Valley Federal Savings & Loan Assn. reported a 296% earnings increase for the calendar first quarter, thanks to lower interest rates that substantially widened the spread between the interest it pays on deposits and receives from loans.
Net income for the quarter was $3.6 million, or $1.15 per share, versus $908,000, or 21 cents per share, for the same quarter a year ago.
Assets at the quarter’s end were $2.545 billion, down 2.75% from a year earlier because Valley Federal sold some long-term mortgage securities late last year, a spokesman said.
Chairman Robert E. Gibson noted that Valley Federal’s spread between interest expenses and the yield on its loans and investments widened to 2.58% at March 31 from 2.15% a year earlier.
Valley Federal, based in Van Nuys, has 52 branches.