Fidelity Fed Expects Loss in Restructuring

Glendale-based Fidelity Federal Bank said it will cut expenses and has agreed to a three-year business plan to reduce problem loans. The bank is also putting more money into reserves as a buffer against possible losses and, as a result, expects to post a loss for the second quarter.

Fidelity Federal said the steps are part of an agreement with the federal Office of Thrift Supervision to improve the bank’s financial structure. The bank is currently classified as adequately capitalized, but has said it can’t ensure it will remain so without some restructuring.