WASHINGTON -- Failed thrifts being run by the Resolution Trust Corp. lost $201 million for the first quarter, the RTC said Thursday.
By contrast, the nation's private-sector thrifts earned $1.3 billion in the first quarter, the Federal Deposit Insurance Corp. reported earlier this week.
As of March 31, the 48 RTC-managed thrifts had assets of $20.9 billion and liabilities of $25.2 billion. They had $16.2 billion in deposits.
Better than Previous Quarter
The $201 million loss in the first quarter is an improvement of $407 million from the previous quarter. The improvement came from a $268 million decline in operating losses, combined with a $138 million decrease in noncash charges, the RTC said.
The cash expenses of fundign the 48 thrifts' negative net worth, salaries, overhead, and marketing totaled $146 million. Those net operating losses included $15 million in net interest income and $161 million in net noninterest operating expenses last quarter.
The remaining $55 million in losses reflects noncash charges to recognize prior losses on assets.
Brokered Deposits Dropped 93%
Total brokered deposits at the 48 conservatorships have dropped 93%, or $5.7 billion, since they entered conservatorship. Total nonbrokered deposits have fallen 53%, or $17.4 billion, and total Federal Home Loan Bank System advances have fallen nearly 100%, or $9.1 billion, during the same period, the agency said.
Other borrowings increased 173%, or $4.8 billion, since the institutions entered conservatorship.
Those borrowings include advances from the RTC for liquidity purposes and the replacement of high-cost funds. As of March 31, RTC advances totaled $6.9 billion.
