GLENDALE, Calif. - A drastically reduced loan loss provision helped Fidelity Federal Bank post net earnings of $1 million in the first quarter following net losses of $14.2 million for the year-earlier period and $14.8 million for the fourth quarter.
"We are pleased to report our first profit since the first quarter of 1993," said president and chief executive Richard M. Greenwood. "While we are encouraged by the current outlook for a stabilization in interest rates, we have yet to see any significant rebound in the Southern California economy and we accordingly continue to closely monitor our multifamily portfolio."
The first-quarter provision for estimated loan losses was $4 million, down from $17.9 million in the fourth quarter and $11.6 million in the year-earlier period.
At quarter's end, total delinquent loans had decreased to $101.1 million, or 3.2% of total loans, from $106.8 million on Dec. 31, and $225.9 million on March 31, 1994.
Nonperforming assets stood at $91.9 million, or 2.5% of total assets, down substantially from $282.7 million a year earlier but up slightly from $85.7 million at yearend.