In Brief: Big Provision Pushes Calif. Thrift into the Red

GLENDALE, Calif. - Fidelity Federal Bank, stung by a huge loan-loss provision, lost $14.8 million in the fourth quarter.

It had lost a $37 million in the comparable 1993 period.

For the full year the bank lost $128.4 million, versus a $65.9 million loss for all of 1993.

The fourth quarter saw loan-loss provisions of $21.9 million, up from $3 million in the third quarter. The provision a year earlier was $23.6 million.

Notwithstanding the fourth-quarter loss, Fidelity officials said the savings bank continues to maintain capital ratios necessary to be considered "adequately capitalized" under Office of Thrift Supervision regulations.

On the basis of a nearly completed annual examination being conducted by the OTS, the $3.7 billion-asset thrift incrementally increased its loan- loss provisions as of Dec. 31 by $16.7 million.

"Management does not believe that the additional OTS incremental reserves were necessary," said Richard Greenwood, chief executive.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER