Bank Plus Regains Profit, Considers Sale

Bank Plus Corp. of Los Angeles said that a return to profitability has prompted the company to hire investment banker Sandler O’Neill & Partners in preparation for a possible sale. Bank Plus, parent of Glendale’s Fidelity Federal Bank, suffered disastrous losses in the last two years from its foray into sub-prime credit card lending. The company said it has agreed to an order by the Office of Thrift Supervision to limit new lending activity. The company was up for sale last year but found no takers because of its credit card troubles, which included delinquency rates that hit 32%. Although the bank lost $68.5 million so far this year on its discontinued credit card operations, gains from the sale of five branches helped boost net earnings to $2.8 million for the quarter ended Sept. 30, contrasted with a $2.4-million loss in the year-earlier period. The bank has 30 remaining branches in Los Angeles and Orange counties. Net interest income declined 23% to $13.5 million as the bank sold deposits and repaid loans to comply with regulatory requirements. Bank Plus shares rose 25 cents to close at $3.63 on Nasdaq.