CALFED <CAL> POSTS RECORD THIRD QUARTER RESULTS
CalFed Inc said strong loan volume
and higher net increase income at its principal subsidiary,
the California Federal Savings and Loan Association,
contributed to the best third-quarter and nine-month results in
the company's history.
    On a per-share basis, CalFed's fully diluted earnings were
1.80 dlrs for the third quarter of 1987 and 4.87 dlrs for the
nine months ended Sept 30, 1987, compared with 1.75 dlrs and
4.76 dlrs in the comparable 1986 period.
    CalFed is a 23.1 bln dlr diversified financial-services
company.
    "Key factors leading to the company's higher earnings were
continued strong loan volume, an increase in net interest
income and higher earnings from non-real estate sources," said
George Rutland, president and chief executive officer of the
firm of CalFed Inc.
    Net earnings in the third quarter of 1987 were 50 mln dlrs,
a 3.1 pct gain over 48.5 mln in the same period last year. They
increased 3.9 pct in the first nine months of this year
compared with last year, totalling 134.6 mln dlrs against 129.6
mln.
    California Federal Savings and Loan Association contributed
net earnings of 44.5 mln dlrs for the third quarter of 1987
compared with 43.4 mln for the third quarter of 1986. For the
nine-month period ended Sept 30, it had net earnings of 116.3
mln dlrs against 114.9 mln in the comparable 1986 period.
    California Federal's net interest income for the third
quarter of 1987 rose 18.1 pct to 131.6 mln dlrs, up from 111.4
mln for the third quarter of 1986. For the first nine months of
1987, it totalled 383 mln dlrs, a 13.9 pct increase over 336.2
mln in the comparable 1986 period.
    CalFed Inc said that the increase in its subsidiary's net
interest income was a result of higher average balances of
interest-earning assets for the savings and loan operations.
    CalFed said the savings and loan unit's loan originations
were unchanged in the third quarter of 1987 compared with last
year at 1.8 billion dlrs. But for the first nine months of
1987, they rose to 5.4 billion dlrs from 4.9 billion in 1996.
    California Federal's provision for loan losses rose to 19.4
mln dlrs in the 1987 third quarter compared with 15.5 mln last
year and to 63.3 mln for first the nine months of 1987 compared
with 30.6 mln.
 Reuter
