HomeFed Corp.: The San Diego-based parent of...
HomeFed Corp.: The San Diego-based parent of 211-branch HomeFed Bank reported record first-quarter net income of $34.5 million, up 13% from the first quarter 1989 profit of $30.5 million. The increase helped send HomeFed’s stock price up by $1.50 per share to close at $27.875 in light Wednesday trading on the New York Stock Exchange. In a statement, HomeFed chief executive Robert Adelizzi said the profit improvement was due largely to increased net interest income for the quarter, which totaled $116 million, up 14% from the $101.7 million reported last year. The net interest rate spread, or difference between HomeFed’s yield on loans and investments and its cost of funds, was 2.87%, up from 2.7% for the year-ago quarter. Income from real estate operations for the quarter was $12.9 million, down from $14.8 million in 1989’s first quarter. Reflecting its goal of limiting asset growth in 1990, HomeFed’s loan originations during the quarter totaled $1 billion, down 39% from the year-ago period. Assets as of March 31 totaled $18.2 billion, up 4.6% from the $17.4 billion in total assets as of March 31, 1989. HomeFed’s nonperforming assets--its foreclosed real estate and loans delinquent 90 days or more--were $454 million or 2.5% of total assets as of March 31. A year previous, HomeFed’s bad loans totaled $493.7 million or 2.84% of total assets.
