BANKING

Bank Profits Strong, S&L; Earnings Slip: Commercial banks recorded their second-best profits ever during the first three months of the year, but problems at three big savings and loans dampened the thrift industry’s earnings, the government said. The nations’ 10,840 commercial banks earned $11.1 billion, up from $10.8 billion a year earlier, the Federal Deposit Insurance Corp. said. That was second only to the $11.5 billion earned during the July-September quarter last year. Meanwhile, earnings at the 2,240 savings banks and savings and loan institutions fell to $1.3 billion from $2.4 billion a year earlier. However, the FDIC attributed more than $500 million of the decline to “balance sheet restructuring” at three of the top 20 thrifts. In California, Glendale Federal Bank and California Federal Bank recognized losses on real estate loans. First Federal of Michigan lost $139 million on interest rate swaps.