Mercury S & L Reports Drop in Net Earnings

Mercury Savings & Loan Assn. said that net earnings fell to $2 million for the first quarter of 1986 from $3.3 million a year earlier.

The Huntington Beach-based S&L; blamed the decrease in net earnings primarily on a nearly $2.5-million loan-loss reserve taken as a result of the sale of foreclosed real estate properties during the quarter.

Foreclosed properties being carried on Mercury’s books increased 85% to $39.9 million at the end of 1986 from $21.5 million a year earlier, said Ron Hansen, senior executive vice president. However, as of the end of March, that amount had fallen to $32.7 million, he said.

Mercury said its assets as of March 31 were $2.21 billion, up from $2.18 billion a year earlier.