Stearns Bank Arizona, National Association

Scottsdale, AZ · Cert 34431

FDIC

Q3 2007

$185.8MAssets

$158.7MLoans

$157.3MDeposits

$27.8MEquity

Loan mix

Deposit mix

NIM

Earnings: ROA of 0.90%, down 231 bps year over year; NIM at 6.13%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 2.05%.
Funding: loans stand at 100.93% of deposits as of Q3 2007.

Return on Assets (quarter, annualized)

0.90%-231 bps YoY

Net Interest Margin (quarter, annualized)

6.13%-75 bps YoY

Efficiency Ratio (quarter, annualized)

46.87%+1,540 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q3 2006	Q4 2006	Q1 2007	Q2 2007	Q3 2007	YoY Δ	Trend
Earnings
Return on Assets	3.21%	2.60%	5.02%	4.26%	0.90%	-231 bps
Return on Equity	29.12%	22.34%	40.94%	30.98%	6.07%	-2,306 bps
Net Interest Margin	6.88%	6.64%	7.33%	7.28%	6.13%	-75 bps
Efficiency Ratio	31.48%	37.50%	29.45%	34.33%	46.87%	+1,540 bps
Non-Interest Burden	1.51%	1.93%	0.69%	1.87%	2.36%	+85 bps
Growth
Asset Growth (YoY)	16.15%	12.11%	-1.95%	-12.64%	-12.89%	-2,904 bps
Loan Growth (YoY)	37.64%	18.60%	2.81%	-4.11%	-17.77%	-5,541 bps
Deposit Growth (YoY)	13.77%	9.62%	-5.94%	-17.02%	-16.38%	-3,015 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	-0.02%	2.72%	0.02%	-0.01%	2.05%	+207 bps
Allowance / Loans	4.69%	4.89%	5.40%	5.96%	6.86%	+217 bps
Allowance Coverage of NPLs	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
Total Risk-Based Capital	12.68%	13.81%	14.98%	16.66%	17.42%	+474 bps
Equity / Assets	11.57%	11.71%	12.81%	14.82%	14.96%	+339 bps
Liquidity & Funding
Loans / Deposits	102.63%	95.74%	96.72%	105.86%	100.93%	-170 bps
Liquid Assets / Assets	0.01%	0.01%	0.01%	0.01%	0.01%	0 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a