Westcorp, the holding company for Western Financial...

Westcorp, the holding company for Western Financial Savings Bank in Orange, reported net income of $9.7 million for 1987, a 13.4% drop from $11.2 million earned the previous year. Total revenue rose 41.1%, to $162.6 million from $115.2 million the previous year. In the fourth quarter, income declined 16.7%, to $2 million in 1987 from $2.4 million in the previous year’s final quarter. Quarterly revenue increased 33.3%, to $46 million from $34.5 million. Westcorp’s assets were $1.8 billion at the end of December, a 38.5% increase over $1.3 billion in assets a year earlier. Westcorp’s earnings were lower, mainly because of reduced interest yield on new adjustable-rate mortgages that offered reduced rates for the first six months, said Stephen W. Prough, the company’s president. He said he expects income to increase as those rates adjust upward.