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TabC

Exhibit 39
1148
UWBK 8-K 11/16/2010
Section 1: 8-K (FORM 8-K)
0-21231
UNlTEDSTATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 16, 2010
United Western Bancorp, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Colorado
(State or Other Jurisdiction ofIncorporation)
84-1233716
(Commission File Number)
(IRS Employer Identification No.)
700 Seventeenth Street, Suite 2100
Denver, ColoradO
(Address of Principal Executive Offices)
(303) 595-9898
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
80202
(Zip Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation ofthe registrant under any of the following provisions (see General
Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule under the Exchange Act (17 CFR 240.14d-2(b
o Pre-commencement communications pursuant to Rule 13e4( c) under the Exchange Act (17 CFR 240.13e4(c
1149
Item3.0l
Notice of DeIistIng or Fallnre to Satisfy a Continued LlstlDg Rule or Standard; Transfer of Listing.
On November 16, 2010, Western Bancorp, Inc. (the "Company") a letter The NASDAQ Stock Market (the ''NASDAQ Letter") stating that the Company is
not in compliance. with NASDAQ LIsting Rule 5250(c)(1 ).because the Company did not timely file Its Quarterly Report on Form 1O-Q for the quarter ended September 30, 2010 (the "Form
10000') with the Securities and Exchange Commission ("SEC'). The notification of noncompliance has no immediate effect on the listing or trading of the Company's common stock on
the NASDAQ Global Market.
AS' previously reported by the Company in its Form12b-25 filed with the SEC on November 10, 2010, filing of the Form 1O-Q has been delayed primarily due to the timing ofli
regularly scheduled examinstion of the subsidiary, Un!ted Western Bank (t!'e ':Bank':), by primary regulators, the Office of Thrift Supervision (the "OTS")
and the Federal Deposit Insurance CorporstJon(theFDIC"). The Company continues to be engaged ID diSCUSSIOns WIth the OTS and the FDIC regarding the Bank's consistently
applied methodology for.determining other-than-temporary impairment ("0111") on non-agency, mortgage-backed securities at September 30, 2010. As a result of these ongoing
discussions with the OTS and the FDIC, the Company is still its statements and related disclosures for the quarter ended September 3b, .
2010. The Company intends to file its Form IO-Q as soon as prscticable once resolution IS reached WIth the OTS and the FDIC.
The Company has 60 calendar days from the date of the Letter to submit a to regai.n compliance, and if NASDAQ accepts the Company's plan, it can grant an
exception of up to 180 calendar days from the Form 10-Q's due date, or.until May 16,2011, to regalD compbance.
The Company issued a press release on November 22, 20 I 0, disclosing its receipt of the NASDAQ Letter. A copy of the press release is attached hereto as Exhibit 99.1.
Item9.0l
FiDancial statementsand EshIblts
(d) The following' exhibits are being furnished herewith.
ExbIbItNo.
99.1
Description .
Press release of United Western Bancorp, Inc., dated November 22,2010, entitled "United Western Bancorp, Inc. Receives NASDAQ Notice"
1150
SIGNATURE .
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has cluly caused this report to be sigoed on its behalf by the undersigned hereunto duly
authorized. .
Dated: November 22, 2010
UNITED WESTERN BANCORP, INC.
By: lsi Michael J. McCloskey
Name: Michael J. McCloskey
Title: Executive Vice President and Chief Operating Officer
1151
EXHIBIT INDEX
Exhibit
Number
99.1
Description
Press release of United Western Bancorp, Inc., dated 22, 2010, entitled "United Western Bancorp, Inc. Receives NASDAQ Notice"
@ackToTop)
Section 2: EX-99.1 (pRESS RELEASE)


FOR IMMEDIATE RELEASE
United Westera BaDcorp, Ine. ReceIves NASDAQ Notice
Exhlblt9U
For more InformatloD, please CODtact:
GuyA. GIbSOD
CbalrmaD oftbe Board
(720) 95(j-6515
ggibsoD@DwbaDk.eom
UWBK
........
'-I'ST E C
Denver _ November 22,2010. United Western Bancorp,lnc. (NASDAQ: UWBK) (the "Company''), a Denver-based holding company whose principal subsidiary, United Western
BaJJk (the is a community bank focused on Colorado's selected communities, today announced that on November 16,2010, it received a
letter from The NASDAQ Stock Market stating that the Company IS not 10 comphance With NASDAQ Llstmg Rule S2SO(c}(I} because the Company did not timely file its Quarterly
Report on Form iO-Q for the quarter ended September 30,2010 (the "Form IO-Q") with the Securities and Exchange Commission. The notification of noncompliance has no immediate
effect on the listing or trading of the Company's common stock on the NASDAQ Global Market.
As previously reported by the Company on November 10, 2010, filing of the Form 10-Q has been delayed primarily due to the timing ofa regularly scheduled examination of the Bank by ,
its primary regulators, the Office of Thrift Supervision (the "OTS") and the Federal Deposit Corporation (the "FDIC"). The Company contin,ues to be engaged in discussions
with the OTS and the FDIC regarding the Bank's for determmlDg other-than-temporary impairment ("OTTI") on non-agency, mortgage-backed
securities at September 30, 2010. As a result ofthese ongolDg diSCUSSions With the OTS and the FDIC, the Company is still finalizing its unaudited consolidated fmancial statements and
related disclosures for the quarter ended September 30, 2010. The Company intends to file its Form 1 as soon as practicable once resolution is reached with the OTS and the FDIC.
The Company has 60 calendar days from the date oflhe Letter to submit a to compliance, and if NASDAQ accepts the Company's plan, it can grant an exception
of up to 180 calendar days from the Form 10-Q's due date, or unlll May 16,2011, to regam comphance.
About United Westera Bucorp, Inc.
Denver-based United Western Bancorp, Inc. is focused developi?g its .banking netw".rk through its United Western Bank, by strategically positioning
branches across Colorado's Front Range market and certalD m.ountam .c".mm".nllles. In addillon banklDg, Umted Western Baneorp, Inc. and its subsidiaries offer
deposit services to processing and trust customers and custodial, admlDlstrallve, and escrow services through Its wholly owned subsidiary, United Western Trust Company, For more
information, please visit our web site at www.uwbancom.com. '
Forwal'd-Looklng StatemeDts ' ' ,
Certain statemenla contained in this press release may be to be forward:looking under laws, and the Company intenda that such forward-looking statemenla
be subject to the safe harbor created thereby. Such forward-looklDg statemenla IDclude, but are not hmlted to, statemenla regarding the Company's ability to file the Form 1O-Q. The
Company cautions that these statemenla are qualified iml!",rtant factors that could cause to differ I1II!teri!llly from those reflected by the forward-looking statemenla
contained herein. Such factors include (a) the Company s ability to resolve the methodology difference ID the determmation ofO'ITI with the OTS and FDIC and (b) other risks detailed
in the Company's Annual Report Oil, Form 100K for the fiscal year ended December 31, 2009, Quarterly Report on Form 1O-Q for the fiscal quarter ended Iune 30, 2010, and subsequent
filings with the Securities and Exchange Commission.
(Back To ToP)
1152
TabC
Exhibit 40
1153
1154
Discussion Topics
Meeting Objectives
Status of Capital Fonnation Activities
Transaction Overview
United Western Value Proposition
United Western Business Mix
Benefits From Capital Formation
United Western Bank Forecast of Operations 201 0;'2012 with $200 million capital raise
. Assumptions
Financial Model with $200 million Capital Raise
Change from September Presentation
Legent Clearing Acquisition
Extending Our Processing Franchise and Controlling New Deposits with Legent Clearing
Why Legent Clearing?
Legent Clearing - Summary Statement of Operations
Legent Clearing - Customer Deposit Costs
Conditions to Closing of Capital Raise
Revisions to the Bank C&D Required for Closing
Revisions to the Company C&D Required for Closing
Other Matters Related to the Order
Status of FDIC Brokered Deposit Determination
Questions and Answers


United Western Bancorp,Inc. (the "Company" or "UWBI"). United Western Bank (the "Bank")


M
O' b-
. ieettng
-'" Secure a consensus to accomplish a private-sector
recapitalization of the Bank at no cost to the FDIC
-'" Achieve coordination of action among regulatory agencies
and the CompanylBank
-c} Review the proposed reduction in the risk profile of the Bank
and the improvement in the Bank's prospective regulatory
capital ratios
-c} Review justification for Legent Clearing acquisition and
safety and soundness of Legent Clearing operations


S f
"C" 1 F' "A" ..
. . "tatus 0 ..... .aplta .... .ormatton' ctIvlues
-- Anchor Investors commit to $103 million of $200 million to $205 million total
-- The Company executed Investment Agreement October 28, 2010 raise
Lead Anchor Investors - Oak Hill Capital Partners and Lovell Minnick Equity Partners
Each commits to a purchase of $47 million, dependent upon the other. Giving effect to
exercise of warrants, the Lead Anchor Investors will each own 23.1 % of the Company
Legent Group, LLC parent of Legent Clearing LLC and Ric Duques constitute Duques
Anchor Investor
Legent Group will purchase $3 million and Ric Duques will purchase $6 million and will
own, directly and indirectly, approximately 5% of the Company
-- Private placelnent 'of remaining $97 million is ongoing
Meetings held through November 12, 2010 with 13 firms, all but one have indicated
further interest, over 20 have executed non-disclosure agreements and are reviewing
information in data room.
Additional contacts and potential meetings are in process with 53 firms
Anticipate completion of remaining private placement by end of November
-- Closing is scheduled to occur by December 31, 2010 and is dependent upon a
of conditions
Tran.saction Overview


$200nun Capital Raise to :oe-Risk Balance Sheet and Support Growth
Transaction Rationale
-- Bolster regulatory capital ratios in excess of "well capitalized" thresholds
-- Allows for de-risking of Bank balance sheet
Securities portfolio issues have been identified and will be addressed at closing
-- Pay-off Holding Company debt ata 35% discount ($ 16.3mm face value)
-- Provides capital to grow balance sheet and take advantage of significant growth opportunities
.' Securities clearing, including acquisition of Legent Clearing
Community banking (organic and acquisition)
SBA lending
Ticl' I Co,.e Capital
Total RBC
8.1%
9.70/0
---
---
3QI0A 3QI0PF
I J J I ~
BANCORP
Benefits From Capital Formation
-<} At closing, the COlnpany will contribute $83 Inillion to the Bank
-<} Bank will operate above 8% core capital ratio and' 12% total risked based capital ratio
~ At closing, the Company will purchase 100% of the ---$92 Inillion in direct credit substitute
mortgage backed securities fi.-om the Bank
-<} The Bank's balance sheet will be substantially "de-risked;" the risk of loss from remaining
assets is adequately reserved and manageable
-<} Bank will be well capitalized and the brokered deposit issue will becolne moot
{>- Enhances Bank's ability to grow community bank deposits from existing eight branch
. network - forecast to grow to -$644 million by year end 2013
-<} Bank "vill reenter cOlnmunity lending in Colorado providing fmancing to local businesses
-<} Bank will expand emphasis on SBA PrefelTed Lender Division to provide financing to small
businesses across America
{>- Bank wi111naintain substantialliquidity prospectively through guaranteed portions ofSBA
loans, GNMA securities and cash
United Western Value Proposition
Low Cost Deposit Gathering
Processing & Trust Deposits
.q. Client deposits from uninvested cash
balances and liquidity float
Low cost and relatively rate-insensitive
Contractual and "sticky"
Highly scalable platfonn
Legent Clearing Deposits
(pending Acquisition)
.q. Client deposits and float from clearing
operations



Post acquisition, Bank will control strong
source oflow-cost deposits
Bank affiliation is competitive advantage
for Legent
deposits available immediately,
with significant growth expected thereafter
. Community Bank Deposits
.q. Business focused Community Bank

Presence in markets with strong economic
growth and favorable demographics
. "First'mover" advantage being the first
local bank. to be recapitalized

Lowcr Risk Asset Gcneration
Community Bank Lending
.q. Well-positioned to capture market share post-
recapitalization,
Focus on increasing C&I lending
Experienced team led by long-tenured in-market
bankers .
SBA Lending Franchise
.q. Leading national "SBA preterred" lender
Veteran team with 13-year track record
.q. Attractive risk-adjusted yields on loans, high
return on equity
Legent Related Opportunities
.q. Uniquely positioned to make margin loans
through Legenf s correspondents
.q. Commercial lending opportunities to
correspondent broker-dealers
Lower Risk Securities Portfolio
Conservative ALCO policies
.q. Investment in lower risk Agency securities
.q. Conservatively manage liquidity position
1 ... }
j I


lJ\V Value Proposition
.q. Unique low-cost deposit
gathering coupled with
attractive lower risk asset
__ ____ \
:.q. Robust net interest margin I
I with fee income I

Relatively rate-insensitive
liabilities
Expected to be profitable in
current rate environment
W for future
interest rate increase
NIM to exceed 4.5% under
current rate forecast

l __ !b2!.e In,!l!.slrt !.v!r.!t.e ___ }
Scalable nature of model
results in consistent
profitability improvement
ROE's approaching 20% in
2012
t
rOlsc;:uto capItalIZe on
opportunities today - first
mover advantage
Well positioned to compete


United Western Business Mix
Shift in Busmess Mix and Balance Sheet Growth Results in N1M and ROE Expansion
2010E Pro Forlila
Community
Bank Deposits .
23%
Average: 52.1bn
Processing and
Trust Deposits
54%
Community
Bank Loans
12% ..1...-........ 56%
7%
SBA
Loans
17%
2013 Pro Fonna
Processing and
Trust Deposits
35%
.. _ Community
Bank Deposits
21%
Average: $2.9bn
r--- Margin Lending
10%
Pro Forma 2013E.NIM: 4.6% 1
Pro Forma l013E ROE: 19%
Significant increase in .
low-cost deposits from
Legent
Reduced overall cost of
funding
Reduced reliance on
other processing & trust
deposits and relatively
expensive community
bank deposits
Margin lending and
. increased SBA loan
originations further
diversify asset portfolio
Highly scalable platfonn
results in ROE expansion
with growth in balance
sheet
United Western Bank Forecast of
Operations 2010-2012 -Assumptions
-} The Company raises $200 million


-} Capital injected into the Bank $83.2 million in fourth quarter 2010
As a result of the foregoing assumptions the Bank capital ratios are estimated at December
31,2010 as - Core 9.8%; Risk Based Capital 18.3%
-} The Bank transfers all direct credit substitute ("DCS") securities to the
Company at book value ($92.8 million at September 30, 2010)
Significantly de-risk Bank balance sheet through elimination of DeS MBS
-} Additional capital injection from cash flows from DCS securities of $14
million in Q3 2011
-} Legent Clearing acquisition closes and March 31, 2011 estimated capital
ratios are - Core 8.40/0; Risk Based Capital 16.3%

BANCORP
Financial Model $200 million Capital Raise
Eow:--..... 3 ....... _Enl:liinIIII
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f5.1!!l!l (5,209) (4.289) (3.790) (4.850) ____ _ @.510) (5.830) (8.013) (8.524)
'18.33'1 $ 17.041 18._ 17.575 $ '18.822 $ 20.218 2'1.885 23.7'11 $ 25.240 28.790 $ 20._ 31.532
PnIIPisiIm .... C .... Lasses ('14.2231 (4.731) (18.818) (12.3'1&) (7.288) (2.420) (4.024) (2.888) (3.207) (2.835) (3.952) (3.215)
N ___ amel(LGSS)
$(2.218) .2.233) 395 '1.150 $ 8.188 $ 7.070 $ 18.378 $ 10.845 $ 11.072 $ 1'1.405 12.780 $ 13.352
N ....
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P .... T_lnco .... I(Lass) .22.078) $(n.014) .20.058) .1'1.298) .8.:H8) .41M $ 2.882 $ 5 .... 7 .8.733 $ 8.73'1 '11.272 $ 14.437 R ........... ofv... __ _
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1.015.7'18
301.2n
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150.000 $
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1t18.lM2
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150.000 150.000 $
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3'13._ 32'1.238

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329.700
$ 150._ $
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'1.405.255
344.0lIl7

_0_ . 545.893 509.831 419.135 $ 434.852 $ 451.159 $ _.078 485.83' $ 583.842 $ 522.738 $ 542.339 $ 582.878 583.777
1_0"- 1,807,525 1.281.l1li7 1,232.270 1,258.048 '1.371,074 1,405.958 1.597.938 10211.954 1.873.374 1.70'1.314 1.822.829 '1,8119._
T_Oepo_ $ 2.153.4'18 1.77'1.518 '1.85'1.405 1.1190.901 '1.822.234 -$ 1.87 .... 034 $ 2.083.587 $ 2,130.7118 $ 2.1l1li.'110 2.243.1153 2.385.508 $ 2.453.025
_
_ ..-au.. 255.154 280,027 283.502 278,587 278,687 278.587 253.587 228.587 2113.587 2113.587 2 5117 283.587
oe. .... L_ 13 288 'I3"IM '14540 15 088 23A57 24044 24 853 25 28!i 25940 28 1120 27 328 28 858
T_U .... _.... 2.42'1.858 2.04&.029 1.929.447 '1.984.574 2.248.1199 2.302.323 2,533.981 2.583.8'13 2.8'18.428 2.117'1.138 2.847.l1li1 2.927.839
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8_0 __ ............
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'.'<31\
o
545.893 509.831 $ 4'19.135 $ 434.852 $ 451.159 $ 488.078 485.831 5 842 $ 522.738 $ 542.339 582.878 583.777
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1'15.782 85.802 '14.245 '14.245 14.lM5 14.245 14.lM5 14.245 '14.245 14.245 14.245 1 .... 245
180933 '1425. 134381 157988 '17502' 20'1985 183OZ3 158M5 .... 3221 '137_2 93144 79880
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Change from September Presentation
The Bank previously provided the OTS with a fmancial model assuming a $200 million
raise
Based on further analysis performed by third party, Spring Hill, Bank will retain Senior non-
agency MBS based on risk reward profile
The Bank underperformed relative to the September presentation and its business plan in Q3
2010. (Note the information contained herein does not reflect the conclusion on OTTI for
Q32010)
Provision for credit losses was impacted by updated appraisals received on certain loans and several
loans with partial charge offs including largest land loan. Charge offs totaled $16.9 million in Q3
2010 and provision was $18.9 million compared to September presentation of $5.4 million and
business plan of $4 million.
Net interest income (''NIT'') was lower than estimated due to higher levels of nonaccrualloans and
lower than planned assets. NIl was $16.6 million for Q3 compared to September presentation of
$17.5 million and business plan of$16.6 million.
Prospectively the Bank will return to profitability as a result of the increased capital allowing the
Bank to increase interest earning assets with low cost liabilities, thus increasing NIl, elimination of
substantial recurring OTTI charges, and stabilization and improvement in the loan portfolio asset
quality reducing provision charges.


L
' , C"')' .' A' ......
,egent (eanng "cqulsltlon
-> The acquisition of Legent Clearing, LLC ("Legent
Clearing") is a condition precedent to closing the $200
million capital formation
-> The Bank has timely responded to all questions regarding
Legent Clearing asked by OTS
-> Application being processed concurrently in OTS Dallas
and OTS Washington
-> FDIC has determined that application not accepted due
to brol<:ered deposit issue
Extending Our Proc'essing Franchise and
ControUing. New Deposits With Legent Clearing.
. .


-- Company/Bank have been engaged in the processing business for well over 20 years
-- Bank: balance sheet has been built on processing company deposits for 17 years
-- The Legent Clearing acquisition is squarely in line with the Company's history of serving
processing companies ..
-- Historical examples of owned companies providing processing related deposits to the Bank:
Sterling Trust Company; Texas chartered trust company, owned by the Company from 1997 to
2009; customer deposits held at Bank; provided over $400 million of deposits to the Bank at the
high water mark
Matrix Settlement and Clearance Services, LLC; mutual fund clearing and settlement services
provider, owned by the Company from 1997 to 2009; provides approximately $200 million of
deposits to the Bank today
Bank today provides NSCC settlement services to over 300 retirement plan administrators across
the country including the Bank of New York, Fifth Third Bank and others representing ....,$100
billion in retirement assets from Americans across the country
. -- Securities clearing frrrns within bank operating subsidiaries are clearly well established
-- The Legent Clearing acquisition by the. Bank does not break new regulatory ground


Conditions to Closing of Capital Raise
{>- OTS acceptance of the rebuttals of control filed by the Lead Anchor Investors pursuant to OTS
procedures
. Modification of certain elements of the Bank and the Company Orders to Cease and Desist
{>- Approval by OTS, FDIC and FINRA for the acquisition by the Bank ofLegent Clearing prior to or
contemporaneously with Closing.
Other conditions include
NASDAQ approval to issue the securities
Proforma capital ratios will result in well capitalized status
No material adverse effect
. The Bank's non-agency securities have not declined in value by morethan $20 million since August 2010
The Bank has deposits of at least $1.5 billion at time of closing
The Company and the Bank enter into employment agreements with five individuals
, .
The OTS provides its non-objection to the Company paying off JPMorgan at 35% discount
The Company appoints two new members to board of directors of seven members
The Bank appoints two new members to board of directors of seven members
The Ors provides its non-objection to the Company's revised Business Plan, which contemplates the
closing of the private placement transactions


Revisions to the Bank C&D Required for Closing
-- As a condition of closing, the Bank Order must be modified as follows:
-- Capital- paragraph 3 - "meet and maintain"
Elimination of the '"meet and maintain" language in the Order so that the Bank will be deemed well
capitalized for regulatory capital ratio purposes.
-- Construction and Land Loans - paragraph 19 - origination of construction and land loans
The Bank contemplates the origination of incremental construction loans for the near future. The
origination of incremental construction loans will be used to maximize recovery of selected land loans.
Estimated allocation of three pre sales per model with two model per development limit.
-- Growth Restrictions - paragraph 26 - total assets
Elimination of the current language of growth at net interest credited to deposits and allow the Bank to
increase assets in accordance with its revised and updated business plan.
-- Directorate and Management Changes - paragraph 27 - directors
Provide non-objection to Bank to appoint two new board members selected by the Lead Anchor Investors
who will join the Bank board of directors. The Board will consist of 7 members Bank Chairman, Bank
Vice-Chairman, the two new board members and three outside independent directors
->- Employment Contracts and Compensation AiTangements - paragraph 29 - key persOlmel
Provide non-objection to the Bank for the execution of employment contracts and compensation
arrangements with Bank Chairman, Bank Vice-Chairman, Company Chief Operating Officer, Division
Head of SBA and President of Legent Clearing


