Security Capital Bancorp of Salisbury, N.C., lost $4 million in the quarter ended Sept. 30.

The loss, which was expected, stemmed primarily from the recognition of deferred tax liabilities in the merger of its three savings bank subsidiaries into a commercial bank, said David B. Jordan, vice chairman and chief executive officer. The conversion will be completed early next year. The $1.2 billion-asset bank will combine Omnibank, Citizen Savings, and Home Savings Bank under the same name, Security Capital Bank.

The tax structure allows thrifts to put aside earnings each year to make up for any losses. In a conversion to a thrift, those earnings must be recognized and income taxes paid on them.

For Security Capital, this charge amounted to $5.6 million, leading to the quarterly loss, the bank said.

Also contributing to the loss were the charges associated with Security Capital's September acquisition of First Federal Savings and Loan in Charlotte. The thrift was purchased for $41 million in cash.

"While financial results for the third quarter were significantly impacted by unusual one-time believes the company is positioned to increase operating earnings and maintain the quality of our assets," Mr. Jordan said. In the comparable 1993 period, Security Capital earned $3.5 million, or 30 cents per share. The 1994 third-quarter loss translated into a share value of negative 34 cents.

For the nine-month period ending Sept. 30, the bank earned $2.9 million, or 25 cents per share, compared with the $11.1 million, or 94 cents per share, in the same period of 1993. Nonperforming assets for the quarter increased to $4.2 million from $2.8 million in the 1993 third quarter. The more recent figure constitutes 0.36% of total assets, indicating generally strong asset quality. Security Capital operates 46 branches in 13 counties in central North Carolina.

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