St. Francis Capital Corp., Brookfield, Wis., said it would take a $300,000 charge against earnings for the second quarter in connection with a lawsuit recently settled by its subsidiary, St. Francis Bank.

The $1.6 billion-asset thrift was sued by seven Milwaukee-area homeowners referred to it by a home improvement contractor that went out of business before completing its work. The plaintiffs alleged that St. Francis was negligent in making the loans and conspired with the contractor to commit theft.

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