The Los Angeles thrift company FirstFed Financial Corp. said Friday that its third-quarter loss widened 45.4% from the previous quarter, to $51.6 million.
FirstFed said its loan-loss provision rose 22.3%, to $110.3 million, compared with the second quarter. For last year's third quarter it reported net income of $23 million and set aside $4.5 million for bad loans.
FirstFed has been hurt by option adjustable-rate mortgages. It said 1,741 with balances totaling $802.3 million are due to recast to higher monthly payments this year.
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Corrected November 4, 2008 at 12:14PM: In the Nov. 3 paper, a brief item on page 11, "FirstFed of Calif. Posts $51M Loss," overstated the number and total balance of option adjustable-rate mortgages scheduled for payment resets this year at FirstFed Financial Corp. of Los Angeles. There are 181 such loans with a total balance of $79.5 million.