SANTA MONICA, Calif. - FirstFed Financial Corp. said its thrift, First Federal Bank of California, will add about $18 million to its loan-loss allowance during the third quarter.
FirstFed president Babette Heimbuch cited reassessment of apartment buildings in neighborhoods affected by recent civil unrest in Los Angeles. Another factor is the region's continuing economic slump, she said.
Ms. Heimbuch said there would be a specific reserve of $7.6 million and a $10.4 million addition to the general valuation allowance, which is expected to total $30 million by Wednesday.
FirstFed, which earned $14.7 million in the first half, said it expects to break even in the quarter.