Glendale Federal Cuts Loss to $39.8 Million

Glendale Federal Bank said it cut its fiscal second-quarter loss in half from a year earlier, to $39.8 million.

The Glendale-based savings and loan attributed the loss in the latest quarter, which compared with a loss of $79.4 million in the same quarter a year earlier, to a large provision for loan losses and a decline in interest income from loans.

For the first six months ended Dec. 31, Glendale posted a loss of $59.7 million, compared with a loss of $96.2 million during the same period in 1992.

Despite the loss, Stephen J. Trafton, chairman and chief executive officer of Glendale Federal, said its troubled loans and foreclosed real estate have continued to decline. However, Glendale Federal also estimated that it has $1.5 billion in real estate loans in the earthquake-affected areas of Southern California.

Glendale Federal, which completed a $451-million recapitalization last fall, said the Office of Thrift Supervision declared on Dec. 31 that the thrift was adequately capitalized, meaning that it had sufficient money on hand to guard against sudden losses.