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Earnings for Half Up 95% : Imperial Corp. Logs 46% Quarterly Earnings Gain

July 23, 1987|GREG JOHNSON

SAN DIEGO — Imperial Corp. of America reported that earnings rose 46% to $16.5 million for the second quarter ended June 30. Earnings rose by 95% to $35.5 million for the first half of 1987.

However, the parent company of Imperial Savings of California did not take a $16-million writeoff in the second quarter on the company's investment in the Federal Savings & Loan Insurance Corp.'s secondary loss reserve fund. The $16-million writeoff would have reduced Imperial's after-tax earnings by $10 million, spokesman Tim Larrick said.

Imperial and a growing number of California S&Ls have not taken the writeoffs, which were ordered by the Federal Home Loan Bank Board. Imperial and others have cited pending legislation in Congress that could restore the fund.

Imperial expects its June agreement to sell its 16 Kansas branches to Columbia Savings of Emporia, Kan., to gain needed regulatory approvals by the end of the year, Larrick said.

Imperial has not yet decided whether to sell four Silver State Savings branches in Colorado. Federal regulations require that Imperial either sell the branches or expand its operation in that state by buying an existing thrift.

Imperial sold the Kansas branches to qualify itself as a "unitary" savings and loan holding company, because unitary S&Ls are given more regulatory freedom.

Imperial reported that assets increased to $10 billion from $8.7 billion, deposits fell by $400,000 to $6.5 billion and total loans and mortgage-related securities remained constant at $6.9 billion.

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