Government Services Savings & Loan Inc. of Bethesda yesterday reported it lost $2.3 million last year and disclosed it is trying to solve its financial problems by merging with another firm and selling off real estate it owns in Montgomery County.
President A.R.M. Boyle said Government Services Savings "is engaged in preliminary discussion with several parties regarding possible merger or acquisition of the savings and loan operations."
At the same time, he disclosed, the company has signed a letter of intent to tell some of its real estate in Bethesda and has set up a joint venture to develop the rest of its land.
Grosvenor Properties Ltd., a privately owned real estate firm with major holdings in the Washington area, has agreed to pay $10 million for Government Service's eight-story office building and adjacent land at Wisconsin and Bethesda Avenues, Boyle said.
That transaction will yield a $6 million profit, he said, and future earnings are expected from the sale and development of other property.
Boyle said the firm is working on a plan to distribute proceeds of the real estate sales to shareholders without making them pay income taxes on them.
The decision to cut up the business was announced as Government Services disclosed a net loss of $2,343,000 ($2.74 a share) for the year ended March 31, in contrast to a profit of $352,000 (41 cents) last year. Boyle said payment of the regular quarterly dividend of 2 cents a share has been deferred until the real estate transactions are completed.