Pioneer Commercial Posts 2nd-Quarter Loss

Losses from a loan portfolio taken over from a bankrupt client helped lead to a second-quarter loss of $223,288, or 4 cents per share, at Pioneer Commercial Funding, despite a more than fourfold increase in revenue during the period.

For the quarter ended June 30, revenues at the Woodland Hills-based mortgage warehouse lender increased to $1.92 million, up from $415,879 in the year-ago period.

Also during the second quarter, reserves were taken for future contingencies and some computer assets were depreciated ahead of schedule, resulting in the loss.

For the six months ended June 30, the company posted revenue of $3.942 million, an increase of 760% from last year’s corresponding period. Net income for the period was $82,904 or 15 cents per share, compared with a loss of $638,230 for the same period in 1997.