Gibraltar Financial reported markedly higher earnings in the fourth quarter and full year that ended Dec. 31 and announced an increase in the company dividend to 7 1/2 cents a share from 5 cents.
The Beverly Hills-based savings and loan company said fourth-quarter profit rose to $14.4 million, more than double the $7 million earned in the fourth quarter of 1985. Full-year earnings rose to $49.1 million, 26% higher than the $38.9 million earned in 1985.
Gibraltar said the figures reflect a one-time gain of $25.1 million from the December sale of its mortgage banking operations. However, the financial institution noted that a "substantial portion" of the gain was offset by increased loss reserves for commercial real estate loans and real estate joint-venture investments made before 1985.
Gibraltar said the record 1986 results included $67.3 million in loan-loss provisions and losses on real estate operations as well as another charge of $7.27 million for the early "extinguishment" of subordinated debt.