First Federal Savings in Salt Lake suffered a $686,000 quarterly loss for the third period ending March 31, as the savings and loan continued to increase loan loss provisions to cover non-performing assets.
During the same quarter, $1.07 million was added to loss reserves, compared to the $143,000 contribution during the same period in 1988."Due to a weak local real estate market, management performed an extensive review of its loan and real estate owned portfolios and determined these additional reserves were reasonable and should be adequate for foreseeable future losses on loans and real estate owned," a written statement on the third-quarter results said.
The quarter's unaudited after-tax loss of 60 cents a share compares to a $66,000, or 6 cents per share, loss during the same period last year. For the first nine months ending March 31, First Federal reported a net loss of $573,000 compared to a $212,000 profit in 1988.
On the brighter side, First Federal reduced non-performing assets from $5.8 million in March 1988 to $3 million. The savings and loans said the reduction was caused by a drop in delinquencies and foreclosed properties, which decreased from $3.6 million to $1.4 million in the past 12 months.
Pretax operating income for the third quarter was up and operating expenses were reduced by $106,000 from a year ago.
Assets have increased from $256.93 million nine months ago to $274.21 million. Stockholders equity stand as $13 million, or $11.30 a share.
"First Federal remains well capitalized with an equity to assets ratio of approximately 5 percent, exceeding federal regulatory requirements," said Chairman and President Gerald R. Christensen.