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The thrift industry is a good investment in mid-1998. There is good earnings momentum and merger and acquisition activity will continue as a way to increase profits. Merger and acquisition activity has taken place during the mid-1990s to increase the assets of thrifts. Several thrifts with large lending operations are doing well because mortgages are selling well during a time of low interest rates.

The thrift industry should be able to maintain a high level of loans with the favorable interest rate environment and the low cost of money, thus increasing profits in 1998. Consolidation in the thrift industry is also expected to continue in 1998 and for a number of years beyond. Investors will find that these stocks are timely for 1998 and for the next three to five years, as well.

Profit margins and earnings for savings and loan associations and savings banks have been squeezed in the late 1990s due to lower interest rates and a flat yield curve. However, thrifts that are high-volume lenders are in a better situation than others and the industry is timely with good earnings momentum and expected future consolidation. Investors should select stocks of well-managed thrifts, or those that are good takeover targets.

The thrift industry is doing well during 1997, and these stocks are considered timely for investors. Increased earning assets, decreased credit-related costs and lower overhead expenses have boosted profits for many firms. Many companies have expanded their market by acquiring other firms, and consolidation has occurred regularly in the industry. Federal rate increases would affect these stocks, but this is unlikely to occur in the near future.

The rapid consolidation within the the banking and thrift industries has led to few legal differences between banks and thrifts, and more thrift mergers are expected within the next three to five years. The insurance playing field for thrifts and banks has been leveled by congressional action, and the two industries are more competitive. Many thrifts have become takeover targets, and investors need to evaluate these stocks on an individual basis.

First quarter, 1997 thrift industry earnings and market conditions showed favorable results despite increases in short-term interest rates, although equity prices dropped in the last portion of the quarter from highs reached in February and March. The drop in equity prices is a boon for short-term investors and the continuation of mergers throughout the industry will benefit patient long-term investors, despite the high 130% to 170% of book value buyout prices.

Stock prices for the thrift industry have increased in 1996 and early 1997 with earnings gains and the expectation of takeovers. The number of savings and loan associations has decreased from 3,000 to 2,000 from the mid-1980s to the mid-1990s, and the industry is expected to shrink further in the next three to five years. Most of these stocks are good targets for takeover, but investors need to use patience when evaluating these securities.

Mergers and acquisitions mark the thrift industry, the number of thrifts has dropped from roughly 3,000 in the 1980s to roughly 2,000 in 1996. More consolidation is expected. Proposals to bring parity with banks in deposit insurance could make the segment more competitive. Investors in this segment should be prepared to wait for increased return.

Thrift industry stocks outperformed the market in 1995. ATMs and other technologies are improving efficiency, and lower interest rates will increase loan activity and earnings. Competition and merger activity will improve with a special Savings Association Insurance Fund charge, and thrifts are now stronger after the 1980's S&L crisis. Investors should choose thrift stocks with strong balance sheets for commitment.

The major activity of the thrift industry, whether savings banks or savings and loans, is mortgage lending. Federal and state regulations which have restricted thrift growth have been struck down after the savings and loan crisis. Thrifts have expanded by merging, which has also resulted in cost-cutting and streamlining measures. Although the Savings Association Insurance Fund is not in good condition, thrifts with good balance sheets may be good investments.

A bevy of large banking companies and one big thrift reported generally positive fourth-quarter and yearend results Thursday, boosted by strength in fee-based businesses. Most of the eight major companies [...]

Barely five months after losing a hostile bid for Great Western Financial, H.F. Ahmanson & Co. showed it can boost earnings anyway. Ahmanson, based in Irwindale, Calif.-based, reported Tuesday that [...]

Regardless of which company wins the fight for Great Western Financial Corp., Morgan Stanley's thrift analyst believes shares of both H.F. Ahmanson & Co. and Washington Mutual Inc. are worth [...]

H.F. Ahmanson & Co. has reported earnings of $103.1 million for the first quarter of 1997. These earnings exceed those of 1996's first quarter by 59%. The Irwindale, CA-based thrift issued its first quarter results a week early in a move that analysts believe is intended to curry favor with potential merging partner, Great Western Financial Corp. H.F. Ahmanson's rival suitor for Great Western, Washington Mutual Inc., stated that it plans to issue its earnings report on April 15, 1997., In an effort to buff up its merger proposal for Great Western Financial Corp., H.F. Ahmanson & Co. on Tuesday posted first-quarter earnings a week ahead of schedule-and the news [...]

H.F. Ahmanson & Co. hasn't won its battle to acquire rival Great Western Financial, but it has convinced analysts to hike earnings forecasts. The consensus 1997 earnings-per-share forecast for the [...]

Earnings for banks and thrifts in Southern California rose during the 4th qtr of 1996, due mainly to the area's improved economy. H.F. Ahmanson and Co of Irwindale, CA, parent of Home Savings of America, saw profits increase by 50% in the quarter to $91.2 mil. Sanwa Bank California, First Hawaiian Inc, City National Corp, and Downey Financial Corp are other Southern California banks and thrifts which saw increased earings for the period., An improving Southern California economy drove up the fourth-quarter earnings of several banks and thrifts in the region, particularly H.F. Ahmanson & Co., signaling a strong 1997, analysts said. The [...]

The larger West Coast thrifts have chalked up one of their strongest quarters in recent memory, analysts say. Excluding a multitude of one-time charges in the third quarter, most notably [...]

Wider interest margins contributed to good 1st-qtr 1996 earnings for H.F. Ahmanson & Co, Great Western Financial Corp and Golden West Financial Corp, California's three leading thrifts. Ahmanson's earnings totaled $64.8 million, compared to a loss in the year-earlier period. Great Western's earnings increased 64%, to $71.3 million, and Golden West's earnings rose 48%, to $75.5 million. All three firms suffered sharp drops in mortgage originations, however., The three largest California thrifts reported solid first-quarter earnings results, on the strength of widening interest margins. H.F. Ahmanson & Co., the nation's largest thrift, reported first-quarter earnings of $64.8 [...]

The savings and loan association (S&L) H.F. Ahmanson and Co reported that its earnings for FY 1995 had declined by 9% to $216.2 million. The 4th qtr earnings of $60.7 million equated to 40 cents per common share of stock, which was 10 cents per share lower than analysts' forecasts. Ahmanson, which is the largest S&L in the US, blamed its poor performance on higher administrative expenses and an increase in credit costs. Nonperforming assets as a total of assets have risen to 1.88% at the end of 1995 versus 1.57% at the end of 1994 and total $843 million., Battered by rising credit costs and administrative expenses, the nation's largest thrift, H.F. Ahmanson & Co., reported earnings that were sharply below expectations. For the fourth quarter, the Irwindale, Calif., [...]

Setting a record, thrift earnings rose 27% to $1.58 billion in the third quarter, the Office of Thrift Supervision reported Wednesday. But the thrift regulator said the sharp increase over [...]