Revisions to the Company C&D R.equired for' Closing
As a condition of closing, the Company Order must be modified as follows:
-t} Payment LimitationslRestrictions - paragraph 6 - retirement
EliIuinate this restriction thereby allowing the Company to retire the outstanding
balance due JP Morgan at 35% discount to current principal balance
{-- Directorate and Managelnent Changes - paragraph 13 - directors
Eliminate this provision thereby allowing the Company to appoint two new board
members selected by the Lead Anchor Investors who will join the COlupany board of
directors. The Board will consist of 7 members COlupany Chairman, the two new
board members and four outside independent directors
{-- Employment Contracts and Compensation Arrangenlents - paragraph 14 - key
personnel
Eliminate this restriction thereby allowing the Company to enter into employment
contracts and compensation arrangeluents with the COlupany Chairman and Company
Chief Operating Officer
I J J I ~ ~
BANCORP
Other Matters Related to the Order
~ The Bank's credit administration department continues to worl(
diligently to reduce classified loans consistent with classified asset
reduction plan
~ The Bank will not purchase any non-agency MBS in the future
~ The Bank is adhering to its Liquidity Plan
~ The Bank does not foresee need for capital distribution through 2012
~ The Bank and Board are closely monitoring and complying with
LTOB and Regulation W
"'> The Bank is fully adhering to other requirements of the Order and
works diligently with OTS for appropriate removal of Order over tinle


Status of FDIC Brokered Deposit Determination
-- November 5, 2010, Kristie Elmquist, Acting Regional Director, Dallas
Regional Office, advised the Bank that seven institutional relationships,
which constituted $1.22 billion or 74.1 % of Bank's deposits, are
brokered
--- The Bank has notified the FDIC of its decision to appeal the FDIC's.
Regional Office's detennination
--- The FDIC Washington, D.C. Office has confmned that the Bank can
continue to accept, renew or rollover the deposits related to the seven
institutional deposit relationships pending resolution of the Bank's
appeals
--- The recapitalization contemplated by the Investment Agreement will
result in the Bank being well capitalized and no longer subject to a meet
and maintain requirement,so the issue ofbrokere.d deposits becolnes
moot
Questions and Answers


United Western Bancorp, Inc. and United Western Bank
management will be glad to respond to any questions or
. comments the OTS. and FDIC representatives may have
TabC
Exhibit 41
1176
I ....... 1.1 ... 1 ..... . v .... N ....I. T. E. D WESTERN
. BANK$
November 24,2010
Philip .A. Gerbick
Regional Director
Office of Thrift Supervision
Western Regional Office
225 E. John Carpenter Freeway, Suite 500
Irving, TX 75062-2326
Re: United Western Bank
Dear Ms. Elmquist and Mr. Gerbick:
James R. Peoples
Chairman. President & CEO
Tel: 720-956-6576
Fax: 720-946-1186
jpeoples@uwbank.com
CONFIDENTIAL TREATMENT REOUESTEd
Kristie K. Elmquist
Acting Regional Director
Federal Deposit Insurance Co.rporation
1601 Bryan Street
Dallas, TX 75201
United Western Bank ("UWB") continues to make progtess towards the proposed
private sector recapitalization, which is scheduled to close no later than December 31, 2010. As we
appr()ach the dosing date, we note that each o.f the Federal Deposit Insurance Corporatio.n
("FDIC") and Office o.f Thrift Supervision (the '(DTS") have pending issues regarding UW'B's
operations that co.uld adversely impact the recapitalization. As we eA'Plained at the meeting held en
No.vember 17, 2010, an action taken by one agency could impact or preclude an action to be taken
by another. Witho.ut restating the various merits of UWB's positio.ns o.n these pending issues,
which have been previously pro.vided to each agency, we wish to reiterate the consequenceso.f
auvt:tse agency deteriuinatiOl1s with respect to each outstanding issue.
OnJune 10,2010, UWBfiled a bro.kered depo.sit waiver with the FDIC. This waiver
request remains o.utstanding, as ackno.wledged in the FDIC's letter dated No.vern.ber 5, 2010 that
determined that appro.ximately 75% of UWB's depo.sits were placed by deposit bro.kers. A fo.rmal
bro.kered deposit waiver would pe.rrn.it UWB to. co.ntinue to. accept, renew or toll o.ver bro.kered
deposits as UWB gradually reduces collcentratio.n in such deposits, as provided fo.r in the FDIC's
1 'This letter contains confideiltialbusfuess info!1Il3.tion of D n i t ~ d Westetn Bru;lk and its holding cOmpany United Western Bru;lcorp,
Inc. that is not in the public domain. This letter is being provided to the federal bru;lk regulators ofD nitedWesteru Bank in their
supervisory capacity over the Bank and therefore should be grantedconfidentia\ treatment pursuant to the confidential commercial
information and bank exa.millation and supervision exemptions to the Freedom oflnformation Act. Accordingly, we request,
p1:trsuaut to 5 U.S.c. 552(b)(4) and (b)(8), confidential treatment of this letter. Please notify us if anyone submits a Freedom of
Information Act request for a copy of this letter.
United Western Financial Center
700 Seventeenth Street, Suite 2100
Denver, ColOl:ado 80202
,\f","w.uwhauk.CQlD
1177
.Ms. K1;istie Ehnquist
Mr. Philip Gerbick.
November 24, 2010
Page 2
preliminary determination dated May 24, 2010. Clearly,.in its preliminary determination, the FDIC
was concerned about a precipitous liquidity event from its determin.atio:n.
Independendy ars could,. howevet,preclude the FDIC from taking appropriate
steps to avoid a liquidity event Specifically) an adverse determina:tion with respect to the O'I'S's
ongoing review of UWB's accounting for othet'-than-temporary impairment ('"'OTIT') in its non-agency
.MBSpo;rtf'ollowotddrenderUWB undercapitalized. On October 27, 2010 and Novembet 8, 2010,
UWB provided the OTSwith.information supporting UWB's OTtI calculations and we undetstand
this infottnation remains under review. UWB is prepared to supplement this.inonnation, as
needed, to demonstrate the appropriateness of its om determination. Thesignifica.nt
consequence of becomiD.g undercapitalized is. that the FDIC would no longer have any authority to
. act on UWB's pending brokered dep.ositwaiver as Section 29 of the Federal Deposit Insutailce Act
and Part 337.6 of the rules and regulations of the FDIC authorize the FDIC to is$ue btokered
deposit waivers only to adequately capitalized depository institutions.
The pending tecapitalization. of UWB, which is scheduled to. close no later than
December 31, 2010 -- ot in less than five weeks - would address UWB's current capital status and
co'Uld need tOt a As we have upon closing of the tranSl,lction, UWB .
would have a Tier 1 (Cote) Capital ratio of apptoximately 9.5% apd a Total Risk":Based Capital ratio
of apptoxittlate1y 18.0% on a f()recaSted basis as of December 31,2010. M01'eover, UWB's riSk
profile will be materia1ly improved since the private labeled mortgage baded secllritiesclassifieda$
"direct credit substitutes" will be removed from the Bank's balance sheet. cannot
be deemed t() be well capitaJ.ized as long as it temainssubject to the "tneet and maintain;" proviSion
set forth in its cease an.d desist order dated June 25, 2010 (the "Order"). Notwithstanding the fact
that UWB iscu.tJ:entlynegotiating with its investors to re4uce the various conditions to closing.
deletion of the "tneet and maintain" provision tetna,in. 11,. requkement to the recapitalization
transaction. We note that OTS has the fun authority to modify the Otder to remove such provision
and that the exercise of such authority would have signi:fi.cant and positive results.
UWB, its parent and their respective directors and officers have all woiked diligQtl.y
to achieve a private sector recapitalization of UWB at no cost to the FDIC. Accordingly, we believe
that it is critical fot officials of the FDIC and OTS to tna.ke all supervisory decisioQ.$ cognb:ant of
the various consequences of their decisions.
. If you have any questions regarding the recapitalization, please prompdy contact the
undersigned at 720-956-6576 or jpeoples@uwbank.com or out regulatory counselLawtence Kaplan
ofPatd, Hasti:ttgs,Jan.ofsky & Walket, ILP at 202-551-1829 or
Sincerely,

James R. Peoples
1178
Ms. Kristie Elmquist
Mr. Philip Gerbick
November 24, 2010
Page 3
cc: Thomas A. Barnes
Deborah Dakin, Esq.
Susan L. Chomicz, Esq.
Phillip A. Gerbick
Michael Simone
Lori ,Quigley
Nicholas Dyer
Kevin A. Corcoran, Esq.
Brian A. Steffey, Esq.
Richard Ostennan, Esq.
Serena Owens
Andrew L. Sandler, Esq.
Liana Prieto; Esq.
1179
TabC
. Exhibit 42
1180
Ul
JJ W&
.............. BANK'
James R. Peoples
Chainnan, President & CEO
Tel: 720-956-6576
Fax: 720-946-1186
jpeoples@uwbank.com
November 29, 2010
Philip A. Gerbick
Regional Director
CONFIDENTIAL TBEATMENTBEOUESTEJi
Kristie K Eltnquist
Acting Regional Director
Federal Deposit Insurance Corporation
1601 Bryan Street
Office of Thrift Supervision
Western Regional Office
225 E.John Carpenter Freeway, Suite 500
Irvirig, TX 75062-2326
Dallas, TX 75201
Re: United Western Bank
Dear Ms. Elmquist and Mr. Gerbick:
On November 17, 2010, representatives of United Western Bank (''UWB'') and
United Western Bancorp, Inc. (''VWBK'') met with representatives of the Office of Thrift
Supervision ("OTS',) and the Federal Deposit Insurance Corporation ("FDIC',) at the OTS
headquarters in Washington, D.C. At that meeting, UWB described in detail the terms and
conditions of the Investment Agreement entered into on October 28, 2010, by UWBK and certain
pursuant to which UWBK will secure additional capital for investment in UWB (the
"Investment Agreement''). The Investment Agreement contains a list of closing conditions about
which representatives of OTS and FDIC expressed concern. Subsequendy, Regional Director
Gerbick asked UWB to advise him of which of those closing conditions could be viewed by the
. UWBK and the investors as "must haves" versus "nice to have" with a view to conserving agency
resources and time and still moving to an expeditious closing of the Investment Agreement.
This letter is a response to Regional Director Gerbick's request. UWBK and UWB
understand the OTS and FDIC suggestion that the Cease and Desist Orders for the two companies
might best be left in place as much as possible to allow OTS the time to consider the newly
capitalized balance sheet ofUWB. To this end, we are suggesting reductions to the proposed
t This letter contains confidential business infonnation of United Westem Bank and its holding company United Westem Bancorp,
Inc. that is not in the public domain. This letter is being provided to the federal bank regulators of United Westem Bank in their
supervisory capacity over the Bank and therefore should be gtaIlted confidential treatment pursuant to the confidential commercial
infonnation and bank examination and supervision exemptions. to the Freedom of Information Act. Accordingly, we request,
pursuant to 5 U.S.c. 552(b)(4) and confidential treatment of this letter. Please notify us if anyone submits a Freedom of
Information Act request for a copy of this letter.
United Westem Financial Center
700 Seventeenth Street, Suite 2100
Denver, Colorado 80202
www.uwbank.com
1181
Ms. Kristie Elmquist
Mr. Philip Gerbick
November 29,2010
Page 2
modifications to the Cease and Desist Orders to only one change. The attached Confidential Exhibit
A.is a summary of the provisions of Investment Agreement, Article I, Purchase; Closing, Subsection
(b) Closing Conditions, that discusses each of the closing conditions and our proposed revisions in
detail.
changes here:
In the interest of convenience, I have summarized the impact of the proposed
1. UWBK suggests that the "must have" list includes:
a. The approval of the acquisition of Legent ClearingLLC as an operating
subsidiary ofUWB (this requires combined OTS and FDIC approvals);
and
b. Deletion of the "meet and maintain" language of paragraph 3 of the
UWB Cease and Desist Order;
c. The approval of the OTS Regional Director as to the appointment of the
Anchor Investors nominees to the UWBK and UWB boards;
d. Acceptance by the OTS as to the Anchor Investors rebuttal of control
and concerted actions filings;
e. OTS Regional Director approval of certain employment agreements for
five employees ofUWB and UWBK under the Order and FDIC under
Part 359;
f. OTS Regional Director approval to compromise the J.P. Morgan-Chase
debt in accordance with the current compromise agreement between
UWBK and Chase; and .
g. OTS Regional Director approval of a revised UWB business plan to be
submitted prompdy after the filing of this letter with the OTS;this
business plan will be substantially identical to the plan previously
discussed with the Regional Director on September 16,2010 and
assumes the acquisition of Legent Clearing LLC as an operating
subsidiary of UWB.
UWBK can expeditiously close the private-sector capital raise and successfully recapitalize and de-
risk UWB's balance sheet by December 31, 2010 upon theOTS and FDIC addressing these seven
items.
Moreover, we are currendy working with the seven institutional investors discussed
in the FDIC's letters dated May 24, 2010 and November 5, 2010 to mirror the structure of the
relationships that were the subject of FDIC Advisory Opinion 05-02 (February 3, 2005).
1182
Ms. Kristie Elmquist
Mr. Philip Gerbick
November 29, 2010
Page 3
. UWB, its parent and their respective directors and officers have all worked diligendy
to achieve a private sector recapitalization ofUWB at no cost to the FDIC. The proposed
modifications to the recapitalization addressed herein reflects the desire of UWBK to work with the
OTS and FDIC.
We'request a meeting with representatives of the in Dallas or Washington,
D.C. on Thursday December 2nd or Friday December 3rd to discuss these revisions and the
proposed timing of the transaction. Please let us know of the time and venue.
If you have any questions regarding the proposed changes or the recapitalization,
please prompdy contact the undersigned at 720-956-6576 or jpeoples@uwbank.com or our
regulatory counsel Lawrence Kaplan of Paul, Hastings, Janofsky & Walker, LLP.at 202-551-1829 or
lawrencekaplan@paulhastings.
com
.
Sincerely,

