Westcorp First-Quarter Profit Down 52%

IRVINE —  Westcorp Inc., holding company for Western Financial Savings Bank, said Thursday that its first-quarter profit totaled $3 million, down 52% from $5.8 million for the same period a year earlier.

Still, the latest earnings, equal to 17 cents a share, represent a significant turnaround for the company, which saw losses in the latter part of 1992 erase most of the year’s early gains. Westcorp ended 1992 with a 12-month profit of only $2.3 million, or 13 cents a share.

The company said its first-quarter profit came from Western Financial Savings’ strong consumer lending combined with a decrease in its interest expenses.

Total assets declined to $2.3 billion from $2.5 billion at year’s end.

Separately, Westcorp is seeking Securities and Exchange Commission approval to raise nearly $40 million by selling 4.5 million new shares of its common stock. The company would contribute $25 million of the proceeds to the savings and loan.

At the same time, the S&L; is boosting its own capital--its final cushion against losses--by issuing $75 million in debt securities. With the contribution and the debt offering, Western Financial’s basic capital would rise to 6.7% of assets from its current level of 5.7%. Under law, the thrift must maintain at least a 4% level.