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Western Financial Group reports first quarter 2010 results

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  Published in Business and Finance on Friday, May 14th 2010 at 6:50 GMT by Market Wire
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 Financial Highlights Three Months Ended March 31 (unaudited) (in $ thousands except for per share amounts) 2010 2009 % Change ------------------------------------------------------------------------- The Network Commissions and other customer revenue $ 22,420 $ 17,522 28.0% Operating expenses 18,460 13,932 32.5% ------------------------------------------------------------------------- Operating income 3,960 3,590 10.3% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Bank West Interest and investment income $ 6,610 $ 5,537 19.4% Interest expense - customer deposits 2,977 3,654 -18.5% ------------------------------------------------------------------------- Net interest and investment income 3,633 1,883 92.9% Provisions for credit losses 176 289 -39.1% Operating expenses 2,317 2,096 10.6% ------------------------------------------------------------------------- Operating (loss) income $ 1,140 $ (502) 327.1% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Western Life Premium and investment income $ 10,804 $ 7,950 35.9% Policyholder benefits 5,727 3,633 57.6% Operating expenses 3,878 3,377 14.8% ------------------------------------------------------------------------- Operating income $ 1,199 $ 940 27.6% ------------------------------------------------------------------------- ------------------------------------------------------------------------- SecuriCan Premium and investment income 9,032 - - Policyholder benefits 3,943 - - Operating expenses 3,050 - - ------------------------------------------------------------------------- Operating income 2,039 $ - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Corporate and all other Other revenues 413 $ 372 11.1% Operating expenses 2,474 2,154 14.9% ------------------------------------------------------------------------- Operating loss $ (2,061) $ (1,782) 15.7% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total operating income $ 6,277 $ 2,246 179.5% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income 2,269 $ 914 148.2% Preferred dividends (1,832) (1,003) 82.7% ------------------------------------------------------------------------- Earnings (loss) available to common shareholders $ 437 $ (89) 590.6% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per share - basic ($) 0.01 0.00 - diluted ($) 0.01 0.00 ----------------------------------------------- 2010 KEY OBJECTIVES ----------------------------------------------- Network Same Store Sales 4%-7% growth Network Operating Margin 28% Bank West Specific Provisions 75 bps or less SecuriCan Loss Ratio 55% or less Western Life Loss Ratio 45% or less Overall 2010 Net Income $18.5 to $20 million ----------------------------------------------- 

 CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except for per share amounts) As at As at March 31 December 31 Note 2010 2009 ------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 62,419 $ 58,463 Securities - held-for-trading 62,742 61,373 Securities - available-for-sale 3 41,068 30,901 Mortgages, loans and leases, net of allowance for credit losses 4 356,177 355,621 Interest rate swaps 216 90 Equity investments 11,693 11,591 Capital assets 21,752 21,630 Goodwill 156,205 148,205 Intangible assets 65,940 66,719 Accounts receivable 48,145 51,114 Prepaid expenses 7,405 7,231 Future income taxes 1,325 1,102 Other assets 2,417 2,286 ------------------------------------------------------------------------- $ 837,504 $ 816,326 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES Customer deposits $ 323,160 $ 317,953 Actuarial liabilities 40,445 40,032 Provision for unpaid and unreported claims 15,262 13,919 Debt 78,712 79,771 Due to policyholders 19,632 20,392 Accounts payable and accrued liabilities 100,140 82,700 Income taxes payable 667 1,809 Future income taxes 12,993 13,199 ------------------------------------------------------------------------- Total liabilities 591,011 569,775 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital 206,905 206,905 Other paid in capital 268 268 Contributed surplus 2,068 2,041 ------------------------------------------------------------------------- 209,241 209,214 Accumulated other comprehensive loss 5 (123) (129) Retained earnings 37,375 37,466 ------------------------------------------------------------------------- Total shareholders' equity 246,493 246,551 ------------------------------------------------------------------------- $ 837,504 $ 816,326 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31 (unaudited) (in thousands, except for per share amounts) 2010 2009 ------------------------------------------------------------------------- REVENUE Commission and other customer income $ 23,371 $ 18,441 Premium income 18,020 8,447 Interest income on customer loans 6,174 4,922 Investment income Change in fair value of held-for-trading securities 1,032 (131) Realized gain (loss) on sales of available- for-sale assets 36 (728) Realized gain on sales of held-for-trading securities 39 6 Other net investment income 607 424 ------------------------------------------------------------------------- 49,279 31,381 EXPENSES Operating expenses 30,179 21,559 Policyholder benefits 9,670 3,633 Interest expense - customer deposits 2,977 3,654 Provision for credit losses 176 289 ------------------------------------------------------------------------- Income before the following: 6,277 2,246 Income (loss) from equity investments 143 (253) Interest and financing costs on debt (1,410) (562) Amortization of capital assets (800) (412) Amortization of intangible assets (778) (691) ------------------------------------------------------------------------- Income before income taxes 3,432 328 Income taxes (1,163) 586 ------------------------------------------------------------------------- NET INCOME FOR THE PERIOD $ 2,269 $ 914 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Preferred share dividends $ (1,832) $ (1,003) ------------------------------------------------------------------------- Net income (loss) available to common shareholders $ 437 $ (89) Average number of common shares 49,367 49,333 Average number of diluted common shares 49,419 49,333 Earnings per common share Basic $ 0.01 $ 0.00 ------------------------------------------------------------------------- Diluted $ 0.01 $ 0.00