Glenfed Reports Loss of $26 Million in 4th Quarter

Glenfed Inc., parent of Glendale Federal Bank, reported late Friday that it lost $26 million in its fiscal fourth quarter ended June 30 and $120.9 million for the fiscal year as it continued to be hammered by real estate losses.

The losses were narrower than those in the comparable periods a year earlier, when the thrift lost $136.7 million in the fourth quarter and $230.1 million for the fiscal year.

Glenfed also significantly increased its provisions for loan losses and real estate write-downs as a result of persistent weakness in the economy and continued deterioration in California real estate markets. The company recorded a $78.7-million provision for loan losses in the quarter, and a provision of $12.4 million for losses related to its real estate acquired in settlement of loans.

Non-performing assets and restructured loans totaled $827.1 million on June 30, 1992, compared with $712.1 million on June 30, 1991, and $930.4 million on March 31, 1992.

Glenfed is under the gun to bolster significantly its financial condition by next June 30, or risk being seized by regulators.

The company, however, recently won a challenge to federal thrift rules that had wiped out intangible capital called “goodwill” that the thrift had counted as capital. The case could result in Glenfed getting a boost in its financial shape, but could take years to resolve. The company said it is seeking to settle the case quickly with the government.