Levy Bancorp Loses $5.7 Million in ’93

Levy Bancorp, the Ventura-based parent company of the Bank of A. Levy, on Wednesday reported a net loss of $5.7 million for 1993, capping a year of financial troubles for the institution.

Under order by federal regulators since July to improve its loan portfolio, Levy Bancorp struggled through last year with a heavy load of bad real estate loans. Financial problems peaked in the second quarter, when the bank lost $3.5 million.

Since then, Levy Bancorp lost $440,000 in the third quarter and $981,000 for the fourth quarter. By comparison, the bank lost $921,000 in all of 1992.

Bank President Marshall Milligan said the bank continues to reduce its number of bad loans.

“Overall, 1993 has been a very productive year in terms of reducing problem loans and making steady progress toward resumption of profits and dividends,” Milligan said.

The problem loans have forced the bank to bolster its reserves. The company’s loan loss reserve as of Dec. 31, 1993, stood at $10.3 million, representing 3.05% of total loans. At the beginning of last year, Levy Bancorp had $10.8 million in reserve, representing 2.35% of the bank’s total loans.