Gibraltar Financial Profit Leaps in Quarter

Gibraltar Financial reported markedly higher earnings in the fourth quarter and full year that ended Dec. 31 and announced an increase in the company dividend to 7 1/2 cents a share from 5 cents.

The Beverly Hills-based savings and loan company said fourth-quarter profit rose to $14.4 million, more than double the $7 million earned in the fourth quarter of 1985. Full-year earnings rose to $49.1 million, 26% higher than the $38.9 million earned in 1985.

Gibraltar said the figures reflect a one-time gain of $25.1 million from the December sale of its mortgage banking operations. However, the financial institution noted that a “substantial portion” of the gain was offset by increased loss reserves for commercial real estate loans and real estate joint-venture investments made before 1985.

Gibraltar said the record 1986 results included $67.3 million in loan-loss provisions and losses on real estate operations as well as another charge of $7.27 million for the early “extinguishment” of subordinated debt.