Thrifts are Recovering from Housing Crisis

Despite being heavily hit by mortgage defaults the saving and loan industry is again making a profit.  For the fourth consecutive quarter the industry reported profits.  In the 2^nd quarter of 2010 those profits were $1.49 billion. The profit balance is up from a $94 billion loss in the 2^nd quarter of 2009.

Community banks by law must reserve 65% of its lending for mortgages and consumer loans.  This has made the role of the thrift institutions very precarious during the housing crisis.  The Office of Thrift Supervision considers 16 thrift institutions to be less than adequately capitalized right now.

Still, with the steady stream of profitable quarters the industry as a whole appears to be on the mend.  Troubled assets are falling and are now down to 3.21% of all assets, down from 3.28% the previous quarter.