Sun S&L; Posts $5.8-Million Loss for 1984

Beleaguered Sun Savings & Loan Assn. on Friday reported a 1984 loss of about $5.8 million, the result of writing off $8.9 million in bad loans.

The loss--the first in Sun’s four-year history--nearly halved the thrift’s net worth to $6.3 million, or only 1.34% of its $471 million in assets. However, under complicated federal formulas, Sun’s ratio of net worth to assets is more than the 3% minimum required of thrifts that are less than 20 years old, officials said.

Sun also confirmed Friday that its delinquent loans as of Dec. 31, 1984, totaled about $23.2 million, nearly double its total of loans more than 90 days in arrears as of Sept. 30. As of year-end 1983, delinquent loans totaled only $802,000.

Assets in 1984 increased 44% from $327 million at year-end 1983.

John McEwan, who took over as Sun’s president and chief executive earlier this month, said the loans were written off after an “intensive review” of Sun’s portfolio.

To Cut Non-Performing Assets

“I can’t tell you we won’t take additional losses,” he said Friday. “But in terms of the portfolio at this point in time, we’ve done a good job of identifying potential losses.”

McEwan said he also plans to reduce Sun’s non-performing assets to “acceptable industry standards.”

The losses and loan write-offs cap a controversy-filled year at Sun. Two chairmen have resigned--developer Harry L. Summers and Daniel W. Dierdorff, who also resigned as president and chief executive after Sun’s write-off last summer of a $4-million loan that he had approved.

The board of directors has since been reorganized, with five members resigning and dissident shareholders naming three new directors earlier this month.

In the fourth quarter, Sun reported a loss of nearly $5.8 million after writing off $4.8 million in bad loans.