Glendale Federal reports loss of $144 million in 1st quarter.

SAN FRANCISCO -- In a result that included a one-time charge from the sale of its Florida operations, Glendale Federal Bank reported a $144 million first-quarter loss, compared with earnings of $45.2 million for the same period a year ago.

As previously reported, the loss in the most recent quarter reflected a $136.2 million write-off of goodwill and other assets associated with Glendale Federal's agreement to sell 60 Florida branches and $3.6 billion in deposits to Barnett Banks Inc. for $243.5 million.

Gain on Securities Sale

The writedown was partly offset by an $11.5 million gain on the sale of mortgage-backed securities also connected with the Florida transaction.

On an operating basis, the Glendale, Calif.-based thrift lost $19.3 million in the first quarter, compared to a $50.4 million loss in the same period of 1993, before taxes and one-time items.

The most recent result is Glendale Federal's third consecutive quarterly loss since a recapitalization last year that prevented a federal takeover. The nation's fourth-largest thrift continues to be plagued by credit problems and weak revenue.

Although analysts do not expect the thrift to return to profitability in the next quarter, they said they see signs of progress.

In particular, Glendale Federal's pre-provision net interest income for the largest quarter totaled $83 million, up 24% from the previous period.

Chairman and chief executive Stephen J. Trafton said the improvement was due mainly to a drop in mortgage preparyments, which let the thrift reduce the amortization of premiums paid on its portfolio of collateralized mortgage obligations.

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