Home Federal Reports Earnings Rise by 15%

Benefiting from a “favorable interest-rate climate,” Home Federal Savings & Loan Assn. on Thursday reported a 15% increase in earnings, to $23.3 million. for the first quarter ended March 31.

Gross revenues rose 3% to $297 million.

Reductions in the cost of funds led to a 21% increase in net interest income, to $64.1 million, according to Chairman and Chief Executive Kim Fletcher.

Assets increased 7% to $10.1 billion, loan originations rose 9% to $786.2 million and loan sales income increased 195% to $6.2 million.

Meanwhile, Home Federal said that its $100 million convertible subordinated debenture offering will be priced at 6.5% at par and convertible to common stock for $47.75 per share, a 25% conversion premium.