James R. Peoples
cc: John E. Bowman, Acting Director
Thomas A. Barnes
Deborah Dakin, Esq.
Susan L. Chomicz, Esq.
Phillip A. Gerbick
Michael Simone
. Lori Quigley
Nicholas Dyer
. Kevin A. Corcoran, Esq.
Frances Augello, Esq.
Brian A. Steffey, Esq.
Richard Osterman, Esq.
Serena Owens
Andrew L. Sandler, Esq.
Liana Prieto, Esq:
1183
.TabC
Exhibit 42 A
1184
Confidential
Exhibit A
To Letter to Mr. Gerbick and Ms. Elmquist
November 29, 2010
Taken From Investment Agreement of October 28,2010 by and between United Western Bancorp, Inc.,
Oak Hill Capital Partners, III L.P., Oak Hill Capital Management Partners IlL L.P., Lovell Minnick
Equity Partners IlL Life Partners, Lovell Minnick Equity Partners III-A, Life Partners, Legent Group,
LLC and Henry C. Duques (the "Investment Agreement'')
Investment Agreement
Article I; Purchase/Closing, Subsection (b) Closing Conditions [Subsection (b) Closing Conditions,
provides for certain events to occur or conditions to be present prior to or at the closing without
which the Anchor Investors (as defmed in the Investment Agreement) are not obligated to close on
their investment.]
The subsections do not have headings. The following description by subsection has a
brief description of the condition/fact to be present contained in each subsection.
List of Subsections:
Subsection (b)(l)(A)
Provides that no governmental action shall prohibit the Closing or restrict anchors' rights as
shareholders
Action: No change required
Subsection (b)(l)(B)
Provides that all governmental action required in connection with the execution and delivery of
this Investment Agreement and the closing shall have been received
Action: Change required: Anchor Investors to waive conditions as appropriate based on
following.
Subsection (b)(l)(C)
Pertains to the removal of certain paragraphs from the United Western Bank ("UWB'') and the
United Western Bancorp, Inc. ("UWB ") Cease and Desist Orders
As to UWB, the Investment Agreement seeks the removal of paragraphs 3, 19,26.27 and 29
of UWB Cease and Desist Order:
Paragraph 3 provides a meet and maintain requirement for a Tier 1 (Core) Capital ratio of
equal to or greater than 8% after the funding of an adequate ALLL and a Total Risk-
Based ratio equal or greater than 12%
Action: None; this section of the UWB Cease and Desist Order must be lifted
Proposed Revisions to Conditions to Closing 11 29 10 (2)
1185
Confidential
Exhibit A
To Letter to Mr. Gerbick and Ms. Elmquist
November 29, 2010
Page 2
Paragraph 19 provides a limitation on C&D and land loans
Action: Anchor lrivestors to waive this. provision
. Paragraph 26 relates to growth limitations
Action: Anchor lrivestors to waive this provision
Paragraph 27 restricts chailges in officers and directors without prior notice to OTS
Action: Request OTS to approve appointment of Anchor Investors nominees to board
ofUWB upon specific application from UWB;
Action: Anchor lrivestors to waive this provision to the extent that OTS grants
approval
Paragraph 29 provides that b ~ shall not enter into any compensation contract or
arrangement with UWB's officers or directors
I
Action: Request OTS approve Peoples, Frankel and Umbaugh contracts upon specific
application from UWB
I .
Action: Anchor lrivestors to waive this provision to the extent that OTS grants
approval
As to UWBK. the Investment Agreement seeks the removal of paragraphs 6, 13, and 14 of
UWBK's Cease andDesist Order:
Confidential
Paragraph 6 limits payments on debt
Action: Request OTS approve JPM-Chase payoff as proposed on specific application
fromUWBK
Action: Anchor lrivestors to waive this provision to the extent that OTS grants
approval
Paragraph 13 restricts changes in officers and directors without prior notice to OTS
Action: Request OTS approve director nominees from Anchor on specific application
. fromUWBK
Action: Anchor Investors to waive this provision to the extent that OTS grants
approval
Paragraph 14.provides that Company shall not enter into any compensation contract or
arrangement with UWB's officers or directors
Action: Request OTS approve Gibson and McCloskey contracts upon specific
application from UWBK
FUe Name: Proposed Revisions to Conditions to Closing 112910 (2)
1186
Confidential
Exhibit A
To Letter to Mr. Gerbick and Ms. Elmquist
November 29, 2010
Page 3
Action: Anchor Investors to waive this provision to the extent that OTS grants
approval .
Subsection (b )(%)(A)
Provides that UWBK 's and warranties shall be true can correct as of the signing
and Closing.
Action: No change required
Subsection (b )(%)(8)
Requires UWBK per/orm as detailed in the Investment Agreement
Action: No change required
Subsection (b)(%)(C)
Requires a certificate of UWBK 's senior executive officers certifying as to the completeness of
certain conditions contained in Sections 1.2(b)(2)(A) and 1.2(b)(2)(B) have been per/ormed
Action: No changerequired
Subsection (b )(%)()
Requires the shares of Common Stock to be issued have been approved for listing on NASDAQ
Action: No change required
Subsection (b )(%)(E)
Pertains to the acquisition ofLegent Clearing LLC by UWB pursuant to June 2010 agreement
without waiving certain exceptions
Action: No clUmge; requires OTSIFDIC to approve acquisition ofLegent Clearing by UWB
Subsection (b )(%)(F)
Requires receipt by anchors of OTS agreement to rebuttal of control and concerted action
Action: No change; requires OTS agreement to the two rebuttal of control and concerted
application applications
SubsectiQn (b )(%)(G)
Provides that no law or governmental action shall deprive anchors of benefits of the transaction
or otherwise impose burdensome restrictions on anchors in respect of their ownership
Action: No change required
Confidential
FOe Name; Proposed Revisions to Conditions to Closing 11 29 10 (2)
1187
Confidential
Exhibit A
To Letter to Mr. Gerbiek and Ms. Elmquist
November 29, 2010
Page 4 .
Subsection (b )(2)(H)
Provides that neither OTS nor FDIC shall take any action to limit the economic benefit expected
by anchors from transaction.
Action: No change required
Subsection (b )(2)(1)
Pro';;des that no change in law shall restrict the expected economic benefit to anchors.
Action: No change required
Subsection (b) (2)(J)
Provides that UWB shall have received the wriuen non-objection of the OTS to UWB's business
plan as .submiued post Investment Agreement execution
Action: No change; requires the OTS to approve the UWB business plan
S:ubsection (b) (2)(K)
Requires that NASDAQ issue its approval to UWBK allowing UWBK to rely on NASDAQ Market
Listing Rule 5635(f) (no shareholder vote required to issues shares)
Action: No change required
Subsection (b) (2)(L)
Provides that UWB must be deemed well capitalized by the OTS after giving effect to the closing
on a pro forma basis
Action: Anchor Investors to waive this requirement if the OTS grants lifting of "meet and
maintain" language ofUWB Cease and Desist Order
Subsection (b) (2)(M)
No MAE shall have occurred prior to Closing
Action: No change required
Subsection (b) (2)(N)
Provides, generally, that UWBK must raise $200 million
Action: No change required
Subsection (b) (2)(0)
Confidential .
File Name: Proposed Revisions to Conditions to Closing 112910 (2)
1188
Confidential
Exhibit A
To Letter to Mr. Gerbick and Ms. Elmquist
November 29, 2010
PageS
Limits change in value to Private Label MBS to no more than ($20,000,000) as measured against
the Spring Hill Report values
Action: No change required
Subsection (b) (2)(P)
Requires to Bank to have pro forma Tier 1 leverage ratio of at least 9% at closing
Action: No change required
Subsection (b) (2)(Q)
Requires Bank to have a minimum of$1.5 billion in deposits
Action: No change required
Subsection (b) (2)(R)
Requires UWE and UWEK to enter into employment agreements with five named officers in
substantially the form attached to Investment Agreement Disclosure Letter
Action: No change required if OTS grants action required above under Section l.b(l)( c)
Subsection (b) (2)(S)
Company must own all subsidiaries free and clear of any lien
Action: No change required
Subsection (b) (2)(T)
Requires delivery of Greenberg Traurig opinion
Action: No change required
Subsection (b) (2)(U)
Requires that all "Third Party Approvals" shall have been received
Action: Anchor Investors required to waive this provision to extent OTS and FDIC actions as
contemplated in this analysis
Subsection (b) (2)(V)
UWBK shall not have entered into any agreement to raise capital other than in connection with
the transaction contemplated under the Investment Agreement
Action: No change required
Confidential
File Name: Proposed Revisions to Conditions to Closing 11 29 10 (2)
1189
Confidential
Exhibit A
To Letter to Mr. Gerbick and Ms. Elmquist
November 29, 2010
Page 6
Subsection (b) (2)(W)
Provides for the composition of UWBK 's board of directors
Action: No change required so long as OTS has agreed to the appointment of the Anchor
Investors nominees to the UWBK board as provided for above.
Subsection (b) (2)(X)
Providesfor the composition ofUWBK's board of directors
Action: No change required so long as OTS has agreed to the appointment of the Anchor
Investors nominees to the UWB board as provided for above.
Subsection (b)'(2)(Y)
Provides that UWBK must have entered into an agreement with JPM-C to settle debt
No change required so long as OTS action required above is received
Confidential
FileName: Proposed Revisions to Conditions to Closing 112910 (2)
1190
TabC
Exhibit 43
1191
December 3,2010
VL4 SECURE E-MAIL
AND UPS NEXT DAY AIR
OTS Docket No. 06679
Board of Directors
Attn: Mr. James R. Peoples
Chairman ofthe Board,
CEO, and President
United Western Bank
700 17th Street, Suite 100
Denver, CO 80202
OTS Docket No. H2192
Board of Directors
Attn: Mr. Guy A. Gibson
Chairman of the Board
United Western Bancorp, Inc.
700 17th Street, Suite 2100
Denver, CO 80202
Re: Letter from James R. Peoples to Philip A. Gerbick and Kristie K. Elmquist
Dated November 29,2010 (November 29 Letter)
Dear Board Members:
We are in receipt of the above-referenced November 29 Letter, which discusses the Investment
Agreement dated October 28,2010 (Investment Agreement) by and between United Western
Bancorp, Inc. (UWBK), and certain investors. The Investment Agreement provides that certain
specified conditions must be satisfied before the investors are obligated to close the
contemplated funding transactions. Among these closing conditions is arequirement that the
restrictions set forth in Paragraph 3 of the Order to Cease and Desist
l
(Order) issued by the OTS
to United Western Bank (Association or UWB) on June 25, 2010 (Order No. WN-lO-O 19), and
any other equivalent or similar restriction imposed on the Association by the OTS, shall have
been terminated.
In previous telephone communications and letters to the OTS, UWB and UWBK have requested
that the OTS modify the Order by deleting Paragraph 3. The November 29 Letter reiterates this
request as well as other requests for OTS actions and approvals, and describes these requests as
"must-haves" forthe closing of the funding transaction.
1 Paragraph 3 states: "By June 30, 2010, the Association shall meet and maintain a Tier 1 (Core) Capital ratio equal
to or greater than eight percent (8%) after the funding of an adequate Allowance for Loan and Lease Losses (ALLL)
and a Total Risk-Based Capital ratio equal to or greater than twelve percent (12%)."
1192
Boards of Directors
United Western Bank.
United Western Bancorp, Inc.
Page 2
. December 3,2010
We have reviewed UWB's and UWBK's requests as set forth in the November 29 Letter.
Without expressing an opinion regarding the other requests in the November 29 Letter, the OTS
has determined not to remove Paragraph 3 of the Order at this time.
If you have any questions, please call me at (972) 277-9650 or Assistant Director Nicholas J.
Dyer at (650) 746-7025.
Smrerely, W
~ C - .
Philip A. Gerbick
Regional Director
Western Region
cc: Ms. Kristie K. Elmquist, Acting Regional Director, FDIC-Dallas
Mr. Joseph A. Meade, Assistant Regional Director, FDIC-Dallas
Mr. Lawrence Kaplan, Paul, Hastings, Janofsky & Walker LLP
1193
TabC
Exhibit 44
1194
December 3, 2010
MEMORANDUM FOR: Philip A. Gerbick, Regional Director
FROM:
SUBJECT:
RECOMMENDATION
Nicholas J. Dyer, Assistant Director
United Western Bank, Docket No. 06679
Recommendation reOTTI
We8tem Regioll
Daly City Area Office
We recommend that United Western Bank (UWB. Association, or institution) be required to
recognize an additional $16.3 million in other-than-temporary impairment (OTTI) charges and to
file an amended September 30,2010 Thrift Financial Report(TFR) reflecting these additional
charges. Our recommendation for this action is based on our review, during the current
examination, ofUWB's process for analyzing its securities for impairment. Ourreview
identified a number of deficiencies and concluded that UWB must recognize additional OTTI in
the amount of$16.3 million as of September 30, 2010. OTS capital markets and accounting staff
have and concurred with our fmdings and conclusions. We believe this action is
necessary to reflect UWB's fmancial condition accurately.
DISCUSSION
I. Background of OTTI Issues at UWB
UWB has a large portfolio of privately issued non-agency mortgage backed securities (PLMBS).
As of September 30, 2010, the institution reported that the pOltfolio had a book value of $236
million, amounting to 11.4 percent of total assets and to 127 percent of Tier 1 (core) capital plus
Allowance for Loan and Lease Losses (ALLL). See Exhibit 6. The institution purchased most.
of the PLMBS in 2004-2006. With no new purchases since 2006 and with amortization, payoffs,
sales, and the of certain OTTI write-downs, the portfolio'S size has declined
significantly from its peak in 2006. I
I As of September 30. 2006, the portfolio had a book value of $765 million, amounting to 35 percent of total assets
and to 506 percent of Tier J (core) capital See Exhibits 1 and 7.
1195
-2-
Our examination of the Association commencing March 30. 2009. determined that the
Association's reported risk-based capital position was overstated and required the Association to
recalculate risk weights for several of its PLMBS. See Exhibit 2. Our examination also
determined that PLMBS continued to pose a threat to the Association's risk-based capital
position, and that further deterioration of the Association's PLMBS portfolio posed a risk to
eamings because of potential OTTI recognition going forward. [d.
In light of our concerns about continuing deterioration in the Association's PLMBS, we
scheduled a field visit of UWB which commenced in early January 2010. See Exhibit 3. This
field visit focused on (1) ensuring that the securities were properly risk-weighted in UWB's
computation of its risk-based capital requirement; (2) verifying that the securities were properly
classified in accordance with interagency guidance; and (3) evaluating UWB's process for
reviewing .its PLMBS for.OTTI. In ?ur field that UWB
uses to estimate OTTI, evaluated Its assumptions, and IdentifIed varIOUS defICIenCIes in UWB' s
impaiIment assessment process and management's selection of various scenarios and ultimate
use of the model results. [d.; see Exhibit 5.
The field visit raised concerns that the amount of OTTI reflected in the December 31, 2009 TFR
was inadequate because of deficiencies in the then-current modeling process-and that, as a
result, UWB's capital position was overstated. OTS review of the PLMBS portfolio indicated
that additional OTT! of $18.1 million should be recognized as of December 31, 2009. See
Exhibits 4 and S. UWB re-analyzed the portfolio and concurred with the OTS that additional
OTrI was necessary. Accordingly, in a March 5, 2010 supervisory letter, we directed the
institution to re-me its December 31,2009 TFR to reflect the additional OTT! that we had
identified and to which management had agreed. See Exhibit 4. We also required the
institution to refme its securities review process. ld.
Our field visit Report of Examination of January 11, 2010 (January 11 ROE) reiterated our
expectation that the institution would improve its OTTI modeling process and would ensure that
all assumptions were reasonable and supportable. See Exhibits 3 and S. The OTS found
management's review ofPLMBS for impairment to be inadequate. As a result of that field visit
the Association was instructed to implement the following corrective actions:
"For monitoring purposes, management still needs to rank order the entire portfolio and
modify the criteria for obtaining credit valuations to broaden the universe of bonds tested
to ensure all bonds with any potential credit impairment are analyzed.
Management needs to adopt clear, coherent and consistent written procedures that outline
these practices.
For modeling and credit impairment analysis, the Bank must refine the model used to
more accurately reflect current market and specific bond conditions. Going forward any
factors deemed unrealistic or unduly harsh by management must be addressed in the
underlying assumption inputs into the model used rather than disregarding selective
portions of the model output.
2 See discussion of OTTI modeling in section IV of this memorandum.
1196
-3-
The process and model must be revised and vetted for the bank's first quarter 2010
internal review."
See Exhibit 5.
II. Current Examination of UWB
We began our cun-ent examination of UWB on September 27, 2010. We discovered that the
institution has not adopted a new model for determining OTTI and is still using the same
assumptions that we had criticized at the January 2010 field visit. See Exhibit 8. Despite the
earlier OTS communications dated March 5, 201 0, and April 28, 2010, described above in
section I of this memorandum, the Association has recently argued that management was
unaware that any changes to the Association's OTTI methodology were necessary. See Exhibit
11 .
. On October 25,2010, we provided the Association with an Exception Sheet (Exhibit 8} that
detailed our findings on the Association's modeling and recognition of OTTI on its portfolio of
non-agency MBS. Oneof the corrective actions outlined in the Exception Sheet was for the
recognize an additional $15.1 million in OTTI charges as of June 30, 2010. See
Exhibits 16 and 17. The Association did not report the $15.1 million of additional OTTr in the
June 30,2010 Thrift Financial Report (TFR) or in public financial statement filings. .
Subsequently, in a conversation on November 15. 2010, with Jim Peoples. President and CEO of
UWB, and other managers, our examination team orally advised Association management that
we had updated our review using September 30, 2010 information, and identified the additional
OTTl charges to be $16.3 million above what had been reported in the September 30, 2010 TFR.
See Exhibit 15.
. Association management provided us with a written response to the Exception Sheet on October
27. 2010. See Exhibit 9 (October 27 Letter). The October 27 Letter concluded that there was no
"additional material OTTI that should be recognized for any prior period.,,3 [d. On November
10,2010, management submitted a Remediation Plan to us that proposed the recognition of an
incremental charge of $10.5 million as of September 30,2010. See Exhibit 12 (Remediation
Plan). The Remediation Plan and a letter (Exhibit 11) from Benjamin Hirsh, mterim Chief
Financial Officer of United Western Bancorp, Inc. (UWBK) (Hirsh Letter), described the
technical modeling basis for that proposed ainount.
We have reviewed management's responses to our examination findings. See Exhibit 15. We
. have determined that the Association's objections are based upon modeling assumptions and
management-implemented mechanics for filtering model results that do not conform to
regulatory reporting requirements. We have conc1udedthat the Association's September 30,
2010 TFR should be amended to reflect an additional $16.3 million OTTI charge. It is our view
that management has not adequately addressed the corrective actions that we required them to
implement in our April 28 Letter. resulting in a materially incorrect OTTI charge. The following
sections of this memorandum set forth our analysis.
3The response did acknowledge that the Association should have taken a $) 07.876 OTTI charge in the second
quarter of 20 I O. See Exhibit 9.
1197
-4-
III. Overview Regarding OTTI Charges for Investments in Mortgage-Backed Securities
(MRS) Under Generally Accepted Accounting Principles in the United States (GAAP)
A security is impaired if the fair value of the security is less than its amOltized cost basis (i. e.,
whenever a security has an unrealized loss).4 The objective of an OTTI analysis under existing
GAAP is to determine whether the holder of an investment in a debt or equity security for which
changes in fair value are not regularly recognized in earnings (such as securities classified as
held-to-maturity (HTM) or available-for-sale (AFS should recognize a loss in eamings.
Under accounting guidance in existence prior to April 2009,5 the entire excess of recorded
investment over fair value was recognized as a loss in eamings when deemed "other than
temporary." After adoption of FSP FAS 115-2, if the impairment is judged to be other than
temporary, the cost basis of the individual security must be written down by the amount of the
estimated "credit loss" - that is, the credit component of the decline in fair value of an impaired
debt security. 6 See Exhibits 16 and 17. In most cases this results in a less severe charge to
earnings. The write-down will establish a new cost basis for the security. !d. This loss reduces
retained earnings and also regulatory capital.
In detelmining "credit loss," and thus the amount of OTTI loss recognized in eamings,f' AS FSP
115-2 requires an entity to use its best estimate of the present value of future tash flows expected
to be collected by the entity from the debt security. Id. This estimate must be based on '
reasonable and supportable assumptions (see paragraphs 23 to 26 ofFSP FAS 115-2). Id.
IV. UWB'sOTTI Calculations
Predicted cash flows for complex PLMBS, such as the investment holdings of the Association,
can vary significantly over time. Deriving future cash flows for complex PLMBS generally
requires the use of fairly sophisticated modeling techniques. The Association has chosen to use
FIRVA Capital Management, LLC (Forge) as a third-party vendor for that modeling in order to
produce an estimate of future cash flows for its PLMBS;
4 See FASB Accounting Standards Codification (ASe) 320. Investments - Debt alld Equity Securities, 10 Overall,
35 Subsequeflt Measurement (FASB ASC 320-10-35) formerly FASB Staff Position FAS 115-2 and FAS 124-2.
Recognition alld Preselltation ojOtller-Thall-Tempora1}' Impairments (FSPFAS 115-2). See Exhibits 16 and 17.
FSP FAS 115-2 introduced changes in the impairment model for debt securities (this new guidance did not apply to
equity securities). OTS CEO Memo No. 303 was issued on May 14, 2009, to alert institutions to the new OTT!
accounting guidance for debt securities. This guidance has now been incorporated in the ASe. The relevant
sections ofthe ASe for this discussion are largely found at ASe 320-10-35-33. See Exhibit 17. Although the
relevant ASe paragraphs incorporate and supersede FSP FAS 115-2, for ease of reference this memorandum cites
FSP FAS 115-2 in this document since it has been the document referenced in all of the correspondence between the
institution and OTS and in the examination workpapers.
5 FSP FAS 115-2 was issued April 9.2009. FSP FAS 115-2 is effective for interim and annual reporting periods
ending after June 15,2009, with early adoption permitted for periods ending after March 15,2009. Earlier adoption
for periods ending before March 15,2009 is not permitted.
6 FAS FSP J 15-2 revised previous OTT! accounting guidance to provide for a distinction between "credit" and
"non-credit" losses. In cases where (n) the reporting entity does not intend to sell an impaired security and (b) it is
not more likely than not that the entity will be required to sell the security before recovering its cost basis (less any
current-period credit loss). only the portion of the impairment loss representing "credit" losses is recognized in
earnings. See FAS FSP 115-2. The relevant loss for the PLMBS that are the subject of this memorandum is the
"credit" loss.
1198
-5-
While the Forge model is not necessarily problematic, the Association has misused the results of
the Forge model in calculating OTTI. With regard to celtain securities. the Association has
inappropriately ignored the results of the Forge model by severely truncating the "look-ahead"
time period for estimated cash flows. In addition, until directed to do so by the OTS, the
Association has chosen not to obtain Forge model results for many securities that are impaired.
These deficiencies are discussed further below.
Because of these problems, the Association's calculation of OTTI is not in accordance with
GAAP and regulatory reporting requirements.
A. UWB has inappropriately truncated the "look-ahead" period for future cash flows
calculated by the Forge model
In order to calculate discounted present value, the Forge model generates an estimate of all future
cash flows to be received from a given security. Where these cash flows are projected to
decrease substantially at some point in the future, the Forge model takes these future projected
decreases into account in generating a present discounted cash value for the security.
The Association has ignored any decline in future cash flows predicted by the Forge model after
three years (36 months). By employing such a "time truncation filter" with regard to the Forge
results, the Association is able to ignore any decreases in value that Forge predicts will occur
later in the lifetime of the security. This approach has allowed the Association to ignore large
decreases in value that are predicted by the Forge model, so long as those decreases are predicted
to occur after 36 months. See Exhibit 8.
For example, in the case of onePLMBS held by the Association, CUSIP 362341FTl, the Forge
model returns an estimated $6.2 million OTTI write-down on a $14.2 million outstanding
principal balance. However, because the first cash flow shortfall on the security was predicted to
occur 47 months in the future, the Association did not record any OTT! charge at all in
connection with this security. See Exhibit 15.
FAS FSP 115-2 requires an entity to use its best estimate of the present value of the future cash
flows expected to be collected by the entity from the debt security, which must be based on
reasonable and supportable assumptions. Id. By ignoring all cash flow shortfalls expected to
occur more than 36 months in the future (as predicted by the model management selected), the
Association has not used reasonable and supportable assumptions in calculating OTTI and
therefore, is not in compliance with GAAP and regulatory repOlting requirements.
B. UWB has not obtained Forge model results for all of its HTM or AFS securities with
impahment
FAS FSP 1 1 5 ~ 2 requires that an entity recognize impairment that is other than temporary for all
HTM or AFS securities. However, the Association has chosen to test only a select number of its
PLMBS for impailment under the Forge model. Despite previous warnings from the OTS that
the Association was inappropriately narrowing the universe of PLMBS tested for impairment
1199
(see ExhibitS and discussion in section I of this memorandum). the Association has persisted in
this practice. '
The Association only ordered six credit value reports during the second quat1er of 2010. Our
field'visit identified another 22 PLMBS that should have been tested for impairment. See
Exhibit 8. Upon testing. we determined that 14 additional securities were in fact impaired
pursuant to GAAP. requiring additional OTTI charges not reflected in the Association's financial
statements. Id.
By selecting a limited number of PLMBS to test for impairment, the Association has artificially
and inappropriately reduced its amount of OTTI. This practice is not in accordance with GAAP
and regulatory reporting requirements. The Association must reflect OTTI charges for all of its
HTM or AFS PLMBS with OTTI, as required by FAS FSP 115-2. .
V. UWB1s Responses to OTS Examination Findings
A. UWB's October 27 Letter
As discussed in section II of this memorandum, Association management provided us with the
October 27 Letter in response to the Exception Sheet. See Exhibit 9. The response concluded
that there was no "additional material OTTI that should be recognized for any prior period" and
defended the Association's OTTI methodology. In brief, the October 27 Letter asserts that
truncating estimated future cash flows after 36 months is warranted because of the
unpredictability of future cash flows. As discussed in. section HI of this memorandum, GAAP
requires the Association to generate discounted present values by using its best estimate of all
future cash flows, even if such cash flows are challenging to forecast. The "time truncation"
employed by the Association is
In the October 27 Letter, the Association also asserts that its outside accountants, Crowe
Horwath LLP (Crowe Horwath), have "concluded that [UWB's] methodology is appropriate and
acceptable within GAAP." Id. However, the Association has not provided the OTS with any
evidence that Crowe Horwath has determined that UWB's methodology is acceptable within
GAAP. Crowe Horwa$ has not indicated that it agrees with the Association's methodology. On
the contrary, representatives of the firm have orally expressed concerns to us regarding the
Association's OTTI methodology. See Exhibit 10.
Finally, in the October 27 Letter, the Association also asserts three other unspecified depository
institutions, including one "headquartered in Denver," have used a "time truncation"
methodology similar to that employed by the Association. See Exhibit 9. The Association
further aSserts that various federal banking regulatory agencies have determined in each case that
such "time truncation" is acceptable under GAAP. 1d. However, the Association has not
provided the OTS with the names of these institutions or any evidence of such approval by any
federal banking regulatory agency. We are not aware of any other OTS-regulated institutions
that employ such a method.
1200
-7-
B. UWB's proposed "Remediation Plan"
On November 8, 2010, UWB submitted a proposed "Remediation Plan" that proposed the
recognition of $10.5 million in additional charges, rather than the $16.3 million that we
identified. See Exhibit 12. The Remediation Plan and a letter from Benjamin Hirsh, Interim
Chief Financial Officer of United Western Bancorp, described the technical modeling basis for
that proposed amount. See Exhibit 11.
The Hirsh Letter defends the Association's position by stating that despite the earlier
communications by the OTS to the Association described in section I of this memorandum,
U
none
of these regulatory communications provided the board of directors or management of the
Association with any reason to question or re-evaluate the position we thought we had adopted
with the regulators' concurrence effective as of year-end." However, as described in section I,
the April 28 Letter required the Association to "broaden the universe of bonds tested to ensure all
bonds with any potential credit impairment are analyzed," to "refine the model used to more
accurately reflect current market and specific bond conditions," and to discontinue "disregarding
selective pOltions of the model input." See Exhibit S. The Association failed to address these
corrective actions.
The Remediation Plan acknowledges that had the Association not applied its "time truncation"
methodology, the Forge model cunently used by the Association would have resulted in an
estimated $16.3 million OTTI charge.
7
See Exhibit 12. The Remediation Plan instead proposes
that the Association apply a revised Forge model (the "Minus 2/3rds scenario") to four PLMBS,
resulting in additional OTTI charges on three of those PLMBS. /d.
Our review has determined that the Forge "Minus 2/3rds scenario" inappropriately
underestimates the potential for future delinquency in the relevant securities. See Exhibit 14.
Among other things, the Forge "Minus 2/3rds scenatio" unreasonably assumes that the constant
default rate (CDR)8 fm these securities will immediately decline by 66 percent. [d. The
Remediation Plan also suggests the use of inconsistent methodologies to calculate OTTI. [d.
Furthermore, the Remediation Plan does not adequately address the concerns set forth in the
Exception Sheet. The Remediation Plan continues to truncate inappropriately the "look-ahead"
time period for estimated cash flows, and does not adequately provide for testing of all HTM or
AFS PLMBS with impairment. [d.
Forthese reasons, we do not believe the Remediation Plan sufficiently addresses the concerns
noted in the Exception Sheet.
7 The Remediation Plan states: "Had we applied the Forge FV and CV modeled estimates without consideration of
when a principal break was forecasted to occur the loss was estimated at $16.3 million." See Exhibit 12.
K The CDR represents the historical annualized percentage at which the outstanding principal balances in the
underlying mortgage pool have defaulted.
1201
-8-
CONCLUSION
The Association's modeling approach and assumptions do not conform to GAAP and regulatory
reporting requirements. We have determined that an additional $16.3 million in OTT! charges
on the Association's PLMBS pOltfoIio is necessary as of September 30,2010. My
recommendation is to send the Association a Directive Letter requiring the Association to file an
amended September 30,2010 TFR (the earliest period open for amendment) reflecting this
additional OTTI charge. See Exhibit 13.
Certain OTTI charges might be more appropriately reflected as losses in qualters prior to
September 30,2010; however, earlier period TFRs are no longer open for amendment. This
memorandum does not address whether SEC filings of earlier periods should be amended. That
decision is left to the Association's management and board of directors, auditors,legal counsel,
and the SEC.
Views of the OTS Regional Accountant
The OTS Regional Accountant, with the concurrence of the OTS Chief Accountant, is of the
view that there is an adequate basis for the OTS to take the Course of action recommended in the
prior two paragraphs.
Nicholas J. Dyer
Assistant Director
1202
Exhibit
1
2
3
4
5
6
7
8
9
10
11
12
RECOMMENDATION FOR DIRECTIVE LETTER
UNITED WESTERN BANK
(OTS DOCKET NO. 06679)
EXHIBIT LIST
Date . Description
12/30/2006 UWBank; 5 Quarter for the Quarter-Ended 200612
[submitted 4/28/2007]
03/30/2009 UWBank: ROE
0111112010 UWBank: ROE; Ratings Downgrade to "4" for Capital, Asset
Quality, Management and Earnings; Ratings Downgrade to "3"
for Sensitivity
03/05/2010 Letter from OTS (Dyer) to BOD, UWBank:; Supervisory Directive
(Refiling of 1213112009 Thrift Financial Report (TFR))
04/28/2010 Letter from OTS (Dyer) to BOD, UWBank:; Transmitting
111112010 ROE
09/30/2010 UWBank:; 5-Quarter UTPR for the Quarter-Ended 201009
[submitted 111112010]
09/30/2010 UWBank:; 3-Year UTPR for the Quarter-Ended 201009
. [submitted 111112010]
10/25/2010 OTS Exception Sheet Number 01; Subject: OTT! Modeling
Process
10/27/2010 Letter from UWBank (Peoples) to OTS (EIC Santos); RE: Office
of Thrift Supervision Exception Sheet dated October 25, 2010 (the
"Exception Sheet '') .
11/02/2010 Email fromS.CrosleytoScott.cc: W. Santos, Chen, Kirch; Re:
United Western (Susan's conversation with Crowe partners)
11110/2010 Memo from UWBank (Hirsch) to OTS (EIC Santos), et al.;
Subject: Additional information re selection of FORGE model
11110/2010 Communication from UWBank: re: Outline of Proposed
Remediation Plans to address OTT! Concerns
1203
13
Undated
14
Undated
15
Undated
16
Undated
17
Undated
Supervisory on"ctive Letter from OTS (Gerbick) to BOD,
UWBank (peoples); Re: Directive to Reflect Additional om
Charles
OTSReview ofUWBank's Outline of Proposed Remediation Plans
to address OTTI Concerns and memo with subject line Additional
information re selection of FORGE model from Chief Accounting
Officer Hirsh, dated November 1 0 ~ 2010 .
OTS Examiner Review of Management's Response to Exception
Sheet Number 1
FASB Staff Position Paper, No. FAS 115-2 and FAS 124-2; Title:
Recognition and Presentation of Other-Than-Temporary
Impairments, Date Posted 4/9/2009 .
ASC 320-10-35-33: Accounting Standards Codification,
Investments - Debt and Equity Securities, Overall, Subsequent
Measurement
2
1204
TabC
Exhibit 44 A
(Memo Ex. 1)
1205
07:16 04/28/2007
Section
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
Denver, CO
CHARTER: DIF-Ins Federal Stock
Table of Contents
Page
Number
A.summary Statement .............................................. 1-2
B. Detailed Income Statement ($000) ................................ 3-4
Detailed Income Statement (%Avg.TA) ............................ 5-6
C.Analysis of Net Interest Income: Composition of lEA & ICL... 7
Analysis of Net Interest Income: Yields and Spreads ......... :::8
D.Detailed Balance Sheet ($000) .......................... ', ........ 9-11
Detailed Balance Sheet (%TA) .................................... 12 -14
E.Asset ($000) ............................................ 15
Asset (%) 16
F . Allowances ($000 & %) " 17-19
G.Capital Accounts and Re<;!Uirements ($000 & %) .................... 20
Total Assets by Risk Category ($000 & %) ................. 21
H.Changes in Financial ($000) ........................... 22
Changes in Financial (%) 23
I.Lending, Investment, Foreclosure, and Restructuring ($000) ...... 24
Lending, Investment, Foreclosure, and Restructuring (%) ......... 25
J.Questions, Strategies, New Deposit yields ....................... 26
K.Composition and Off-Bal.Sheet Positions of CMR Portfolio ($000) .27-29
composition and Avg.Contract Yields of CMR portfolio (%). '" .... 30-32
L. Interest Rat,e Risk Information ................................... 33
M.Exam Ratio Information .......................................... 34
N .Asset Quality - Supplemental Detail. ............................ 35-36
Peer Group Definitions:
Group 1
Group 2
Group 3
Group 4
Group 5
Group 9
Group 6
Assets less than $50 million
Assets between ISO million and $100 million
Assets between 100 million and $300 million
Assets between 300 million and $1 billion
Assets between $1 billion and $5 billion

