Fidelity Federal Completes Recapitalization, Posts Loss

Fidelity Federal Bank said it completed its previously announced recapitalization and reported a $50.4-million fourth-quarter loss.

The Glendale-based savings and loan said it raised $134 million in new equity in the recapitalization. Richard M. Greenwood, Fidelity’s chief executive, said the thrift is now considered well-capitalized and is “well-positioned to continue to resolve our problem assets and to improve our financial efficiency.”

The loss in the fourth quarter ended Dec. 31 included a $45-million loan portfolio charge connected with Fidelity’s plan to resolve its problem assets.

In the fourth quarter of 1994, Fidelity lost $14.8 million.

For all of 1995, the thrift lost $69 million, in contrast to a loss of $128.4 million in 1994.

Fidelity also said it has proposed a 1-for-4 reverse stock split of its shares of common stock. It will seek shareholder approval for the reverse split at a special meeting this month. Fidelity’s over-the-counter stock trades at about $15 a share.