Great American Reports a Loss

SAN DIEGO —  Great American Bank announced a $59.4-million loss in the third quarter Tuesday after setting aside loan-loss provisions totaling $93 million in a bid to put its lingering Arizona loan problems behind it.

Analysts generally applauded the boost in reserves, although some expressed reservations about whether Great American’s Arizona problems are over. The company has said previously that it had “turned the corner” on problem loans only to surprise the investment community with larger loss provisions in subsequent quarters, several analysts noted.

Great American also disclosed that, as part of a cost reduction program, it has reduced payroll by 5% or 187 positions, including 59 layoffs, since the first of this year. And more job reductions are expected in coming months at Great American, chief financial officer Jim Krzeminski said Tuesday. With $16.5 billion in assets, Great American is the seventh-largest S&L; in the nation.