BANKING

CalFed Says Profits Reflect Cost-Cutting: California Federal Bank, citing its ongoing cost-cutting program, this week reported a profit of $31.9 million, or 50 cents a share, for the quarter ended Sept. 30. That compares to a profit of $149.5 million, or $2.67 a share, in last year’s third quarter, but those results included a $135-million gain on the sale of CalFed’s Florida and Georgia branch network. The Los Angeles-based company cut its quarterly general and administrative expenses--not counting deposit insurance premiums--by 15%, to $53.9 million, from $63.1 million a year earlier. Net interest income rose to $79.9 million from $76.4 million a year ago. Edward G. Harshfield, CalFed president and chief executive, said that despite the progress in cutting expenses, “cost control and efficiency of operations remain top priorities.”