Sterling Savings & Loan Assn. of Irvine posted net income of $2.3 million for 1985, compared with $364,096 the previous year, when it first opened for business.
In the fourth quarter Sterling's net income fell to $73,000 from $204,000 in the previous year's final quarter.
The lower earnings in the fourth quarter came as a result of the S&L's decision to add to its loan loss reserves, change its income tax estimates and write off most of its carrying costs and overhead for a subsidiary company, Sterling Builders, said Robert K. Parker, the S&L's president and chief executive officer.
About 64%, or $1.5 million, of Sterling's net income for the year came from its wholly owned service company, Sterling Builders. Most of those earnings came from the sale of an El Toro apartment complex that the service company had developed.
As of Dec. 31, Sterling had assets of $89.9 million, an 88% increase over assets of $47.8 million a year earlier. Its net worth, which federal regulators use as a measure of an institution's soundness, was 12%. Regulators require new S&Ls such as Sterling to maintain a 7% net worth in the first year, 6% the second year and 5% thereafter, said Jim Hilbert, Sterling's vice president.