CalFed Profit With Trust Sales Tops $13 Million

CalFed Inc. reported first-quarter earnings of $13.1 million Friday, contrasted with a $2.7-million loss a year earlier, but the profit was mainly from the sale of a trust management business.

CalFed’s profit translated to 51 cents a share, contrasted with a loss of 11 cents for the first quarter of 1991. Earnings included $16 million from the sale of most of CalFed’s trust management business.

While the Los Angeles-based parent of California Federal Bank continued to meet federal net worth requirements, its loan portfolio declined. Chairman Jerry St. Dennis blamed California’s weak real estate markets.

He said that bad home loans were mostly to blame. Delinquencies on residential loans showed signs of easing late in the quarter, St. Dennis said.