Foothill Group Profits Rise 76% in 2nd Quarter

Foothill Group Inc., a financial services concern with executive offices in Agoura Hills and Los Angeles, said its second-quarter net income increased 76% and announced that it will spin off its unprofitable Foothill Thrift & Loan unit.

In the quarter that ended June 30, Foothill Group’s net income climbed to $6.1 million from $3.5 million a year earlier. Its six-month profit rose 40%, to $9.5 million from $6.8 million.

Despite a $2.3-million provision for credit losses in the latest three months, Foothill Group said its second-quarter profits were bolstered by investment gains. Those gains included $4.8 million from the sale of bank loans and related equities, $2.8 million of profits from managed partnerships and “significant” gains from the sale of several bank debt positions.

The company hopes to spin off its thrift unit as a separate, publicly traded company in about two to three months. The plan is subject to regulatory approval. Foothill Group said the new thrift holding company to be created in the spinoff will also raise between $10 million and $15 million of additional equity capital.