Western Financial

The holding company for Western Financial Savings Bank said it earned $3.5 million in the fourth quarter, or 15 cents a share, contrasted with a loss of $8.1 million in 1992.

Western Financial said earnings for the year were $12.9 million, 65 cents a share, compared to profit of $2.3 million, 13 cents a share, in 1992.

The bank said earnings increased because it wrote more home and consumer loans during the year. The bank originated $512 million worth of loans in the fourth quarter, compared to $309 million in fourth-quarter 1992--a 65% increase.

And, the bank said, it wrote better loans this year, too. Loans delinquent two months or more were 1.53% of all loans at the end of the year, compared to 2.67% at the end of 1992. The bank had $75 million worth of bad loans at the end of the year, compared to $102 million the year before.

The holding company had assets of $2.2 billion at the end of the year, down from $2.5 billion in 1992.

The reason: The company said it had stepped up the selling of its mortgages in the secondary market and the sale of consumer loans--mostly auto loans--on Wall Street. Western Financial is the fourth-largest in the nation as a packager of auto loans into securities for sale to investors.

Deposits declined to $1.4 billion, compared to $1.7 billion the year before.

Western Financial Savings Bank operates 26 branches and 29 loan offices around California.