New York Savings Banks Continue to Show Improvement in Health
Basch, Mark, American Banker
NEW YORK -- Although the Bowery Savings Bank had a net loss of $19.3 million in the third quarter, overall New York's savings banks had a strong performance, with 66 of 71 state-chartered thrifts recording a profit.
The only other large New York City savings bank to lose money last quarter, according to call report data released by the state Banking Department last week, was the $2.4 billion-asset Williamsburgh Savings Bank, which lost $1.4 million.
The three other thrifts that lost money were smaller institutions outside of New York City.
For the most part, lower interest rates have cured the problems that have plagued New York thrifts for the past few years. The 71 state-chartered thrifts reported aggregate income instead of a loss during the second quarter, the first time that had happened since the Banking Department began releasing quarterly data four years ago.
After earning an aggregate $53.1 million in the second quarter, the 71 institutions had aggregate income of $73.3 millions in the third quarter.
However, not everything is rosy with the New York savings banks. The Bower has lost a total of $44.3 million in the first nine months of 1985. The institutions has converted to a stock savings bank and been acquired by a group of investors with assistance from the Federal Deposit Insurance Corp. That transaction was completed on Oct. 1, the first day of the fourth quarter.
The $5.3 billion-asset Bowery's net worth at Sept. …