Pacific First Earnings Rose 6% in Quarter
Pacific First Financial Corp., Seattle, earned $8.8 million in the second quarter, about 6% more than in the year-earlier period, despite a sharply higher loan-loss provision, the thrift's Canadian parent disclosed in a preliminary statement.
The parent, Royal Trustco Ltd., also said that its chairman, Hartland M. MacDougall, has taken the post of chairman at Pacific First, replacing Jerry E. Pohlman, who resigned last week. Mr. Pohlman had also served as Pacific First's chief executive, a position that remains open.
Silencing Rumors of Loss
The Canadian company announced Pacific First's profits in advance of the regularly scheduled release to stop speculation about a possible loss due to credit problems at the U.S. thrift holding company, a Royal Trust spokeswoman said.
Canadian analysts had said they believed Mr. Pohlman's departure might have been linked to a big rise in commercial real estate loan problems at Pacific First.
Revenue Offsets Loss Provision
Pacific First added $10.6 million to loan-loss reserves in the second quarter, following a $16 million provision in the period ended March 31, a thrift spokesman said. Provisions for the first six months of 1991 were up sharply from the first half of 1990, when about $2 million was added to reserves.
Royal Trust said the higher provision was offset by a sharp jump in revenue. Net interest income and noninterest income rose 31% to about $130 million.
Pacific First, with assets of $7.5 billion, has about 150 offices in Washington, Oregon, California, and Nevada.