First Interstate Results Set Mark in 1st Quarter

First Interstate Bancorp, the nation’s ninth-largest bank holding concern, said its earnings rose 5.7% to give it the highest first-quarter profit in its history.

The parent of Los Angeles-based First Interstate Bank said its earnings in the most recent period were reduced by $4.6 million because the company previously placed $334.5 million in loans to Brazil and Ecuador on non-accrual status, meaning interest on those loans isn’t recorded until it is paid instead of when it is due.

The company’s chairman and chief executive, Joseph J. Pinola, attributed the earnings increase to a 14.6% boost in non-interest income, including commercial loan and trust fees, gains on investment securities and foreign exchange trading.

Interest income declined slightly to $1.04 billion from $1.1 billion.

First Interstate’s provision for possible loan losses for the quarter was $99.5 million, down from $107.3 million in the first period of 1986 and $125 million in the final period of last year.

The company’s total of non-performing assets, primarily delinquent loans and foreclosed property, was $1.76 billion as of March 31, compared to $1.26 billion in the first quarter of 1986 and $1.37 billion at year end.

The Brazil and Ecuador debt accounted for about about two-thirds of the increase in non-performing assets over a year ago.