BANKING

S&Ls; Earn $1.3 Billion in Quarter: The increased profits at savings and loans in the April-June period is a sign the industry is weathering the increase in interest rates this year, the government said. Earnings were up from $750 million for the first quarter even though the rise in short-term interest rates increased the cost of S&Ls;’ deposits, the Office of Thrift Supervision said. At the same time, the total of loans and other assets held by thrifts increased for the first time in six years, rising $4 billion to $773 billion.