Newport Beach-based savings and loan Downey Financial Corp. saw second-quarter profit fall 23% on higher expenses and a decline in loan and mortgage revenue.
Downey’s profit came in at $49.5 million, versus $64.1 million a year earlier. Analysts had expected $50.3 million.
The thrift blamed the lower profits on a slowdown in demand for mortgages and higher costs.
Downey also saw a $6.1 million increase in provision for credit losses, a $2.6 million rise for operating costs and a $1.8 million charge for a legal settlement.
