Thrifts Post Record 1Q Profits

The thrift industry posted record profits of $3.3 billion in the first quarter even though one- to four-family originations declined slightly from the record set in the fourth quarter.The Office of Thrift Supervision reported that originations totaled $145.4 billion in the first quarter, down from the fourth-quarter record of $159.6 billion. Refinancings of existing customer loans represented 55% of originations in the first quarter, compared with 49% in the fourth quarter. "Continuing the trend from 2002, the favorable interest rate environment in the first quarter of 2003 continued to support a mortgage refinancing boom, leading to record strength in earnings, profitability, and capital for the thrift industry," OTS Director James Gilleran said. The previous earnings record of $3.03 billion was set in the first quarter of 2002.