Imperial Corp. of America, the parent company of Imperial Savings & Loan, on Monday reported that net income for the fourth quarter ended Dec. 31 fell to $13.7 million from $16.3 million during the same quarter a year ago.
Net income for the year ended Dec. 31 rose only slightly to $51.3 million, from $50.3 million during the previous year.
The San Diego-based S&L holding company blamed the fourth quarter drop on a sharp, nationwide reduction in mortgage originations. Imperial's single-family originations and purchases of mortgages on the secondary market fell to $2.6 billion in 1987 from $4.1 billion during the previous year.
During the second quarter, Imperial reported an after-tax write-off of $10.2 million for a one-time payment to the Federal Savings and Loan Insurance Corp.'s Secondary Reserve fund, which is used to prop up failing institutions.
During 1987, Imperial "stood the test of rising interest rates and completed a major restructuring which positions us for a strong 1988," according to Imperial President Kenneth Thygerson.
Last year, Imperial sold American Savings, a thrift subsidiary in the Midwest, and ICA Mortgage Co.