Thrift stocks struck out with investors during the first half of the
The American Banker index of the stocks of the top 50 commercial banks
"The thrift group overall has just about been out of favor," said Kevin
The lack of investor interest showed up in lagging stock prices at
He said first-half earnings, though growing at a decent pace, could not
Thrifts "have not seen an awful lot of earnings growth," said Thomas F.
"They're lagging behind because of interest rates and the fact that
People generally prepay their mortgages to get a new loan at a lower
Or they lose the asset altogether if the borrowers get their next
"A lot of the relative performance of thrifts is tied to interest
At the same time, "a lot of the performance of thrifts is tied to the
This year, thrifts were also coming off a period in which mortgage
With mortgage originations, "we're not having a repeat of 1998 this
"With rates ticking up, for all intents and purposes, the thrift stocks
Mr. DiMartino predicted that mortgage originations will fall by about
"At this period in the mortgage cycle, some people feel they would
But "thrifts are going to have a terrific second half of the year," he
The analyst said that when rates are rising there is a shift in consumer
Also, "between now and next summer you'll see a lot of takeover
Mr. Timmons of First Albany also said he expects better things. "If the
"If we enter a benign environment, I think thrifts could do well," Mr.
"I wouldn't look for another leg down unless we believe we're in for a