Great Western Earnings Fall 95% in 4th Quarter

Chatsworth-based Great Western Financial Corp., the nation’s second-largest thrift, said earnings plummeted in the fourth quarter that ended Dec. 31 due to restructuring and other charges.

Fourth-quarter earnings of $5.1 million were down 95% from $98.6 million in 1995.

For 1996, earnings were $116 million, down 56% from $261 million the year before.

The fourth-quarter charges included $68.3 million to restructure the company’s mortgage organization operation, a move that included some layoffs and office closings, and $50 million related to the bulk sale of bad real-estate loans, the bank said.

Some of the charges were offset by a gain of $22.5 million from the sale of the company’s student-lending unit to Crestar Bank.

Full-year earnings were diminished by a one-time special federal deposit insurance premium levied against all thrifts during the third quarter, which cost Great Western $188 million.

Nonperforming assets were $546 million as of Dec. 31, 1.27% of the total assets, down from $768 million or 1.72% of total assets at the end of 1995.

Total assets as of Dec. 31 were $42.9 billion.

Return on average assets for the quarter was 0.05%, down from 0.88% in 1995.

For the year, return on average assets was 0.27%, down from 0.59% in 1995.