BANKING/FINANCE

The deal to sell Huntington Savings & Loan to Pasadena architect Renato Corzo is in jeopardy, but the parties are still talking, said Robert C. Terry, the S & L’s president.

Corzo missed a July 22 deadline in their merger agreement to complete and file a document with regulators, but Terry said the form is a complex one that requires a lot of time to complete.

“His position is that he will still be able to complete the transaction,” Terry said. “And we’re open-minded enough to give him every opportunity we can, but we need some specific performance on his part, such as filing the document.”

Corzo could not be reached for comment.

Under the deal, Corzo was to form a company to acquire the S & L for $750,000 in cash and was to pump $3.25 million more into the S & L’s capital base. The proposed merger is the fifth one in as many years for Huntington Savings.

Though it needs capital, the S & L has apparently turned the corner. Unaudited figures for its fiscal year, ended June 30, show that it earned about $300,000, which was dumped into the S & L’s capital base to raise that amount to about $500,000, Terry said.

With $108 million in assets, though, it still needs nearly $3 million more in capital to bring its net worth up to the level required by regulators.

Huntington Savings ran into problems when a former employee had unauthorized dealings in government securities in 1983 and 1984. The S & L lost $2 million as it tried to recover from the dealings.