American Savings and Loan Association, the largest Florida-based S&L, has posted a third-quarter profit. American announced Monday that it had net income of $942,000 for the quarter ending Sept. 30 but still showed a loss for the first nine months of $4.4-million.
While the third-quarter profit isn't a mammoth amount of money, it is a considerable improvement over the third quarter of 1989.
Last year, the Miami-based thrift lost $83.1-million in the third quarter and $76.6-million for the first nine months of 1989.
"We're making money in our core business now. Last year we had a lot of writedowns," said Roger C. Pastore, American's chief financial officer. The company had an extensive junk bond portfolio in 1989.
"We believe we've turned the corner," Pastore said.
He said the thrift currently is being examined by regulators. "So far, it looks good," said Pastore.
The news of a profit comes on the heels of an unusual announcement last week.
On Thursday, American and Fortune Savings Bank of Clearwater agreed to swap certain branches.
Fortune would sell its six southeast Florida branches and their deposits to American Savings.
American Savings would sell 13 branches in Pinellas County and two in Pasco County, along with their deposits, to Fortune.
The swap, believed to be the first of its kind in Florida, is subject to regulatory approval. It is expected be completed some time in early 1991.
If approved, American depositors on the West Coast would become Fortune depositors.
Loans and investments would not be affected.
As of Sept. 30, American Savings had total assets of $4.87-billion.
American's stock, traded over the counter, closed Monday at 25 cents, unchanged.