Two large California-based savings and loan companies--H. F. Ahmanson & Co. in Los Angeles and Golden West Financial in Oakland--on Thursday reported sharply lower profits in the fourth quarter and for all of 1987.
The companies said results in 1987 were hurt by one-time charges as well as lower earnings from the sale of loans and assets, but both firms also noted that loan volumes remained strong in their basic business of mortgage lending. Ahmanson owns Home Savings of America, and Golden West is the parent firm of World Savings & Loan.
Ahmanson said its annual earnings fell to $200 million, off 34% from year-earlier levels, while fourth-quarter earnings dropped to $45.2 million, down 44% from the final three months of 1986.
Ahmanson noted that its assets grew more than 10% in the fourth quarter to $30.5 billion. The growth was fueled partly by a record $1-billion increase in consumer savings deposits. Home Savings of America now has 321 savings branch office in nine states and has more deposits--$22.5 billion--than any other S&L in the nation.
Golden West said net income in 1987 fell 20% to $147 million, while fourth-quarter earnings were off 36% to $29 million.
Beside lower earnings from asset sales, Golden West said profits fell by more than $9 million from penalties on the prepayment of high-cost borrowings and from an industrywide investment writeoff in a reserve fund of the Federal Savings and Loan Insurance Corp.
"The company's operating fundamentals remain strong," said Golden West Chairman Herbert M. Sandler. Golden West has assets of $13 billion and 194 offices in four states.