Sharp Gains Posted by CalFed, Ahmanson and Great Western

From Associated Press

Three of the nation's largest savings and loan institutions--H. F. Ahmanson, Great Western Financial and CalFed--on Wednesday posted sharply higher second-quarter earnings as the volume of loan business surged.

H. F. Ahmanson, parent of Los Angeles-based Home Savings of America, said its net income rose more than 38% in the second quarter and 57% for the half.

Beverly Hills-based Great Western Savings & Loan Assn., the chief subsidiary of Great Western Financial, said its earnings soared by more than 64% in the second quarter and 88% for the half.

CalFed, parent of California Federal Savings & Loan Assn. of Los Angeles, posted income that was up more than 13% for its second period and 29% for the six months.

Loan Originations Rise 52%

All of the companies cited soaring home loan volume and rising proportions of adjustable-rate mortgages, which insulate lenders against changes in interest rates.

H. F. Ahmanson, the nation's largest savings and loan holding company, earned $76.6 million for the three months ended June 30, compared to a year earlier, when it earned $55.3 million. For the half, it had income of $144.4 million, compared to $91.8 million a year ago.

Loan originations in the second quarter rose 52% to $2.26 billion from $1.49 billion in the comparable period of a year ago.

"Our goal is to increase lending volume to a rate of $1 billion per month by the end of 1986 and to end the year with 80% of the loan portfolio in adjustable-rate mortgages," President and Chief Executive Richard Deihl said.

As of June 30, 69.3% of the company's loans were adjustable.

Operating earnings from Ahmanson's Home Savings unit rose more than 41% to $75.9 million, while profits from its insurance operations dropped 27% to $1.6 million.

Great Western Gains

Great Western, the nation's third-largest thrift holding company, netted $74.6 million for the three months ended June 30, compared to $45.3 million a year earlier.

For the half, it earned $145.3 million, compared to the year-ago period, when it earned $77.3 million.

The company said that its level of loan originations for the second quarter rose 31% to $2.5 billion and that its proportion of adjustable-rate mortgages rose to 81% from 61% a year ago.

CalFed, the nation's fourth-largest saving and loan concern, posted income of $44.5 million for the second quarter, compared to $39.3 million a year ago.

For the half, the company earned $81.1 million, compared to the year-earlier level of $62.8 million.

CalFed President and Chief Executive George Rutland attributed the gains to improved lending and insurance operations.

For earnings reports on other companies, see Page 2.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World
58°