Imperial Corp. Reports $4.9-Million Net Loss
Imperial Corp. of America, the San Diego-based, multi-state savings and loan holding company, said it lost $4.9 million in its third quarter and would “embark on a major shift in corporate direction” by eliminating or reducing several of its unprofitable programs.
In his first reorganization effort since joining Imperial last month, President and Chief Executive Kenneth J. Thygerson said the company would concentrate primarily on retail and mortgage banking.
Imperial’s program to purchase second mortgages for investment and its telephone sales program are being eliminated, Thygerson said. In addition, the company, parent of Imperial Savings & Loan, is “reassessing (the) future role” of its residential and non-residential acquisition, development and construction lending.
The $4.9-million net loss compared to a loss of $3.6 million in the third quarter last year. For the nine months, Imperial, with $8.6 billion in assets, earned $243,000, compared to $206,000 in the same period last year.
The third-quarter loss included a charge of $2.3 million in after-tax costs because of a land purchase option obtained in 1980 and a $2.6-million after-tax loss from the termination of an “asset hedge” that was “structured to provide greater benefit in a rising rate environment,” according to Kevin Villani, Imperial’s chief financial officer.
Imperial’s earnings also were hurt by an after-tax charge of $1.4 million from a special industrywide insurance premium levied by the Federal Savings and Loan Insurance Corp.