ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, March 7, 1996 TAG: 9603070018
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
The savings and loan industry made a record $5.4 billion in profits in 1995, but regulators expressed concern Wednesday about underlying trends, including rising consumer and mortgage delinquencies.
Jonathan Fiechter, acting director of the Office of Thrift Supervision, said the nation's 1,437 thrifts reported ``lackluster'' return on average assets, an important measure of proceeds from investments.
In addition, delinquent mortgages and consumer loans posted a small rise from third-quarter levels.
For the three-month period ending Dec. 31, delinquent single-family mortgages were 1.27 percent of all S&L loans, up from 1.18 percent in the third quarter, while consumer loan delinquencies were 0.76 percent, up from 0.72 percent.
``While these increases are not yet serious, any time you have a rising level of delinquencies, that warrants a close monitoring,'' Fiechter said.
Savings and loans are similar to banks, except that they're restricted primarily to making home mortgages and consumer loans, not commercial loans.
Fiechter pointed to a number of positive trends in the industry, including rising capital levels and a further decline in the number of troubled S&Ls.
At year end 1995, 97 percent of the industry was well capitalized, by OTS measures, which means regulators believe the thrifts have sufficient money reserved for unexpected loan losses.
LENGTH: Short : 37 linesby CNB