Lower Loan Volume Cuts Downey S&L; Quarterly Net

Downey Savings and Loan Assn. reported that net earnings for the third quarter fell to $2.5 million, less than half the $5.2 million reported for the like period last year. Net income for the 1989 quarter was affected by a lower volume of loans and costs associated with higher interest rates. Revenue rose 28%, to $99.1 million from $77.5 million.

For the first nine months of 1989, the Newport Beach-based institution reported net earnings of $29.2 million, an increase of 81% from the $16.1 million recorded for last year’s like period. Revenue increased 36%, to $298.5 million from $220.1 million.