wsj_0171.xml
WSJ
891102
891102
-0019
WSJ
891102
-0019
=
891102
=
891102
891102-0019
.
891102-0019
.
Business
Brief
--
Valley
Federal
SampL
:
@
California
SampL
Had
Charge
,
@
Loss
in
the
Third
Quarter
Business
Brief
--
Valley
Federal
SampL
:
@
California
SampL
Had
Charge
,
@
Loss
in
the
Third
Quarter
11/02/89
11/02/89
11/02/89
WALL
STREET
JOURNAL
(
J
)
WALL
STREET
JOURNAL
(
J
)
VFED
VFED
EARNINGS
(
ERN
)
EARNINGS
(
ERN
)
Valley
Federal
Savings
&
Loan
Association
took
an
$
89.9
million
charge
as
it
reported
a
third-quarter
loss
of
$
70.7
million
,
or
$
12.09
a
share
.
The
Van
Nuys
,
Calif.
,
thrift
had
net
income
of
$
132,000
,
or
three
cents
a
share
,
a
year
ago
.
The
bulk
of
the
pretax
charge
is
a
$
62
million
write-off
of
capitalized
servicing
at
the
mobile
home
financing
subsidiary
,
which
the
company
said
had
been
a
big
drain
on
earnings
.
The
company
said
the
one-time
provision
would
substantially
eliminate
all
future
losses
at
the
unit
.
Valley
Federal
also
added
$
18
million
to
realestate
loan
reserves
and
eliminated
$
9.9
million
of
good
will
.
The
thrift
said
that
``
after
these
charges
and
assuming
no
dramatic
fluctuation
in
interest
rates
,
the
association
expects
to
achieve
near
record
earnings
in
1990
.
''
Valley
Federal
is
currently
being
examined
by
regulators
.
New
loans
continue
to
slow
;
they
were
$
6.6
million
in
the
quarter
compared
with
$
361.8
million
a
year
ago
.
The
thrift
has
assets
of
$
3.2
billion
.