FINANCIAL CORP <FIN> LOAN SALES DOWN IN QTR
Financial Corp of America, in
reporting a third quarter loss, said gains on the sale of loans
and mortgage-backed securities, which has been the company's
main source of profit during the past two years, fell to 12.4
mln dlrs as compared to a 93.4 mln in the third quarter last
year.
    It said the income was reduced by adverse interest rate
fluctuations during the quarter.
    The company also said it made an additional provision of
70.4 mln dlrs to its reserve for losses on loans and real
estate, compared with 76.2 mln dlrs a year ago.
    Financial Corp said its reserve totaled 1.00 billion dlrs
at September 30, 1987, compared with a total of 580.4 mln at
the same time a year ago.
    Financial Corp, the nation's largest thrift, reported a
third quarter loss of 75.8 mln dlrs, or 2.20 dlrs per share,
compared with an 11.6 mln dlr profit last year.
    At the end of the quarter scheduled items, or non- or
under-performing assets, were 1.34 billion dlrs, or 4.01 pct of
total regulatory assets, down from 1.77 billion, or 5.20 pct of
assets at the end of the 1986 third quarter, the company said.
    In reporting third quarter results the company also said
its highest priority is to raise capital and strengthen its
financial base.
    "We are responsible to our shareholders and therefore are
exploring several alternatives for achieving value while
raising capital.
    "Any proposal to acquire or restructure the company will be
viewed by management from this perspective," Financial Corp
chairman William Popejoy said in a statement.
    Last month Financial Corp executives and Federal Home Loan
Bank Board members met to discuss a restructuring of FCA, with
help from the Federal Savings and Loan Insurance Corp, as a
possible solution to the company's financial difficulties.
    In addition, Ford Motor Co's <F> First Nationwide Financial
Corp, has acknowledged that it is interested in acquiring the
company.
    Financial Corp has said it needs about one billion dlrs to
bring its regulatory net worth up to Federal Government
requirements.
    In  addition, Financial Corp said its real estate group
sold properties totaling 154.8 mln dlrs in book value before
reserves during the quarter and 435.5 mln dlrs of real estate
for the nine months to September 30.
    The company also said it had a net deposit decrease of
415.4 mln dlrs during the quarter, resulting mainly from
institutional deposits reacting to the company's pricing
strategy and to its efforts to manage the cost of funds.
 Reuter
