OAKLAND, Calif. Golden West Financial Corp. announced Monday that its fourth-quarter earnings were $149.2 million, or 93 cents a share, up 27%.
On the year, the adjustable-rate mortgage lenders diluted earnings per share were $3.41, up 19%. It originated $19.8 billion of loans in 2000, up 56%.
Marion O. Sandler, chairman and chief executive officer of Golden West, attributed the companys performance to record loan volume. Last years relatively high mortgage rates favored adjustable-rate originations, because ARMs are typically made with an initial below-market interest rate.
In other earnings news, New Century Financial Corp. of Irvine, Calif., announced on Friday that it will report a loss for the fourth quarter and year after having announced it would post earnings of 30 cents to 35 cents a share.
The subprime lender said the recent reduction of market interest rates and possible future reductions, together with a general slowdown of the economy, may result in an increase in prepayment speeds and in loan delinquencies and losses.