Great American Bank’s Net Falls 18% in 1984

SAN DIEGO —  Despite a 37% jump in assets, Great American First Savings Bank said Thursday that its net income dropped 18% to $23.2 million for the year ended Dec. 31, 1984.

Great American’s earnings were buoyed by a $4.9-million non-recurring gain on a distribution of stock in Federal Home Loan Mortgage Corp., which pushed Great American’s fourth-quarter net to $7.1 million, up from $5.7 million the prior year.

Chairman Gordon Luce said pretax earnings were higher in 1984 but net income dropped, largely because of higher tax rates in 1984. For the year, Great American expects to pay taxes of $8.7 million; in 1983, the thrift reported a $3.5-million tax gain from the use of a tax-loss carry-forward.

Total assets increased 37% in 1984 to $6.7 billion from $4.9 billion the prior year. Luce said assets will grow to about $8 billion this year, given an expected strong housing market. However, lending faded in the fourth quarter to $572.8 million from $631.9 million a year earlier. New loans in 1984 totaled $2.56 billion, compared to $1.85 billion the previous year.