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WESTERN CAPITAL INVESTMENT POSTS THIRD QUARTER PROFIT

 WESTERN CAPITAL INVESTMENT POSTS THIRD QUARTER PROFIT
 DENVER, Nov. 5 /PRNewswire/ -- Western Capital Investment Corp.


(WCIC) (NASDAQ: WECA) reported a net income of $8.0 million, or 83 cents per share, for the third quarter of 1991. During the same time period in 1990, the company lost $40.9 million, or $4.37 per share. For the nine months ended Sept. 30, 1991, net income was $5.3 million, or 55 cents per share, compared to a loss of $71.9 million, or $7.69 per share, for the same period in 1990.
 "While the quarterly results contain a number of one-time gains, WCIC was able to reduce problem assets and operating expenses while bolstering allowances for losses," said Robert J. Malone, chairman and CEO. "In addition, several new consumer banking programs are having a positive impact."
 Bank Western, WCIC's largest subsidiary, continues to be the number-one mortgage lender in the five-county Denver metro area. Consumer loan production results continued to improve with the introduction of innovative programs such as the variable rate auto loan. Auto loan production volume was over $5.5 million in the third quarter alone.
 Besides strengthening its consumer business, the corporation has an overall strategy in place to reduce the sensitivity of earnings to fluctuations in market interest rates. As announced in September, Bank Western sold a $446 million portfolio of Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corp. (FHLMC) fixed-rate mortgage-backed securities. The bank reported a $6.55 million gain on the sale. "The sale helped protect us against interest rate fluctuations," Malone noted. "As a result, it provided us with the flexibility we need to take advantage of changing market


