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Western Financial Group announces 2010 year end results
By ILSTV Staff on Mar 17, 2011 in Financial Reports
Western Financial Group saw its net income increase by 27 percent to $20.3 million in 2010 compared to 2009, with Earnings Per Share up by 9 percent. The High River, Alberta based company saw all business units showing positive results year over year, and Bank West reported its third profitable quarter in a row.
Commissions and other customer revenue was at $78.9 million in 2010, up from $63.3 million in 2009.
“Our results for the year reflect the growing strength of our business,” said Scott Tannas, President and CEO, in a statement. “We met every stated objective this year.”
2010 Key Objectives were as follows:
Network Same Store Sales | 4% – 7% growth
Network Operating Margin | 28%
Bank West Specific Provisions | 75 bps or less
Western Financial Insurance Loss Ratio | 55% or less
Western Life Loss Ratio | 45% or less
Overall 2010 Net Income | $18.5 to $20 million
The Network
The Network combined margin was 28%, retail same store sales was up 4.3%, and same store customer count grew by 1.5% for the year.
Bank West
The Bank’s loan book increased slightly over 2009, to $364.3 million. Our specific charges for loan losses were at 69 basis points, an improvement over 2009. The gross non-performing loan ratio also continues to improve standing now at 1.74%. While there is much to be done to improve profitability at Bank West, we are pleased to have a $3.8 million positive swing in operating income over this time last year.
Western Life
Western Life’s growth continued with premium income up by 29% year over year. Their loss ratio abated significantly in the quarter bringing their year to date ratio to 41%. Cross sales within the Western Financial Group continue to set new highs each quarter.
Western Financial Insurance
Western Financial Insurance’s premium revenue is up 13% with improved loss ratios year over year of 47% compared to 51% in 2009. Net new policy count is 5,075 for the year, bringing the total in-force policies to 70,127.
Strategic Partnership Portfolio
The Company’s partnerships in investment banking and insurance distribution each provided positive income, with all units achieving our 2010 expectations.
<table valign="top" border="0"> <tr> <td valign="bottom" colspan="2" align="left"> <b>Financial Highlights</b> </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td>
<td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> (unaudited) </td> <td>   </td> <td valign="bottom" colspan="10" align="right"> <b>Year</b><b>s</b><b> </b><b>ended </b><b>D</b><b>e</b><b>c</b><b>e</b><b>mber </b><b>3</b><b>1</b>
</td> </tr> <tr class="cnwUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> (in $ thousands except for per share amounts) </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> <b>2010</b> </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 2009 </td> <td>   </td> <td>   </td>
<td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> % Change </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> <b>The Network</b> </td> <td>   </td> <td valign="bottom" align="left">  
</td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> Commissions and other customer revenue </td> <td>
  </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>110,060</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">
$ </td> <td valign="bottom" align="right"> 89,144 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 23.5% </td>
</tr> <tr class="cnwUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating expenses </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> <b>         78,976</b> </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">       63,261 </td> <td>   </td> <td>  
</td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 24.8% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">  
</td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr class="cnwBoldUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating income </td> <td>
  </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>31,084</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">
$ </td> <td valign="bottom" align="right"> 25,883 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 20.1% </td>
</tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td>
<td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">  
</td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> <b>Bank West</b> </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
  </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td>
<td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> Interest and investment income </td> <td>   </td>
<td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>27,495</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left"> $ </td>
<td valign="bottom" align="right"> 25,514 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 7.8% </td> </tr> <tr class="cnwUnderlinedCell">
<td valign="bottom" colspan="2" align="left"> Interest expense - customer deposits </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> <b>         12,783</b> </td> <td>   </td>
<td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">       15,165 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">
  </td> <td valign="bottom" align="right"> -15.7% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> Net interest and investment income </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
<b>         14,712</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">       10,349 </td>
<td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 42.2% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> Provisions for credit losses </td>
<td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> <b>          2,166</b> </td> <td>   </td> <td>   </td>
