Virginia's Guaranty Financial Corp. said it expects to lose $887,000 in the third quarter, the result of a one-time charge taken to leave the mortgage loan servicing business.

Charlottesville-based Guaranty, which has $250 million of assets, said it is getting out of the business because of the risks involved. The company said it was wary of mortgage servicing because it "cannot control or predict changes in the value of servicing rights or the rate of amortization as loans prepay." The company is taking a $1.1 million charge to cover the reorganization.

Despite the quarterly loss, Guaranty said, it still expects to post a profit this year. The company made $397,000 in the second quarter.

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