WASHINGTON — The Office of Thrift Supervision reported that the nation's thrift industry posted strong third quarter earnings and profitability historically despite falling from recent highs.
OTS reported aggregate net income at $4.29 billion in the third quarter, the second highest recorded, up 2% from $4.21 billion in the prior quarter and up 6% from $4.04 billion in third quarter 2005.
Profitability, measured by return on average assets, was 1.08%, down from 1.11% in the second quarter and 1.15% in the comparable quarter a year ago.
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The aggregate net interest margin declined 5% to 2.65% of average assets from 2.80% percent in the prior quarter. (Due to a regulatory change, 2006 net interest margin is not directly comparable to prior years.) OTS attributed the decline to the continued flat to inverted yield curve.
Overall, industry capital remained strong, exceeding regulatory minimums, in the quarter. Nearly all thrifts (99%) met or exceeded the "well capitalized" standard.
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