. 31, 1990 to $3.5 million at Dec. 31, 1991.
 Moreover, the net loss and the resulting decrease in stockholders' equity significantly impacted the Savings Bank's regulatory capital. At Dec. 31, 1991, the required levels of tangible, core, and risk-based capital for the Savings Bank were $1.5 million, $3.0 million and $6.0 million, respectively, while the actual levels were $3.5 million, $3.5 million and $4.2 million, respectively. The Savings Bank has failed to meet its risk-based capital requirement since Sept. 30, 1991, and at Dec. 31, 1991, the risk-based capital deficit was $1.8 million. As a consequence, Seaboard anticipates that the Office of Thrift Supervision will prohibit additional asset growth of the Savings Bank and will issue to the Savings Bank a Capital Directive requiring the Savings Bank to comply with the risk-based capital requirements of the regulations. This directive also may contain certain other operating restrictions or sanctions. Management of the Savings Bank prepared and filed a capital plan with the OTS on Dec. 1, 1991 which delineated how management anticipates that capital compliance may be achieved. This plan also seeks an exemption from one or more restrictions or sanctions. The Savings Bank continues to follow the capital plan, which is still being reviewed by the OTS. Under federal law, the OTS has broad regulatory and enforcement powers to take action against a savings institution that fails to meet its minimum capital requirements.
 Non-accrual, past-due and restructured loans and real estate acquired in settlement of loans increased by $2.6 million or 17.8 percent from $14.6 million at Dec. 31, 1990 to $17.2 million at Dec. 31, 1991. Non-accrual, past-due and restructured loans decreased by $.5 million from $10.7 million at Dec. 31, 1990 to $10.2 million at Dec. 31, 1991, while real estate acquired in settlement of loans increased by $3.1 million from $3.9 million at Dec. 31, 1990 to $7.0 million at Dec. 31, 1991. The Savings Bank reported that in the first two months of 1992, $2.2 million of real estate acquired in settlement of loans was sold and closed. As of Feb. 28, 1992, real estate acquired in settlement of loans was $4.9 million as compared to $7.0 at Dec. 31, 1991. There are sales of approximately $1.1 million under contract, and expected to close in the next several months.
 Additionally in January, the Savings Bank recovered $225,000 on a previous charge off. Of this recovery, $125,000 was taken into income as a benefit to the provision for loan losses in the first quarter of 1992.
 Seaboard Bancorp, Inc. is a thrift holding company based in Virginia Beach which owns Seaboard Savings Bank, F.S.B. Through its network of six full-service branches in Chesapeake, Norfolk, Portsmouth, and Virginia Beach, Va., Seaboard offers mortgage loans, consumer credit, and various deposit accounts. The thrift holding company has approximately 900 stockholders and 891,184 shares of stock outstanding.
 -0- 3/3/92
 /CONTACT: Clarence W. Keel, Seaboard Bancorp, Inc., 804-490-3181/
 (SEAB) CO: Seaboard Bancorp, Inc.; Seaboard Savings Bank, F.S.B. ST: Virginia IN: FIN SU: ERN


DF -- CH006 -- 4657 03/03/92 16:53 EST
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Date:Mar 3, 1992
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