Thrifts Report $5B in 2Q Losses

Thrifts have reported $5 billion in losses for the second quarter after socking away $14 billion in loan loss reserves and taking $5.6 billion in chargeoffs, according to the Office Thrift Supervision. Over the previous three quarters, thrift institutions had reported $14.7 billion in losses, as the serious delinquency rate on one- to four-family loans jumped 100 basis points from 2.8% in the fourth quarter to 3.8% in the second quarter. The 829 OTS-supervised institutions have $32.8 billion in troubled one- to four-family loans on their books that are 90 days or more past due or real estate owned. Meanwhile, OTS data show that thrifts originated $107.5 billion in one- to four-family loans in the second quarter, down from $115.3 billion in the first quarter. Federal Deposit Insurance Corp. data show that bank originations totaled $283 billion, down slightly from $289 billion in the first quarter.