Beverly Hills Savings Posts $242-Million Loss for Year

Beverly Hills Savings lost $242 million in 1986, giving the savings and loan a negative net worth of $756 million at the end of the year, the financial institution said in a statement recently sent to customers.

The red ink includes additions to loan-loss reserves of $158 million, along with operating losses of more than $80 million, company executives said. According to the company’s balance sheet, Beverly Hills Savings now has assets of $1.56 billion.

Federal savings and loan regulators seized Beverly Hills Savings in April, 1985, and placed the financial institution in receivership because it was crippled by poor-quality real estate loans and investments.

The S&L;, now based in Mission Viejo, Calif., was kept open under new management and placed under special regulatory supervision in what came to be known as the management consignment program. Beverly Hills Savings was the first of dozens of S&Ls; eventually placed in the program around the nation.

Regulators have been trying for months to find a buyer for Beverly Hills Savings, but there have been no takers so far. “I haven’t heard of any recent inquiries,” company President David B. Bretoi said.