Sears National Bank

Tempe, AZ · Cert 21643

FDIC

Q1 2004

$86.3MAssets

n/aLoans

$504KDeposits

$70.9MEquity

Deposit mix

Executive Summary

Return on Assets (YTD, annualized)

0.40%-1,500 bps YoY

Net Interest Margin (YTD, annualized)

0.90%-69 bps YoY

Efficiency Ratio (YTD, annualized)

23.01%-3,947 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q2 2002	Q3 2002	Q4 2002	Q1 2003	Q2 2003	Q3 2003	Q4 2003	Q1 2004	YoY Δ	Trend
Earnings
Return on Assets	8.02%	11.45%	15.28%	15.41%	15.97%	16.58%	25.15%	0.40%	-1,500 bps
Return on Equity	68.13%	91.24%	117.52%	118.91%	120.71%	114.20%	127.82%	0.49%	-11,842 bps
Net Interest Margin	2.46%	2.39%	2.17%	1.59%	1.44%	1.24%	1.55%	0.90%	-69 bps
Efficiency Ratio	71.51%	64.08%	55.73%	62.48%	62.27%	62.18%	51.57%	23.01%	-3,947 bps
Non-Interest Burden	-10.78%	-15.64%	-20.95%	-22.90%	-27.10%	-27.04%	-53.21%	0.21%	+2,311 bps
Growth
Asset Growth (YoY)	31.26%	18.43%	25.91%	19.31%	2.34%	18.22%	-66.76%	-69.23%	-8,854 bps
Loan Growth (YoY)	n/a	n/a	n/a	n/a	n/a	n/a	n/a	-100.00%	n/a	n/a
Deposit Growth (YoY)	0.00%	0.00%	0.00%	-20.00%	-20.00%	-20.00%	-99.50%	-99.37%	-7,937 bps
Asset Quality
Nonperforming Loans / Loans	n/a	n/a	n/a	0.00%	0.00%	0.00%	n/a	n/a	n/a
Net Charge-Offs / Loans	n/a	n/a	n/a	0.00%	0.00%	0.00%	0.00%	n/a	n/a
Allowance / Loans	n/a	n/a	n/a	0.00%	0.00%	0.00%	n/a	n/a	n/a
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	171.43%	328%	196.35%	138.69%	119.17%	151.62%	409%	408%	+26,973 bps
Equity / Assets	10.94%	15.08%	14.59%	11.45%	13.81%	18.60%	82.13%	82.17%	+7,072 bps
Liquidity & Funding
Loans / Deposits	0.00%	0.00%	0.00%	100.00%	100.00%	100.00%	0.00%	0.00%	-10,000 bps
Liquid Assets / Assets	40.26%	47.38%	43.78%	5.39%	7.87%	2.22%	0.42%	0.35%	-503 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a