Pacific & Western Credit Corp. announced on Thursday net earnings of $2 million for the second quarter and $3.7 million for the six months ended April 30.

Net earnings for the same quarter last year were $1.7 million while net earnings for the first six months of 2005 were $3.5 million.

Total revenue for the second quarter was $6.1 million compared to $5.1 million a year ago and on a year-to-date basis was $11.8 million compared to $10.3 million a year ago. Non-interest expenses for the quarter were $3.1 million compared to $2.7 million for the same period a year ago and on a year-to-date basis were $6.4 million compared to $4.9 million for the same period a year ago.

As of April 30, total assets were $1.2 billion, virtually unchanged from the end of the previous quarter compared to $1.1 billion a year ago.

Lending assets continued to show steady growth, increasing to $797 million at the end of the quarter from $767 million at the end of the previous quarter and from $679 million a year ago. Credit quality remains strong with gross impaired loans at the end of the quarter totalling $380,000 or 0.03% of total assets, unchanged from the end of the previous quarter and decreasing from $1.4 million or 0.13% of total assets a year ago.

Other income for the quarter was $1.3 million compared to $1.1 million a year ago and on a year-to-date basis was $2.1 million compared to $2 million a year ago. Other income for the second quarter of 2006 consisted of a dilution gain of $1.3 million resulting from the issue of shares by Discovery Air Inc. (DA), a company in which the corporation held a 55% interest prior to the issue of shares.

Subsequent to the issue of these shares, the corporation held a 43% interest in DA and, as a result, the accounting for the investment in DA is on an equity basis and no longer consolidated in the balance sheet. The operating results of DA are consolidated in the corporation’s statement of earnings to the date of the issue of the DA shares and recorded as equity earnings thereafter.