Canadian Western Bank today announced record earnings of $21.2 million, or 66¢ per diluted share, for the fourth quarter ended Oct. 31, 2006.

Fiscal 2006 net income increased 32% over the previous year to a record $72 million, or $2.26 per diluted share.

CWB said it achieved 6% loan growth in the quarter contributing to an exceptional annual growth rate of 26%.

Fourth quarter revenues increased 22% over the same period last year while annual revenues were up 19% to $221.8 million. The bank’s efficiency ratio reached 45% in the quarter and 46% for the year.

CWB said Q4 net income also reflects a $2 million (6¢ per diluted share) tax benefit related to the resolution of a tax filing position taken in a prior year.

The bank’s board of directors today approved a quarterly dividend of 16¢ per common share, payable on Jan. 4, 2007 to shareholders of record on Dec. 19, 2006. This dividend represents a 14% increase over the previous quarterly dividend and is 33% higher than the quarterly dividend declared one year ago.

The board also declared a stock dividend of one common share per common share held, payable on Jan. 18, 2007 to shareholders of record on Jan. 11, 2007, effectively achieving a two-for-one split of the CWB’s common shares.

“The bank’s strong financial performance was apparent at the onset of 2006 and results exceeded our expectations throughout the year,” said Larry Pollock, president & CEO.

Banking and trust operations generated its sixth consecutive quarter of record net income while Canadian Direct Insurance contributed a solid $2 million to fourth quarter results.