1206
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
SUMMARY STATEMENT, Part 1
07:16 04/28/2007
United Western Bank
PAGE 1
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
3rd Prior Qtr
% Change
==:============== =================
================= =================
S&L Median Pct S&L Median Pet S&L Median Pet S&L Median Pet 1 Qtr 1 Year
YRMO, Period End ... 200612 200609 200606
200603 200612 200612
S&Ls in Peer Group
72 67 67
67
SUMMARY BALANCE SHEET:
5.06 7.76 36 6.76 6.57 52 5.84 5.54 54 1.1 Cash,Dep.+Inv.Secur. 6.41 6.21 52 -26.6 -19.9
2.2 Mortgage Backed Secur. 35.39 7.76 91 35.52 7.30 92 33 .24 7.20 91 26.49 B.73 BO -2.3 73 .4
2.6 Mortgage Loans:
3.98 39 2.07 3.91 36 1.84 Construction Lns 2.78 4.14 30 1. 74 4.06 35 31. 7 85.5
PermMtg,1-4 Dwel.Units 2B.50 32.83 43 29.93 32.64 45 33.11 33.11 50 37.65 32.96 57 -6.7 -31.2
PermMtg,5+ Dwel.Units 2.56 1.36 60 2.55 1.35 58 2.83 1.44 58 3.09 1.31 63 -1. 6 -21. 6
permMtg,Nonresidential 16.54 10.62 73 14.73 9.73 64 14.39 9.62 64 15.01 8.94 72 10.1 18.4
PermMtg, Land 1.57 2.46 38 .98 2.31 36 .85 2.54 38 .68 2.40 38 56.6 187.2
Other:IR+AdvTI-contras .01 -.09 57 .02 - .10 67 .04 -.10 70 .06 -.08 76 -19.6 -87.4
Net Mtg Loans 51.97 63.17 30 50.28 64.51 26 53.06 64.20 29 58.24 64.25 39 1.3 -14.5
3.1 Nonmortgage Loans 2.42 4.34 35 2.50 4.37 38 2.19 4,46 33 3.2B 4.20 41 -4.9 32.4
4.0 Repossessed Assets .35 .02 93 .31 .02 94 .28 .01 92 .31 .01 95 8.6 65.0
4.5 Real Estate Investment .00 .00 38 .00 .00 39 .00 .00 39 .00 .00 40 NA NA
5.1

2.00 .95 95 1.93 1.00 95 1. 95 1.09 95 1.96 1.06 91 1.5 25.8
5.5 .34 .99 19 .23 .92 14 .82 .93 41 .72 .94 38 42.8
5.8 Other Assets 2.48 2.17 57 2.47 2.24 58 2.63 2.08 63 2.59 2.06 63 -1. 5 -11.8
Total Assets 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 -2.0 5.6
7.0 Total Liabilities:
71.95 31 61.63 70.16 16 65.48 68.92 7.1 Deposits and Escrows 65.63 36 59.83 69.68 14 4.4 10.7
7.2 Borrowl.ngs 26.65 17.40 79 30.83 18.39 86 27.57 21.06 82 33.11 19.70 91 -15.3 -7.6
7.5 Other Liabilities .86 .79 56 .97 .78 66 .54 .73 29 .66 .73 38 -13.6 72 .0
Subtotal of 7.0 93.14 90.15 87 93.44 90.26 91 93.60 90.63 92 93.61 90.68 94 -2.3 5.1
7.9 Minority Interest .00 .00 79 .00 .00 77 .00 .00 77 .00 .00 79 50.0 50.0
8.0 Total Equity Capital:
.00 .00 48 .00 .00 48 .00 .00 Perpetual Pref.Stk 48 .00 .00 48 NA NA
CommonStk +Paid-InCap. 2.84 3.87 36 2.78 3.71 41 2.85 3.21 44 2.90 3.36 45 .1 .3
Unr1Gain/LossAvai14Sal .01 -.03 87 .01 -.05 92 .00 -.12 82 .01 -.08 95 18.6 822.2
Gains/LossCashFlwHedge .00 .00 49 .00 .00 48 .00 .00 45 .00 .00 46 NA NA
Other .00 .00 55 .00 .00 55 .00 .00 55 .00 .00 56 NA NA
Retained Earnings 4.01 5.23 36 3.77 5.39 32 3.56 5.58 27 3.49 5.41 29 4.4 26.6
Other Components .00 .00 60 -.00 .00 61 .00 .00 60 .00 .00 60 NA NA
Subtotal of 8.0 6.86 9.63 12 6.56 9.58 8 6.40 9.02 8 6.39 9.28 7 2.6 14.3
Total Liabilities + Equity 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 -2.0 5.6
Group 5 Group 5
2nd
Group 5
Group 5 Group 5
current Quarter 1st Prior Qtr Prior Qtr
3rd Prior Qtr 4th Prior Qtr
================= ================= =================
=================
=================
YRMO, Period End ....
200612 200609 200606
200603 200512

72 67 67
67 65
2,140,531 2,183,547 2,131,046
2,093,402 2,026,202
FIRREA CAPITAL COMPLIANCE:
6.82 8.48 12 6.51 8.44 10 6.36 8.46 Core Capital(%Adj Tang TA) 7 6.34 8.35 5 6.28 8.28 4
Risk Based Capital (%RWTA) 15.70 13.23 68 15.77 13.43 70 15.01 13.14 67 15.27 13.25 64 14.34 13.38 60
Core Capital (9000)
145,805 142,045 135,448
132,616 127,053
Risk Based ($000)
153,520 148,014 141,135
138,413 131,018
Core Cap Surplus ($000)
60,231 54,754 50,245
48,933 46,066
RiakBasedCap.Surplus ($OOO)
75,271 72,906 65,925
.65,878 57,920
FDICIA PCA CAPITAL RATIOS:
13.23 68 15.77 13.43 70 15.01 13.14 Total Risk-Based 15.70 67 15.27 13.25 64 14.34 13.38 60
Tier 1 (Core) Risk-Based 14.88 12.43 69 15.07 12.32 70 14.37 12.37 67 14.61 12.39 64 13 .85 12.35 60
Tier 1 (Core) Leverage 6.62 8.48 12 6.51 8.44 10 6.36 8.46 7 6.34 8.35 5 6.28 8.28 4
INTEREST EARNING ASSETS:
IEA/ICL 107.15 111.68 15 106.25 112.07 11 106.32 111.47 11 104.63 112.17 4 104.94 -112.06
CONSOLIDATED ASSET QUALITY TREND: (% of Total Assets)
Non-Performing Loans .81 .31 79 1.12 .24 91 1.20 .22 89 1.21 .17 91 1.36 .19 90
Repossessed Assets, Gross .35 .02 93 .31 .02 94 .28 .01 92 .31 .01 95 .22 .01 93
Repossessed Assets,Net SVA .35 .02 93 .31 .02 94 .28 .01 92 .31 .01 95 .22 .01 93
Total NonPerform. Assets 1.16 .41 86 1.44 .29 91 1.48 .22 92 1.52 .21 91 1.59 .23 92
TDR Loans + Reposa'd TDR .35 .01 89 .31 .01 91 .18 .01 79 .16 .01 83 .22 .01 86
CLASSIFICATION OF ASSETS:
.49 76 1. 24 .44 86 1.26 Substandard 1.08 .43 B6 1.22 .38 8S 1.38 .42 90
Doubtful .02 .00 75 .03 .00 75 .04 .00 79 .04 .00 76 .00 .00 24
Loss
.00 .00 49 .00 .00 48 .00 .00 49 .00 .00 50 .00 .00 49
Total Classified 1.10 .55 76 1.27 .46 85 1.30 .43 85 1.26 .38 86 1.38 .42 87
Total Classified/NPA 95.45 128.13 17 88.52 129.53 10 87.89 137.82 18 82.48 146.89 17 86.97 162.62 16
Sub+Doubt / CoreCap+GVA 15.21 6.00 86 16.38 5.43 88 19.18 4.30 86 18.60 4.00 88 20.76 4.46 90
Sub+Doubt/RBC+ExcessGVA 15.39 5.98 86 18.75 5.43 88 19.58 4.55 86 19.01 3.87 88 21.32 4.77 90
Special Mention Assets .33 .43 45 .30 .29 52 .53 .26 58 .46 .27 61 .58 .28 69
ALLOWANCES FOR LOAN & LEASE LOSSES:
Mtg Loan ALLL, % Mtg Lna .62 .59 54 .59 .58 53 .58 .58 50 .54 .54 47 .45 .57 41

1. 77 1. 51 55 1.68 1.72 48 1.85 1.62 55 1.64 1.62 51 1.64 1.64 50
34.71 125.28 12 26.14 202.06 7 24.86 212.35 4 25.11 246.08 4 21.16 226.57 4
Tot.GenA1low+ALLL,%(Cl-Los) 40.10 92 .27 19 32.48 126.96 13 31. 36 123.78 11 33.48 119.13 13 27.03 113.24 9
EFFICIENCY RATIO:
% G&A/(NIM+Fees+FHLB Div) 74.63 68.72 63 80.64 65.75 70 75.37 64.80 69 72.26 64.26 61 79.10 67.87 68
/'.'
1207
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
SUMMARY STATEMENT, Part 2
07:16 04/28/2007
United Western Bank
PAGE 2 .
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
3rd Prior Qtr 4th Prior Qtr
================= ================= ================= ===============:=
=================
5
pct
5
pct
5
5 5
S&L S&L S&L Med1an Pct S&L Medl.an Pct
S&L pct
Months in Period
3 3 3 3 3
YRMO, Period End ....
200612 200609 200606
200603 200512
SUMMARY INCOME STATEMENT:
(It of Average Total Assets)
1.1 Interest&Dividnd Income 5.63 6.04 31 5.54 6.00 29 5.32 5.84 23 5.11 5.60 23 4.60 5.45 4
2.1 Interest Expense 2.58 3;25 16 2.73 3.08 22 2.51 2.85 26 2.25 2.67 26 2.09 2.54 24
3.1 Net Interest Margin 3.05 2.77 68 2.81 2.81 51 2.80 2.81 47 2.86 2.91 45 2.51 2.94 28
3.2 Net Prov.for lEA Losses .02 .05 35 .04 .06 44 .20 .05. 80 .18 .05 75 .07 .07 50
3.3 Net Int.After lEA Loss
3.03 2.65 72 2.77 2.68 58 2.60 2.81 36 Provision: (3.1)-(3.2) 2.68 2.84 41 2.44 2.87 30
4.0 Noninterest Income .24 .67 17 1.47 .60 82 .39 .61 26 1.10 .60 75 -.09 .65 1
5.1 Noninterest 2.37
2.34 52 2.36 2.26 58 2.22 2.23 47 2.26 2.20 51 2.28 2.34 48
6.0 Income Before ncome Taxes
1.07 39 1.B7 1.19 BO .78 1.30 (3.3)+(4.0)-<5.0) .90 20 1.52 1.36 60 .07 1.43 6
7.1 Income Taxes .24 .31 42 .67 .38 80 .25 .39 29 .53 .46 66 - .13 .42 1
8.0 Net Inc.Before Extraord
.66 .72 42 1.21 .76 73 .53 .86 20 Items: (6.0)-(7.0) .99 .90 58 .19 .93 12
8.1 Extraordinary Items .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
9.1 ROAA: (8.0)+(8.1) .66 .72 42 1.21 .76 73 .53 .86 20 .99 .90 58 .19 .93 12
(%

Annualized w/o Compounding)

(ROE) 9.90 7.50 67 8.33 9.52 47 15.71 10.30
80 3. 09 9.71 19
3,591 6,487 2,816
5,152
988
Avg ASsets
2,163,982 2,149,307 2,126,709 2,076,786 2,031,901
Avg Equity
145,078 139,845 135,153
131,212 128,063
PROFITABILITY ANALYSIS:
5.84 6.45 27 5.75 6.38 25 5.59 6.22 23 lEA Yield 5.39 5.96 23 4.89 5.78 9
COF (with Cap. Int.) 2.83 4.01 6 2.98 3.88 14 2.BO 3.56 13 2.52 3.30 11 2.31 3.06 12
Spread, lEA Yld-COF 3.01 2.50 73 2.76 2.62 60 2.BO 2.71 55 2.87 2.73 58 2.58 2.83 36
Net Int. Marg. (NIM) 3.05 2.77 68 2.81 2.81 51 2.BO 2.B1 47 2.86 2.91 45 2.51 2.94 28
Fee Income .09 .50 12 .10 .48 14 .08 .48 13 .21 .44 26 .33 .51 34
Goodwill Expense (GDW) .01 .01 52 .01 .00 54 .01 .00 54 .01 .00 54 .01 .00 57
G&A Expense 2.34 2.32 52 2.34 2.23 58 2.18 2.22 45 2.22 2.20 52 2.25 2.25 48
NIM/G&A Expense (%) 130.30 122.40 61 119.89 131.28 35 128.95 129.53 45 128.74 129.12 48 111.83 123.21 33
Core Inc befor Prov .79 .90 41 .56 1.05 27 .71 1.16 29 .85 1.05 36 .59 1. 07 33
ROAA .66 .72 42 1.21 .76 73 .53 .B6 20 .99 .90 58 .19 .. 93 12

(ROE) 9.90 7.50 67 18.55 8.53 91 S.33 9.52 47 15.71 10.30 SO 3.09 9.71 19
3,591 6,487 2,816 5,152
988
MORTGAGE LOAN ACTIVITY:
(% Total Assets at Start of Period)
Mtge Loans Originated 4.92 6.04 43 2.63 6.28 16 2.13 7.48 11 2.56 7.06 12 2.31 7.39 12
Mtge Loans Purchased .23 .01 65 .24 .00 70 .16 .03 61 8.44 .03 93 11.04 .06 93

.06 .62 26 .17 .62 31 1.62 .64 63 1.21 .49 63 1.95 .72 66
5.10 5.15 47 2.70 4.67 23 .68 5.91 5 9.78 5.28 84 11.40 5.38 84
Other Changes (by diff.) -4.43 -3.84 43 -4.24 -4.08 47 -4.90 -4.13 42 -13.83 -4.58 3 -12.99 -4.18 4
Net Change in Mtg. Lns. .66 .89 46 -1.54 .79 11 -4.22 1.65 4 -4.05 1.32 6 -1.58 1.38 15
CHANGES IN FINANCIAL COND.:
-1.80 .11 12 1. 09 .21 83 -.47 -.16 39 1.1 Cash,Dep.+lnv.Secur. -.06 .03 43 -.62 .05 27
2.2 Mortgage Backed Secur. -.83 -.23 19 3.16 -.10 92 7.35 -.10 97 5.81 -.15 98 3.93 - .28 98
2.6 Mortgage Loans .66 .89 46 -1.54 .79 11 -4.22 1.65 4 -.4.05 1.32 6 -1.58 1.38 15
3.1 Nonmortgage Loans -.12 .04 20 .36 .08 67 -1.05 .04 7 1.46 .02 92 .72 .09 83
4.0 Repossessed Assets .03 .00 86 .04 .00 88 -.03 .00 7 .10 .00 93 .06 .00 95
4.5 Real Estate Invest. .00 .00 50 .00 .00 53 .00 .00 52 .00 .00 53 .00 .00 54
5.1

.03 .00 72 .03 .00 79 .03 .02 52 .34 .01 96 .02 .01 60
5.5
.10 .01 83 -.58 .00 2 .11 .01 89 .00 .01 39 .00 .02 30
5.8 Other Assets -.04 .00 36 -.10 -.03 35 .09 .04 63 -.30 .02 3 .00 .02 40
Total Assets -1.97 .77 16 2.46 1.31 71 1.80 1. 83 47 3.32 1. 70 71 2.53 1.29 72
7.1 Deposits, NetofYld Adj 2.71 .97 72 -2.33 .95 8 6.83 .54 97 -.84 1.32 15
.60 .. 59 50
7.2 Borrowings -4.71 -.13 9 4.02 -.05 94 -5.04 .90 4 3.74 .16 89 2.02 .14 75
7.5 Other Liabilities -.13 -.01 28 .46 .06 92 - .11 .03 20 .16 -.01 87 - .14 .00 18
7.9 Minority Interest .00 .00 94 .00 .00 52 .00 .00 50 .00 .00 49 .00 .00 95
8.0 Perpetual Pref.Stk .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 49 .00 .00 50
CommonStk +Paid-InCap. .00 .00 58 .00 .00 64 .00 .00 34 .00 .00 32 .00 .00 32
UnrlGain/LossAvai14Sal .00 .01 30 .01 .07 23 -.01 -.03 66 .01 -.02 95 .00 -.02 80
Retained Earnings .16 .13 56 .30 .15 88 .13 .16 39 .25 .17 75 .05 .15 30
Other .00 .00 43 .00 .00 41 .00 .00 42 .00 .00 43 .00 .00 43
Total Liabilitl.es + -1.97 .77 16 2.46 1.31 71 1.80 1. 83 47 3.32 1.70 71 2.53 1.29 72
Chng Tot Liab.+ Eq.($ 00)
-43,016 52,501 37,644 67,201 49,997
MORTGAGE PRINCIPAL REPAYMENTS:
(Non-Annualized % of Avg. Interest Earning Mtg. Backed Sec.)
1. On Mortgage Backed Sec. -6.76 -4.51 20 -4.84 -4.38 44 -5.72 -5.89 54 -5.61 -5.63 51 -7.63 -7.06 36
(Non-Annualized % of Avg. Interest Earning Mtg. Loans)
2. On Mortgage Loans 9.12 6.37 71 7.90 6.11 64 9.90 6.50 77 9.23 6.33 76 15.55 6.75 92
OTHER RATIOS:
(Actual Thrift Investment Percentage)
QTL Test: 1st Mth of Qtr 92.95 80.23 82 93.55 79.78 80 94.96 79.81 79 95.49 81.47 79 95.94 82.37 81
2nd Mth of Qtr 92.50 80.79 78 93.45 79.08 80 94.63 79.53 79 95.43 81.06 77 96.15 82.04 81
Qtr. End 91.19 79.56 73 93 .16 79.09 80 93.97 80.60 79 95.40 81.00 79 95.71 82.22 78
IRS Domestic Bldg&Loan Test .00 .00 46 .00 .00 46 .00 .00 47 .00 .00 47 .00 .00 47
Total Lns / Deposits . 82.86 104.06 21 85.62 105.19 26 84.37 108.14 23 102.80 107.99 45 105.55 107.61 45
Total Lns+MBS 7 136.78 120.40 71 143.25 123.73 77 135.12 125.56 66 147.07 124.48 83 139.96 127.38 72
1208
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
DETAILED INCOME STATEMENT
($000)
07:16 04/28/2007
United Western Bank
PAGE 3
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
3rd Prior Qtr
4th Prior Qtr ._= ... a==_.=a __ ==
. _-====== ==.-
--=-=-==_._._.=-- =-===========-=== ._._==a=_==_= __ ==
Months in Period 3 3
3
3
3 YRMO, Period End .. 200612 200609
200606
200603
200512
DETAILED INCOME STATEMENT
1.1 Interest and Dividend Income:
1,406 1,590 Deposits & Invmt.Secur.
1,688
2,304
2,030 Mtge Backed Sec. 10,452 9,698
8,028
6,224
4,881 Mtge Loans 16,756 16,919
17,052
16,551
15,501 NonMtg Commr.Ln&Lease 1,164 925
921
958
526 NonMtg Consm.Ln&Lease 37 20
9
6
10

1,201 945
930
964
536 626 609
578
501
418 Other Dividends 0 0
0
0
0 SUbtotal of 1.1 30,441 29,761
28,276
26,544
23,365
2.1 Interest Expens,e:
6,36,4'
6,369
on Escrows
5,B86
4,244
4,560 26
9 9
9
1 Advances from FHLBank 7,110 8',269
7,469
7,428
6,043 Subordinated Debentures 0 0
0
0
0

0 0
0
0
0 457 10
0
0
0 Less: Capitalized Int. 0 0
0
0
0 Subtotal of 2.1 13,957 14,657
13,364
11,680
10,604
3.1 Net Int.BeforelEA Loss
Provision: (1.1)-(2.1) 16,484 15,104
14,912
14,864
12,761
3.2 Net Provision for lEA
Losses 82 232 1,071
957
380
3.3 Net Int.After lEA Loss
Provision: (3.1)" (3 .2) 16,402 14,872
13,B41
13,906
12,381
4.0 Noninterest Income:
76 -143

