RAINIER <RBANK.O> TO HAVE LOSS FROM PROVISION
Rainier Bancorp said it will add an extra
58 mln dlrs to its loan loss reserve in the second quarter for
possible credit losses related to Third World loans, causing a
net loss of about 19 mln dlrs or 87 cts per share for the
quarter and a loss of two mln dlrs or nine cts a share for the
half.
    It said second half earnings are expected to be at "normal
profitability levels," resulting in "significant" profits for
the year as a whole.
    The company said the addition will raise its loan loss
reserve to 136 mln dlrs.
    Rainier said the special addition to its reserves
represents about one third of its total Third World debt
exposure.
    It said it expects no change in its dividend policy -- it
now pays 29 cts per share on a regular quarterly basis -- and
plans to continue current dividend payments until it completes
its proposed merger into Security Pacific Corp <SPC>.
    Yesterday, Security Pacific itself said it would set up a
500 mln dlr reserve for Third World loans, causing a loss of
about 175 mln dlrs for the second quarter.
    Rainier earned 17.4 mln dlrs or 86 cts per share in last
year's second quarter and 32.9 mln dlrs or 1.62 dlrs per share
in last year's first half.
    For all of 1986, Rainier earned 70.0 mln dlrs or 3.41 dlrs
per share.
 Reuter
