Fidelity Federal Completes Sale of Problem Assets

Fidelity Federal Bank, a Glendale-based savings and loan, said it has completed a previously announced sale of about $418 million in problem assets, concluding the thrift’s restructuring and recapitalization plan.

Fidelity Federal recently raised about $100 million through the sale of about 21.8 million common shares, The S&L; also retired $60 million in subordinated debt and has arranged to sell the deposits of nine of it branched to Home Savings of America next month for a premium of 2.25% on core deposits.

Citadel Holding Corp., the holding company of Fidelity Federal, lost $67 million in 1993. Concern over deteriorating capital has prompted the Office of Thrift Supervision, the federal agency that regulates S&Ls;, to increase its oversight of the company.