Mortgage-Backeds Put a California Bank in the Red

Bank Plus Corp. reported a second-quarter net loss of $1.2 million and cited losses in its portfolio of mortgage-backed securities. The company earned $3.3 million a year earlier.

Bank Plus and its subsidiary, Fidelity Federal Bank, were required by the Securities and Exchange Commission to take a $4 million hedging loss.

The company said it had expected to announce a sizable deal with its second-quarter results but is now uncertain the transaction will take place.

Operating expenses increased $8.8 million from a year earlier because of the addition of five retail branches and new business initiatives.

As of June 30, delinquent mortgage loans were down from year earlier, to $29.4 million (1.03%) from $31.2 million (1.09%). Delinquent credit card balances were up, at $21.8 million (11.87%) from $11.7 million (10.62%).

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