GLENDALE, Calif. -- Citadel Holding Corp. said it expects to report a loss for the first nine months and probably for all of 1991 as a result of writedowns and additional loan-loss provisions for its Fidelity Federal Bank subsidiary.

Citadel said it plans to write down $11.9 million in real estate and loans held by Fidelity Federal and make additional provisions for loan and real estate losses of $28.6 million.

Rights Offering Considered

The company said 90% of the reserves are releated to three commercial properties and two hotels, all outside of California, which had previously required writedowns and reserves.

Citadel said it is considering the possibility of a rights offering before the end of the year with the goal of raising $50 million. The Office of Thrift Supervision's capital rules would require an increase in core capital to 4% to 5% of assets from 3%; Citadel currently maintains a 3.6% ratio.

Fidelity Federal Bank, one of the 15 largest thrifts in California, said it had a $4.9 billion loan portfolio on Aug. 31 with 27% secured by single-family residences, 52% by residential properties of up to 36 units, 12% by residential properties with more than 36 units, 8% by commercial real estate, and 1% by construction loans.

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