AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Banks, Thrifts Raise Credit Loss Reserves.
Washington -- Banks and thrifts took a beating in the third quarter but thrifts experienced an 80% drop in earnings despite maintaining a high level of originations. Higher loss reserves contributed to the earnings decline for both banks and thrifts.
Thrifts originated $165.1 billion in one-to-four family mortgages, down only 5% from the second quarter. Refinancings accounted for 44% of loan production.
However, thrifts reported only $704.1 million in earnings for the third quarter, according to the Office of Thrift Supervision, down from $3.8 billion in the second quarter, as charge-offs took a heavy toll.
OTS officials blamed the 82% drop in earnings mainly on secondary market conditions that forced 10 thrifts to recognize losses on their mortgage pipelines and loan sales. They stressed that portfolio lenders did fairly well in the third quarter.
Single-family loan originations by commercial banks and savings banks plummeted 50% in the third quarter, but their earnings fell by only 22% to $28.7 billion.
Despite the market turmoil, banks and thrifts continued to sell a large amount of mortgages in the secondary market.
Federally chartered thrifts raised their loan loss reserves to 0.92% from 0.38% in the second quarter and their charge-offs on single-family loans jumped to $569.5 million from $312.6 million the second quarter. OTS officials expect charge-offs to increase in coming ...
- Management of loan loss reserves by commercial bankers--part 1
- Magazine article from: The Journal of Bank Cost & Management Accounting Joyce, William B January 1, 1996 700+ words
Management of Loan Loss Reserves by Commercial Bankers-Part 1...INTRODUCTION It is hypothesized that loan loss reserves at banks are at least partially...financial presentation of loan loss reserves. Then, a discussion of the loan...
- Top Banking Executive Says SEC Must Clarify Its Position on Loan Loss Reserves;...
- Press release article from: PR Newswire June 17, 1999 700+ words
...banking industry today over loan loss reserves provisioning as recent SEC actions...institutions to maintain strong loan loss reserves has not lessened. "A policy that discourages building loan loss reserves positions at this time could prove...
- Banks Set Aside More Loan Loss Reserves for Hyundai Subsidiaries.
- Newspaper article from: Korea Times (Seoul, Korea) April 13, 2001 700+ words
...aside more loan loss reserves for the ailing Hyundai...in their first-quarter closing accounts. Loan loss reserves are safety valves...adjustment of the loan loss reserves for the two debt...companies in our first-quarter balancing accounts...
- Credit Jitters Recast Battle On Reserves.(loan loss reserves)(Dukes County...
- Magazine article from: American Banker Mcgeer, Bonnie November 28, 2006 700+ words
...significant amount of money into our loan-loss reserves, and we've been questioned about...Board regulations that apply to loan-loss reserves -- FAS 5 and FAS 114 -- more narrowly...might be getting stricter about loan-loss reserves because of a relatively new voice in...
- Industry analysts split over reserve adequacy. (property casualty loss reserves)
- Magazine article from: National Underwriter Property & Casualty-Risk & Benefits Management Sclafane, Susanne December 16, 1996 700+ words
...manipulating company loss reserves? With net written premiums...1995 and in first-quarter 1996, there may seem...include payments and loss reserves) for each accident...deficiency in industry loss reserves for exposures other...
- SunTrust Yields In Tug-of-War With SEC Over Loss Reserves.
- Magazine article from: American Banker Seiberg, Jaret Gillam, Casey November 16, 1998 700+ words
...SunTrust Banks Inc. is shaving its loan-loss reserves by $100 million, or 13%. The move...years and reduced SunTrust's loan-loss reserves to $666 million from $766 million...probably don't need as much in loan loss reserves," said Lynn E. Turner, the SEC...
- 12 step process for testing loss reserves audit.
- Magazine article from: Risk Management Wright, P. Bruce March 1, 1991 700+ words
...According to the IRS, the purpose of a loss reserves audit is to determine whether a taxpayer...Incurred but not reported (IBNR) loss reserves to the annual statement must be reconciled...developments are compared to the IBNR loss reserves established by the taxpayer in the...
- Second National increases loan loss reserves, suspends dividend. (Second...
- Press release article from: PR Newswire September 21, 1990 700+ words
SECOND NATIONAL INCREASES LOAN LOSS RESERVES, SUSPENDS DIVIDEND SALISBURY, Md...NMS: SNFS) increased specific loan loss reserves by $7.88 million and general loan...to increase further the general loan loss reserves over the next 18 months by an identical...