Offering by Westcorp Raises $46 Million
Westcorp, the Orange holding company for Western Financial Savings Bank, last week joined the ranks of Orange County’s publicly held companies with an initial offering of common stock that raised more than $46 million.
The offering of 4.5 million shares at $11 each was jointly underwritten by Drexel Burnham Lambert Inc. of New York and San Francisco-based Montgomery Securities Inc. The offering, which became effective Friday, was sold out by the end of the day, said Andrey R. Kosovych, a Drexel Burnham vice president.
During the year ended Dec. 31, Westcorp had net earnings of $7.8 million, up 44% from $5.4 million in 1984. In March, the savings and loan holding company shed its old name, Western Thrift & Financial Corp.
Its primary holding, Western Financial Savings Bank, converted from a thrift and loan to savings and loan in late 1982, in order to make larger loans in more diverse areas. The S&L; currently has 20 branches scattered throughout California. A subsidiary offers credit life and credit disability insurance.
Proceeds of the offering will be used primarily to make new real estate and consumer loans, Kosovych said. Loans as of Dec. 31 totaled $578 million, up 119% from $263.7 million a year earlier. At year-end, deposits increased 29% to $535 million, from $413 million in 1984.