Citadel Holding Reports $59-Million Loss in Quarter

Citadel Holding Corp., the former parent of Fidelity Federal Bank, reported a net loss of $59.2 million for the third quarter that ended Sept. 30, compared with a net loss of $14.7 million a year earlier.

For its nine-month period, Glendale-based Citadel reported a net loss of $165.9 million, compared with a year-earlier loss of $29.8 million. The nine-month figures reflect a $52.8-million write-down of Citadel’s investment in Fidelity Federal Bank, which was spun off in August, reducing Citadel’s stake in the Glendale-based savings and loan from 100% to about 16%.

The nine-month loss also reflects a $112-million loss from operations of Fidelity before the S & L’s recapitalization.

Currently, Citadel’s only substantial assets consist of its Fidelity stake, four real estate properties and options on two other properties. Citadel said it expects its sources of funds in the near term will include $2.4 million in cash on hand through Sept. 30, cash flow from operations of its real estate properties and proceeds from asset sales.