Irvine City Financial Posts $191,541 Turnaround Gain

Spurred by strong mortgage banking activities of its Irvine City Savings & Loan Assn. subsidiary, Irvine City Financial reports that it has turned around its losses of a year ago to show profits for the second fiscal quarter and first six months, ended Dec. 31.

The S&L; and its parent--whose only asset is Irvine City Savings--had a net income of $191,541 in the quarter, compared with a $92,313 loss a year ago. In the first six months, the consolidated financial statement showed net income of $324,533, compared with a $312,610 loss for the same period a year earlier. The losses in 1984 were previously attributed to start-up costs for the 19-month-old S&L.;

“Successful mortgage banking continues to be the primary force driving our profit results,” said Douglas J. Weeks, president and chief executive officer of Irvine City Financial and the S&L.;

The savings and loan funded $41.7 million in loans in the six-month period and sold $33 million in loans in the secondary market, about $10 million more than it sold during its entire first fiscal year, ended last June 30. “We hadn’t been around long enough to establish a track record in our first year,” Weeks said. In the first six months of 1984, the S&L; had $21.5 million in loan closings and $4.6 million in sales.

Total deposits at Irvine City S&L; were $36.9 million as of Dec. 31, an 80% increase over $20.4 million in deposits a year earlier. Total assets as of Dec. 31 were $41.1 million, nearly twice the $22.7 million in assets a year earlier.

Irvine City Financial has sold $829,550 in stock under a $1-million stock offering begun last May. That money, along with earnings, was used to boost the S&L;’s capital and reserves to $3.2 million as of Dec. 31, from $2.1 million a year earlier.

The S&L;’s net worth at the end of the quarter was 7.8%, more than the 7% net worth required by regulators for new S&Ls.;