Downey Savings & Loan Assn. has named...

Downey Savings & Loan Assn. has named two new directors, replacing Schuler Strang and the late Benjamin Hansen. Both men were charter members of Downey’s board, having served as directors since the association’s inception in 1959. Strang, 76, who retired Wednesday, will serve as director emeritus.

The new board members are Cheryl Jones, 30, daughter of Downey’s president and co-founder, Maurice McAlister, and Brent McQuarrie, 35, son of the S&L;’s chief executive and co-founder, Gerald McQuarrie.

Jones, an Irvine resident, has worked at Downey and at Columbia S&L.; McQuarrie, an El Toro resident, is president of Sea Coast Mortgage Corp. in Newport Beach and general partner of DP Properties, a commercial development company in Newport Beach.

Separately, Downey’s board declared a 7-cents-per-share cash dividend for the fourth quarter Wednesday, up from 6-cents-a-share in the third quarter. The Costa Mesa-based S&L; said that it expects its 1986 net earnings to outstrip the record earnings posted in 1985. A company official said annual earnings should be released in about two weeks.