Second-quarter profit more than doubled at Newport Beach-based Downey Financial Corp., thanks to mortgages.
Downey reported $64.1 million in profit, up 130% from a year earlier.
The company’s assets totaled $16.6 billion at the end of June, up 17% from $14.2 billion a year ago.
Downey’s higher profits were driven by sales of mortgages packaged and sold to investors as bonds.
“Our improved gains on sales of loans reflected a strong appetite in the secondary markets for adjustable rate mortgages, which we sold at healthy spreads,” said Daniel D. Rosenthal, Downey’s chief executive said in a statement.
The thrift’s results were partially offset by a $16.3 million unfavorable change in loan servicing activities, and a $5.3 million decline in income from real estate held for investment.
Late last year, Downey sold off most of the mortgages it serviced for other lenders for a fee.
The company’s assets totaled $16.6 billion at the end of June, up 17% from $14.2 billion a year ago. Deposits totaled $11 billion as of June 30, up 23.4% from the year-ago level and up 14.3% since the end of 2004.
Loan orginations grew 6.8% to $4.13 billion from $3.86 billion a year ago.
