Great Western, CalFed and GlenFed Enjoy Big Gains

Buoyed by continued strong home loan demand and lower costs for deposits, the parent companies of Great Western Savings of Beverly Hills, California Federal Savings of Los Angeles and Glendale Federal Savings of Glendale each have reported sharply higher earnings.

Great Western Financial said its 1986 earnings rose to $301 million, a 49% increase over 1985, while fourth-quarter net income increased 16% above year-ago levels to $78 million.

CalFed, meanwhile, said 1986 earnings rose 22% to $164 million, while fourth-quarter net income rose 12% to $34.8 million.

GlenFed, which operates on a different fiscal year, said its second-quarter earnings in the period that ended Dec. 31 rose 42% to $30.6 million. The company noted that the results included an after-tax charge of $4.52 million from its decision to sever ties in a joint-venture computer system development project in Dallas.

The three savings and loan companies, all among the nation’s largest, cited record loan volumes and widening profit margins in their reports as among the reasons for the strong earnings results.

Most of the nation’s savings and loan industry is benefiting from lower deposit costs brought on by falling interest rates. In addition, mortgage volume at large California savings and loans is shattering previous records as interest rates on home loans have fallen to their lowest levels in 10 years.

Great Western Financial, for example, said loan volume reached $10.7 billion in 1986, a figure 32% higher than the healthy levels of 1985. CalFed said its 1986 loan volume reached $7.4 billion, 42% above year-earlier amounts.

CalFed also announced that William L. Callender has been elected president and chief executive officer of California Federal Savings. Previously executive vice president, he replaced George P. Rutland in the chief executive’s job. Rutland continues as vice chairman of the savings and loan as well as president and chief executive of the parent company.