Home Federal Savings & Loan blamed a...

Home Federal Savings & Loan blamed a drop in loan fees and a tighter interest rate spread for net income that fell to $24.7 million for the first quarter. The San Diego-based S&L; reported net income of $31.6 million during the same quarter a year ago.

Revenue from loan fees soared early last year as homeowners rushed to refinance mortgages during an era of lower-cost loans, Home Fed spokeswoman Monica Wiley said. Home Fed’s first-quarter profit also was hurt by a lower interest rate spread, meaning the difference between interest that Home Fed pays to depositors and the interest that is generated by loans.

Total loans rose by 24% to $12.9 billion from $10.4 billion a year ago, and total deposits rose by 28% to $11.3 billion from $8.8 billion. Home Fed’s total assets rose by 23% to $14.8 billion from $12 billion a year ago.