‘84 Profits Hit Record for Downey S&L; Assn.

Fueled by a steep increase in investment earnings and loan fees, profits at Downey Savings & Loan Assn. hit a record $12.2 million for 1984, even though fourth-quarter earnings declined, the Costa Mesa-based S&L; said Tuesday.

A major factor in the nearly 239% increase from 1983 profits of $3.6 million was the sale in August of Downey’s 8-story office building, a transaction that netted the 42-branch S&L; $7.9 million.

For the fourth quarter of 1984, Downey officials said, earnings totaled $770,000, down 34.5% from the $1.2-million profit reported for the same period in 1983. Downey said that a $1.7-million income tax provision to cover the tax liability on the earlier sale of the company’s corporate headquarters building was responsible for the decrease in earnings during the quarter.

Overall, said Gerald H. McQuarrie, Downey’s chief executive, interest on investments increased 51%, loan fee income was up 17% and interest on loans increased 9%.

Savings and checking accounts increased $198.8 million during 1984 to a Dec. 31 total of $1.75 billion, up 12.8% from $1.56 billion the previous year, with $446.2 million of the increase occurring in the fourth quarter, McQuarrie said in a prepared statement.

New loan volume for the fourth quarter of 1984 totaled $122.8 million, up 147% from the $49.6 million in new loans generated during the final quarter of 1983. For all of 1984, total loans booked were $412 million, up 55% from $265 million for 1983.

Downey was servicing approximately $2.6 billion in loans on Dec. 31, including $1.6 billion for its own portfolio and $1 billion for others.

Downey’s assets totaled $2.25 billion at the end of the year, up 21% from $1.86 billion at the end of 1983.