Home Federal S&L; Posts Record Profit in 1984

Home Federal Savings & Loan Assn. on Wednesday reported record 1984 net income of $62.7 million, nearly double the previous year’s $34.3 million.

“We met or exceeded all our strategic objectives for 1984,” Chairman Kim Fletcher said. “We achieved our major goals for growth, increased productivity, a restructured loan portfolio and a steady stream of quality earnings.”

For the fourth quarter, Home Federal reported net income of $19.1 million, compared to $12 million in the same period a year earlier.

Income for the quarter and the year included an extraordinary gain of $1.7 million from a special dividend paid by the Federal Home Loan Bank Board in the form of Federal Home Loan Mortgage Corp. stock. Excluding the extraordinary item, earnings for the year and quarter were still at record levels, the company said.

Fletcher said that, because of the strong growth in lending and real estate activities in 1984, the com pany added $14 million in provisions for potential loan losses in the fourth quarter. That brought the total of these reserves added during the year to $24.7 million.

Home Federal’s assets grew to $8.9 billion from $6.8 billion at the end of 1983. Deposits increased to $6.7 billion from $5.1 billion in the previous year.

Total loan originations and purchases were a record $4 billion for 1984, compared to $2.4 billion a year earlier.

About 90% of the company’s loan originations during the year had adjustable interest rates.

At year-end, Home Federal’s book value per common share had increased to $30.39, with a ratio of net worth to total assets of 7%.