-13
434
434 391 662
443
6B1
1,231 Net Income (Loss) From:
Sales :Assets Held4Sale ' 196 160
301
454
295 REO -125 -322
-231
-268
-193 LOCO Adj.Held4Sale 650 350 400
1,100
-3,200 Sale: SecurHeld2Mat 0 0
0
0
0 Sale: LoaneHeld4Inv 0 0
0
0
0 Sale: OthAssets4Inv -105 6,130
0
0
0 GainonTradingAl!lsets 0 -63
-161
-6
64 Oth.Nonlnter.Income 242 1,101
1,359
3,335
914 Subtotal of 4.0 1,325 7,B75
2,098
5,730
-455
5.1 Noninterest'Expense:
3,B08 3,125
2,658
All Personnel Exp.
2,785
2,111
&E ip,
98 133 174
173
247 390 BBB
923
866
864 Marketing 25B 352
503
39B
379 Loan Servicing Fees 663 728 779
805
831 Oth.NonInterest Expense 7,434 7,372
6,400
6,645
6,978

12,651 12,598
11,564
11,546
11,411 46 30
28
,27
27 NetProv,NonIEALosses 137 55
224
173
154 Subtotal of 5.1 12,834 12,683
11,816
11,746
11,592
6.0 Income Before Inc Taxes 4,893 10,064
4,123
7,890
335
7.1 Income Taxes:
1,302 3,577 Federal
1,307
2,738
-654 State, Local, and Other 0 0
0
0
0 Subtotal of 7.1 1,302 3,577
1,307
2,738
-654
8.0 Net Inc.Before Extraord
Income: (6.0)-(7.1) 3,591 6,487
2,816
5,152
988
8.1 Extraord. Income 0 0
0
0
0
9.1 Net Income: (8.0)+(8.1) 3,591 6,487
2,816
5,152
988
ANALYSIS OF CORE INCOME:
16,484 15,104 Net Int.BefIEA LossProv
14,912
14,864
12,761 Mtfi Loan Servicing Fees 76 -143
-13
434
434 Ot er Fees and Chirges 391 662
443
681
1,231
Less G & A 12,651 12,598
11,564
11,546
11,411 Less Goodwll& ntglbeExps 46 30
28
27
27 Core Inc. Bef Provisns 4,254 2,995
3,750
4,406
2,988 LossProv 219 287
1,295
1,130
534 Core Inc. Aft Provisns 4,035 2,708
2,455
3,276
2,454 Profit:AssetsHeld4Sale 196 160
301
454
295 Core+ProfitAH4S 4,231 2,868
2,756
3,730
2,749
1209
07:16 Q4/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY RSGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
NOTES TO DETAILED INCOME STATEMENT
($000)
DOCKET:
DATA AS OF:
United Wes.tern Bank
06679 TFR STAT08: COMPLETE
CUrrent Quarter
=================
04/28/2007 CMR STATUS: COMPLETE
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
================= ================= =================
Months in Period
YRMO, Period End ....
3
200612
Memo: LARGEST COMPONENTS OF OTHER NONINTERSST
Codell:
Other NonInterest Income Items:
Amount
Code (S0489)
Amount
Code (S0495)
Amount
Code (S0497)
Other NonInterest Expense Itell\s:
Amount
Code (S058i)
Amount
Code (S0583)
Amount
Code (S0585)
SERVICING DATA:
Loans Serviced for Others
Loan Servo Fee Income
Servo by Others Expense
MUTUAL FUND & ANNUITY SALES:

ANALYSIS OF PERSONNEL EXPENSE:
End of Period FTEs-Actual #
Average # FTEs
personnel Expense
ACCOUNTING CLASSIFICATIONS:
Trading Account
Avail-4-Sale Securltles
Assets Held-4-Sale
Avg.TradingAccountAssets
Avg.Avai14SaleSecurities
Avg.AssetsHeld4Sale
01 - No longer.used
S0489, S0495 and S0497:
228
15
8
99
6
99
6,061
99
147
99
389
99
58,790
76
663
o
o
128
125
3,808
o
142,143
499,889
o
137,074
515,194
02 - Interest income from income tax refunds
3
3
3
200609
200606
200603
INCOME AND OTHER NONINTEREST
EXPENSE
662
403
2,465
7
99
99
222
719
636
15
7
7
201
219
218
99
15
15
5,983
:210
414
99
99
99
291
5,491
4,987
99
99
99
137
282
231
99
99
99
57,665
35,596
36,338
-143
-13
434
728.
779
805
($000 During Period)
0
0
0
0
0
0
121
116
102
119
109
99
3,125
2,785
2,658
0
94,691
102,980
132,005
35,693
22,736
530,499
748,099
875,066
47,346
98,836
103,851
83,849
29,215
18,600
639,299
811,583
911,135
PAGE 4
4th Prior Qtr
=================
3
200512
26
12
666
7
221
15
1,500
99
4,322
99
237
99
38,407
434
831
o
o
96
97
2,111
104,722
14,463
947,204
109,239
17,210
960,973
03 - No longer used , .
04 - Net income (loss) from leasing or subleaslng,space in the assoclation's quarters,future quarters and parking lots
OS - Net income (loss) from real estate held for lnvestment
06 - Net income (lossl from in investments,
accounted for uSlng the equlty method, after the of lntercompany proflts
07 - Net income (loss) from leased property
08 - Net income (loss) allocable to minority shareholders ,
09 - Net income from data processing equipment leased or servlces provided to others
10 - No longer used
11 - Adjustments to prior periods ,
12 - Income received on real estate acqulred through foreclosure or deed in lieu of foreclosure on VA or FHA loans
pending conveyance to the insuring agency
13 - No longer used . i bl d ' .
14 - Income from interest-only strlp rece va es an certaln other lnstruments reported on SC655
15 - Income from Corporation-owned Life Insurance
19 - Realized and unrealized gains on derivatives, where such gains are not included in interest income or expense
99 - Other
S0581, 80583 and S0585:
01 - Deposit Insurance premiums
02 - OTS assessments
03 - Interest income on income taxes . .
04 - Interest expense on Treasury tax and loan accounts admlnlstered under the note option
05 - Forfeited commitment fees on FHLBank advances not taken down by the association
06 - Supervisory examination fees
07 - Office supplies, and postage
DB - Telephone, data lines
09 - Noncapitalized loan origination expenses, including appraisal reports, credit reports, etc.
10 - ATM expenses .
11 - Adjustments to prior periods
12 - Acquisition and organization costs, including mergers and branch office acquisitions
13 - Miscellaneous taxes other than income taxes and real estate taxes
14 - Losses from fraud
15 - Foreclosure expenses
16 - Web site expenses
17 - Charitable contributions
18 - Net Income allowable to minority shareholders
19 - Realized and unrealized gains on derivatives, where such losses are not included in interest income or expense
99 - Other
1210
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612 .
DETAILED INCOME STATEMENT
(t of Average Total Assets of S&L, Annualized w/o Compounding)
07:16 04/28/2007
united Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/20.07 CMR STATUS: COMPLETE
current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
_ _ D.====._.=_ _====_===_= __ =_== =====_.a_==._.===
S&L Pct S&L Pct S&L Pct S&L Pct
Months in Period
YRMO, Period End ...
DETAILED INCOME STATEMENT:
1.1 Interest and Dividend Income:
Deposits & Invmt.Secur. .26
Mtge Backed Sec. 1.93
Mtge Loans 3.10
NonMtg Commr.Ln&Lease .22
Consm.Ln&Lease .01

Other Dividends .00
Subtotal of 1.1 5.63
2.1 Interest Expense:
on Escrows'
Advances from FHLBank
Subordinated Debentures
Mtg Collaterized Secur.
Other Borrowed Money
Less: Capitalized Int.
Subtotal of 2.1
1.18
.00
1.31
.00
.00
.08
.00
2.58
3.1 Net Int.Before lEA Loss
Provision: (1.1)-(2.1) 3.05
3.2 Net Provision for lEA
Losses .02
3.3 Net Int.After lEA Loss
Provision: (3.1) - (3.2) 3.03
4.0 Noninterest Income:

5.1
Net Income (Loss) From:
Sales:Assets Held4Sale
REO Operations&Sales
LOCOM Adj.Held4Sale
Sale: SecurHeld2Mat
Sale: LoansHeld4Inv
Sale: OthASsets4Inv
GainonTradingAsset.s
Oth.Nonlnter.Income
Subtotal of 4.0
Noninterest Expense:
All Personnel Exp.
&EqUip.
Marketing
Loan Servicing Fees
Oth.Nonlnterest Expense

.
6.0 Income Before Inc Taxes
7.1 Income Taxes:
Federal
State, Local, and Other
Subtotal of 7.1
8.0 Net Inc.Before Extraord
Income: (6.0)-(7.1)
8.1 Extraord.lncome
9.1 Net Income: (8.0)+(8.l}
ANALYSIS OF CORE INCOME:
Net Int.BeflEA LossProv
Mtg Loan Servicing Fees
Other Fees and Charges
Less G & A Expense
Less Goodwill Expense
Core Inc. Bef provisns
LossProv
Core Inc. Aft Provisns
Profit:AssetsHeld4Sale
Core+ProfitAH4S
Avg Assets
.01
.07
.04
-.02
.. 12
.00
.00
-.02
.00
.04
.24
.70
.02
.07
.05
.12
1.37
2.34
.01
.03
2.37
.90
.24
.00
.24
.66
.00
.66
3.05
.01
.07
2.34
.01
.79
.04
.75
.04
.78
3
200612
.25
.38
4.34
. 21
.09
.36
.05
.00
6.04
2.50
.00
.68
.00
.00
.05
.00
3.25
50
93
24
50
16'
34
95
45
31
2
94
86
47
50
61
47
16
2.77 68
.05 35
2.65 72
.01 56
.47 9
.03 54
.00 10
.00 98
.00 50
.00 45
.00 5
.00 48
.06 41
.67 17
1.32
.02
.41
.12
.00
.32
2.32
.01
.00
2.34
1.07
.27
.02
.31
.72
.00
.72
2.77
.01
.47
2.32
.01
.90
.05
.79
.03
.94
12
50
4
13
94'
94
52
52
95
52
39
43
19
42
42
50
42
68
56
9
52
52
41
46
46
54
42
2,163,9B2
3
200609
.30
1.80
3.15
.17
.00
.18
.11
.00
5.54
1.19
.00
1.54
.00
.00
.00
.00
2.73
.19
.34
4.32
.22
.07
.37
.05
.00
6.00
2.33
.00
.67
.00
.00
.05
.00
3.08
60
92
25
42 .
10
29
94
45
29
2
86
88
48
50
38
47
22
2.81 2.81 51
.04 .06 44
2.77 2.68 58
-.03
.12
.03
-.06
.07
.00
.00
1.14
-.01
.. 20
1.47
.58
.02
.17
.07
.14
1.37
2.34
.01
.01
2.36
1.87
.67
.00
.67
1.21
.00
1.21
2.81
-.03
.12
2.34
.01
.56
.05
.50
.03
.53
.01 4
.46 19
.03 48
.00 5
.00 95
.00 50
.00 45
.00 98
.00 2
.07 83
.60 82
1.27
.01
.41
.14
.00
.31
2.23
.00
.00
2.26
1.19
.36
.04
.38
.76
.00
.76
'2.81
.01
.46
2.23
.00
1.05
.06
.97
.03
1.08
10
67
10
17
94
94
58
54
9;1
58
80
83
15
80
73
50
73
51
4
19
58
54
27
44
27
48
20
2,149,307
==-==-
3
200606
.32
1.51
3.21
.17
.00
.17
.11
.00
5.32
1.11
.00
1.40
.00
.00
.00
.00
2.51
2'.80
.20
2.60
.00
.08
.06
-.04
.08
.00
.00
.00,
-.03
.26
.39
.52
.03
.17
.09
.15
1.20
2.1B
.01
.04
2.22
.7B
.25
.00
.25
.53
.00
.53
2.BO
.00
.08
2.18
.01
.71
.24
.46
.06
.52
.17
.36
4.42
.22
.08
.35
.05
.00
5.84
2.05
.00
.75
.00
.00
.04
.00
2.85
64
88
26
44
4
32
94
44
23
2
83
89
48
50
17
47
26
2.81 47
.05 80
2.81 36
.01 4
.46 13
.03 58
.00 5
.00 98
.00 49
.00 47
.00 48
.00 1
.08 85
.61 26
1.29
.01
.43
.14
.00
.33
2.22
.00
.00
2.23
1.30
.37
.04
.39
.86
.00
.86
2.81
.01
.46
2.22
.00
1.16
.05
.93
.03
1.15
8
82
8
22
94
92
45
54
98
47
20
29
14
29
20
50
20
47
4
13
45
54
29
85
23
58
17
2,126,709
1211
3
200603
.44
1.20
3.19
.18
.00
.19
.10
.00
.5.11
.82
.00
1.43
.00
.00
.00.
.00
:;1.25
2.86
.18
2.68
.08
.13
.09
-.05
.21
.00
.00
.00
.00
.64
1.10
.51
.03
.17
.08
.16
1.28
2.22
.01
.03
2.26
1.52
.53
.00
.53
.99
.00
.99
2.86
.08
.13
2.22
.01
.85
.22
.63
.09
.72
.15
. 33
4.12
' .. 19
.09
.32
.05
.00
5.60
1.86
.00
.74
.00
.00
.05
.00
2.67
73
80
25
48
4
33
92
46
23
1
86
92
49
50
16
47
26
2.91 45
.05 75
2.84 41
.01 80
.42 20
.03 66
.00 4
.00 98
.00 51
.00 47
.00 53
.00 4
.07 97
.60 75
1.29
.01
.4l
.13
.00
.32
2.20
.00
.00
2.20
1.36
.42
.03
.46
.90
.00
.90
2.91
.01
.42
2.20
.00
1.05
.05
.94
.03
1.25
8
80
10
20
94
92
52
54
97
51
60
77
12
66
58
50
58
45
80
20
52
54
36
82
35
66
25
2,076,786
PAGE 5
4th Prior Qtr
S&L Pct
3
200512
.40
.96
3.05
.10
.00
.11
.08
.00
4.60
.90.
.00
1.19
.00
.00
.00
.00
2.09
2.51
.07
2.44
.09
.24
.06
-.04
-.63
.00
.00
.00
.01
.18
-.09
.42
.05
.17
.07
.16
1.37
2.25
.01
.03
2.28
.07
-.13
.00
- .13
.19
.00
.19
2.51
.09
.24
2.25
.01
.59
.11
.48
.06
.54
.19
.39
4.18
.17
.08
.32
.05
.00
5.45
1.74
.00
.64
.00
.00
.05
.00
. 2.54
69
75
22
34
7
27
90
46
4
4
66
84
49
50
16
46
24
2.94 28
.07 50
2.87 30
.01 75
.43 30
.02 63
.00 4
.00 l.
.00 49
.00 46
.00 51
.00 98
.07 80
.65 1
1.25 6
.02 81
.40 10
.14 18
.00 95
.34' 92
2.25 48
.00 57
.00 98
2.34 48
1.43 '6
.38 6
.03 19
.42 7
.93 12
.00 50
.93 12
2.94 28
.01 75
.43 30
2.25 48
.00 57
1.07 33
.08 60
.92 34
.02 63
1.24 . 28
2,031,901
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
NOTBS TO DETAILED INCOME STATEMENT
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
YRMO, PeriodEnd ....
_======-=;oo,i; ===========200609 ========200606 ==-========;00603
Memo: LARGBST COMPONENTS OF 0THEli NQNINTEREST INCQME AND OTHER NONINTEREST EXPENSE
Other Nonlnterest Total Assets of S&L, Annualized w/o Compounding)
Amount .04 .04 53 .12 .04 85 .08 .04 72 .47
Code (S0489) 15 7 99
Amount .00 .01 30 .04 .01 82 .14 .01 95
Code (S0495) 99 15 7
Amount .. 00 .00 61 .04 .00 92 .04 .00 89
Code (S0497) 99 99 15
Other Nonlnterest Expense Items:
Amount 1.12
Code (S0581)
Amount
Code (S0583)
Amount
Code (S0585)

Loan Servo Fee Income
Fees t Avg. Servicing
.03
.07
2.75
.01
.52
:12
.08
.04
.03
98
99
24
99
84
99
4.09 43
.01 56
.14 84
.00 94
1.11
.05
.03
2.64
-.03
-1.23
.14
.08 . 98
99
64
99
32
99
.04
.03
4.64 41
.01 4
.16 1
.00 94
.04
1.03
.05
1.67
.00
-.14
.15
.07
.05
.03
25
99
98
99
72
99
6.68 33
.01 4
.15 5
.00 94
.12
.04
.08
.96
.04
1.74
.08
4.65
.16
Servo by Others kKpense
MUTUAL FUND & ANNUITY SALES:
(t Total Assets, Beginning of Period)
Tot.AsstsMgd propMutFnds
Fee
ANALYSIS OF PERSONNEL EXPENSE:
.00
.00
.00
.00
47
23
.00 .00 47 .00 .00 47
.00 .00 23 .00 .00 22
.00
.00
.03
.01
.00
.07
.04
.03
97
99
97
7
92
15
54
99
98.
99
67
99
4.BO 38
.01 SO
.17 98
.00 94
.00 46
.00. 22
PAGE 6
4th Prior Qtr
._ a_=F====-==
. 200512
.01 .03 16
12
.13 .01 98
7
.04 .00 89
15
.30 .07 86
99
.85 .04 98
99
.05. .03 63
99
1.90
.09
4.56
.16
;00
.00
4.54 39
.01 75
.21 98
.00
.00
.00
95
46
22
Labor intensity .58
Salary & benefits level
ACCOUNTING CLASSIFICATIONS:
122.35
1.96
64.25
(Avg. Full-Time Employees/$10 Million of Avg. Assets)
9 .55 2.00 8 .51 2.07 8 .48 2.11 7 .48
(Avg. Personnel Expense per Employee, $OOO/Full-Time Emp91lOY8 e.eos)
93 105.49 64.40 102.20 63.98 89 107.39 63.72 87
2.13
63.68
6
86

Assets Held-4-Sale
.00
6.64
23.35
(.) Av.TradingAccontASsets .00
TradingAssets Gain/Loss NA
6.33
(*) Av.AssetHld4Sale 23.81
Profit+LOCOM on Hld4S .16
See page 4 for Codes.
(t of Total Assets)
.00
8.60
.12
47 .00 .00 47 4.44
35 6.05 8.59 33 1.67
97 24.30 .08 97 35.10
.00 98
8.81 22
.11 97
4.92
1.09
41.80
.00
S.8S
.05
98 5.17
20 .71
97 46.75
.00 47
.00 NA
9.00 32
.15 97
4.44 8
2.20 .00 9S 4.65 .00 98 5.00 .00 98
(t of Avg. Trading Assets, not Annualized)
- .1:1 .00 20 - .16 .00 20 -.01 .00 25
(t of Total Assets)
3.90 S.42 29 1.37 S.72 20 .90 9.32 19
(t of Total Assets)
29.74 .09 97 38.16 .14 97 43.87 .09 97
(t of Avg. Assets Held for Sale, not Annualized)
.08 4.05 11 .09 3:86 19. .17 2.64 17
1212
5.3.8
.06
.85
47.29
-.30
.00
9.05
.07
.00
-.05
9.65
.15
3.59
98
18
95
98
80
16
95
10
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
ANALYSIS OF NET INTEREST INCOME BEFORE PROVISION FOR lEA LOSSES: Composition of lEA & ICL
07:16 04/28/2007
DOCKET:
DATA AS OF:
current Quarter
united western Bank
06679 TFR STATUS: COMPLETE
04/28/2007 CMR STATUS: COMPLETE
1st Prior Qtr 2nd Prior Qtr
PAGE 7
3rd Prior Qtr 4th Prior Qtr
_ __ ===a=._ _ _====ce_.== __ ===_ _.======_==c_=_= _ _=._=========-
YRMO, Period End ...
1. INTEREST EARNING ASSETS:
Net Cash,Dep.,&Inv.Sec.(A1)
Cash & Non-IE Deposits (A2j
Accrued Int. Rec . (A3
Subtot: (A=A1-A2-A3+A4)
Net MBS . IB1!
Accrued Int.Receiv. B2
Total Allowances (B3
Subtot: (B) = (B1-B2+B3j
Net Mtg Lns (C1
Accrued Int.Receiv. (C2)
Non-Accruing Mtg LnS IC3j
Total Allowances,MTGLnS C4
Subtot: (C) = (C1-C2-C3+C4)
Net NonMtg Lns ID1j
Accrued Int.Reeeiv. D2
Non-Accruing NonMtg Lns D3)
To.tal Allow.(NonMortLns D4j
Subtot: (DI=(D1-D2-D3+D4
EQtylnv NotSbjetFASB115 (E)
Servicing Rights (Fj
Total lEA: (G) = (A+B+C+D+E+F
200612
108,336
11,863
1,118
95,355
757,434
3,228
o
754,.206
1,112,373
6,933
6,979
7,654
1,104,898
51,790
537
1,217
936
52,189
42,764
15,399
2,064,811
2. INTEREST COSTING LIABILITIES:
Deposits-Nonlnt.DemandD (HI
Advances from FHLBank (J
Subordinated Debentures (K
Mtg Collaterized Secur. (L
Other Borrowed Money (M)
Total ICL:(N=H+I+J+K+L+M)
Memo: Nonlnt. Demand Dep
1,356,.614
519,431
o
o
50,986
1,927,031
48,245
3. NET lEA, lEA-ICL:
(E-N) 137,780
4. lEA & ICL BALl\NCES:
Total lEA
Total ICL
4.3 NON - ICL BALl\NCES:
Equity Capital.
Otner(by diff.)
Total Non-ICL (TA-N)
4.6 NON - lEA BALl\NCES:
lEA Adjs. (Al+ .. +Dl-E)
Net 'd Ass.ets
Net
Other (by diff.)
=---=--======--==
S&L Pct
96.46 94.34 72
90.03 83.80 89
6.86
3.11
9.97
-1.63
.35
.00
4.82
9.63
5.38
16.20
.67
.02
.00
4.84
5.66
12
26
10
4
93
38
49
27
200609
($000 at End of Period)
147,576
9,988
1,448
136,140
775,569
3,269
o
772,300
1,097,928
6,682
13,739
7,264
1,082,708
54,483
499
2,063
933
54,917
42,138
16,561
2,104,764
($000 at End of Period)
1,307,660
644,956
o
o
28,336
1,980,952
38,133
123,812
200606
124,371
9,874
1,175
113,322
708,280
3,079
o
705,201
1,130,709
6,597
15,603
6,933
1,113,334
46,727
468
2,108
883
47,142
41,529
18,107
2,038,635
1,329,935
586,980
o
o
598
1,917,513
65,574
121,122
==--=._=-===-===-
S&L Pet
===-== ======
(t of Total
96.3994.72
90.72 83.97
6.56
2.72
9.28
-1.34
.31
.00
4.63
3.61
9.58
5.68
16.03
.49
.02
.00
4.71
5.28
8
23
5
8
94
39
48
27
S&L Pet
6.40
3.62
10.02
-1.34
.28
.00
5.40
4.34
9.02
5.35
15.75
.45
.01
.00
4.76
5.18
8
32
7
14
92
39
63
35
200603
134,194
11,100
1,383
121,711
554,480
2,376
o
552,104
1,219,111
6,733
15,096
6,865
1,202,889
68,741
548
1,258
1,146
69,339
40,951
19,587
2,006,581
1,224,664
691,004
o
o
2,159
1,917,827.
27,871
88,754
============--=-=
6.39
1.99
8.39
-1.44
.31
.00
5.27
4.15
9:28
5.14
16.42
.16
.01
.00
4.54
5.10
Pct
64
98
7
16
1
10
95
40
61
35
200512
135,316
11,622
1,314
122,380
436,811
1,807
o
435,004
l,3Q1,128
6,912
14,992
6;140
1,283,745
39,103
298
1,619
658
39,463
34,002
20,709
1,935,303
1,226,803
615,028
o
o
2,382
1,844; 213
42,761
91,090
_=====_D== __ ==_=_
Pct
95.51 95.20 59
91.02 83.50 95
6.35
2.64
8.98
-1.13
.22
.00
5.40
4.49
9.01
5.37
16.50
.43
.01
.00
4.49
4.80
4
19
4
18
93
40
63
40
Total Non-lEA (TA-E)
3.54
==_======_c==_===_=== __ =_====---======-====-=====-=-==-=--====---==_.-._-----_.=._.=._-----------=-=-----===========
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
=c=====s========- ================= ======-======---- -==-=============
Months in Period 3 3 3 3
YRMO, Period End.... 200612 200609 200606 200603
5. AVERAGE INTEREST EARNING ASSETS:
Dep&Inv.See: (a1!=(aVg of Aj 115,748
Mtg Bckd See(b1 =(avg of B 763,253
Mtg Lns: . (c1 =(avg of Cj 1,093,803
MBS&ML (bc)=(avg of BC 1,868,278
NonMtg LnS': (dl)=(avg of D) 53,553
Eqtylnv Not SbjctFASB Nol15 42,451
Lns ser (Fj 15,980
Total lEA: (gl)=(avg of E 2,084,788
6. AVERAGE INTEREST COSTING LIABILITIES:
Deposits:. (h1)=(avg of H) 1,332,137
FHLBank Adv: (ill=(avg of Jj 582,194
Subord.Debn: lftl =!av
g
of K 0
MtgCltrzdSec 11 = avg ot L) 0
OthBorrwing: m1 = avg of Mj 39,661
Total ICL: n1)- avg of N 1,953,992
7. AVG.NET lEA: (gl-n1) 130,796
========-====-===
8. AVG.lEA & ICL BALl\NCES:
Average Total lEA
Average Total ICL
Average Net lEA
S&L pet
96.34
90.30
6.04
95.04
84.02
9.94
($000 Average Balance
124,731
Durin! Period)
1 7,517 122,046
738,751 628,653 493,554
1,098,021 1,158,112 1,243,317
1,828,281 1,783,654 1,755,617
51,030 58,241 54,401
41,834 41,240 37,477
17,334 18,847 20,148
2,071,700 2,022,608 1,970,942
($000 Average Balance Period)
1,318,798 . 1,2 7,300 1,225,734
615,968 638,992
0 0
0 0
14,467 1,379
1,949,233 1,917,670
122,467 104,938
================= =======-=========
S&L Pct S&L Pet
1213
653,016
0
0
2,271
1,881,020
89,922
===============s=
S&L Pet
====== ====-=
Period)
94.90 95.48 45
90.57 84.38 97
4.33 10.31 4
4th Prior Qtr
=s===============
3
200512
128; 173
396,319
1,299,417
1,736,132
32,254
33,793
21,307
1,911,262
1,224,578
595,040
o
o
2,422
1,822,039
89,224

