NPAs Are Rising Again at Downey
California thrift Downey Financial Corp. said its nonperforming assets increased to 10.93% at the end of February, an 89% spike over a three-month period.
Downey holds $13.4 billion in assets on its balance sheet. In a new research note, Credit Suisse cited one positive for the company: its net interest spread expanded 14 basis points to 3.11% during the month. This happened in part because of a decline in deposit costs. Credit Suisse has a "neutral" rating on Downey's stock. Among residential funders, Downey ranked 44th in the fourth quarter. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/