Regulators Lift a Set of Restrictions on Westcorp

IRVINE — Westcorp Inc., the holding company for Western Financial Savings Bank, said Tuesday that federal regulators have lifted a set of management and investment restrictions imposed more than 18 months ago.

The order, affecting Westcorp’s thrift subsidiary and the thrift’s mortgage banking, automobile finance and home improvement loan centers, was imposed May 14, 1992, when regulators ruled that the company needed to improve the manner in which it documented its accounting reports.

Under terms of the so-called supervisory agreement with the Office of Thrift Supervision, Western Financial agreed to maintain its capital at a level well above the minimums typically required of thrifts, to set a goal for reducing its problem loans and to improve internal record-keeping systems.

The thrift raised $157 million through stock and other debt issues last year and added $150 million of that to its capital, nearly doubling the amount required by regulators.

Westcorp President Stephen W. Prough said in June that the company had rid itself of most bad loans, improved its record-keeping and was in compliance with the regulatory order.

Western Financial Savings Bank operates 26 retail bank branches, 13 mortgage banking offices, eight automobile finance centers and eight home improvement outlets across California. The company also markets consumer finance services through Westcorp Financial Services, a wholly owned subsidiary with 31 offices in California, four in Oregon, two in Nevada and one in Arizona.