Union Bank Plans $90 Million Provision
SAN FRANCISCO - Union Bank has become the latest casualty of California's banking slump.
The bank said it will add $90 million to loan-loss reserves in the third quarter to cover commercial real estate credits, mainly in the southern part of the state. The provision is about $50 million above the level of recent quarters.
Union, controlled by the Bank of Tokyo, said Thursday that it expects "nominal" profits for the quarter. Union has assets of $16.6 billion and earned $71.3 million in the first half.
About $155 million in loans will be put on nonperforming status this quarter, including $135 million in problem realty credits, the bank estimated. It said total nonperforming assets would jump to $480 million, or about 3.6%.
