Profits at State’s Major Thrifts Surge in Quarter : S&Ls;: H. F. Ahmanson, Golden West Financial and Great Western Financial credit the widening spread in interest rates.

California’s largest thrifts, benefiting from the recent drop in interest rates, are reporting stronger quarterly profits this week despite a steep slowdown in lending and increases in money allocated to deal with problem loans.

Three of the largest thrift holding companies--H. F. Ahmanson, Golden West Financial and Great Western Financial--have posted higher third-quarter earnings. Glenfed Inc. reported a slightly lower profit from a year earlier in its first quarter ended Sept. 30, but nonetheless showed significant improvement in its basic operation and cost controls.

The state’s thrifts are benefiting from a widening spread between what they pay customers for their deposits and what borrowers pay on loans.

Reductions in interest rates paid by homeowners on adjustable-rate mortgages, the dominant loan made by California thrifts, tend to lag by several months any drop in the overall interest rates. That spread between what thrifts pay depositors for money and what they receive from homeowners making mortgage payments has been especially wide--at some institutions it has been at record levels--because overall interest rates have dropped rapidly the past few months.

Ahmanson, parent of Irwindale-based Home Savings of America, earned $65.1 million, up 5.3% from a year earlier. The increase came despite a sharp drop in mortgage originations, to $2.3 billion from $3.2 billion a year earlier. Ahmanson also allocated $23.5 million in the quarter for possible losses on real estate development and allocated $33.4 million in part for problem mortgages.

Glenfed, parent of Glendale Federal Bank, reported a 5% drop in profit to $17.1 million. Although down from a year earlier, Glenfed’s interest income rose 15% to $130 million because of the larger spread and its expenses fell nearly $38 million. The company allocated $55.2 million for problem loans, compared to $14.3 million a year earlier.

Late Tuesday, Oakland-based Golden West, parent of World Savings & Loan, reported a 41% jump in profit to $61 million. Unlike most other thrifts, World actually increased its loan originations by 13% from a year earlier.

Also on Tuesday, Great Western Financial, the Beverly Hills parent of Great Western Bank, reported its profit more than doubled to $77.3 million.

The thrift results are in sharp contrast with those of the state’s commercial banks, many of which are setting aside large amounts of money for problem real estate loans. Many of the thrifts that were active in making commercial real estate loans have already allocated reserves for potential problems over the past year.

Earnings, D4