The slowdown in home financings and the...

The slowdown in home financings and the October stock market crash contributed to a 41.9% decline in earnings at Downey Savings & Loan in Costa Mesa, which reported unaudited net income of $33.2 million in 1987, contrasted with a record high $57.15 million in 1986. Revenue fell 12% to $269.1 million from $306.1 million in 1986. For the fourth quarter, Downey’s net income fell 56% to $3.7 million from $8.4 million in the last quarter of 1986. Quarterly revenue rose 3.3% to $68 million from $65.8 million in the final quarter of 1986. Loan problems forced Downey to write down its assets by $4.1 million in the fourth quarter. The S&L; ended the year with $3.2 billion in assets, a 28% increase over $2.5 billion in assets at the end of 1986. Total deposits grew 15% to $2.3 billion at the end of December from $2 billion a year earlier, and total loans rose 34.3% to $2.35 billion at the end of the year from $1.75 billion.