Hits for SAIF seen cutting 3Q profits at banks, thrifts

Banks and savings and loan associations (S&L) are required to report the assessments levied by the federal government to refinance the Savings Association Insurance Fund (SAIF) as expenses on their 3rd qtr, 1996 financial reports. Forecasts of financial institutions' earnings-per-share before the charge predicted an 8.8% increase for leading money-center banks and a 6.3% increase for regional banks, while S&Ls' operating income was predicted to increase by 18.2%. However, the SAIF charge will cut into actual reported earnings.
Many third-quarter earnings reports released by banks and thrifts over the next few weeks will include glaring charges that in some cases could exceed operating profits. The charges are related [...]