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WESTERN CAPITAL INVESTMENT POSTS THIRD QUARTER PROFIT

 WESTERN CAPITAL INVESTMENT POSTS THIRD QUARTER PROFIT
 DENVER, Oct. 21 /PRNewswire/ -- Western Capital Corp. (NASDAQ: WECA)


(WCIC) announced a net income of $2.9 million, or 30 cents per share, for the third quarter of 1992. For the nine months ended Sept. 30, 1992, net income was $9.5 million, or 96 cents per share.
 "Earnings dipped slightly in the third quarter compared to the second quarter as a result of several non-recurring items, but we did see improvement in two key areas. We continued to reduce problem assets and decrease operating expenses," said Robert J. Malone, chairman and chief executive officer.
 As they have for the past eight quarters, problem asset levels again decreased in the third quarter of 1992. At Sept. 30, they totaled $131.8 million -- a reduction of 28 percent from the total at Sept. 30, 1991. General and administrative (operating) expenses declined to $17.0 million, down from $19.1 million from the like period one year ago. For the first nine months of 1992, general administrative expenses were $50.8 million, compared to $54.2 million at Sept. 30, 1991.
 The company's net interest income also showed improvement, increasing to $14.9 million for the quarter ended Sept. 30, 1992 from $13.2 million for the comparable period one year ago.
 Bank Western, WCIC's largest subsidiary, continued to be a dominant mortgage lender in the five-county Denver metro area. "Thus far in 1992, residential first mortgage loan production is up 47 percent from its level at this time last year. That's right on track with our 1992 business goals," noted Malone.
 Although low interest rates helped create the current dynamic residential real estate market, they also sparked a refinance rush and a significant increase in mortgage loan prepayments. To adjust for the increase in payoffs, and allow for the possibility of high refinance activity in the future, the company increased its third-quarter charge to income by $1.3 million over the second quarter, on the purchased mortgage servicing rights portfolio.
 High mortgage loan prepayment rates also prompted WCIC's decision to sell $50.6 million in held-for-sale securities. The company realized a $1.7 million gain on the sale.
 In early October, WCIC announced an agreement to sell the stock of one of its subsidiaries, Teton National Insurance Co., located in Cheyenne, Wyo. The sale is expected to close in late 1992 and will become final upon approval of the Wyoming Insurance Commissioner. WCIC took a charge of $1.2 million in the third quarter to reflect the sale of Teton.
 In the third quarter of 1991, WCIC earned $8.0 million, or 83 cents per share. Included in the total were several one-time gains which totaled $21.1 million, and a provision for loan losses and property acquired in settlement of loans of $12.7 million. For the third quarter of 1992 the provision for loan losses and property acquired in settlement of loans was $3.2 million. For the nine months ended Sept. 30, 1991, the company earned $5.3 million, or 55 cents per share.
 In May, WCIC announced a proposed acquisition by First Bank System Inc. (FBS), a Minneapolis-based holding company which also owns Central Banks of Colorado. Plans to complete the proposed merger are proceeding, and the company estimates that the acquisition will be complete, pending regulatory and WCIC shareholder approval, near the end of 1992.
 Bank Western also announced that they have recently completed a joint Office of Thrift Supervision and Federal Deposit Insurance Corp. examination. The results of that examination have been reflected in the financial results of the third quarter. Bank Western remains in compliance with all current regulatory capital requirements.
