Glendale Federal Bank rebounded from a fiscal...
Glendale Federal Bank rebounded from a fiscal second-quarter loss on lower problem loans and higher interest income, but it warned of a tough year ahead.
Glendale Federal reported that its fiscal second-quarter net income totaled $12.7 million, or 20 cents a share. The results contrast with a $39.8-million loss amounting to $1.26 a share for the quarter a year earlier.
The figures include a gain of $2.3 million from the sale of the bank’s Florida operations and an extraordinary net gain of $1.8 million from early extinguishment of debt.
Stephen J. Trafton, chairman and chief executive of the Glendale-based bank, was one of several executives foreseeing a crunch in the next quarter.
“While net interest income continues to be higher than year-ago levels, we anticipate that interest rate spread compression will reduce net interest income,” he said in a statement.