PORT CHESTER, N.Y. - Village Financial Services Ltd. said it would not proceed with the purchase of Sentry Savings and Loan Association of Stamford, Conn.
Village will take a $360,000 Pretax charge in the third quarter to write off previously capitalized costs tied to the deal.
It also said it would sell its mortgage-backed securities in the fourth quarter and would realize a gain.
Village said the charge and additions to loan-loss reserves would substantially reduce the third-quarter earnings of its Village Bank subsidiary. But the company said it expected to report "a nominal profit."