Thrifts posted a healthy gain in net interest income during the second quarter of 2004 and saw significant improvement in profits from mortgage servicing operations. Institutions regulated by the Office of Thrift Supervision reported $8.46 billion in net interest income during the second quarter, up from $8.09 billion during the first three months of this year. Thrift holdings of unsecuritized single-family mortgages climbed $28.90 billion, to $631.47 billion, as strong consumer preference for various adjustable-rate mortgage