1 Valley Federal Savings & Loan Association took an $89.9 million charge as it reported a third-quarter loss of $70.7 million, or $12.09 a share.
2 The Van Nuys, Calif., thrift had net income of $132,000, or three cents a share, a year ago.
3 The bulk of the pretax charge is a $62 million write-off of capitalized servicing at the mobile home financing subsidiary, which the company said had been a big drain on earnings.
4 The company said the one-time provision would substantially eliminate all future losses at the unit.
5 Valley Federal also added $18 million to realestate loan reserves and eliminated $9.9 million of good will.
6 The thrift said that 'after these charges and assuming no dramatic fluctuation in interest rates, the association expects to achieve near record earnings in 1990.'
7 Valley Federal is currently being examined by regulators.
8 New loans continue to slow; they were $6.6 million in the quarter compared with $361.8 million a year ago.
9 The thrift has assets of $3.2 billion.

Valley Federal also added $ 18 million to realestate loan reserves and eliminated $ 9 . 9 million of good will .
added $ 18 million to realestate loan reserves
Why did they add this amount to those reserves?