Less profitable loans led Newport Beach-based savings and loan operator Downey Financial Corp. to report a big drop in second-quarter earnings.
Downey reported a profit of $32.7 million, down 32% from a year earlier.
The results fell short of Wall Street’s expectations.
Net income interest, the equivalent of revenue for a savings and loan, was off 16% from a year earlier on less money generated from loans.
Downey made 42% fewer loans in the quarter at $1.2 billion.
Deposits were down 5.4% from a year ago.
Provisions for credit losses were up $2.8 million from a year ago to $9.5
million.
