Great Western Posts $251-Million Profit
Great Western Financial Corp., the giant Chatsworth-based savings and loan, reported sharply improved earnings and a rosier overall financial condition for the fourth quarter and year that ended Dec. 31.
The company posted a $251-million profit for 1994, compared with earnings of $62 million a year earlier. For the fourth quarter, the company reported net income of $88.7 million, compared with a year-earlier loss of $18.2 million. Excluding a onetime gain on the sale of bank branches in Florida and the related write-off of intangible assets, fourth-quarter profit would have been $59 million, Great Western said.
Total assets were $42.2 billion Dec. 31, up 10% from $38.3 billion a year earlier. Meanwhile, delinquent loans and other non-performing assets fell to $845 million, down 25% from $1.13 billion at the end of 1993. As a result, provisions for loan losses totaled $207 million in 1994, compared with $463 million in 1993.
“Great Western enters 1995 with good momentum in asset growth, sharply improving credit quality and steady progress in achieving expense reduction,” said James F. Montgomery, chief executive of Great Western. “While rising interest rates have narrowed interest margins, we believe 1995 will involve continued improvement in profitability.”