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Thrift industry records first profit since 1987.

An analysis of first-quarter call report data for the nation's 2,129 thrift institutions conducted by Veribanc, Inc., the bank rating company, found the industry registered a profit of $1.1 billion, the first time the industry as a whole has been profitable since the first quarter of 1987. Private sector thrifts recorded net income of $1.6 billion, more than offsetting a $500 million loss registered by 50 thrifts still under control of the Resolution Trust Corporation.

The return to profitability comes after a shrinkage of 34.2% in the number of thrifts operating in the United States, from 3,238 in the first quarter of 1987 to 2,129 in 1992's first quarter. According to Veribanc, 253 of the remaining thrift institutions either do not comply with minimum capital regulations or have problem loans that exceed net loan loss reserves and tangible net worth. However, the number of troubled thrifts today is well below the 550 institutions that were in difficulty at the end of the first quarter of 1991 and the 839 thrifts with problems when 1990's first quarter ended.
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Oct 1, 1992
Words:183
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