Thrifts Show Signs of Stability As New Loan Origination Activity Declines
ByPosted To: MND NewsWire
The Office of Thrift Supervision (OTS) said Monday that the industry it regulates appears to be stabilizing based on profits announced for the first quarter of 2010. Thrift institutions earned $1.82 billion during that period, a three-fold increase over the $442 million in net earnings in the fourth quarter of 2009. This is the third consecutive quarter in which the thrifts posted a profit and is a dramatic improvement over the first quarter of 2009 when the thrifts showed a $1.62 billion loss. The term "thrift" generally refers to savings and loan institutions, credit unions, and savings banks. The improvement in earnings was primarily due to higher gains on the sale of assets held for sale , the lower loan loss provisions, and to noninterest expenses which decreased from 2.89 percent…(read more)