THRIFTS : Nationwide, S&Ls; End Quarter in Red Ink, but California’s Post Gain

The nation’s savings and loan institutions suffered a net loss of $3.4 billion in the first quarter of 1989, although those in several states, including California, bucked the trend and made money, according to a private analysis released Monday.

In the first quarter of last year, S&Ls; lost $3.68 billion.

The quarterly report by Alex Sheshunoff & Co. said about a quarter of the nation’s 2,946 thrifts suffered losses that far outweighed profits reported by the healthy institutions.

Immense losses posted by failing thrifts have depleted the reserve funds of the Federal Savings and Loan Insurance Corp., forcing Congress to come up with a $50-billion plan to infuse new money into the industry.

The Sheshunoff report said money-losing thrifts in Texas alone accounted for more than half of the industry’s red ink. The state’s savings and loans had a $2.2-billion net loss for the quarter.

Texas was followed by Pennsylvania, where thrifts saw a net loss of $343.1 million, and Minnesota, with a loss of $249.6 million.

“A mere handful of aggressive, large institutions can easily destroy the performance of a state as a whole,” said Alex Sheshunoff, president of the firm that bears his name.

There were bright spots, however, according to the Austin, Tex.-based consultant.

In California, for example, the industry posted a net profit of $230.9 million.