conditions."
 Included in other income in the third quarter of 1991 was the reversal of a $7.5 million judgement against Bank Western which had been expensed in 1989. Earlier in 1991, the Colorado Court of Appeals reversed and remanded for a new trial a $7.5 million judgement that had been entered against Bank Western in 1989. Due to the Supreme Court's refusal to review the Court of Appeals decision, Bank Western was able to reverse the 1989 charge to income.
 WCIC continued to make progress in negotiations with the Internal Revenue Service regarding 1980-1985 tax returns. In the third quarter, WCIC recorded $4.5 million of tax recoveries and $2.5 million of related interest for a total of $7.0 million. Additional future recoveries and interest of up to $2.4 million continue through the IRS review process.
 In the third quarter of 1991, Bank Western recorded $12.7 million in provisions for losses on loans and property acquired in settlement of loans. This compares to $36.5 million in the same period of 1990. Allowances for losses, which allow all problem assets to be written down to fair value, total over $66.4 million.
 Problem asset levels again decreased slightly in the third quarter. At Sept. 30, 1991, these totaled $183.2 million before allowances for losses of $66.4 million. "Included in problem assets is $84.3 million of loans to facilitate the sale of REO or classified as in-substance foreclosures," Malone noted. "Of the $84.3 million, 38 percent are contractually current as to principal and interest payments."
 Bank Western has recently undergone its second joint regulatory examination by the Office of Thrift Supervision and the Federal Deposit Insurance Corp. "All known adjustments are reflected in these financial statements, and the bank remains in compliance with all current regulatory capital requirements," Malone said.
 WESTERN CAPITAL INVESTMENT CORP.
 Consolidated Statements of Financial Condition
 Sept. 30, Dec. 31,
 1991 1990
 (in thousands)
 ASSETS
 Cash $67,309 $44,504
 Federal funds sold and securities
 purchased under resale agreements 174,444 ---
 Interest and service fees receivable 19,921 23,623
 Investment securities 171,505 218,343
 Mortgage-backed securities 305,314 735,545
 Loans receivable 1,190,689 1,200,668
 Loans held for sale 299,075 270,300
 Real estate held for sale 23,896 24,978
 Property acquired in settlement
 of loans 126,034 124,164
 Office properties and equipment 53,416 55,276
 Other assets 41,592 25,531
 TOTAL $2,473,195 $2,722,932
 LIABILITIES & STOCKHOLDERS' EQUITY
 Deposits $2,072,659 $2,221,835
 Federal Home Loan Bank advances 182,500 257,900
 Other borrowings 54,501 67,023
 Deferred income taxes 501 1,599
 Advance payments by borrowers
 for taxes and insurance 12,196 17,276
 Accounts payable and other
 liabilities 30,565 42,301
 Total liabilities 2,352,922 2,607,934
 Total stockholders' equity 120,273 114,998
 TOTAL $2,473,195 $2,722,932
 ADDITIONAL INFORMATION
 (Dollars in thousands,
 except per share amounts)
 1991 1990
 AT SEPT. 30 AND DEC. 31:
 Loans serviced for others 1,157,851 935,317
 Book value per share 12.86 12.30
 FOR THE NINE MONTHS ENDED SEPT. 30: 1991 1990
 Loans originated and purchased $466,145 $490,695
 Loans and mortgage-backed securities
 sold 534,499 79,335
 Return on average assets, annualized 0.27pct. -2.94pct.
 Return on average equity, annualized 6.12pct. -58.12pct.
 Average equity/average assets 4.39pct. 5.05pct.
 Average yield on interest-earning
 assets 9.25pct. 9.46pct.
 Average cost of interest-bearing
 liabilities 6.77pct. 7.34pct.
 Interest rate spread 2.48pct. 2.12pct.
 Operating expenses/average assets 2.78pct. 2.22pct.
 Operating expenses/gross income 27.22pct. 26.02pct.
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 Nine Months Ended
 Sept. 30, Percent
 1991 1990 Change
 (in thousands, except
 per share amounts)
 Interest income $167,439 $209,478 (20.07)
 Interest expense 127,090 167,405 (24.08)
 Net interest income 40,349 42,073 (4.10)
 Provision for losses on loans 4,489 30,826 (85.44)
 Net interest income after
 provision for losses on loans 35,860 11,247 218.84
 Non-interest income
 Loan servicing fees 3,636 2,255 61.24
 Other loan fees 1,975 1,959 0.82
 Gain (loss) on assets 5,871 (10,247)(a) (157.29)
 Other income 21,561 5,964 261.52
 Total non-interest income 33,043 (69) n/a
 Operating expenses 54,579 54,496 0.15
 Provision for losses on property
 acquired in settlement of loans 13,504 31,088 (56.56)
 Net income (loss) before income
 taxes 820 (74,406) (101.10)
 Provision for income taxes (4,455) (2,468) 80.51
 Net income (loss) $5,275 $(71,938) (107.33)
 Net income (loss) per share $0.55 $(7.69) ---
 Three Months Ended
 Sept. 30, Percent
 1991 1990 Change
 (in thousands, except
 per share amounts)
 Interest income $54,172 $70,229 (22.86)
 Interest expense 40,937 56,609 (27.68)
 Net interest income 13,235 13,620 (2.83)
 Provision for losses on loans 2,179 19,706 (88.94)
 Net interest income after
 provision for losses on loans 11,056 (6,086) (281.66)
 Non-interest income
 Loan servicing fees 1,219 868 40.44
 Other loan fees 703 554 26.90
 Gain (loss) on assets 6,088 (1,240) (590.97)
 Other income 14,211 2,492 470.26
 Total non-interest income 22,221 2,674 731.00
 Operating expenses 19,179 20,240 (5.24)
 Provision for losses on property
 acquired in settlement of loans 10,521 16,774 (37.28)
 Net income (loss) before income
 taxes 3,577 (40,426) (108.85)
 Provision for income taxes (4,455) 456 (1,076.97)
 Net income (loss) $8,032 $(40,882) (119.65)
 Net income (loss) per share $0.83 $(4.37) ---
 (a) Includes $10.9 million of provisions to facilitate disposal
 of assets classified as held for investment.
 -0- 11/5/91
 /CONTACT: Marvin W. Buckels, 303-623-5577 or Scott Crosby, 303-620-1955, of Western Capital Investment/
 (WECA) CO: Western Capital Investment Corp. ST: Colorado IN: FIN SU: ERN BB -- DV004 -- 1332 11/05/91 14:32 EST
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