FIRST CITY BANCORP HOLDS TALKS ON RAISING CAPITAL
First City Bancorp of Texas Inc <FBT>
said it was talking with several parties about its previously
announced efforts to bolster its capital position.
    The statement, issued yesterday, did not say how close the
bank was to a merger or recapitalisation program.
    "Several parties have expressed an interest in working with
First City," it said. "This exploration process has not been
completed and therefore it would be premature to speculate on
the alternative that First City might pursue."
 First City had "sufficient time" to find a solution to its
financing problems, the statement added.
    A spokesman said the statement was a response to several
recent inquiries about First City's progress in strengthening
its weak capital position.
    Its problems were caused in part by slumps in Texas real
estate and oil prices.
    First City, which lost a record 402 mln dlrs in 1986, had a
first quarter loss of 44.5 mln dlrs. The bank earlier said it
predicted a smaller loss for 1987.
    Banking analysts said First City is unlikely to attract a
suitor unless federal regulators offer buyout assistance. The
company's stock yesterday closed at 2-3/4, down 1/4.
 REUTER
