Olympus Capital Corp., the Salt Lake-based company formerly known as Prudential Financial Services Corp., had a $17.1 million or $6.71 per share loss for the year ended Dec. 31, 1988.
Company officials said the loss includes the previously announced $12.3 million loss from a major securities portfolio restructuring designed to substantially reduce risk from the interest rate changes and stabilize or increase earnings under most interest rate forecasts.The loss also includes an increase in reserves against known problem loans and leases. In a change of corporate reserve policy, the level of general loan reserves and reserves against foreclosed real estate previously acquired by the company was also significantly increased.
Company officials believe present reserves are sufficient so problem loans can be liquidated over time without incurring further losses, with the proceeds being redeployed to enhance earnings.
The remainder of the loss resulted from a combination of:
- A writedown of various leasehold assets relating to the company's existing corporate offices at 127 E. 33rd South in anticipation of relocating to the company-owned building at 115 S. Main. This relocation is expected to reduce annual operating expenses by $200,000.
- Writedown of a claim against an insurance carrier relating to a legal judgment previously paid by the company. The claim still is in litigation.
The 1988 loss was partially reduced by an income tax credit of about $1.4 million, company officials said.