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SUNWEST BANK ACQUIRES SECOND BANK IN WESTERN REGION

Tustin, Calif. (September 14, 2009) –Sunwest Bank has announced its acquisition of First State Bank of Flagstaff, Ariz.

This is the second bank the Tustin, California-headquartered Sunwest Bank has acquired this year, having acquired MetroPacific Bank of Irvine, Calif. at the end of June.

The FDIC accepted receivership of First State Bank from the Arizona Department of Financial Institutions, which closed First State Bank on Friday, September 4th. The FDIC subsequently entered into an agreement with Sunwest Bank, under which Sunwest assumed all of First State’s loans and non-brokered deposits. The deposits total approximately $88 million.

Due to the Labor Day holiday, the former First State Bank reopened Tuesday, September 8th as part of Sunwest Bank; which is one of the strongest and healthiest banks in the Western Region of the United States.

“Sunwest Bank is a strong, well-capitalized and highly liquid community bank,” notes Glenn Gray, President and Chief Executive Officer of Sunwest Bank. “Due to our strong capital base, liquidity, and talented staff, we are in a position to acquire failing banks at this time. We are looking towards additional community bank acquisition opportunities in the near future.”

At the close of Sunwest Bank’s most recent quarter, its net income grew 20 percent year-over-year, and its assets grew by 29 percent during the same period. Sunwest is actively lending, originating $56 million in new loan production in the first half of the year.

Sunwest Bank anticipates announcing its new total assets, including those acquired in this transaction, shortly after the closing of the third quarter.

“With realistic lending parameters throughout a time when banks were making irrational loans, our stability gives us additional acquisition opportunities in the Western Region,” explained Gray. “Sunwest has protected its depositors’ money, made smart loans, and is now reaping the benefits of that more savvy business conduct.”

“With a great number of larger banks in Northern Arizona, residents will be comforted by the fact that Sunwest is a true community bank, providing personal service and experienced loan officers that listen and understand businesses, complimented by a practical approach to lending,” Gray said. “We look forward to partnering with local businesses and our newest customers in Arizona to show them how community banking will help them achieve their goals.”

With nearly 40 years in business, Sunwest Bank is one of the strongest banks in the Western Region of the United States. The bank specializes in meeting the needs of small and mid-size businesses, is an industry-recognized leader in homeowner association management banking, and has specialties in healthcare and security and defense-related businesses. Sunwest Bank also has a home mortgage division, which it recently established after the sub-prime meltdown in order to provide home loans to well-qualified buyers. Sunwest Bank has branch offices throughout Orange County, California in Tustin, Anaheim, Newport Beach and Laguna Hills, as well as its new branches in Arizona.

Additional information can be found at www.sunwestbank.com.