WASHINGTON -- Failed savings and loans run by the government lost $163 million in the second quarter of this year, the Resolution Trust Corp. said.
The 18 insolvent thrifts had $12.6 billion in assets at the end of June, the RTC announced last week. The same 18 institutions lost $136 million in the first quarter. The $27 million increase in losses was chiefly due to a substantial drop in mortgage servicing fees at one institution, the agency said.
The S&L cleanup agency has since sold off a dozen of those failed institutions. It has just six whole thrifts left and plans to sell them by the end of this month.
At the end of March, the RTC ran 48 insolvent thrifts, with assets of $20.9 billion. They lost $201 million in the first quarter.
The RTC sold two failed thrifts over the weekend. Three California institutions -- Home Savings of America, Founders National Bank of Los Angeles, and Pan American Bank -- bought failed Western Federal Savings Bank in Marina Del Ray, Calif. It had $1.8 billion in deposits.
Western's failure is expected to cost taxpayers $239 million.
The agency also sold Dryades Savings and Loan Association in New Orleans to newly formed Dryades Savings Bank.