S&L Medlan Pet
94.06
89.67
4.39
94.86
83.53
9.81
42
89
3
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
OF NET INTEREST INCOME BEFORE PROVISION FOR lEA LOSSES: yields and Spreads
07,16 04/28/2007
United Western Bank
DOCKET:
06619 TFR STATUS: COMPLETE
DATA AS OF: 04/2B/2007 .CMR STATUS: COMPLETE
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
Months in Period
YRMO,period End ..
CUrrent Quarter
===_.===========;
200612
9. INTEREST & DIVIDEND INCOME FROM:
Deposits & Invmt.secur.!a2
1,406
10,452
16,756
1,201
29, B15
626
30,441
Mtge Backed Sec. b2
Mtge Loans !C2
NonMtg Loans Net d2
Subtotal: (f2)=(a2+ .. +d2
EqtyInv NotSbjctFASB115(e2
Total lEA: (g2)_(f2)
10. INTEREST'EXPENSE ON:
Deposits (h2
i
I
Escrows ! 2
Advances from FHLBank i2)
Subordinated Debentures jk21
Mtg Collaterized Secur. 12
Other Borrowed Money m21
Subtotal, (n2)=(h2+ .. +m2
Capitalized Interest (02)
.Total ICL, (r2=n2-02)
6,364
26
7,110
o
o
457
13,957
o
13,957
11. IMPACT OF IEA/ICL IMBALANCES:
NetlntBefIEALossProv (NIM) 16,484
Spread*AvgIEA*Months/12 ) 15,550
=(S2)=(g3-r3)*(al
Adj.if lEA<>ICL: (by
S&L Pct
_._--- ----==
======== ======; _._.==.=. ____ e._;
200609 200606
($000 During Period)
1,590
9,698
16,919
945
29,152
609
29,761
($000 During Period)
6,369
9
8,269
o
o
10
14,657
o
14,657
15,104
. ($000 During Period)
14,183
921
1,688
8,02B
17,052
930
27,698
578
28,276
5,886
9
7,469
o
o
o
13,364
o
13,364
14,912
14,181
731
===_==_a._===_===
----=-==-=---.-.-
S&L Pc:t Pct
_._-==-=---=--_.-
3
200603
2,304
6,224
16,551
964
26,043
501
26,544
4,244
9
7,428
o
o
o
11,681
o
11,6BO
14,864
14,306
558
===-======-===-=-
S&L Pct
12 . YIELDS ON AVERAGE lEA COMPONENTS:
Dep.&Invmt.Sec:ur: (a3=a2/al) 4.86 4.85
Mtge Bac:ked Sec: Ib3=b2/bl) 5.4B 4.B5
Mtge Loans: c:3=c:2/c:l) 6.13 6.77
NonMtg Loans: d3=d2/dl1 8.97 8.00
Equity Invest: e3=e2.el 5.90 5.90

50 5.10 4.75 60 5.75 4.44 85 7.55 3.83 95
8B 5.25 4.73 79 5.11 4.63 76 5.04 4.60 Bl
29 6.16 6.74 32 5.89 6.48 23 5.32 6.35 10
73 7.41 7.79 41 6.39 7.72 19 7.09 7.36 41
49 5.B2 5.57 72 5.61 5.13 67 5.35 4.B5 70
Subtotal: (f3)=(f2/fl) .55.'8742 6.39
lEA yield (g3=g2/g1) 6.45
27
27
(' Average Total lEA, Annualized w/o Compounding)
5.63 6.31 23 5.4B 6.15 22 5.29 5;B8 20
5.75 6.38 25 5.59 6.22 23 5.39 5.96 23
PAGE 8
4th Prior Qtr
6.34
4.93
4.77
6.65
4.95
4.BO
4.89
3
200512
2,030
4,8Bl
15,501
536
22,948
41B
23,365
4,560
1
6,043
o
o
o
10,604
o
10,604
12,761
12,242
519
4.13
4.42
6.21
7.16
4.70
5.73
5.78
92
77
3
37
66
7
9
13. YIELDS ON AVERAGE ICL COMPONENTS:
Deposits: !h3=h2/hl) 1.90 3.87
FHLBank Adv: 13=12/11j 4.85 4.66
2
64
NA
NA
43
(t of Various Liabilities, Annualized w/o Compounding)
1.92 3.60 4 1.85 3.21 2. 1.40 3.10 1 1.4B
5.33 4.89 70 4.69 4.65 50 4.61 4.44 63 4.03
2.B7
3.96
7.68
4
55
NA
NA
Subord.Deben: k3=k2/kl NA 7.11
NA 6.53 NA NA 5.Bl NA NA 3.76 NA NA
Mt9 Cltrzd Sec:.: 13=12/11 NA NA
NA NA NA NA NA NA NA NA NA NA NA
3.67
Other Borrowing: m3-m2/ml 4.57 4.77
.27 4.78 4 .00 4.46 3 .00 4.32 2 .00
Subtotal: (n3)=(n2/nl)
(' Average Total ICL, Annualized w/o Compounding)
2.83 4.01 6 2.9B 3.BB 14 2.80 3.56 13 2.52 3.30 11
.00 .00 47 .00 .00 47 .00 .00 47 .00 .00 47
capitalized Int. (o3-02/nl)
COP w/o Cap. Int. (r3=r2/nl)
COF w/Cap;Int. : (r4=r3+o3)
2.B3 4.01 6 2.9B 3.BB 14 2.BO 3.56 13 2.52 3.30 11
2. B3 4.01 6 2. 9B 3.88 142.80 3.56 13 2.52 3 3011
(t Avg. Total ICL Exc:luding Esc:rowa, Annualized w/o Comp.;
2.77 3.73 10 2.90 3.58 19 2.73 3.2B 23 2.47 3.U9 20
Note: COF+Caplnt-Esc:rowlnt
14. lEA- ICL YIELD SPREADS:
Annualized: (u3)=(g3-r4)
3.01
15. IMPACT OF IEA/ICL IMBALANCES:
NetInt.Bef.IEALossProv(NIM) 3.05
spre.ad*Avg.lEA= (g3-r3)*gl 2.90
Allj.if IEA<>ICL: (by diU.) .15
16. COMPOSITION OF AVG. lEA:
5.55
36.61
52.47
2.57
2.04
.77
Dep and Inv Sec:
Mtg Bac:ked Sec:
Mtg Loans
Non Mtg Loans
Eqtylnv Not Sbjc:tFASB No115
Lns ser . (F)
ICL:
68.18
29.80
.00
.00
2.03
2.50
2.77
2.37
.38
4.99
8.69
68.04
4.68
1.04
.02
78.19
18.0B
.00
.00
1.62
73
68
76
6
52
91
26
36
95
89
19
84
47
SO
54
(Yield Spreads)
2.76 2.62 60

2.66 2.48 64
.15 .36 B
2.80
(' of Average lEA)
6.02 4.50 60 5.Bl
35.66 7.84 91 31.0B
53.00 68.90 25 57.26
2.46 4.65 35 2.BB
2.02 1.11 92 2.04
.84 .03 91 .93
(' of Average ICL)
67.66 77.76 17 66.61
31.60 lB.53 89 33.32
.00 .00 48 .00
.00 .00 50 .00
.74 1.79 47 .07
1214
2.71
4.52
8.01
68.65
4.68
1.17
.03
55
61
85
33
38.
.92
89
75.47 17
20.48 89
.00 48
.00 SO
1.04 39
2.B7
6.19
25.04
63.08
2.76
1.90
1.02
65.16
34.72
.00
.00
.12
2.73
4.59
9.29
68.19
4.75
1.15
.02
76.15
20.88
.00
.00
1.36
58
63
79
42
39
B8
89
14
91
4B
50
39
2.31 3.06
.00 .00
2.31 3.06
2.31 3.06
to 11th Dist.
2.26 2.81
2.58
2.51
2.43
.OB
6.71
20.74
67.99
1.69
1. 77
1.11
67.21
32.66
.00
.00
.13
2.B3
2.94
2.69
.31
4.65
10.BO
69.03
4.79
1.11
.02
76.25
19.BO
.00
.00
1.34
2
12
46
12
12
COF}
.19
36
28
40
3
63
72
4B
30
B3
90
22
B4
49
50
39
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
DETAILED BALANCE SHEET: ASSETS, Part 1 of 2
.($000 Balance at End of Period)
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
PAGE 9
04/28/2007 CMR STATUS: COMPLETE
1st Prior Qtr 2nd Prior Qtr
DATA AS OF:
CUrrent Quarter
3rd Prior Qtr 4th Prior Qtr
----=--=_.-.. =._=
YRMO, Period End
DETAILED BALANCE SHEET ASSETS:
1.1 Cash,Dep.&Inv.Secur.:
Cash &Non-Int.EarningDep.
USGov&Agency Securities
Sec. Subject to FASB 115
Int.-EarningDep.inFHLBs
Other Int.-EarDingDep.
Fed Funds Sold&Repos *
State &Nuni Obligations
Securties Bkd NonMort Lns
Other Invest.securities
Subtotal,IEDep&MiscSec.
Accrued Int.Receivable
Subtotal of 1.1
2.2 Mortgage Bckd.Secur.
Pass Through:
Guaranteed By
OthPassThru Securities

by FNMA/FHLMC/GNMA
Col laterized by MBS
Other
Subtotal Other MBS
Accrued Int. Receivable
General Allowances
Subtotal of 2.2
Loans:
1-4 Dwelling Units
5+ Dwelling units
Subtotal, Res.Property
Non-Res.Property Constr.
Subtot., Gross Constr.LnS
Residential Permanent Mortgages:
1-4 Dwelling Units:
Revolving,Open-EndLns
All Other
Secured Liens

5+ Dwelling units
Subtotal, Res.Property
Non-Res. (Except Land)
Land Perm. Mort.
Subtotal, Permanent Mtg.
Gross Subtotal of Mtg Lns
Accrued Inter.Receivable
Advances for Taxes&Insur.
ALLL
Subtotal of 2.6
3.1 Nonmortgage Loans
Commercial Loans: .
Secured, Oth. than Mtgs
Unsecured
Financing Leases
Subtotal,Commercial LnS
Consumer Lns: Closed-End
Loans on Deposits
Home Il!IPrOvement Loans
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other, Including Leases
Consumer Loans: Subtotal
Subtotal, NonMtg Loans
Accrued Int.Receivable
ALLL
Subtotal of 3.1
200612
11,863
85,024
o
2,251
o
8,000
o
o
80
10,331
1,118
108,336
5,019
275,839
280,858
o
o
473,348
473,348
3,228
o
757,434
40,215
7,699
47,914
11,621
59,535
2,596
607,101
260
609,957
54,853
664,810
354,080
33,656
1,052,546
1,112,081
6,933
1,013
7,654
1,112,373
46,299
5,707
o
52,006
o
o
o
27
76
80
o
183
52,189
537
936
51,790
===_=.=.=_== ___ .= ======_c_= ___ = __ _
200609
9,988
90,636
o
28,419
o
17,000
o
o
85
45,504
1,448
147,576
6,893
306,277
313,170
o
o
459,130
459,130
3,269
o
775,569
25,670
5,432
31,102
14,110
45,212
115
653,078
283
653,476
55,768
709,244
321,611
21,498
1,052,353
1,097,565
6,682
945
7,264
1,097,928
49,101
4,685
o
53,786
o
o
o
25
81
7'i1
946
1,131
54,917
499
933
54,483
1215
200606
9,874
95,335
o
1,987
o
16,000
o
o
o
17,987
1,175
124,371
8,521
268,240
276,761
o
o
428,440
428,440
3,079
o
708,280
21,295
4,675
25,970
13,299
39,269
34
705,513
o
705,547
60,208
765,755
306,557
18,202
1,090,514
1,129,783
6,597
1,262
6,933
1,130,709
43,035
3,962
o
46,997
o
o
o
2
83
60
o
145
47,142
468
883
46,727
---===.=------==-
200603
11,100
103,697
. 0
2,014
o
16,000
o
o
o
18,014
1,383
134,194
21,987
209,330
231,317
o

320,787
2,376
o
554,480
20,606
4,009
24,615
11,765
36,380
34
788,146
o
788,180
64,684
852,864
314,248
14,322
1,181,434
1,217,814
6,733
1,430
6,865
1,219,111
65,703
3,483
o
69,186
o
o
o
2
83
68
o
153
69 .. 339
548
1,146
68,741
200512
11,622
105,478
o
2,901
o
14,000
o
o
o
16,901
1,314
135,316
13,671
157,100
170,771
o
o
264,233
264,233
1,807
o
436,811
18,600
5,258
23,858
8,236
32,094
34
885,953
o
885,987
69;942
955,929
299, .076
11,719
1,266,724
1,298,818
6,912
1,539
6,140
1,301,128
35,555
. 3,721
o
39,276
o
o
o
3
103
81
o
187
39,463
298
658
39,103
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
DETAILED BALANCE SHEET: ASSETS, Part 2 of 2
($000 Balance at End of Period)
United Western Bank
DOCKET:
06679 TFR STATUS: . COMPLETE
DATA AS OF:
current Quarter
04/28/2007 CMR STATUS: COMPLETE
1st PriorQtr 2nd Prior Qtr 3rd Prior Qtr
=--===_ =-=-==- === _=--=-== =======e=_=======
YRMO, Period End ...
200609 200606 200603
DETAILED BALANCE SHEET ASSETS:
4.0 Net Repossessions
Repossessed Assets:
361 0 0
Construction
0
1-4 Dwelling Units
3,099 2,346 1,954 2,015
5+ Dwelling units
0 0 0 0
Nonresidential
1,910 1,848 1,860 1,405
Land '
33 13 2 2
USGcv Guar or Ins REO
2,065 2,667 2,107 3,138

7,468 6,874 5,923 6,560
0 0 0 0

7,468 6,874 6,560
0 0 0 0
Net Repossessed Assets
7,468 6,874 5,923 6,560
Real Est. Held4Investmt
0 0 0 0
Net Repos'ns & REI
7,468 6,974 5,923 6,560
5.1 EqInvNtSbictFASB Nol15
42,764 42,138 41,529 40,951
FHLBIink Stoc
42,764 42,138 41,529 40,951
Other
0 0 0 0
5.5 Office Premises and Eq.
7,280 5,098 17,440 15,177
5.8 Other Assets
53,086 53,881 56,067 54,188
Bank Owned Life InsuranCe:
Life Insurance
0 0 0 0
23,342 23,114 22,892 22,672
Assets
servicing Assets on:
15,337 16,509 18,051
Mortgage Loans
19,527
Non-Mortgage Loans
62 52 56 60
Gcodwill and Oth.Intang.
89 119 127 151
10 Strip Rec.&Oth Instrum
0 0 0 0
Other Assets
15,138 14,907 15,792 12,576
General Allowance
882 820 851 799
TOTAL ASSETS
2,140,531 2,183,547 2,131,046 2,093,402
Memo: Loans in Process on:
122,526 120,333 59,190
Mortg. Construction LoanS
46,224
Other Mortg. Loans
370 500 261 0
Total Loans
122,896 120,,833 59,451 46,224
Nonmortgage oans
104 22 33 131
Memo: Detail of Other Assets:,
of Other Assets)
Amount
5,855 6,009 6,430
Code (SC691)
9 9 9 9
Amount
4,351 4,462 7,656 3,670
Code (SC693)
14 14 14 14
Amount
1,426 2,345 584 553
Code (SC697)
4 4 99 99
COMMITMENTS OUTSTANDING:
($000 at End of Period)
To Originate:
1-4 Mortgages
1,120 0 0 0
5+ Mortgages
0 0 .350 350
All Other RE
72,659 23,369 39,206 32,115
Non-Mortgage Loans
28,537 8,978 25,142 5,859
To Purchase:
0 0
Loans
0 0
MBS
0 0 0 0
Inv. Securities
0 0 0 0
To Sell:
0
'0
Loans
0 0
MBS
0 0 0 0
Inv.Securities
0 0 0 0
1216
PAGE 10
4th Prior,Qtr
200512
101
2,181
983
1,219
41
NA
4,525
0
4,525
0
4,526
0
4,526
34,002
34,002
0
15,140
60,176
0
22,454
20,644
65
296
0
17,473
755
2,026,202
48,860
0
48,860
248
6,897

14
2,174
99
0
0
49,732
1,321
39,660
0
0
0
0
0
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION- WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT.FOR QUARTER ENDED 200612
DETAILED BALANCE SHEET: LIABILITIES & CAPITAL
($000 Balance at End of Period)
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUSl COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
================= =================
3rd Prior Qtr
YRMO, Period End .... 200612 200609
DETAILED BALANCE SHEET LIABILITIES I< CAPITAL:
7.1 Deposits and Escrows:
Accnts w/Bal belw InsLimt
Accnts w/Bal abve InsLimt
Subtotal of 7.1
7.15 Unamortized Y1d Adj
7.2 Borrowings:
Advances from FHLBank
Reverse REPOs+FFunds Pur-
Subordinated Debentures

All Other
Subtotal of 7.2
7.5 Other Liabilities:
Accrued Int.Payable:Depos
Accrued Int.Payable:Other
Accrued Taxes
Deferred Income Taxes
AccntsPay.,Oth.L.&Def.Inc
Subtotal of 7.5
TOTAL LIABILITIES
7.9 Minority Interest
8.0 Total Equity Capital:
Perpetual Preferred Stock
Cumul. Perp. Prefstk

Paid in Excess of Par
Retained Earnings
Accum Oth. Compo Income
UnrealGain/Loss Avail4Sal
Gains/Loss Cash Flow Hdg
Other
Other Components
Subtotal of 8.0
TOTAL LIABIL.+ EQUITY CAP.
Memo: Equity Goodwill
SUPPLEMENTAL DEPOSIT DATA:
AvgBal DepAct belw
AvgBal DepAct abve
AvgBal: All Deposit Accts

