Western Agrees to OTS Guidelines

Westcorp Inc. said Friday that its main subsidiary, Western Financial Savings Bank, has signed a supervisory agreement with federal thrift regulators that requires it to improve internal systems, reduce bad and questionable loans, and maintain levels of capital higher than those usually required of thrifts.

The company previously said it would probably sign such an agreement with the Office of Thrift Supervision, even though the Irvine thrift is healthy and well exceeds the capital levels that the OTS set for it in the agreement.

At its annual shareholders meeting Thursday, the savings and loan said that its chairman, Robert W. Jenkins, 70, is retiring and that his post will be assumed by Ernest S. Rady, 54, Westcorp’s chairman. The thrift also said that it increased its quarterly cash dividend a penny to 5 cents a share for stockholders of record May 29.