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Thrifts improved despite problems at failed institutions.

First-quarter call report data released by the Office of Thrift Supervision showed continued improvement for most of the savings and loan industry, according to an analysis by Veribanc, Inc. However, the 85 failed thrifts operated by the resolution Trust Corporation (RTC) had $638 million in net losses for the quarter, bringing federally controlled thrifts' total losses to $3.6 billion since Congress stopped funding the sale of failed thrifts operated by the RTC.

Although losses at RTC-controlled thrifts climbed $178 million from $460 million in the first quarter of 1992, net losses of all unprofitable thrifts declined to $781 million from $806 million a year earlier. The number of thrifts that lost money in the first quarter of 1993 dropped to 149 from 194 last year, and thrifts with problem loans exceeding loan loss reserves and equity declined to 180 from 253.

Robert E. Wolpert, senior vice-president and chief financial officer of Citizens Savings Bank, Silver Spring, Maryland, said the outlook for the savings industry should remain favorable as long as interest rates stay down. He cautioned, however, that interest rates might have hit bottom. He also suggested that because of the protracted rate decline, S&Ls had lost deposits to the stock market and mutual funds.
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Oct 1, 1993
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