1. Western Financial Group Q1 2009 Financial Results Conference Call
May 19, 2009

2. Forward-Looking Statements
This presentation contains certain forward-looking statements. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Western Financial Group Inc. (the “Company”) or its subsidiaries. Many of these statements can be identified by looking for words such as ‘‘believe’’, ‘‘expects’’, ‘‘expected’’, ‘‘will’’, ‘‘intends’’, ‘‘projects’’, ‘‘anticipates’’, ‘‘estimates’’, ‘‘continues’’ or similar words. The Company believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties only some of which are described herein. Many factors could cause the Company’s actual results, performance or achievements to, or future events or developments to, differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the risk factors, which are discussed in greater detail in the ‘‘Risk Factors’’ section of the prospectus. Any forward-looking statements are made as of the date hereof and the Company does not assume any obligation to publicly update or revise such statements to reflect new information, subsequent events or otherwise.
Non-GAAP Measures
Throughout this presentation, the Company may use the term ‘‘operating income’’ to refer to earnings, including investment income, before interest expense, taxes, depreciation and amortization of intangible and capital assets, excluding gain (loss) from the sale of assets and income (loss) from equity investments. The Company uses ‘‘operating income’’ to assist it in measuring corporate performance before the costs of capital and amortization of capital and intangible assets. Operating income is not a measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP. Therefore, this measure may not be comparable to similar measures presented by other issuers and investors are cautioned that it should not be used as an alternative to ‘‘net income’’ or other measures of financial performance calculated in accordance with GAAP.

3. Today’s Remarks Operational Progress in Q1 Strategic Events in Q1
Financial Update
Priorities for Q2

4. Operational Progress in Q1 2009

5. WFG Agency Network Same store customer count 1.2% YTDA
Same store sales 5.2%
Customer inertia continued from Q4 2008
March and April show more normal patterns and stronger customer count growth
Acquisition of Bakes Jarvie, Nanaimo, BC

6. Western Life Assurance
Creditor Life still growing
Employee benefits growth of $500,000 per month from HED
Reduced exposure to equities through sales
Bolt-on product for network is at 6,500+ policies. Target of 7,500 by Y/E 2009

7. Bank West
Negative portfolio growth in Q1. Summer funding season for RVs surprisingly strong
Agrifinancial adds additional seasonality to Bank’s business
10 bps specific provisions in Q1. Credit quality solid – NPLs at 1.01%
Commercial / farm / consumer pipeline growing

8. Strategic Events in Q1

9. Q1 Strategic Events Agency acquisition not likely until 2010
Soft market in commercial P & C persists
Loan portfolio acquisition opportunities abound. We are staying focused on our existing business
Operations focus in 2009
Flat pricing environ at Network – causing heavier priority on growth through acquisition. It’s a good time b/c targets will also be experiencing flat growth.
Increased focus on sales to current customers. Moving the PPCA number. Always a priority. Incr the # of products exposed to customers in back half of the year.
Early call of conv deb. Puts strength in balance sheet. Low level on company well below peer group. Additional incentive to get out and make acquisitions.
CFGs – learned re-affirmed openness to cross-selling. Challenged us to bring more value added products. Bring something new and different. Similar to what we are current launching with WFG Owners Endors. Critical illness. Not something competition is offering. CFGs showed this is exactly what customer wants from us. Don’t want blanket offerings. Want something specific that is of value to them.
These priorities will continue our focus to stay on plan.

10. Financial Update

11. Total Revenue

12. Earnings Per Share

13. Overall
2009
2008
Revenue ($)
31,381
30,102
Income from Equity Investments ($)
(253)
613
Net Income ($)
914
2,386
Earnings per share ($)
Basic
Diluted
0.00
0. 05
0. 04

14. The Network 2009 2008 Commission & other customer revenue ($) 17,522
16,489
Operating expenses ($)
13,932
12,639
Operating income ($)
3,590
3,850

15. Bank West
2009
2008
Interest & investment income ($)
5,537
4,942
Net interest & investment income ($)
1,883
1,546
Operating & provision expenses ($)
2,385
849
Operating income ($)
(502)
697

16. Western Life Assurance
2009
2008
Premium income ($)
8,469
7,172
Investment income ($)
(519)
832
Policyholder benefits ($)
3,633
3,705
Operating expenses ($)
3,377
3,123
Operating income ($)
940
1,176

17. Corporate & All Other 2009 2008 372 667 2,154 2,397 (1,782) (1,730)
Other revenues ($)
372
667
Operating expenses ($)
2,154
2,397
Operating loss ($)
(1,782)
(1,730)

18. Western Financial Group Historical Consolidated ROE

19. Western Financial Group Debt to Equity Ratio

20. Priorities for Q2

21. Q2 Priorities
Manage NPLs at Bank West
Agrifinancial integration

22. Questions

23. …because we live here.