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Despite benefiting from lower interest rates, the biggest banks and savings and loans based in the San Fernando Valley area saw their recovery slow during the third quarter.
Federal Home Loan Bank Board deposits at the savings and loans declined $2.2 billion in December, following a $1.4-billion increase in November.
The state's associations earned nearly $376 million in the third quarter, the best three-month period in industry history, according to the California League of Savings Institutions.
For most of the leading banks and savings and loans based in the San Fernando Valley area, the second quarter presented a win-win situation: they either reported big profit increases right away or instead stashed away extra money to help out down the road.
Columbia Savings & Loan reported record earnings of $77.2 million in the first quarter of 1986, more than double the $32.8 million earned a year ago.
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