FOR RELEASE: CONTACT: William Ruberry
Wednesday, Aug. 27, 2008 (202) 906-6677
Washington, D.C. — The thrift industry posted a $5.4 billion loss for the second quarter of 2008, as institutions set aside record reserves for loan losses during the continued housing market downturn, the Office of Thrift Supervision (OTS) reported today.
During the second quarter, thrifts set aside $14.0 billion in loan loss provisions, the highest total on record. During the last four quarters, the industry has added more than $30 billion to loan loss reserves, driving down earnings but providing a cushion against the impact of rising loan delinquencies and other problem assets. The net loss during the second quarter was the second largest on record after the $8.8 billion loss in the fourth quarter of 2007. In the first quarter of 2008, the industry lost $627 million.
Capital remained solid during the second quarter, with more than 98 percent of the industry exceeding the standard for well-capitalized.
“Solid capital and sizable reserves for potential loan losses show once again that thrift managers are responding appropriately to the challenges they face,” said OTS Director John Reich. “These two factors will serve the industry well in riding out the current crisis.”
Troubled assets (noncurrent loans and repossessed assets) rose to 2.68 percent of assets, up from 2.06 percent in the previous quarter and 0.95 percent a year ago.
Other highlights include:
More details, as well as charts and selected indicators are attached:
Thrift Industry Selected Indicators
U.S. Economic and Housing Conditions
1700 G Street, NW, Washington, DC 20552
Phone (202) 906-6000 | E-mail