Pacific & Western Credit Corp. today reported a drop in fourth quarter earnings and revenue.

The parent company of Pacific & Western Bank of Canada said net income for the quarter ended October 31 was $638,000, or 4¢ a share, compared to $1.5 million, or 11¢ a share, for the same period last year.

Total revenue, on a taxable equivalent basis, was $4.4 million for the quarter compared to $5.5 million a year ago, and for the year was $18.5 million
compared to $34.6 million a year ago.

Lending assets increased by 13% to $978 million from $923 million at the end of the previous quarter and from $864 million a year ago.

Total assets increased to $1.5 billion from $1.2 billion at the end of the previous quarter and from $1.3 billion a year ago.

For the year, net income was $2.2 million, or $14¢ a shar, compared to $17 millio, or $1.25 per share, a year ago. Net income in 2006 included a dilution gain from Discovery Air Inc. of $13.8 million. or $1.03 a share, after income taxes.