ROCHESTER, N.Y. -- Rochester Community Savings Bank, a $3.8 billion-asset thrift that has been the subject of takeover rumors, said Wednesday that it lost $72.7 million, or $5.37 a share, in its third fiscal quarter, which ended Aug. 31.
The company said the loss reflected a previously announced plan to accelerate sale of most of its nonperforming commercial real estate in an effort to rebuild its profitability and avoid takeover. The company said it sold $121 million of problem assets during the quarter, leaving it with $155.2 million of nonperformers representing 4.1% of total assets. At the end of its fiscal second quarter, nonperformers represented 7.0% of total assets.
The company also said that its provision for loan losses more than doubled from the previous year's quarter to $9.3 million to facilitate the accelerated sale of bad assets.
Rochester Community's stock had fallen 62.5 cents to $15.375 in early afternoon trading on Wednesday.
The company, which completed a convertible preferred stock offering for $71.4 million during the quarter, said that its chairman and chief executive, Leonard S. Simon, will also serve as president of the savings bank. Rochester Community's former president was forced out during the summer.