San Clemente Savings Records $2.9-Million Loss

NEWPORT BEACH — American Pacesetter, the holding company for San Clemente Savings Bank, said Monday that a third-quarter net loss of $2.9 million has eroded its subsidiary’s capital so that the thrift no longer complies with any of the three minimum capital standards demanded by federal regulators.

The $1.92-a-share loss, which compares to a net gain of $233,000, or 15 cents a share, in the third quarter of 1990, follows an examination by the federal Office of Thrift Supervision. It brings the holding company’s net losses for the nine months ended Sept. 30 to $4.1 million, or $2.19 a share, contrasted with a net gain of $263,000, or 17 cents a share, over the same span last year.

John Polen, president of San Clemente Savings and executive vice president of American Pacesetter, said the third-quarter loss resulted from federally ordered adjustments, including discounting the thrift’s real estate and loan investments to current market value; revaluing gains from the sale of loans booked in prior years and tripling the thrift’s loan loss reserve to $1.8 million from $600,000.

Polen said the thrift, which has six branches in Orange County and $230 million in assets, must submit to regulators by Jan. 23 a new plan for complying with the minimum capital requirements by Dec. 31, 1994.