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Thrifts solvent in 1991 third quarter.

According to Veribanc's analysis of third-quarter 1991 data released by the Office of Thrift Supervision on the nation's 2,261 savings and loan institutions, the dispostion of failed and failing thrift institutions may be two-thirds complete.

Veribanc, a bank rating company, calculates that the discounted net worth of the entire S&L industry, including institutions under Resolution Trust Company (RTC) control, exceeded $5 billion, the first positive assessment since 1988. As RTC disposition continues and the mortgage refinancing boom picks up steam, Veribanc expects positive S&L earnings in 1992.

Nevertheless, Veribanc expects another 300 to 350 S&ls to close their doors in the next several years, with the total number of thrifts stabilizing near 1,900. Industry assets could decline to $750 billion to $800 billion, compared with assets of $980 billion at the end of 1991's third quarter.
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Mar 1, 1992
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