Glendale Federal Expects $30-Million Securities Loss

Glendale Federal Bank said it expects to record a loss of about $30 million on the sale of mortgage-backed securities in the quarter that ends Dec. 31.

The bank is offering the securities, worth a total of $2.8 billion, as part of its efforts to convert from a savings and loan institution to a community bank.

So far, about half its $1.8-billion portfolio of fixed-rate collateralized mortgage obligations has been sold. The remaining mortgages of this type are expected to be sold in coming weeks.

The S&L; has no immediate plans to unload another $1 billion in adjustable-rate, pass-through securities listed for sale, though they may be sold as needed at a later date.

Glendale Federal said the sale will improve its interest-rate risks and free up capital for mergers or acquisitions.

Also, a one-time tax assessment to recapitalize the Savings Assn. Insurance Fund contained in pending federal budget legislation may result in a loss of $47 million in either Glendale Federal’s fourth quarter, or the first quarter, 1996.