Eldorado Bancorp Suffers First Annual Loss in 21-Year History

Citing severe real estate-related problems, Eldorado Bancorp on Wednesday reported the first year-end loss in the bank’s 21-year history.

The Tustin-based bank reported a net loss of $1.72 million, equal to 63 cents per share, for the fiscal year ending Dec. 31. This compares with net income of $2.76 million, or $1 per share, reported for 1992.

“This was a difficult year. California’s four-year recession resulted in a further decline in real estate values, which was the major reason for the bank’s losses,” said J.B. Crowell, president and chief executive officer of Eldorado Bancorp.

For the fourth quarter ended Dec. 31, the company reported a net loss of $326,000, or 12 cents per share, compared with net income of $137,000, or 5 cents per share, for the same quarter of 1992.

The bank reported total assets of $323.3 million for 1993 as compared to $340.6 million for 1992.

The company set aside $3.6 million in 1993 for possible loan losses, increasing total reserves to $4.7 million. In addition, the company took $4.4 million in real estate write-downs on distressed properties.

Eldorado Bancorp, through its principal subsidiary, Eldorado Bank, operates through 10 banking offices in Orange, Riverside and San Bernardino counties.

The company’s stock was down 37.5 cents in trading Wednesday closing at $7.125 per share on the American Stock Exchange.