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BSD BANCORP REPORTS SECOND QUARTER RESULTS; ANTICIPATES SIGNIFICANT SAVINGS FROM MERGER

 BSD BANCORP REPORTS SECOND QUARTER RESULTS;
 ANTICIPATES SIGNIFICANT SAVINGS FROM MERGER
 SAN DIEGO, July 22 /PRNewswire/ -- BSD Bancorp Inc. (AMEX: BSD) today announced a net loss of $3,847,000, or $1.05 per share, for the second quarter ended June 30, 1992, compared to net earnings of $50,000, or $.01 per share, for the second quarter of 1991.
 The loss, projected by the holding company in mid-June when it announced its intention to merge American Valley Bank and Coast Bank into The Bank of San Diego, was primarily due to a $3.5 million addition to loan loss reserves and a $1.5 million restructuring cost associated with the merger.
 "It is our intent to ensure that The Bank of San Diego begins its combined operations on a solid footing," said James S. Brown, chairman and chief executive officer of BSD Bancorp. "To achieve that, we chose to add to our reserves in anticipation of a continued weak economic environment. When the merger is complete, the combined bank's balance sheet will have generous reserves and will not be encumbered by restructuring costs.
 "Also, as a result of the merger and a recently completed branch closing, we estimate our annual savings at $3.6 million, or more than 12 percent of our annual overhead expenses. In the absence of continued deterioration in the local economy, these significant savings should make the company profitable in the period following the completion of the merger," added Brown. The merger's approval is anticipated in the third or fourth quarter of this year.
 For the six months ended June 30, 1992, BSD Bancorp reported a net loss of $3,821,000, or $1.04 per share, compared to net income of $389,000, or $.10 per share in the first six months of last year.
 BSD Bancorp also reported that loan reserves at the end of the quarter stood at 2.89 percent of total loans, compared to 1.38 percent at the end of the second quarter of 1991. The company's primary capital ratio as of June 30, 1992, was 6.9 percent on assets of $414 million.
 BSD Bancorp is a diversified holding company serving banking and trust markets predominately in Southern California.
 -0- 7/22/92
 /CONTACT: James S. Brown, chairman and CEO, 619-237-5365, or Marilyn Creson Jones, CFO, 619-237-5366, both of BSD Bancorp/
 (BSD) CO: BSD Bancorp Inc. ST: California IN: FIN SU: ERN


EH-JL -- SD002 -- 1646 07/22/92 07:37 EDT
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Publication:PR Newswire
Date:Jul 22, 1992
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