HomeFed Corp. The San Diego-based parent of...

HomeFed Corp. The San Diego-based parent of HomeFed Bank reported fourth-quarter net income of $33.1 million, up from a profit of $32.2 million for the same three months the previous year. For the fiscal year ended Dec. 31, HomeFed’s profit was $115.7 million, up from $111.3 million for fiscal 1988. Gains from real estate operations were of significant help to both the fourth quarter and fiscal 1989 results. For the quarter, real estate gains were $23.8 million, up from $14.4 million for the previous year. Fiscal year real estate gains were $80.2 million, up from $44.1 million for 1988. The gains were needed to offset substantial increases in loan-loss reserves. HomeFed’s bad loan reserves, which were announced previously, totaled $108 million at the end of the recent quarter, up from $18 million after fourth quarter 1988. For all of 1989, loan-loss reserves totaled $147 million, up from $48 million in 1988. The loan-loss reserves helped reduce HomeFed’s nonperforming loans to 1.81% of its $17.8 billion in total assets on Dec. 31, down from 2.85% of assets as of Sept. 30.