CalFed Reports Record $135-Million Net for Year

Joining the ranks of most of its large Southern California-based competitors, the parent company of California Federal Savings & Loan Assn. reported record profits of $135 million in 1985.

CalFed said the year-end results were the best in its history and were almost twice the $69 million it earned in 1984. “The company’s results in 1985 reflect strong earnings performances in almost all of our businesses,” said George Rutland, CalFed’s chief executive.

However, CalFed’s fourth-quarter earnings were $31.1 million, only 2.3% above the $30.4 million that it earned in the last three months of 1984.

The company noted that reserves for loan losses stood at $28.7 million on Dec. 31, up from $11.9 million at the end of 1984, because of problems with three real estate development projects begun six years ago.

CalFed, the state’s fourth-largest savings and loan company, also said its 1985 earnings were reduced by $16.2 million because of special deposit insurance assessments by the Federal Savings and Loan Insurance Corp.

Meanwhile, Homestead Financial Corp. said its 1985 profits rose 7.1% to $15.1 million in 1985, including fourth-quarter earnings of $5.1 million that were 26% below what they were in the last three months of 1984. Homestead, based in Burlingame in Northern California, said its assets grew 57% to $4.7 billion last year.