BANKING & FINANCE - Sept. 2, 1994

Citadel Holding Posts $92-Million Loss: Citadel Holding Corp. and Fidelity Federal Bank said they jointly lost $92 million in the second quarter, compared to a $15.2-million loss for the 1993 quarter. This year’s second quarter included a $56.5-million provision for losses from a bulk sale of soured loans that the two Glendale-based companies announced last month and $13.2 million in consulting and legal fees involved in Fidelity’s recently completed restructuring. Analysts had expected losses in the latest quarter to rise sharply because of those special charges. After the second quarter ended, Citadel in effect spun Fidelity off to raise the cash needed to keep the bank afloat.