The parade of upbeat news for the savings and loan industry continued Thursday as some of the largest and best-known S&L names in California reported much improved profits in the third quarter.
Columbia Savings & Loan Assn. and the parent companies of California Federal Savings, Gilbraltar Savings and Home Savings of America were among the financial institutions reporting that net income from July through September was markedly improved over last year's levels.
Profits are recovering industrywide because deposit costs are down due to lower interest rates while real estate loan volume is surging. On Wednesday, Great Western Financial, Great American First Savings Bank and First Nationwide Financial reported sharply higher earnings. Financial analysts say that most of the large California savings and loans are among the healthiest in the industry because they are generally more diversified, better capitalized and--with a large amount of their assets in adjustable-rate loans--better able to withstand interest-rate swings.
CalFed Inc. said its quarterly earnings rose to $40.7 million, a record level and more than 13 times what it made in the third quarter of 1984. "We look forward to continued strong earnings for the remainder of the record year," said George Rutland, CalFed's chief executive.