Wells Fargo Extends Run of Healthy Profit Results : Finance: H. F. Ahmanson and Great Western posted higher net income. Security Pacific raised its divided by 10.5%.

Wells Fargo & Co., continuing its string of strong quarterly performances, disclosed that its earnings in the first quarter rose 13% to $159.8 million from the year-earlier period.

Separately, directors of Security Pacific Corp., reacting to a strong performance last year, raised the banking firm’s quarterly dividend Tuesday by 10.5% to 63 cents a share.

The announcements came on the day both banks held their annual meetings in Los Angeles. Executives at both companies spent considerable time trying to ease investor fears of a real estate downturn in California, ironically on the same day when a top government regulator warned of potential problems in some of the state’s major commercial real estate markets.

Wells Fargo Chairman Carl E. Reichardt responded to concerns by touting the California economy, citing such factors as strong job, population and manufacturing growth.

Reichardt also restated the belief of Wells Fargo executives and others that many of the real estate problems experienced by banks elsewhere in the country stem from poor underwriting of loans by bankers there. Wells Fargo has been one of the nation’s most profitable banks, in part because of growth in its real estate lending.

Earlier in the day, Robert H. Smith, Security Pacific Corp.’s new chief executive, made similar points in a meeting with reporters following the Los Angeles banking firm’s annual meeting with shareholders at its headquarters. Smith said Security Pacific has been hurt some by the overall slowdown in the nation’s economy but added that he believes California’s economy is strong. Among the factors Smith cited were strong immigration and a relatively tight supply of housing caused in part by slow-growth pressure in many communities.

Investors have been wary of buying bank stocks in recent months in the wake of a spreading real estate recession that has hit hard in New England, Arizona, Texas, the New York area and Florida. Regulators from the Office of the Comptroller of the Currency have been especially tough on banks for sloppy real estate lending, to the point where some critics say the regulators are choking off credit by making lenders skittish.

California banks have worked hard to persuade investors that the state remains somewhat insulated from those problems and that troubles in areas such as New England and Arizona were caused by overbuilding. Still, that controversy will probably be renewed by comments Tuesday from L. William Seidman, head of the Federal Deposit Insurance Corp. During a speech in Dallas, Seidman included Anaheim and Los Angeles on a list of potential trouble spots for commercial lending. (See story on D1.)

Separately, earnings disclosed Tuesday by other banks nationwide were mixed. Union Bank in San Francisco said its net income rose slightly to $34.6 million for the quarter from $33.5 million a year earlier. The bank, which is controlled by the Bank of Tokyo, said that profits were hurt by a decrease in its net interest margin, basically the difference between what it earns on its money and what it pays to get it.

Major thrifts in California showed strong earnings, an indication that the biggest thrifts are doing well amid the savings and loan industry chaos.