SAN DIEGO — Flagship Federal Savings & Loan, created by federal regulators after Sun Savings & Loan's failure in July, 1986, reported a $1.02-million net loss for the first fiscal quarter ended Sept. 30, a company spokesman said Tuesday.
The thrift's continued string of quarterly losses has generated a negative net worth of $6 million.
During recent months, Flagship has continued to trim back its assets. It reported $136.1 million in assets on Sept. 30, down from $154 million on June 30. Flagship reported $136.5 million in deposits on Sept. 30.
The institution has "only two small condominium loans left that are non-performing," according Ralph Rivet. "The total of those loans is less than $200,000." Sun was saddled with $55 million in non-performing loans when it failed.
Flagship's loan portfolio "is in good shape," according to Rivet. However, the S&L has remained unprofitable because many of its deposits demand high interest rates. Flagship's interest income "doesn't begin to match" what Flagship must pay out in interest on accounts, Rivet said.