for the third quarter, largely because of the cost of a fair-lending settlement with state and federal regulatory authorities.

The subprime mortgage lender, which took a $6 million hit in the second quarter, absorbed the rest of the cost of the settlement, which required Delta to rebate payments to some borrowers and fund a credit education program.

"We are pleased that this matter is now behind us," said Hugh Miller, president and chief executive officer.

On a per-share basis Delta lost 39 cents in the third quarter. In the same quarter last year, it earned $3.1 million, or 20 cents a share.

The loss also reflected a decision not to execute a regular securitization in the third quarter, resulting in a smaller-than-expected gain on the sale of loans.

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