Downey Financial Corp., pummeled by loan and securities losses, on Wednesday reported its fifth-straight quarterly loss.
The Newport Beach, Calif., thrift company posted a third-quarter loss of $81.1 million, or $2.89 a share, more than triple the loss of $23.4 million, or 84 cents a share, it posted a year earlier.
Compared with a year earlier, third-quarter deposits were down 10%, to $9.6 billion, and net interest income was off 22%, at $76 million. Its credit-loss provision soared 60%, to $130 million, and charge-offs rose tenfold, to $97.6 million.
Charles Rinehart, the thrift industry veteran who became Downey's CEO last month, said the company's tier 1 capital ratio is 7.48%, above regulators' preferred level. But in the wake of deposit losses and further loan troubles, Downey will pursue options to raise more capital.
"We continue to work with our financial advisor towards raising additional external capital, and we are reviewing the recently announced governmental programs to determine which programs, if any, might be available and appropriate for us," Mr. Rinehart said in a press release.
