Valley Federal Savings & Loan Association, citing...

Valley Federal Savings & Loan Association, citing the benefits of lower interest rates and an increase in new mortgage loans, said its second-quarter earnings rose 48.5% from the same period a year ago, to $4.1 million, or $1.32 a share.

The Van Nuys-based savings and loan said the spread between its yield on loans and investments and the cost of its funds widened to 2.79% on June 30, from 2.36% a year earlier. Assets increased 2.2% from a year earlier, to $2.6 billion.

For the first six months of 1986, Valley Federal’s earnings more than doubled, to $7.7 million, or $2.47 a share.