Western Financial Group (WFG) today announced its operating and financial results for the three months ended March 31, 2006.

For the quarter, revenue increased 37.4% to $16.7 million from $12.2 million compared to the same period in 2005 and net income increased 8%. Earnings per share amounted to $0.04 per share, the same as in the first quarter of 2005.

“We are off to a good start toward achieving our financial and operational objectives for the year,” said Scott Tannas, president and CEO, in a release.

“We are very pleased with Bank West’s loan growth and overall performance in this their first profitable quarter. This milestone is the culmination of three years of hard work. When we started Bank West from scratch in 2003, we were pioneers with no recent examples of how to build a Canadian chartered bank. Today we have a growing, vibrant institution that has a bright future.”

“I am also pleased with Western Life’s continuing strong performance in both sales and profitability, with a portion of this being driven by early cross selling initiatives from WFG Agency Network.”

WFG Agency Network posted increases in same store customer count of 3% and same store revenue of 3.7%, which was slightly less than planned given flat premium price growth in the first quarter. Products per customer account increased to 2.15 largely due to the introduction of Western Life to customers through the $1,000 life program.

Bank West operating income grew from an operating loss of $289,000 in the first quarter of 2005 to post its first quarter of operating profit of $34,000 in the same period in 2006. The bank is ahead of its plan for the year. Net interest and investment income showed a substantial increase of 129.3% over the same period last year. Loan growth continues to accelerate.

Premium and investment income at Western Life were up a substantial 225% over the first quarter of 2005, while operating income was strong but slightly down for the same period, which was expected. Western Life is on plan for the quarter.

WFG’s investment business, Jennings Capital, again had a strong first quarter, exceeding their expected contribution to the WFG’s investment income.