Other
Total Broker Orig.Deposits
Uninsured Deposits
Insured Deposits
Preferred Deposits
Non-Interest Demand Dep.
525,941
878,990
1,404,931
-72
519,431
50,000
o
o
986
570,417
205
1,031
145
o
16,959
18,340
1,993,616
o
o
o
113
60,705
85,928
166
166
o
o
o
146,912
2,140,531
146,823
502,429
843,455
1,345,884
-91
644,956
25,000
o
o
3,336
673,292
327
1,067
5,360
o
14,462
21,216
2,040,301
2
o
o
o
113
60,655
82,336
140
140
o
o
o
143,244
2,183,547
143,125
(Average Deposits in $OOOs)
17,879 17,129
4,205,694 3,978,561
47,422 45,555
25.,70B
o
25,708
269,278
1,135,581
o
48,245
25,758
o
25,758
260,716
1,085,077
o
38,133
Memo: Detail of Other Liabilities:
Amount
Code (SC791)
Amount
Code (SC794)
Amount
Code (SC797)
CONTINGENT LIABILITIES:
Unused Lines of Credit:
Open-End Consumer Lines
Commeroial Lines
Letters of Credit:
Commercial
Obligations &0 Direct
Sub.
Recourse Obligations
Other Contingent Liab.
Contingent Assets
5,786
4
2,292
16
250
99
547
14,627
o
791
Credit Substitutes:
12,095
o
12,095
o
o
5,935
4
2,389
16
343
99
666
27,087
o
791
12,860
o
12,860
o
o
1217
200606
521,182
874,451
1,395,633
-124
586,980
o
o
o
598
587,578
909
942
245
219
9,197
11,512
1,994,599
2
a
o
o
113
60,553
75,849
-70
-70
o
o
o
136,445
2,131,046
136,318
8,771
3,643,546
23,393
55,928
o
55,928
253,146
1,142,363
o
65,574
2,415
16
391
99
271
99
192
17,743
o
536
13,650
o
13,650
o
o
=================
200603
534,149
718,575
1,252,724
-189
691,004
o
o
o
2,159
693,163
414
1,116
2,791
232
9,289
13,842
1,959,540
2
o
o
o
113
60,553
73,033
161
161
o
a
o
133,860
2,093,402
133,709
.5,898
3,193,667
13,798
87,148
o
87,148
217,931
1,034,604
o
27,871
2,458
16
465
99
453
14
273
410
o
200
14,605
o
14,605
o
o
PAGE 11
4th Prior Qtr
=================
200512
468,249
801,466
1,269,715
-151
615,028
o
o
o
2,382
617,410
28
1,266
625
a
8,743
10,662
1,897,635
2
o
o
o
113
60,553
67,880
18
18
o
o
o
128,564
2,026,201
128,268
10,215
5,009,163
27,603
42,504
o
42,504
301,762
967,802
o
42,761
2,490
16
468
99
180
17
299
854
o
429
15,826
o
15,826
o
o
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
DETAILED BALANCE SHEET: ASSETS, Part 1 of 2
(% of Total Assets at End of Period)
07:16 04/28/2007
United Western Bank
PAGE 12
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
3rd Prior Qtr 4th Prior Qtr
================= ================= =================
================= =================
S&L Pct
Graul? 5
Pct
Graul? 5
Graul? 5 Groul? 5
S&L Medl.an S&L Medl.an Pct S&L MedJ.an Pct S&L Medl.an Pct
YRMO, Period End .... 200612 200609 200606
200603 200512
DETAILED BALANCE SHEET ASSETS:
1.1 Cash,Dep.&Inv.Secur.:
.55 1.50 20 .46 1.41 16 .46 1.47 17 Cash &Non-Int.EarningDep. .53 1.37 19 .57 1.55 18
USGov&Agency Securities 3.97 1.54 73 4.15 1.56 73 4.47 1.35 72 4.95 .97 73 5.21 1.32 71
Sec. Subject to FASB 115 .00 .00 22 .00 .00 22 .00 .00 22 .00 .00 21 .00 .01 21
Int.-EarningDep.inFHLBs .11 .07 53 1.30 .12 83 .09 .09 SO .10 .15 44 .14 .17 45
Other Int.-EarningDep. .00 .00 25 .00 .00 27 .00 .00 27 .00 .00 27 .00 .00 28
Fed Funds sold&Repos .37 .00 68 .78 .00 77 .75 .00 83 .76 .00 83 .69 .00 89
State &Muni Obligations .00 .00 25 .00 .00 25 .00 .00 26 .00 .00 25 .00 .00 24
Securties Bkd NonMort Lns .00 .00 46 .00 .00 47 .00 .00 47 .00 .00 47 .00 .00 46
Other Invest.Securities .00 .00 50 .00 .01 47 .00 .00 25 .00 .00 25 .00 .00 25
Subtotal,IEDep&MiscSec. .48 1.84 24 2.08 1.73 57 .84 1.02 39 .86 1.51 32 .83 1.20 31
Accrued Int.Receivable .05 .02 n .07 .02 70 .06 .02 70 .07 .02 70 .06 .02 72
Subtotal of 1.1 5.06 7.76 36 6.76 6.57 52 5.84 5.54 54 6.41 6.21 52 6.68 6.30 54
2.2 Mortgage Bckd.Secur.
Pass Through:
.23 3.93 17 .32 4.02 19 .40 3.95 Guaranteed By USGoV/Ag. 20 1.05 4.00 25 .67 4.26 22
Oth PassThru Securities 12.89 .00 97 14.03 .00 97 12.59 .00 98 10.00 .00 97 7.75 .00 96
Subtotal Pass Through 13.12 4.63 76 14.34 4.53 79 12 .. 99 3.95 76 11.05 4.01 72 8.43 4.28 62
Other MortBkd
.00 34 .00 .00 33 .00 .00 by FNMA/FHLMC/GNMA .00
33 .00 .00 35 .00 .00 37
Collaterized by MES .00 .00 34 .00 .00 35 .00 .00 35 .00 .00 34 .00 .00 34
Other 22.11 .00 97 21.03 .00 97 20.1.0 .00 95 15.32 .00 95 13.04 .00 95
Subtotal Other MES 22.11 .80 95 21.03 .77 92 20.10 .81 92 15.32 .94 88 13.04 .87 89
Accrued Int. Receivable .15 .03 94 .15 .03 92 .14 .03 92 .11 .03 80 .09 .03 75
General Allowances .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Subtotal of 2.2 35.39 7.76 91 35.52 7.30 92 33.24 7.20 91 26.49 8.73 80 21. 56 7.87 74
2.6 Mortgage Loans
Loans: Residential Construction
1-4 Dwelling Units 1. 88 2.19 46 1.18 2.18 38 1.00 2.38 33 .98 2.22 36 .92 2.28 34
5+ Dwelling Units .36 .33 52 .25 .29 48 .22 .39 47 .19 .20 48 .26 .26 50
Subtotal, Res.Property 2.24 2.82 42 1.42 2.83 35 1.22 3.11 29 1.18 3.08 30 1.18 2.92 31
Non-Res. Property Constr .. .54 .64 43 .65 .73 44 .62 .77 39 .56 .74 41 .41 .74 34
Subtot., Gross Constr.Lns 2.78 3.98 39 2.07 3.91 36 1. 84 4.14 30 1. 74 4.06 35 1.58 3.74 30
Residential Permanent Mortgages:
1-4 Dwelling Units:
.12 2.62 9 .01 2.44 5 .00 2.48 Revolving, Open-EndLns 4 .00 2.38 4 .00 2.53 4
All Other
24.98 56 29.91 26.70 58 33.11 Secured by First Liens 28.36 26.61 61 37.65 25.55 75 43.72 26.15 78
Secured by Junior Liens: .01 1.12 13 .01 1.19 14 .00 1.12 5 .00 .82 5 .00 .89 6
Subtota ,1-4 Units 28.50 32.83 43 29.93 32.64 45 33.11 33.11 50 37.65 32.96 57 43.73 33.80 68
5+ Dwelling Units 2.56 1.36 60 2.55 1.35 58 2.83 1.44 58 3.09 1.31 63 3.45 1.40 60
Subtotal, Res.Property 31.06 40.01 34 32.48 42.12 35 35.93 41. 60 39 40.74 41.63 45 47.18 42.70 66
Non-Res. (EXcept Land) 16.54 10.62 73 14.73 9.73 6.4 14.39 9.62 64 15.01 8.94 72 14.76 9.08 71
Land Perm. Mort. 1.57 2.46 38 .98 2.31 36 .85 2.54 38 .68 2.40 38 .58 2.30 37
Subtotal, Permanent Mtg. 49.17 54.10 n 48.19 55.68 29 51.17 55.61 35 56.44 56.34 51 62.52 60.11 60
Gross Subtotal of Mtg Lns 51. 95 63.29 30 50.27 64.42 26 53.02 64.44 29 58.17 64.55 38 64.10 65.53 45
Accrued Inter.Receivable .32 .31 57 .31 .30 51 .31 .27 60 .32 .27 63 .34 .28 66
Advances for Taxes&lnsur. .05 .00 86 .04 .00 91 .06 .00 91 .07 .00 92 .08 .00 89
ALLL .36 .34 50 .33 .37 47 .33 .38 44 .33 .34 47 .30 .34 42
Subtotal of 2.6 51.97 63.17 30 50.28 64.51 26 53.06 64.20 29 58.24 64.25 39 64.22 65.55 46
3.1 Nonmortgage Loans
Commercial Loans:
2.16 1.92 54 2.25 1.82 55 2.02 Secured, Oth.than Mtgs 1.77 54 3.14 1.67 69 1. 75 1.73 51
Unsecured .27 .21 53 .21 .23 48 .19 .23 47 .17 .18 48 .18 .19 48
Financing Leases .00 .00 42 .00 .00 42 .00 .00 42 .00 .00 43 .00 .00 43
Subtotal, Commercial Lns 2.43 2.33 54 2.46 2.11 55 2.21 2.26 47 3.30 2.09 61 1. 94 2.13 43
Consumer Lns: Closed-End
Loans on Deposits .00 .04 8 .00 .04 10 .00 .04 8 .00 .04 8 .00 .04 8
Home Loans .00 .00 39 .00 .00 38 .00
00 38 .00 .00 38 .00 .00 39
Education Loans .00 .00 39 .00 .00 39 .00 .00 38 .00 .00 40 .00 .00 41
Auto Loans .00 .08 24 .00 .06 23 .00 .09 19 .00 .07 20 .00 .07 21
Mobile Home Loans .00 .00 71 .00 .00 72 .00 .00 72 .00 .00 75 .01 .00 74
Credit Cards .00 .00 72 .00 .00 70 .00 .00 67 .00 .00 66 .00 .00 65
Other, Including Leases .00 .13 4 .04 .12 36 .00 .12 3 .00 .10 3 .00 .10 3
Consumer Loans: Subtotal .01 .81 6 .05 .69 11 .01 .66 4 .01 .58 4 .01 .62 3
Subtotal, NonMtg Loans 2.44 4.40 35 2.52 4.44 38 2.21 4.46 33 3.31 4.32 41 1.95 4.64 31
Accrued Int.Receivable .03 .04 43 .02 .03 44 .02 .03 44 .03 .03 47 .01 .03 40
ALLL
.04 .08 36 .04 .10 35 .04 .09 35 .05 .09 38 .03 .09 31
Subtotal of 3.1 2.42 4.34 35 2.50 4.37 38 2.19 4.46 33 3.28 4.20 41 1.93 4.48 31
1218
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
DETAILED BALANCE SHEET: ASSETS, Part? of 2
(% of Total Assets at End of
United Western Bank
DOCKET: 06679 TFR STATUS:
DATA AS OF: 04/28/2007 CMRSTATUS:
COMPLETE
COMPLETE
PAGE 13
CUrrent Quarter

1st Prior Qtr 2nd Prior Qtr
================= =================
3rd Prior Qtr 4th Prior Qtr
S&L Med1an Pet
YRMO, Period End ....
DETAILED BALANCE SHEET ASSETS:
4.0 Net Repossessions &REI:
Assets:
Constructlon
1-4 Dwelling Units
5+ Dwelling Units
Nonresidential
Guar or Ins REO
Subtotal, REO .
Other

Net Repossessed Assets
Resl Est. Held4Investmt
Net Repos'ns & REI
5.1 EgInvNtSbjctFASB Noll5
FHLBank stock
Premises and Eg.
Insurance:
Life Insurance
Intangible Assets
Servicing Assets On:
Mortgage Loans
Non-Mortgage Loans
Goodwill and Oth.Intang.
10 Strip Rec.&Oth Instrum
Other Assets
General Allowance
.02
.14
.00
.09
.00
.10
.35
.00
.35
.00
.. 35
.00
.35
2.00
2.00
.00
.34
2.48
.00
1.09
.72
.00
.00
.00
.71
.04
200612
.00
.01
.00
.00
.00
.00
.01
.00
.02
.00
.02
.00
.03
.95
.93
.00
.99
2.17
.00
.00
.02
.00
.09
.00
.54
.00
89
93
47
93
84
97
93
30
93
46
93
38
91
95
97
36
19
57
37
73
89
98
32
47
71
98
S&L Pet S&L Pet
.00
.11
.00
.08
.00
.12
.31
.00
.31
.00
.31
.00
.31
1.93
1.93
.00
.23
2.47
.00
1.06
.76
.00
.01
.00
.68
.04
200609
.00
.00
.00
.00
.00
.00
.02
.00
.02
.00
.02
.00
.03
1.00
.99
.00
.92
2.24
.00
.00
.03
.00
.07
.00
.49
.00
43
91
47
92
83
98
94
31
94
46
94
39
91
95
95
36
14
58
36
76
91
98
36
47
67
97
.00
.09
.00
.09
.00
.10
.28
.00
.28
.00
.28
.00
.28
1.95
1.95
.00
.82
2.63 .
.00
1.07
.85
.00
.01
.00
.74
.04
200606
.00
.00
.00
.00
.00
.00
.01
.00
.01
.00
.01
.00
.03
1.09
1.08
.00
.93
2.08
.00
.00
.03
.00
.08
.00
.55
.00
44
86
47
92
89
97
92
33
92
47
92
39
89
95
95
35
41
63
37
76
89
98
36
47
63
98
================= =================
.00
.10
.00
.07
.00
.15
.31
.00
.31
.00
.31
.00
.31
1.96
1.96
.00
.72
2.59
.00
1. 08
.93
.00
.01
. 00
.60
. 04
200603
.00
.00
.00
.00
.00
.00
.01
.00
.01
.00
.01
.00
.01
1.06
1.06
.00
.94
2.06
.00
.00
.02
.00
.05
.00
.56
.00
44
89
47
94
89
98
95
33
95
46
95
40
92
91
92
35
38
63
37
76
89
98
38
47
57
98
.00
.11
.05
.06
.00
NA
.22
.00
.22
.00
.22
.00
.22
1.68
1.68
.00
.75
2.97
.00
1.11
1.02
.00
.01
.00
.86
.04
200512
.00
.00
.00
.00
.00
NA
.01
.00
.01
.00
.01
.00
.02
1.05
1.01
.00
.94
2.04
.00
.00
.02
.00
.06
.00
.52
.00
87
90
98
95
89
NA
93
34
93
46
93
40
90
84
84
38
40
65
38
75
89
96
40
48
74
98
TOTAL ASSETS 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50
Memo: Loans in Pr9cess on:
Mortg. Construct10n Loans
Other Mortg. Loans
Total Mortg .. Loans
Nonmortgage Loans
5.72
.02
5.74
.00
1 .. 99
.02
2.60
.00
Memo: Detail of Other Assets: (Largest
Amount .30 .22
Code (SC691)
Amount
Code (SC693)
Amount
Code (SC697)
COMMITMENTS OUTSTANDING:
To Originate:
1-4 Mortgages
5+ Mortgages
All Other RE
Non-Mortgage Loa\,s
Net Purch(Sale)Comm1t.
.20
.07
.05
.00
3.39
1.33
NA
.10
.05
.69
.00
.50
.04
NA
78
50
73
69
5.51
.02
5.53
.00
2.41 75
.02 SO
2.71 67
.00 60
2.78
.01
2.79
.00
Components of Other Assets)
58 .27 .21 63 .28
9 9
78 .20 .08 76 .36
14 14
60 .11
4
.06 76 .03
13
31
94
93
NA
4
(% Total Assets,
.00 .84 4
.00 .00 28
1.07 .57 72
.41 .00 80
NA NA NA
1219
End of
.00
.02
1.84
1.18
NA
2.54 54
.05 45
2.79 50
.00 63
.22 55
9
.11 89
14
.05 30
99
Period)
1.06 5
.00 54
.56 79
.02 89
NA NA
2.21
.00
2.21
.01
.31
.18
.03
.00
.02
1. 53
.28
NA
2.36
.02
2.69
.00
.22
.10
.05
.86
.00
.43
.01
NA
48
23
44
64
63
9
63
14
30
99
5
54
82
76
NA
2.41
.00
2.41
.01
.34
.22
.11
.00
.00
2.45
.07
NA
2.41
.00
2.98
.00
.17
.10
.05
.83
.00
.56
.00
NA
SO
24
43
71
75
9
74
14
75
99
4
28
87
69
NA
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
DETAILED BALANCE SHEET: LIABILITIES & CAPITAL
(% of Total Liabil. & Cap. at End of Period)
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
================="================= =================
3rd Prior Qtr
S&L pct S&L Pct S&L Pct
========:====:===
YRMO, period End.... 200612 200609 200606
S&L Pet
200603
DETAILED BALANCE SHEET LIABILITIES & CAPITAL:
7.1 Deposits and Escrows:
Accnts w/Bal belw InsLimt
Accnts w/Ba! abve InsLimt
Subtotal of 7.1
7.15 Unamortized Yld Adj
7.2 Borrowings:
Advances from FHLBank
Reverse REPOs+FFunds Pur*
Subordinated Debentures

All Other
Subtotal of 7.2
7.3 Other Liabilities:
Accrued Int.Payable:Depos
Accrued Int.Payable:Other
Accrued Taxes
Deferred Income Taxes
AccntsPay.,Oth.L.&Def.Inc
Subtotal of 7.3
TOTAL LIABILITIES
7.9 Minority Interest
8.0 Total Equity Capital:,
Perpetual Preferred Stock
CUmul. Perp. Prefstk

Paid in Excess of Par
Retained Earnings
Accum Oth. Compo Income
UnrealGain/Loss Avai14Sal
Gains/Loss Cash Flow Hdg
Other
Other Components
Subtotal of 8.0
24.57
41.06
65.63
.00
24.27
2.34
.00
.00
.05
26.65
.01
.05
.01
.00
.79
.86
93.14
.00
.00
.00
.00
. 01
2.84
4.01
.01
.01
.00
.00
.00
6.86
44.69
24.62
71.94
.00
14.16
.62
.00
.00
.00
17.40
.05
.05
.03
.00
.48
.79
90.15
.00
.00
.00
.00
.00
3.72
5.23
-.05
-.03
.00
.00
.00
9.63
12
84
31
20
82
68
47
50
64
79
17
53
30
39
79
56
87
79
4B
50
48
60
38
36
86
B7
49
55
60
12
23.01
38.63
61.64
.00
29.54
1.14
.00
.00
.15
30.83
.01
.05
.25
.00
.66
.97
93.44
.00
.00
.00
.00
.01
2.78
3.77
.01
.01
.00
.00
.00
6.56
44.54
25.36
70.16
.00
15.41
.00
.00
.00
.00
18.39
.05
.05
.04
.00
.45
.78
90.26
.00
.00
.00
.00
.00
3.71
5.39
-.05
-.05
.00
.00
.00
9.58
11
82
16
22
89
54
48
50
75
86
20
48
92
37
70
66
91
77
48
50
48
57
42
32
89
92
48
55
61
8
24.46
41.03
65.49
-.01
27.54
.00
.00
.00
.03
27.57
.04
.04
.01
.01
.43
.54
93.60
.00
.00
.00
.00
.01
2.84
3.56
.00
.00
.00
.00
.00
6.40
44.58
24.72
68.93
.00
16.44
.00
.00
.00
.00
21.06
.05
.05
.04
.00
.48
.73
90.63
.00
.00
.00
.00
.00
3.21
5.58
-.12
-.12
.00
.00
.00
9.02
13
83
36
19
89
25
48
50
60
82
45
48
25
79
44
29
92
77
48
50
48
58 .
45
27
82
82
45
55
60
8
25.52
34.33
59.84
-.01
33.01
.00
.00
.00
.10
33.11
.02
.05
.13
.01
.44
.66
93.61
.00
.00
.00
.00
.01
2.89
3.49
.01
.01
.00
.00
.00
6.39
45.66
25.75
69.68
.00
17.52
.27
.00
.00
.00
19.70
.04
.05
.06
.00
.45
.73
90.68
.00
.00
.00
.00
.00
3.36
5.41
-.08
-.08
.00
.00
.00
9.28
13
79
14
17
92
25
48
50
73
91
33
52
76
82
45
38
94
79
48
50
48
58
47
29
94
95
46
56
60
7
PAGE 14
4th Prior Qtr
=================
S&L Pct
200512
23.11
39.56
62.66
-.01
30.35
,00
.00
.00
.12
30.47
.00
.06
.03
.00
.43
.53
93.65
.00
.00
.00
.00
.01
2.99
3.35
.00
,00
.00
.00
.00
6.35
44.42
25.60
68.84
.00
17.18
.27
.00
.00
.00
20.26
.04
.05
.05
.00
.53
.83
90.71
.00
.00
.00
.00
.00
3.53
5.45
-.07
-.05
.00
.00
.00
9.01
12
84
22
19
89
24
49
50
69
86
7
62
37
39
36
22
96
80
49
50
49
57
43
30
84
87
48
56
61
4
TOTAL LIABIL.+ EQUITY CAP. 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50
Memo: Equity - Goodwill 6.86 8.28 19 6.55 8.37 11 6.40 B . 24 13
SUPPLEMENTAL DEPOSIT DATA: (Average Deposits in $0009)
AvgBal DepAct belw InsLimit 17.88
AvgBal DepAet abve InsLimit4205.69
AvgBal: All Deposit Accts 47.42
9.31 91 17.13 9.06 91 8.77 8.96 45
230.91 97 3978.56 222.83 97 3643.55 231.57
13.86 ,90 45.56 13.92 89 23.39 14.27 77

Total Broker Orig.Deposits
Uninsured Deposits
Insured Deposits
Preferred Deposits
Non-Interest Demand Dep.
1.20
.00
1.20
12.58
53.05
.00
2.25
.33 54
.00 41
.68 53
12.66 49
57.57 35
.00 26
3.89 30
1.18
.00
1.18
11.94
49.69
.00
1. 75
.17
.00
.39
13 .40
57.35
.00
3.83
57
41
55
42
26
27
26
2.62
.00
2.62
11. 88
53.61
.00
3.08
.00 66
.00 41
.19 64
12.35 44
55.94 41
.00 27
4.04 38
Memo: Detail of Other Liabilities: (Largest
.13 76
Components of Other Liabilities)
Amount .27
Code (SC791)
Amount .11
Code (SC794)
Amount .01
Code (SC797)
CONTINGENT LIABILITIES:
Unused Lines of Credit:
Lines
Letters of Credit:
Commercial
Obligations &
Sub.
Recourse Obligations
Other Contingent Liab.
Contingent Assets
.03
.68
.00
.04
Direct
.57
.00
.57
.00
.00
.27 .14 73 .11 .11 52
4 16 4
.03 78
16
.01 52
99
.11 .04 76 .02 .03 35
3.74
1.11
.00
.14
Credit
.00
.00
.00
.00
.00
16 99
.02 .01 54 .01 .01 57
4 .03
41 1.24
41 .00
38 .04
Substitutes:
79 .59
46 .00
89 .59
45 .00
47 .00
99 99
3.63
.94
.00
.09
.00
.00
.00
.00
.00
2
54
41
39
77
46
89
45
47
1220
.01
.83
.00
.03
.64
.00
.64
.00
.00
3.48
1.05
.00
.16
.00
.00
.00
.00
.00
1
45
41
38
76
45
89
47
46
6.39 8.19 10
5.90 9.34 16
97 3193.67 227.45
13.80 14.05 48
4.16
.00
4.16
10.41
49.42
.00
1.33
.12
.02
.02
.01
.02
.00
.01
.70
.00
.70
.00
.00
.00 72
.00 41
.00 69
13.34 36
58.29 23
.00 28
4.26 20
.12
.03
.01
3.50
.93
.00
.10
.00
,00
.00
.00
.00
47
16
35
99
63
14
1
20
43
39
79
45
92,
46
47
6.33 8.13 10
10.22 9.38 57
95 5009.16 225.32
27.60 14.48 81
2.10
.00
2.10
14.89
47.76
.00
2.11
.12
.02
.01
.01
.04
.00
.02
.78
.00
.78
.00
.00
.00 65
.00 40
.00 60
11. 85 63
56.86 19
.00 28
4.63 25
.12
.03
.01
3.35
.88
.00
.12
.00
.00
.00
.00
.00
SO
16
39
99
50
17
3
24
44
39
81
45
93
45
46
96
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
ASSET QUALITY ($000)
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
Current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
================= ================= =================
YRMO, Period End ....
200612 200609 200606 200603
1. LOANS PAST DUE 30-89 DAYS AND
Construction Loans
PermMtg, 1-4 Unit
PermMtg,5+Unit
PermMtg, NonResBldg
PermMtg,Land
Total Mtg.Loans
NonMtg Commercial Loans
Loans on Deposits
Home Improv. Loans
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other

