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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 18, 2000
WESTCORP INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA
(State or other jurisdiction of incorporation)
33-13846 51-0308535
(Commission File No.) (IRS Employer Identification No.)
23 PASTEUR RD.
IRVINE, CA 92718
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (949) 727-1002
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ITEM 5. OTHER EVENTS
The financial schedule included in this filing is a table presenting
pro forma portfolio-basis statements of income. This statement present the
company's results under the assumption that all its securitization transactions
are treated as secured financings rather than sales. The company believes that
such a presentation is an important performance measure of its operations. If
treated as secured financings, no gain on sale or subsequent contractual
servicing and retained interest income is recognized. Instead, the earnings of
the contracts in the trusts and related financing costs are reflected over the
life of the underlying pool of contracts. The company refers to these pro forma
results as "portfolio basis" statements of income since the contracts would have
remained in the contract portfolio on balance sheet if accounted for as secured
financings. The company monitors the periodic portfolio basis earnings of its
serviced contract portfolio and believes that these portfolio basis statements
assist in better understanding its business.
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WESTCORP AND SUBSIDIARIES
PORTFOLIO BASIS STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- -------------------
2000 1999 2000 1999
-------- --------- -------- --------
(Dollars in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Interest income $244,633 $194,441 $464,967 $377,514
Interest expense 132,818 100,566 245,881 195,764
-------- --------- -------- --------
Net interest income 111,815 93,875 219,086 181,750
Provision for credit losses 27,573 22,301 60,472 54,642
-------- --------- -------- --------
Net interest income after provision
for credit losses 84,242 71,574 158,614 127,108
Noninterest income 16,678 16,062 39,742 31,583
Noninterest expenses 54,306 56,416 112,932 115,196
-------- --------- -------- --------
Income before income tax 46,614 31,220 85,424 43,495
Income tax (1) 18,581 13,217 34,810 18,408
-------- --------- -------- --------
Income before minority interest 28,033 18,003 50,614 25,087
Minority interest in earnings 4,222 2,141 6,907 3,013
-------- --------- -------- --------
Income before extraordinary item 23,811 15,862 43,707 22,074
Extraordinary gain 62 639 220 1,618
-------- --------- -------- --------
Portfolio basis net income $ 23,873 $ 16,501 $ 43,927 $ 23,692
======== ========= ======== ========
Portfolio basis net income
per common share - diluted $ 0.87 $ 0.62 $ 1.62 $ 0.89
======== ========= ======== ========
</TABLE>
(1) Such tax effect is based upon the Company's tax rate for the respective
period.
