Federal National Mortgage Association, a former government agency in aiding the home financing market through purchases of mortgages, has reported record profits during 1976.
Other area firms reporting higher earnings yesterday included the Macke Co., pargas, Inc., First Virginia Bankshares Corp., First & Merchants Corp., and government Services Savings & Loan. Inc.
FNMA earned $126.8 million (2.18 share, diluted for political conversion of debentures) in 1976 compared with $115 million ($2.00) the previous year. Although total profits were a record high the per-share earnings did not reach a record set in 1973 because there currently are more shares outstanding. In the fourth quarter, Fannie mae earned $30.4 million (52 cents) compared with $28.8 million (50 cents) a year earlier. FNMA earned a record $203 million return on its portfolio of mortgages compared with $173.7 million in 1975 although fee incomes declined to $38.6 million from $47 million. The company set aside $11.5 million for possible losses in the recent quarter compared with $2.4 million a year earlier, largely because of the purchase of $900 million in conventional mortgages from Governmetn National Mortgage Association, a government unit, in November,
Macke Co., a food service and vending firm based in suburban Cheverly, reported record profits in the first fiscal quarter ended Dec. 31 Net income rose 11 per cent to $937,000 (31 cents a share) compared with $845,000 (28 cents) in the same period of 1975. Sales increased to $50.1 million from $46.5 million
Better profits were made possible by cost controls and the sales increase, according to chairman Meyer GElfand, who noted that coffee inventories now are closing macke nearly twice as much as a year ago. The firm sells 100 million cups of coffee a year through its machines and cafeterias.
Pargas, Inc., a Waldorf-based distributors of propane and owner of coal mines, reported fourth-quarter profits soared to $4 million ($1.18 a share) from $2.2 million (64 cents) in the same period last year, because of high sales during recent cold weather. Revenues totales $43.4 million vs. $34.2 million.
For 1976, pargas earned $6.9 million $1.95 on sales of $1.28 million vs, earnings of $4.7 million ($1.30) and sales of $110 million. Because of improved coal mining operations and the cold weather, Pargas forecast higher profits for 1977.
First Virginia Bankshares Corp., a Falls church holding company which owns banks throughout the state, reported 1976 operating profits of $8.5 million (81 cents) compared-with $6.8 million (74 cents) in 1974. Chairman Ralph A. Beeton attributed the 26 per cent increase to higher loan volume and income from two banks acquired in the fourth quarter of 1975. State-wide deposits rose 8 per cent to $1 billion, a new high.
Fourth-quarter operating profits from continuing business totaled $2.2 million (21 cents) vs. $1.6 million (17 cents).
First & Merchants corp., a richmond-based bank holding company, reported 1976 operating profits of $8.4 million ($2.55) vs. $10.1 million (3.08) in 1975, a decrease of 17 per cent. Fourth-quarter operating profits rose 23 per cent, however, to $2.5 million (75 cents) vs. $2 million (61 cents).
Chairman C. Coleman McGehee said the final quarter rebound reflected a substantial reduction in reserves for loan losses. For the full year-reserves were increased slightly.Year-end deposiits were $1.43 billion, a slight gain for the year.
Government Services Savings & Loan, of Bethesda, reported that profits rose by 70 per cent in the nine months ended Dec. 31 to $1.3 million ($1.62) vs. $775.663 (95 cents). Savings deposits totaled $235 million on Dec. 31 up 5per cent in the past 12 months.