Gibraltar Financial Suffers $24-Million Loss in 3rd Quarter

Blaming higher interest rates, Gibraltar Financial on Friday reported a loss of $24 million in the third quarter, a strong signal that the giant financial institution in Beverly Hills has yet to turn around its sagging fortunes.

The red ink means that Gibraltar, which has $14.7 billion in assets and is one of the 10 largest S&Ls; in California, has lost about $195 million since the middle of last year. James N. Thayer, Gibraltar’s president and chief executive, termed the latest losses “obviously disappointing.”

“A significant portion of our liabilities are short-term in nature,” Thayer said, “and the continuing increase in short-term interest rates during the past six months has severely narrowed our (profit) margin.”

Gibraltar’s stock closed up 12.5 cents to $2.625 a share Friday on the New York Stock Exchange, but the firm did not release the earnings report until after the close of trading.

Gibraltar’s principal subsidiary is Gibraltar Savings, which has retail branch offices all over California.

Customers know the savings and loan as the one that uses the “Rock of Gibraltar” in its advertising and corporate logos--a symbol meant to project strength and stability.

Gibraltar’s problems became glaring apparently last fall when it reported a $155-million loss in the third quarter of 1987, one of the worst three-month losses in thrift industry history. The losses stemmed primarily from problems with real estate development projects.

The ensuing months were characterized by additional losses and an upheaval that shook the ranks of top management last March.

Long-time Chief Executive Herbert J. Young chose early retirement at age 56, while his top deputy, Jerome Nussbaum, was demoted.