A single institution buoyed quarterly earnings at U.S. thrifts. The number of problem thrifts has nearly doubled over the past year.
Thrift profits were $1.3 billion during the third quarter, the Office of Thrift Supervision reported. Income, however, reflected a $1.1 billion non-operating gain at a single institution.
Weighing down on earnings were an additional $4.9 billion in loan-loss provisions. The increased provisions were at near-record levels and reflected worsening delinquency.
Still, OTS Acting Director John E. Bowman said encouraging signs are emerging.
The third quarter ended with 43 problem thrifts, up from the prior quarter’s 40 and the prior year’s 23.
The number of thrifts under OTS supervision was 780 on Sept. 30. Those institutions had $1.1 trillion in assets.
The regulator said it also supervised 452 holding companies with $5.5 trillion in assets.
Residential originations tumbled to $47.1 billion from $62.3 billion in the second quarter. Third-quarter 2008 production by thrifts was $63.1 billion.
Falling originations were apparently the result of declining refinances — which accounted for 39 percent of third-quarter activity versus 55 percent in the prior quarter.
