On February 20, the Office of Thrift Supervision (OTS) released its Thrift Industry Highlights – Fourth Quarter 2007 report.

The report notes that the thrift industry posted a record loss of $5.24 billion for the fourth quarter of 2007. According to the report, about $4 billion of the overall loss resulted from “a write-down by a few thrifts in goodwill, necessary to recognize the reduced value of acquired assets.” Another $2.2 billion loss was due to a restructuring charge by a single institution.

Among other findings, the report further notes the following: (i) during the fourth quarter of 2007, thrifts set aside $5.1 billion in loan loss provisions, or 1.35% of average assets; (ii) troubled assets were 1.65% of assets, up from 1.19% in the third quarter and 0.70% a year ago, (iii) total mortgage origination volume for the year was up 10% from 2006, but the fourth quarter was down 10% from the third quarter as existing and new home sales and refinance volumes declined; and (iv) the number of problem thrifts (those with composite examination ratings of 4 or 5) was up from 6 thrifts one year ago to 11 thrifts at the end of 2007.