Real estate foreclosures hurt Germania. (Germania Bank) (company profile)

Real estate foreclosures hurt Germania

Thrift forecasts third quarter loss, quick asset sales

Germania Bank is forecasting a third quarter loss as the Alton-based thrift accelerates the disposal of some $45 million in non-earning real estate assets acquired primarily through foreclosure.

Among the properties on the block are apartments in O'Fallon and Mehlville, Mo., and a Ramada Inn in Fairview Heights, Ill.

Changes in federal regulations make it advantageous to sell the real estate quickly, Germania officials said in an August filing with the Securities and Exchange Commission. Some assets, however, may be sold at less than they are being carried on Germania's books, thrift officials said. In the second quarter, Germania added substantially to its real estate loan loss provision.

Proceeds from the sale will be invested in more profitable investments, …