Sun S&L; Posts $254,000 Net in 2nd Quarter

Aided by nearly $1.3 million in extraordinary income, Sun Savings & Loan Assn. on Tuesday reported earnings of $254,000 for the second quarter ended June 30, its first profitable quarter in a year.

Earnings in the second quarter of 1984 were $852,000. In the next three quarters, however, Sun lost more than $7 million, primarily from writing off bad loans.

For the six months, Sun reported net income of $20,000, compared to $1.7 million in the first half of 1984.

Extraordinary items that contributed to second-quarter earnings at the University City-based thrift included a net gain of $503,000 from a $4-million loan swap with a Seattle-based thrift and on the sale of mortgage-backed securities bought as an investment; a net gain of $425,000 on the sale in May of commercial land across from Sun’s current headquarters, and a $344,000 tax benefit for previous losses.

Without those extraordinary items, Sun would have lost more than $1 million on its operations in the second quarter.

Sun reported that its “scheduled items”--loans delinquent for more than 90 days and foreclosed real estate--totaled $37.6 million at the end of the second quarter, up slightly from $36.1 million as of March 31.

In addition, total reserves for non-performing loans were $5.2 million as of June 30, or 1.3% of Sun’s total loans and foreclosed real estate. Reserves at year-end 1984 totaled $4.7 million, or 1.1% of total loans and foreclosed real estate.

Sun, with $468 million in assets and net worth of $6.4 million, remains below the 3% minimum regulatory net-worth requirement with a capital-to-asset ratio of 1.36%, according to President and Chief Executive John M. McEwan.

However, a capital infusion plan is under way that will more than double Sun’s capital to about $13.4 million and boost its net-worth ratio to more than 3%.