ORANGE COUNTY

Big Westcorp Loss Reserve Bites Earnings: Irvine-based Westcorp, reflecting the effects of the recession and a losing battle with regulators, socked away $52 million in reserves last year for possible future loan losses and posted significantly lower annual earnings of $2.3 million, or 13 cents a share. Last year’s net income for the holding company for Western Financial Savings Bank was well below a record profit of $21.1 million, or $1.20 a share, in 1991. Revenue fell 18% to $267.2 million last year from $327.7 million the previous year. Half the reserve--$26.2 million--was set aside in the fourth quarter, causing the company to report a loss of $8.1 million, or 45 cents a share, for the three-month period, compared to net income of $5.9 million in 1991’s final quarter. Revenue dropped 23% to $60.2 million for the quarter from $77.7 million. Most of Western Financial’s problem loans are for large apartment projects.