Coast Savings reports a profit.

Coast Savings Reports a Profit

LOS ANGELES - Coast Savings Financial Inc. has reported a $6.8 million profit for the third quarter.

The quarter would have been a loss if not for $21.9 million in one-time gains, most of which was made up of a tax refund.

Also, Coast reduced its loan-loss provision to $13 million in the quarter, from $61 million in the year-ago period.

The company said the results reflect a just-completed examination by the Office of Thrift Supervision and the Federal Deposit Insurance Corp.

The smaller loan-loss provision was partially offset by larger losses in real estate operations. In this area Coast lost $27.3 million in the third quarter, compared with a loss of $2.8 million on real estate operations in the same period last year.

"They are doing what they can," said Campbell Chaney, an analyst at Sutro & Co., San Francisco. He noted that the quarter's overhead expenses were down 6% from a year earlier, to $39 million. But he added, "They are still pulling rabbits out of a hat, using one-time gains to remain profitable."

In September, the company swapped some debt for common stock, which raised its capital ratios and cut future interest expense.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER