GIBRALTAR FINANCIAL CORPORATION
Gibraltar achieved its third consecutive year of record earnings in 1985. In addition, the Company reduced its interest rate sensitivity by significantly improving the gap in maturities of its assets and liabilities. At year end, the one-year gap as a percentage of total assets amounted to 9% compared with 34% at December 31, 1984.
Net earnings for the year rose to $38.9 million, equal to $2.34 per share. This represented an improvement of 16% over 1984 earnings of $33.5 million or $2.03 per share, which included extraordinary items. Earnings before extraordinary items in 1984 were $31.0 million or $1.89 per share.
Favorable interest rates in the first half of 1985 permitted us to attain our objective of restructuring the balance sheet ahead of schedule. Therefore, the Company was able to resume a program of prudent growth, adding assets during the second half on a closely matched basis. Total assets at December 31, 1985 amounted to $9.9 billion, and increated t $10.2 billion at February 28, 1986.
In March and April 1986, the Company increased its regulatory capital by $200 million. As a result, the capital ratio of our principal subsidiary, Gibraltar Savings, was raised to over 8%, nearly triple the minimum regulatory requirement of 3%.