WASHINGTON — The thrift industry reported a slight profit for the third quarter, $1.77 billion, but troubled loans continued to increase, the Office of Thrift Supervision said Friday.
"The performance of our nation's thrift industry in the third quarter was mixed," OTS Acting Director John Bowman said in a press release.
"The industry's profitability was encouraging," he said, "but other indicators reminded us that economic stresses — particularly from unemployment — continued to take a toll."
Troubled assets rose to $32 billion during the quarter, up from $31.2 billion in the second quarter. They now total 3.45% of assets, up 10 basis point from the previous quarter.
Delinquencies for construction, land, and multifamily loans were also higher, but dropped for residential mortgages and commercial loans.
Noncurrent loans for one- to four-family homes rose to 5.75% of the total, up from 5.46% in the second quarter, and noncurrent construction and land loans increased to 16%, from 15%.
Noncurrent multifamily loans decreased slightly, to 2.9%, from 3.08%; consumer noncurrent loans fell to 1.23%, from 1.27%; nonresidential loans decreased to 3.82%, from 3.84%, and commercial noncurrent loans decreased to 2.85%, from 3.04%.
Thrifts added $2.12 billion in loan-loss provisions, but these allocations fell to 0.92% as a percentage of assets, from 0.98%. Net chargeoffs decreased to 1.03%, from 1.28%.
Total net chargeoffs remained relatively steady, increasing to 0.25%, from 0.24%, and commercial loan chargeoffs decreased to 0.75%, from 0.76%.
Nonresidential chargeoffs decreased to 0.29%, from 0.35%; consumer chargeoffs fell to 0.86%, from 1.03%, and construction and land loan chargeoffs decreased to 1.08%, from 1.09%.
Thrift mortgage originations rose to $36 billion in the third quarter, from $31 billion in the previous quarter.
At the end of the third quarter, seven thrifts were classified as less than adequately capitalized, but 93.1% of all thrifts had been able to satisfy "well-capitalized" standards.
The number of problem thrifts dropped by one, to 53, during the quarter.
At the end of the third quarter, the OTS supervised 741 thrifts with an aggregate $927.9 billion in assets, down from 753 thrifts with assets of $931.1 billion in the previous quarter.
The agency is due to be terminated next year as a result of the Dodd-Frank regulatory reform law.
On July 21, 2011, the agency and its staff are to be incorporated into the Office of the Comptroller of the Currency.
