BANKING & FINANCE - June 4, 1996

U.S. Thrifts Boosted Profits in 1st Quarter: Much of the gain resulted from the restructuring of eight troubled savings and loans, the Office of Thrift Supervision said. S&Ls; posted record first-quarter profits of $1.831 billion, up 57% from $1.165 billion for the same quarter last year. First-quarter earnings were up 45% from $1.263 billion in the fourth quarter of 1995. Meanwhile, thrift deposits continued to decline as some thrifts, trying to save on deposit insurance costs, turned to other sources of funds or encouraged depositors to shift money into commercial bank subsidiaries. Thrifts pay 23 cents for every $100 in deposits to the Savings Assn. Insurance Fund that insures their deposits, while commercial banks can obtain coverage for a token premium.