Sour Loans Hurt 1984 Earnings for Eldorado Bank
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As expected, Eldorado Bancorp of Tustin reported a fourth-quarter loss of $575,000 and a 48% drop in annual earnings, mostly because of soured real estate or real estate-backed loans.
During the 1983 fourth quarter, the bank holding company, parent of Eldorado Bank, reported a loss of $357,000 for the three-month period ended Dec. 31.
Net income for 1984 fell to $271,000 from $525,000 for fiscal 1983. Annual revenues declined 2.8% to $19.6 million in 1984 from $20.2 million in 1983. Quarterly revenue figures were not available.
Company executives had predicted the drop in profits in December, when the bank announced it would charge an additional $875,000 against income to bolster its loan-loss reserves and write off about $1.4 million in troubled real estate or real estate-backed loans during the fourth quarter.
For 1985, J. B. Crowell, president and chief executive officer of Eldorado Bancorp and Eldorado Bank, said in a statement that the bank expects “substantial improvement in earnings,” compared to 1983 and 1984 figures.
Eldorado Bancorp also said its stock, which has been traded over-the-counter, now will be on the National Assn. of Securities Dealers’ National Market System beginning March 5.
Eldorado Bank, with assets of $169 million, operates seven banking offices in Orange, Riverside and San Bernardino counties.
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