Great American’s Profit Slides in 3rd Quarter; Home Fed Surges

Home Federal Savings & Loan reported that net income rose by 33%, to $27.9 million, for the third quarter ended Sept. 30, up from $20.9 million during the previous third quarter. Net income dipped slightly to $79.1 million for the nine-month period ended Sept. 30, down from $81.4 million.

Home Fed linked the strong quarterly net income to a “steady interest rate spread and an increase in other operating income, as well as continued robust loan volume and increased gains on loan and security sales.”

Income from real estate operations rose by 15% to $9 million for the third quarter, up from $7.8 million a year ago. Home Fed’s real estate operations contributed nearly $30 million to earnings during the first nine months of 1988, according to the company.

Home Fed reported that gains on sales of loans and securities rose to $11.3 million. That total included a $5.4 million gain on the sale of Home Federal’s preferred stock in Freddie Mac. Home Fed reported a $470,000 loss on the sale of loans and securities during the third quarter of 1987.

Deposits rose by $412 million, to $11.5 billion, in large part because of the acquisition of six new branches in July. Home Fed reported $16.1 billion in assets on Sept. 30.