Bresler & Reiner Inc., a Washington-based real estate development company, said the financial troubles of Washington Bancorp, taken over by federal regulators Aug. 1 after it filed for bankruptcy court protection, have hit its bottom line.
The company said its profit fell 69 percent in the second quarter because of its investment in the short-term debt of Washington Bancorp, the parent company of the National Bank of Washington.
Bresler & Reiner said it took an $800,000 write-down on its holdings of $2.5 million of Washington Bancorp commercial paper, which the bank company defaulted on. Apart from that holding, B&R said, it still has more than $7.6 million in cash and cash equivalents and will not be affected by the write-down.
The company reported second-quarter earnings of $417,000 (15 cents a share), compared with a profit of $1.36 million (48 cents) in the 1989 second quarter. Its revenue rose 18 percent in the quarter, to $11.6 million from $9.8 million.
Bresler & Reiner earned $1.7 million (60 cents) in the first half, down 39 percent from a profit of $2.75 million (97 cents) a year-ago. Revenue increased 6 percent, to $20.8 million in the first six months from $19.6 million in the 1989 first half.
Franklin National Bank, a District-based financial institution, said it earned $126,722 (8 cents) in the second quarter, compared with a $12,446 loss for the 1989 second quarter, reflecting the growth of assets and deposits.
The bank reported a first-half profit of $219,000 (14 cents), compared with a $103,000 loss in the 1989 first half. Assets totaled $43.4 million as of June 30, up 17 percent over the level of a year ago. Deposits rose 15 percent during the year to stand at $34 million on June 30.