<td valign="bottom" align="left">   </td> <td valign="bottom" align="right">         2,645 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
-18.1% </td> </tr> <tr class="cnwUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating expenses </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> <b>          9,258</b>
</td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">         8,249 </td> <td>   </td>
<td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 12.2% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td>
<td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">  
</td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr class="cnwBoldUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating income (loss)
</td> <td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>3,288</b> </td> <td>   </td> <td>  
</td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> (545) </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
703.3% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td>
<td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> <b>Western Life</b> </td> <td>   </td> <td valign="bottom" align="left">  
</td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> Premium and investment income </td> <td>
  </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>52,323</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">
$ </td> <td valign="bottom" align="right"> 40,691 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 28.6% </td>
</tr> <tr> <td valign="bottom" colspan="2" align="left"> Policyholder benefits </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> <b>         25,269</b> </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">       20,123 </td> <td>   </td> <td>  
</td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 25.6% </td> </tr> <tr class="cnwUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating expenses </td> <td>   </td> <td valign="bottom" align="left">  
</td> <td valign="bottom" align="right"> <b>         20,307</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">       15,565
</td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 30.5% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">  
</td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">
  </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td>
</tr> <tr class="cnwBoldUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating income </td> <td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>6,747</b> </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> 5,003 </td> <td>   </td> <td>   </td>
<td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 34.9% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">   </td>
<td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>  
</td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> <b>Western Financ</b><b>ial Insurance</b> </td>
<td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">  
</td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr>
<tr> <td valign="bottom" colspan="2" align="left"> Premium and investment income </td> <td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>38,099</b> </td> <td>  
</td> <td>   </td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> 9,077 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">
  </td> <td valign="bottom" align="right"> 319.7% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> Policyholder benefits </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
<b>         16,524</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">         3,951 </td>
<td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 318.3% </td> </tr> <tr class="cnwUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating expenses </td>
<td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> <b>         12</b><b>,9</b><b>93</b> </td> <td>   </td> <td>
  </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">         3,052 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">  
</td> <td valign="bottom" align="right"> 325.7% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">  
</td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>
  </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr class="cnwBoldUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating income<sup><b> (1</b></sup><sup><b>)</b></sup> </td>
<td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>8,582</b> </td> <td>   </td> <td>   </td>
<td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> 2,074 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 313.8%
</td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> <sup><b><i>(1)</i></b></sup><i> Operating Income for 2009 includ</i><i>es 3 months </i><i>only. </i> </td> <td>   </td> <td valign="bottom" align="left">   </td>
<td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>  
</td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>  
</td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
  </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">
<b>Corporate and </b><b>all other</b> </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>
  </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td>
<td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> Other revenues </td> <td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b> 1,476</b>
</td> <td>   </td> <td>   </td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> 1,650 </td> <td>   </td> <td>
  </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> -10.6% </td> </tr> <tr class="cnwUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating expenses </td> <td>   </td> <td valign="bottom" align="left">
  </td> <td valign="bottom" align="right"> <b>         12,453</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
        9,692 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 28.5% </td> </tr> <tr>
<td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>  