 WESTERN CAPITAL INVESTMENT CORP.
 Consolidated Statements of Financial Condition
 Sept. 30, Dec. 31,
 1992 1991
 (in thousands)
 ASSETS:
 Cash $10,814 $85,079
 Federal funds sold 20,000 50,000
 Interest and service
 fees receivable 18,150 19,347
 Investment securities 240,547 169,351
 Mortgage-backed securities 562,092 486,586
 Loans receivable 1,162,456 1,190,444
 Loans held for sale 273,434 293,520
 Real estate held for sale 15,831 22,942
 Property acquired in
 settlement of loans 82,848 107,735
 Office properties and
 equipment 53,455 53,419
 Purchased mortgage
 servicing rights 13,608 14,018
 Other assets 35,645 31,275
 Total $2,488,880 $2,523,716
 LIABILITIES & STOCKHOLDERS' EQUITY:
 Deposits $2,048,679 $2,079,739
 Federal Home Loan Bank
 advances 180,687 167,500
 Other borrowings 88,568 100,655
 Deferred income taxes 501 501
 Advance payments by
 borrowers for taxes
 and insurance 12,295 17,301
 Accounts payable and
 other liabilities 27,589 37,120
 Total liabilities 2,358,319 2,402,816
 Total stockholders'
 equity 130,561 120,900
 Total $2,488,880 $2,523,716
 Additional Information
 (Dollars in thousands, except per share amounts)
 1992 1991
 At Sept. 30 and Dec. 31:
 Loans serviced for others $1,937,811 $1,451,830
 Book value per share 13.94 12.93
 For the Nine Months Ended Sept. 30:
 Loans originated and
 purchased $521,711 $425,934
 Mortgage-backed securities
 purchased 239,852 12,693
 Loans and mortgage-backed
 securities sold 212,211 534,499
 Return on average assets,
 annualized 0.51pct. 0.27pct.
 Return on average equity,
 annualized 10.07pct. 6.12pct.
 Average equity/average assets 5.08pct. 4.39pct.
 Average yield on interest-
 earning assets 8.36pct. 9.25pct.
 Average cost of interest-
 bearing liabilities 5.48pct. 6.77pct.
 Interest rate spread 2.88pct. 2.48pct.
 General and administrative
 expense/average assets 2.74pct. 2.76pct.
 General and administrative
 expense/gross income 31.68pct. 27.10pct.
 Consolidated Statements of Operations
 (in thousands, except per share amounts)
 Three Months Ended
 Sept. 30,
 1992 1991
 Interest income $44,418 $54,172
 Interest expense 29,550 40,937
 Net interest income 14,868 13,235
 Provision for loan losses 289 2,179
 Net interest income after
 provision for loan losses 14,579 11,056
 Noninterest income
 Loan servicing fees (412) 1,109
 Other loan fees 818 703
 Gain on assets 2,638 6,088
 Other income 5,247 14,211
 Total noninterest income 8,291 22,111
 General and administrative
 expense 16,995 19,069
 Provision for losses on
 property acquired in
 settlement of loans 2,944 10,521
 Net income (loss) before
 income taxes 2,931 3,577
 Income tax benefit --- 4,455
 Net income (loss) $2,931 $8,032
 Net income (loss) per share $0.30 $0.83
 Nine Months Ended
 Sept. 30,
 1992 1991
 Interest income $138,840 $167,439
 Interest expense 93,287 127,090
 Net interest income 45,553 40,349
 Provision for loan losses 3,072 4,489
 Net interest income after
 provision for loan losses 42,481 35,860
 Noninterest income
 Loan servicing fees 1,745 3,287
 Other loan fees 2,289 1,975
 Gain (loss) on assets 4,021 5,871
 Other income 13,578 21,561
 Total noninterest income 21,633 32,694
 General and administrative
 expense 50,836 54,230
 Provision for losses on
 property acquired in
 settlement of loans 5,311 13,504
 Net income (loss) before
 income taxes 7,967 820
 Income tax benefit 1,533 4,455
 Net income (loss) $9,500 $5,275
 Net income (loss) per share $0.96 $0.55
 -0- 10/21/92
 /CONTACT: Scott Crosby of Western Capital Investment Corp., 303-623-5577/
 (WECA) CO: Western Capital Investment Corp. ST: Colorado IN: FIN SU: ERN


MC-BB -- DV015 -- 3200 10/21/92 18:22 EDT
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