3 California Thrifts: H. F. Ahmanson &...
3 California Thrifts: H. F. Ahmanson & Co., parent of Home Savings, reported a 19% decline in second-quarter earnings to $39.7 million. The Los Angeles-based company said the decline reflected a 92% reduction in net gains from loan sales to $750,000, compared to a year ago. Deposits at Home Savings, the nation’s largest savings and loan, were $31.4 billion as of June 30, off from $46 billion in 1988, reflecting the industrywide problem of massive deposit outflows. But Richard H. Diehl, chairman and chief executive, said contrary to industry trends, deposits increased by a record $1.3 billion during the quarter--equal to a 17.6% annual growth rate. CalFed Inc., the Los Angeles-based parent of California Federal Bank, reported a 50% drop in second-quarter earnings to $19.1 million from $38.3 million in the year-ago quarter. CalFed said net interest income for its financial services segment was down 24% to $98 million, compared to a year ago. The decrease was due to higher short-term borrowing costs. GlenFed Inc., parent of Glendale Federal, reported fourth-quarter earnings of $29.2 million, compared to $51.5 million for the 1988 quarter. The Glendale-based thrift attributed much of the decline to a $16.4-million loan-loss provision increase as a result of mostly one-time charges due to asbestos problems in some office buildings on which the company has loans.
For the record:
12:00 AM, Jul. 22, 1989 FOR THE RECORD
Los Angeles Times Saturday July 22, 1989 Home Edition Business Part 4 Page 2 Column 6 Financial Desk 3 inches; 79 words Type of Material: Correction
A quarterly earnings report in Friday’s Business section included an erroneous statement regarding deposits at Home Savings of America, a subsidiary of H. F. Ahmanson & Co. The correct information is as follows: Deposits at Home Savings increased by a record $1.3 billion during the second quarter, equal to a 17.6% annual growth rate. At the end of the second quarter, the company had $31.5 billion in deposits, compared to $29.3 billion at the end of 1988’s second quarter. Also, the name of Ahmanson’s chairman and chief executive, Richard H. Deihl, was misspelled.