Calfed Says Its Loss Grew in 2nd Quarter

Calfed reported a second-quarter loss of $23.2 million, compared to a loss of $18.6 million in the same period last year.

The Los Angeles-based banking and financial services company said the main reason for the red ink was that it had to set aside nearly $34 million to cover potential losses on income-property loans, foreclosed real estate and real estate investments during the three-month period ending June 30.

The company said general and administrative expenses declined 14%, primarily because of the elimination of 1,100 positions. While the company’s interest income declined, fee income from the sale of mutual funds and annuities rose as customers looked for alternatives to low-yielding savings accounts.