Despite a previously announced $18.6-million loss on the sale of most of its insurance operations, H. F. Ahmanson & Co. said Monday that it earned a record $78.9 million in the third quarter, largely because of continued strong demand for mortgage loans.
The Los Angeles-based parent of Home Savings of America--which has 307 branch offices in seven states and 169 of them in California--said third-quarter profits were 31% higher than the $60.1 million earned in the same period last year.
Nine-month earnings rose to $223 million from $152 million last year, a 47% increase.
The record results were attributed to new highs in lending volume, loan-servicing fees and gains on the sale of loans and mortgage-backed securities.
In addition, money costs dropped to their lowest level in eight years. Ahmanson loaned $2.7 billion in the third quarter and said that by the end of the quarter, nearly 78% of its portfolio was in monthly adjustable-rate loans.
“Our goal is to increase lending volume to a rate of $1 billion per month by the end of 1986 and to end this year with 80% of the loan portfolio in monthly adjustable-rate loans,” Chief Executive Richard Deihl said in a statement.