</td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
  </td> </tr> <tr class="cnwBoldUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> Operating loss </td> <td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>(10,977)</b>
</td> <td>   </td> <td>   </td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> (8,042) </td> <td>   </td> <td>
  </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 36.5% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">
  </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td>
<td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr class="cnwBoldUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> <b>Total ope</b><b>rating inco</b><b>me</b>
</td> <td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>38,724</b> </td> <td>   </td> <td>  
</td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right">      24,373 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td>
<td valign="bottom" align="right"> 58.9% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td>
<td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>  
</td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> <b>Net inc</b><b>ome</b> </td> <td>   </td>
<td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>20,280</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left"> $ </td>
<td valign="bottom" align="right">      15,961 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 27.1% </td> </tr>
<tr class="cnwUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> <b>Prefe</b><b>rred divide</b><b>nds</b> </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> <b>         (7,218)</b>
</td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">        (5,001) </td> <td>   </td>
<td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right"> 44.3% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td>
<td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">  
</td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr class="cnwBoldUnderlinedCell"> <td valign="bottom" colspan="2" align="left"> <b>Earni</b><b>ngs available to </b><b>common shareholders</b>
</td> <td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b> 13,062</b> </td> <td>   </td> <td>  
</td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> 10,960 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">
19.2% </td> </tr> <tr> <td valign="bottom" colspan="2" align="left">   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>
  </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td>
<td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" colspan="2" align="left"> <b>Ear</b><b>nings per share</b> </td> <td>   </td> <td valign="bottom" align="left">
  </td> <td valign="bottom" align="right">   </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td>
<td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" align="left">   </td>
<td valign="bottom" align="left"> - basic ($) </td> <td>   </td> <td valign="bottom" align="left"> <b>$</b> </td> <td valign="bottom" align="right"> <b>0.24</b> </td> <td>   </td>
<td>   </td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> 0.22 </td> <td>   </td> <td>   </td> <td valign="bottom" align="left">  
</td> <td valign="bottom" align="right">   </td> </tr> <tr> <td valign="bottom" align="left">   </td> <td valign="bottom" align="left"> - diluted ($) </td> <td>   </td> <td valign="bottom" align="left"> <b>$</b>
</td> <td valign="bottom" align="right"> <b>0.24</b> </td> <td>   </td> <td>   </td> <td valign="bottom" align="left"> $ </td> <td valign="bottom" align="right"> 0.22 </td>
<td>   </td> <td>   </td> <td valign="bottom" align="left">   </td> <td valign="bottom" align="right">   </td> </tr> </table> <p align="justify"> </p>
<p> </p> <p> <br/> </p> <p> </p>
| Financial Highlights | ||||||||||||
| (unaudited) | Years ended December 31 | |||||||||||
| (in $ thousands except for per share amounts) | 2010 | 2009 | % Change | |||||||||
| The Network | ||||||||||||
| Commissions and other customer revenue | $ | 110,060 | $ | 89,144 | 23.5% | |||||||
| Operating expenses | 78,976 | 63,261 | 24.8% | |||||||||
| Operating income | $ | 31,084 | $ | 25,883 | 20.1% | |||||||
| Bank West | ||||||||||||
| Interest and investment income | $ | 27,495 | $ | 25,514 | 7.8% | |||||||
| Interest expense – customer deposits | 12,783 | 15,165 | -15.7% | |||||||||
| Net interest and investment income | 14,712 | 10,349 | 42.2% | |||||||||
| Provisions for credit losses | 2,166 | 2,645 | -18.1% | |||||||||
| Operating expenses | 9,258 | 8,249 | 12.2% | |||||||||
| Operating income (loss) | $ | 3,288 | $ | (545) | 703.3% | |||||||
| Western Life | ||||||||||||
| Premium and investment income | $ | 52,323 | $ | 40,691 | 28.6% | |||||||
| Policyholder benefits | 25,269 | 20,123 | 25.6% | |||||||||
| Operating expenses | 20,307 | 15,565 | 30.5% | |||||||||
| Operating income | $ | 6,747 | $ | 5,003 | 34.9% | |||||||
| Western Financial Insurance | ||||||||||||
| Premium and investment income | $ | 38,099 | $ | 9,077 | 319.7% | |||||||
| Policyholder benefits | 16,524 | 3,951 | 318.3% | |||||||||
| Operating expenses | 12,993 | 3,052 | 325.7% | |||||||||
| Operating income (1) | $ | 8,582 | $ | 2,074 | 313.8% | |||||||
| (1) Operating Income for 2009 includes 3 months only. | ||||||||||||
| Corporate and all other | ||||||||||||
| Other revenues | $ | 1,476 | $ | 1,650 | -10.6% | |||||||
| Operating expenses | 12,453 | 9,692 | 28.5% | |||||||||
| Operating loss | $ | (10,977) | $ | (8,042) | 36.5% | |||||||
| Total operating income | $ | 38,724 | $ | 24,373 | 58.9% | |||||||
| Net income | $ | 20,280 | $ | 15,961 | 27.1% | |||||||
| Preferred dividends | (7,218) | (5,001) | 44.3% | |||||||||
| Earnings available to common shareholders | $ | 13,062 | $ | 10,960 | 19.2% | |||||||
| Earnings per share | ||||||||||||
| - basic ($) | $ | 0.24 | $ | 0.22 | ||||||||
| - diluted ($) | $ | 0.24 | $ | 0.22 | ||||||||
