Westcorp Inc.: A revaluation of its high-yield...

Westcorp Inc.: A revaluation of its high-yield “junk” bond portfolio caused the Orange-based holding company for Western Financial Savings Bank to post a 62% drop in third-quarter net income to $1.3 million this year from $3.4 million last year. Quarterly revenue rose 40% to $84.3 million this year from $60.2 million. For the first nine months, Westcorp’s net income fell 33% to $7 million from $10.5 million in the same period last year. Revenue for the period climbed 41% to $233 million from $165.8 million in the same period last year. Total assets were $2.8 billion at the end of September, a 12% increase over $2.5 billion in assets a year earlier. Without the markdown, a spokesman said, Westcorp would have posted quarterly net income of $4.2 million.