Commercial Banks Post Profit; S&Ls; Fall Farther Into the Red

WASHINGTON — A record profit was reported for the nation’s commercial banks today while the savings and loan industry fell farther into the red, widening the split between thriving big banks and troubled thrifts.

The Federal Home Loan Bank Board said losses widened to $3.4 billion in the first quarter from $3.2 billion in the previous quarter in the S&L; industry, which it regulates. It cited big losses in the troubled Texas economy.

In contrast, the Federal Deposit Insurance Corp. said commercial bank earnings surged to $7.3 billion in the first quarter from the previous record of $6.7 billion in the fourth quarter of 1988.

FDIC officials estimated that 1989 will probably be the second-best year in bank profitability, eclipsed only by last year when special factors buoyed bank profits to slightly more than $25 billion.

$4.2 Billion Lost

The S&Ls;, too, are mostly profitable, the bank board said. But the nearly $800 million in profit recorded by the nation’s solvent thrifts in the first quarter was overwhelmed by the $4.2 billion lost by failing institutions concentrated mainly in the Southwest.

Most of the losses were reported by Texas institutions, and one in particular accounted for $1.25 billion in losses, said Bank Board chief economist James Barth.

Texas thrifts reported $2.2 billion in losses and even solvent Texas thrifts lost money in the first quarter--a total of $53 million, Barth said.