Great American Bank Reports Gain of 124%

Boosted by the acquisitions of thrifts in Los Angeles and Arizona, Great American First Savings Bank reported a 124% increase in second quarter earnings, to $23.2 million. For the first six months of the fiscal year, Great American reported earnings of $39.3 million, up 137%.

Gordon Luce, Great American chairman and chief executive, said that improved operating efficiencies from the bank’s declining cost of funds combined with new market areas to improve profits.

Revenues for the quarter rose 42% to $329.7 million and increased 29% for the six months to $584.4 million.

San Diego-based Great American included the financial performance of Home Federal Savings & Loan of Arizona in its 1986 figures but not in the comparable 1985 figures. The acquisition was recorded under the purchase method of accounting.

Los Angeles Federal Savings Bank’s performance was included in figures for both years because it was acquired under a pooled method of accounting.