SAN FRANCISCO -- EurekaBank will record a charge to earnings of approximately $21 million, resulting in a net loss for the third quarter of about $16 million, the San Francisco thrift's parent said.
America First Financial Fund 1987-A, owner of EurekaBank, said the charge relates to interest rate-swap contracts arranged mainly in 1988, 1990, and 1991 to hedge yields on fixed-rate mortgages funded by variable-rate liabilities.
EurekaBank and America First Eureka Holdings have elected the early implementation of Financial Accounting Standard 115, "Accounting for Certain Investments in Debt and Equity Securities." Early compliance "will result in a better picture of the company's current financial position and future operating results," America First said.
"Even after this charge, we expect to show a small profit in 1993," said EurekaBank chairman Stephen McLin.
