Valley Federal S&L; Shows Loss in Second Quarter

Valley Federal Savings & Loan reported a $4.65-million loss for the second quarter, compared with profit of $6.24 million, or $1.03 a share, a year earlier.

The Van Nuys-based S&L; blamed the loss on several one-time events, including its $3.5 million settlement of a lawsuit filed by several other thrifts; $2 million in legal fees associated with that case and with Valley Federal’s effort to block a takeover bid by Citadel Holding Corp.; and an accounting change that required Valley Federal to defer $1.2 million in loan fees rather than recording the income immediately.

Valley Federal’s basic business also showed lower results. The company recorded $386.1 million in new loans in the latest quarter, down from $559.2 million a year ago.

For the first half of 1988, Valley Federal posted a $3.3-million loss, contrasted with net income of $13.1 million, or $2.17 a share, a year earlier.