Guaranteed by USGov Agncy
Subtot PD30-B9 less GovGuar
STILL ACCRUING:
o
15,425
o
3,938
o
19,363
130
o
o
o
o
o
3
o
3
19,496
7,959
11,537
2. LOANS PAST DUE 90+ DAYS AND STILL
Construction Loans
ACCRUING:
o
9,083
PermMtg,1-4 Unit
PermMtg,5+Unit
permMtg,NonReSBldg
Loans
NonMtg Commercial Loans
Loans on Deposits

Auto Loans
Mobile Home Loans
Credit Cards
Other
Loans
Guaranteed by USGov Agncy
Subtot PD90+ less GovGuar
3. NONACCRUING LOANS:
Construction Loans
PermMtg,1-4 vnit
PermMtg,5+Un1t
PermMtg, NonResBldg
Loans
NonMtg Commercial Loans
Loans on Deposits
Home Improv. Loans
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other
Loans
Guaranteed by USGov Agncy
Subtot NonAcrl less GovGuar
4. NONPERFORMING LOANS: (a)
Sum of Subtotals 2 and 3
Guaranteed by USGcv Agncy
Sum Subtot 2+3 less GovGuar
5. NONPERFORMING ASSETS:
NonPerformLns(Subtot 4) (a)
REO: Construction
REO:1-4 Dwelling Units

REO:Land
USGov Guar or Ins REO
Subtotal, Gross REO
Othr Reposs'd Assets,. Gross
Reposs'd Assets,Net of SVAs
NPA: PD90+NOnAc+Repos'd(b)

6. TROUBLED DEBT RESTRUCT.
7. CLASSIFICATION OF ASSETS:
Classified Substandard
Classified Doubtful
Classified Loss
Total Classified Assets
Special Mention Assets
O.
o
o
9,083
o
o
o
o
o
o
o
o
o
9,083
8,678
405
479
5,859
o
641
o
6,979
1,217
o
o
o
o
o
o
o
o
8,196
1,858
6,338
17,279
12,601
6,743
17,279
361
3,099
o
1,910
33
2,065
7,46B
o
7,468
24,747
12,601
12,146
7,468
23,174
447
o
23,621
6,981
($000 at End of
380
13,229
o
4,146
1,364
19,119
271
o
o
o
o
o
2
o
2
19,392
8,092
11,300
o
7,902
o
699
o
8,601
82
o
o
o
o
o
o
o
o
8,683-
8,244
439
3,408
6,376
o
3,955
o
13,739
2,063
o
o
o
o
o
o
o
o
15,802
3,956
11,846
24,485
14,867
12,285
24,485
o
2,346

1,848
13
2,667
6,874
o
6,874
31,359
14,867
16,492
6,874
27,153
606
o
27,759
6,532
1221
Period)
1,944
.12,947
o
1,912
o
16,803
3,157
o
o
o
o
o
3
3
19,963
5,757
14,206
o
7,807
o
o
o
7,807
o
o
o
o
o
o
o
o
o
7,B07
7,807
o
1,595
7,319
1,649
4,940
100
15,603
2,108
o
o
o
o
o
o
o
o
17,711
5,191
12,520
25,518
15,105
12,520
25,518
o
1,954
o
1,860
2
2,107
5,923
o
5,923
31,441
15,105
16,336
3,816
26,867
768
o
27,635
11,362
1,161
16,133
o
5,233
o
22,527
1,399
o
o
o
o
o
5
o
5
23,931
5,899
18,032
o
8,757
o
135
o
8,892
82
o
o
o
o
11
o
11
8,985
8,968
17
1,612
8,344
o
5,038
102
15,096
1,249
o
o
o
o
9
o
o
9
16,354
4,456
11,898
25,339
16,562
11,915
25,339
o
2,015
o
1,405
2
3,138
6,560
o
6,560
31,899
16,562
15,337
3,422
25,542
769
o
26,311
9,552
PAGE 15
4th Prior Qtr

200512
1,373
14,618
o
2,351
446
18,788
104
o
o
o
3
o
3
o
6
18,898
4,160
14,738
o
10,986
o
o
o
10,986
o
o
o
o
o
o
1
o
1
10,987
10,986
1
o
8,867
o
6,005
120
14,992
1,619
o
o
o
o
o
o
o
o
16,611
5,987
10,624
27,598
16,973
10,625
27,598
101
2,181
983
1,219
41
NA
4,525
o
4,525
32,123
16,973
15,150
4,526
27,938
o
o
27,938
11,765
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
ASSET QUALITY (%)
07:16 04/28/2007
United Western Bank
PAGE 16
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
3rd Prior Qtr 4th Prior Qtr
================= ==========::::====== ================= ======:========== =====:::::==::::====::::===
Groul? 5
Pet
Groul? 5
Pet
Groul? 5
S&L
Groul? 5
S&L S&L S&L Medl.an Pet Pet S&L Medl.an Pet
====== === ====== ====== === ====== ====== === ====== e===:::::
YRMO, Period End ...
200612 200609 200606 200603 200512
1. DELINQUENCY LOAN RATES BY LOAN CATEGORY - LOANS PAST DUE 30-B9 DAYS AND STILL ACCRUING
(%

in Each Category)
Construction Loans .00 4.95 .00 98 3.19 .00 95 4.28 .00 98
PermMTG, 1-4 Unit 2.53 .60 91 2.02 .51 92 1. 84 .46 92 2.05 .35 92 1. 65 .53 90
PermMTG, 5+ unit .00 .00 37 .00 .00 35 .00 .00 35 .00 .00 38 .00 .00 34
PermMTG,NonResBldg 1.11 .09 80 1.29 .04 85 .62 .08 75 1.67 .09 90 .79 .00 8S
PermMTG, Land .00 .00 31 6.34 .00 96 .00 .00 34 .00 .00 32 3.81 .00 9S
Total Mtg. Loans 1.74 .57 90 1.74 .47 90 1.49 .36 94 1.85 .34 94 1.45 .44 89
NonMtg Commercial Loans .25 .40 46 .50 .23 60 6.72 .35 95 2.02 .37 84 .26 .25 50
Loans on Deposit NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Home Improv. Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Education Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Auto Loans .00 .80 12 .00 .58 13 .00 .42 16 .00 .53 14 100.00 .82 98
Mobile Home Loans .00 .00 29 .00 .00 34 .00 .00 32 .00 .00 34 .00 .07 26
Credit Cards 3.75 .56 91 2.53 .94 79 5.00 .41 B8 7.35 .49 96 3.70 .44 92
Other
NA .60 NA .00 .66 14 NA .64 NA NA .46 NA NA .44 NA

1.64 .81 74 .18 .73 25 2.07 .69 83 3.27 .65 92 3.21 .85 93
1.67 .62 88 1.68 .54 B5 1. 70 .44 92 1. B6 .46 94 1.41 .48 B9

.68 .00 95 .70 .00 94 .49 .00 94 .46 .00 94 .31 .00 93
.99 .56 73 .98 .51 82 1.21 .39 89 1.40 .41 94 1.10 .44 90
2. DELINQUENCY LOAN RATES BY LOAN CATEGORY - LOANS PAST DUE 90+ DAYS AND NONACCRUAL
(% of Outstanding Gross Loans

Construction Loans .80 .00 81 7.54 .00 98
4.43 .00 98 .00 .00 34
PermMtg,I-4 Unit 2.45 .35 91 2.18 .29 90 2.14 .25 91 2.17 .25 91 2.24 .30 90
PermMtg,5+Unit .00 .00 36 .00 .00 33 2.74 .00 93 .00 .00 37 .00 .00 36
PermMtg, NonRes. Bldg. .18 .12 52 1.45 .17 90 1.61 .00 90 1.65 .06 90 2.01 .07 93
PermMtg, Land .00 .00 29 .00 .00 32 .55 .00 80 .71 .00 92 1.02 .00 92
Total Mtg. Loans 1.44 .38 87 2.04 .28 90 2.07 .25 94 1.97 .20 92 2.00 .26 92
NonMtg Loans 2.34 .21 82 3.99 .36 87 4.49 .22 92 1. 92 .29 85 4.12 .17 90
Loans on Depos1ts NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Home Improv. Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Education Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Auto Loans .00 .18 14 .00 .08 19 .00 .07 20 .00 .13 19 .00 .16 17
Mobile Home Loans .00 .00 38 .00 .00 3B .00 .00 38 10.84 .00 96 .00 .00 36
Credit Cards .00 .01 26 .00 .24 22 .00 .00 27 16.18 .12 96 1.23 .12 73
Other NA .11 NA .00 .06 23 NA .02 NA NA .05 NA NA .14 NA

.00 .16 10 .00 .13 14 .00 .15 13 13.07 .20 98 .53 .31 72
1.48 .51 87 2.12 .32 92 2.17 .29 94 1. 97 .24 92 2.06 .30 92
Guaranteed by USGov Agncy 1. 08 .00 94 1.29 .00 97 1.28 .00 97 1.29 .00 95 1.27 .00 95
Subtot PD90+ less GovGuar .58 .46 63 1. 07 .31 86 1. 06 .26 88 .93 .21 89 .79 .30 86
3. NON-PERFORMING ASSET RATES (Non-Performing Loans and Repossessed Assets by Category)
Construction Lns, Net LIP 1.40 .00 82 7.54 .00 98 4.06 .00 98 4.43 .00 98 .31 .00 81
PermMtg,l-4 Unit 2.94 .40 93 2.53 .31 92 2.41 .27 92 2.42 .26 92 2.48 .32 90
PermMtg, 5+Uni t .00 .00 36 .00 .00 34 2.74 .00 92 .00 .00 38 1.39 .00 89
PermMtg,NonRes.Bldg. .72 .24 69 2.01 .18. 92 2.20 .06 91 2.08 .06 94 2.41 .07 95
permMt!,Land
.10 .00 65 .06 .00 73 .56 .00 80 .73 .00 89 1.37 .00 93
Tota Mtg. Loans 1. 93 .45 B7 2.42 .30 91 2.41 .30 92 2.25 .23 92 2.35 .30 93
Non-Mortgage Loans 2.33 .36 86 3.91 .39 91 4.47 .32 97 1.95 .34 85 4.11 .33 92
Subtotal, PD90+NnAc+Repos'd 2.11 .56 90 2.70 .35 92 2.66 .31 94 2.47 .31 92 2.39 .34 93
Guaranteed by USGov Agncy LOB .00 94 1.28 .00 97 1.28 .00 97 1.28 .00 95 NA NA NA
Subtot NonAcrl less GovGuar .54 .25 65 1. 02 .26 88 1.06 .20 89 .92 .19 91 NA NA NA
4. ASSET QUALITY SUMMARY: (% of Total Assets)
NonPerformLns(Subtot 4) .81 .31 79 1.12 .24 91 1.20 .22 89 1.21 .17 91 1.36 .19 90
REO: Construction .02 .00 89 .00 .00 43 .00 .00 44 .00 .00 44 .00 .00 B7
REO:1-4 Dwelling Units .14 .01 93 .11 .00 91 .09 .00 86 .10 .00 89 .11 .00 90

.00 .00 47 .00 .00 47 .00 .00 47 .00 .00 47 .05 .00 98
.09 .00 93 .OB .00 92 .09 .00 92 .07 .00 94 .06 .00 95
REO: Land .00 .00 84 .00 .00 83 .00 .00 89 .00 .00 89 .00 .00 89
USGov Guar or Ins REO .10 .00 97 .12 .00 98 .10 .00 97 .15 .00 98 NA NA NA
Subtotal, Gross REO .35 .01 93 .31 .02 94 .28 .01 92 .31 .01 95 .22 .01 93
Othr Assets,Gross
.00 .00 30 .00 .00 31 .00 .00 33 .00 .00 33 .00 .00 34
Reposs' Assets,Net of SVAs .35 .02 93 .31 .02 94 .28 .01 92 .31 .01 95 .22 .01 93
NPA: PD90+NonAc+Repos'd 1.16 .41 86 1.44 .29 91 1.48 .22 92 1.52 .21 91 1.59 .23 92
Classified Substandard 1.08 .49 76 1.24 .44 86 1.26 .43 86 1.22 .38 88 1.3B .42 90
Classified Doubtful .02 .00 75 .03 .00 75 .04 .00 79 .04 .00 76 .00 .00 24
Classified Loss .00 .00 49 .00 .00 48 .00 .00 49 .00 .00 50 .00 .00 49
Total Classified Assets 1.10 .55 76 1.27 .46 85 1.30 .43 85 1.26 .38 86 1.38 .42 87
Special Mention Assets .33 .43 45 .30 .29 52 .53 .26 58 .46 .27 61 .58 .28 69
SUb+Doubt / CoreCap+GVA 15.21 6.00 86 18.38 5.43 88 19.18 4.30 86 18.60 4.00 88 20.76 4.46 90
5. CONSOLIDATED ASSET QUALITY TREND: (% of Total Assets)
Non-Performing Loans .81 .31 79 1.12 .24 91 1.20 .22 89 1.21 .17 91 1. 36 .19 90
Repossessed Assets, Gross .35 .02 93 .31 .02 94 .28 .01 92 .31 .01 95 .22 .01 93
Repossessed Assets,Net SVA .35 .02 93 .31 .02 94 .28 .01 92 .31 .01 95 ;22 .01 93
Total NonPerform. Assets 1.16 .41 86 1.44 .29 91 1.48 .22 92 1.52 .21 91 1.59 .23 92
TDR Loans + Reposs'd TDR .35 .01 89 .31 .01 91 .18 .01 79 .16 .01 83 .22 .01 86
1222
OFFICE OF THRIFT SUPERVISION -. WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
ALLOWANCES
07:16 04/28/2007
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrr.ent Quarter 1st Prior Qtr 2nd Prior Qtr
=_=_c=_==_. __ m_c; =========-======; ==-========-=='====;
Months in
YRMO, PeriOd End .
200612 200609 200606
1. TOTAL ALLOWANCES:
Balance
Net Provision for 'Loss
Add Recoveries on:
Recoveries
Acquisitions
Deduct: Charge-offs+Sales
Ending Balance

219
56
o
660
10,131
la. TOTAL GENERAL ALLOWANCES:
9,017
Balance
Net Provision for Loss
Transfers
Recoveries
Acquisitions
Deduct: Charge-offs+Sales
Ending Balance
242
506
56
o
349
9,472
lb. TOTAL SPECIFIC ALLOWANCES:
Balance 1,499
Net Provision for Loss -23
Transfers -50g
311
Ending Balance 659
2. ALLOCATION OF ENDING ALLOWANCE BALANCE:
Cash, Deposits, & Inv;Sec.:
Mortgage Loans:
ALLL
Nonmortgage Loans:
7,654.
ALLL

Mortgage Backed Securities:
General Allowance
Other:
General Allowance
936
o
o
882
All Assets:
General Allowance+ALLL
specific Allowance
Total Allowances
9,472
659
10,131
=====--==========
S&L Pct
-==--= ==--==
3. GEN. ALLOWANCE+ALLL ALLOCATED TO:
Mortgage Loans + LIP .62.59
Nonmortgage Loans + LIP 1.77 1.51
Assets : gg : gg
Other Assets NA NA
All Assets (Net of LIP) .45 .57
GA+ALLL4Lns+REO,%Lns+REO .73 .77
GA+ALLL4LnB+REO, % (NPA-SVA) 34.71 125.28
Tot.GA+ALLL, (%Clsfd-Loss) 40.10 92.27
54
55
45
50
NA
38
44
12
19
($000 at Start of Period)
1.0,787 10,649
($000
1,295
52 48
0 0
610 1,205
($000 at End of Period)
10,516 10,787
'($000
8,666

8,,810
137
130 0
52 48
0 0
318 329
9,017 8,666
2,121 1,839
($000' During Period)
-200 1,158
-130
0
292
1,499
7,264
933
0
0
820
9,017
1,499
10,516
=-=======--======
S&L Pct
==:=== ===
(% of Net Assets
.59 .58 53
1.68 1.72 ,48
.00 .00 45
.00 .00 50
NA NA NA
.42 .60 35
.71 .80 39
26.14 202.06 7
32.48 126.96 13
0
0
876
2,121
6,933
883
0
0
851
8,666
2,121
10,787
=---------=======
GroUp 5
S&L MedIan Pct

.58 .58 50
1.85 1.62 55
.00 .00 46
.00 .00 50
NA NA NA
.42 .55 36
.66 .77 39
24.86 212.35 -4
31.36 123.78 11
1223
3rd Prior Qtr
3
200603
9,730
1,130
258
0
469
10,649
7,553
1,325
0
258
0
326
8,810
2,177
-195
0
0
143
1,839
6,865
1,146
0
0
799
8,810
1,839
10,649
=-==-=-=--=-=--=-
S&L Pct
PAGE 17
4th Prior Qtr
.... C._I111_=._._. __
3
200512
10,570
534
98
0
1,,472
9,730
8,212
353
0
98
0
1,110
7,553
2,358
181
0
0
362
2,177
6,140
658
0
0
755
7,553
2,177
9,730
-=--=_.==-=-==_.-
S&L Pct

.54 .54 47 .45 .. 57 41
1.64 1.62 51 1.64 1.64 50
.00 .00 44 .00 .00 44
.00 .00 50 .00 .00 50
NA NA NA NA NA NA
.43 .54 39 .38 .54 34
.62 .78 39 .51 .78 28
25.11 246.08 4 21.16 226.57 4
33.48 119.13 13 27.03 113.24 9
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
GVA CHARGE-OFFS AND CHANGE IN
($000)
united Western Bank
DOCKET:
DATA AS OF:
CUrrent Quarter
06679 TFR STATUS: COMPLETE
04/28/2007 CMR STATUS: COMPLETE
1st Prior Qtr 2nd Prior Qtr 3rd Prior' Qtr

=====_.=======._. ===._.=a_.======= ========:_.== __ =.
3 . 3 . 3
200609 200606 200603
Months in period 3
YRMO, Period End.... 200612
4. NET GVA CHARGE-OFFS AND CHANGES IN SVAB
Deposits & Inv. Sec.
MPS

1-4 Dwell unit
5+ Dwell unit
NonResidential
Total Constr.
Permanent:
1-4 Closed End
1-4 'Open End
Total 1-4 Perm.
5+ Dwell. unit
Nonresidential
Land
Total Perm. Mtg.
Total Mortgage Loans
Loans:
Consumer:
Loans on Deposits
HILs
Education Loans.
Auto Loans
Mobile Home Loans
Credit Cards
Other
Total Consumer Loans
Total Non-Mortgage Loans
Repossessed ASsets:
Real Estate:
Construction
1-4 Dwell. unit
5+ Dwell. unit
Nonresidential
Land
Total Repos'ed RE
Other Repos'ed ASsets
Total Repossessions
RE Held for Investment
Inv. in Subordinate Firms
Other ASsets
Total Assets
o
o
484
o
2
486
97
o
97
o
-892
o
-795
-309
10
o
o
o
o
-13
o
o
-13
-3
o
o
o
o
o
o
o
o
o
o
76
-236
($000 During Period)
0
0
131
0
16
147
58
0
58
-130
-212
-7
-291'
-U4
-7
0
0
0
0
0
1
0
1
-6
0
0
0
0
0
0
0
0
0
0
86
-64
1224
0 0
0 0
0 0
0 0
0 0
0 0
155 178
0 0
155 178
1,053 -217
58 -272
-1 8
1,265 -303
1,265 -303
2 47
0 0
0 0
0 0
0 0
0 0
0 2
0 0
0 2
2 49
0 0
0 0
0 -0
.0 0
0 0
0 0
0 0
.0 0
0 0
0 0
172 128
1,439 -126
PAGE 18
4th Prior Qtr
3
200512
0
0
0
0
0
0
457
0
457
680
-132
0
1,005
1,005
-37.
0
0
0
-5
21
3
0
19
-18
0
0
0
0
0
0
0
0
0
0
206
1,193
07:16 04/28/2007
Months in period
YRMO, Period End ....
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
GVA CHARGE-OFFS AND CHANGE IN SVAs
(% of Category)
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
3 3 3 3
200612 200609 200606 200603
================= ==============:== =================
5. RATES OF GVA CHARGE-OFFS AND Changes in SVAs (!j; of Category)
Deposits &. Inv. Sec.
MPS
Mortgage Loans:
Construction:
1-4 Dwell Unit
5+ Dwell Unit
NonResidential
Total Constr.
Permanent:
1- 4 Closed End
1-4 Open End
Total 1-4 Perm.
5+ Dwell. Unit
Nonresidential
Land
Total Perm. Mtg.
Total Mortgage Loans
Loans:
Consumer:
Loans on Deposits
HILs
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other
Total Consumer Loans
Total Non-Mortgage Loans
Repossessed Assets:
Real Estate:
Construction
1-4 Dwell. Unit
5+ Dwell. Unit
Nonresidential
Land
Total Repos'ed RE
Other Repos'ed Assets
Repossessions
RE Held for Investment
EqtyInv Not SbjctFASB115
Other Assets
Total Assets
.00
.00
1.47
.00
.02
.93
.02
.00
.02
.00
- .26
.00
-.08
- .03
.02
NA
NA
NA
.00
-16.56
.00
.00
-1. 98
-.01
.00
.00
NA
.00
.00
.00
NA
.00
NA
.00
NA
-.01
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
. 00
.00
.00
.00
.00
.00
.21
.16
.09
49
50
96
50
93
97
70
44
71
48
2
47
1
4
56
NA
NA
NA
35
3
30
20
1
.00 46
.00 40
.00 NA
.00 47
.00 50
.00 40
.00 NA
.00 39
.00 NA
.00 50
NA NA
.01 6
.00
.00
.56
.00
.12
.35
.01
.00
.01
-.22
-.07
-.04
-.03
-.01
-.01
NA
NA
NA
.00
.00
1.44
.00
.16
-.01
NA
.00
NA
.00
.00
.00
NA
.00
NA
.00
NA
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.03
.04
.08
49
50
98
50
98
98
83
43
80
3
4
1
7
9
14
NA
NA
NA
40
46
96
31
67
.03 19
.00 NA
.00 46
.00 NA
.00 47
.00 50
.00 43
.00 NA
.00 42
.00 NA
.00 50
NA NA
.00 13
1225
.00
.00
.00
.00
.00
.00
.02
.00
.02
1. 69
.02
-.01
.11
.11
.00
NA
NA
NA
.00
.00
.00
NA
.00
.00
NA
.00
NA
.00
.00
.00
NA
.00
NA
.00
NA
.07
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.08
.07
50
50
47
49
50
48
86
44
88
98
92
1
97
97
64
NA
NA
NA
39
46
37
NA
21
.03 29
.00 NA
.00 44
.00 NA
.00 47
.00 50
.00 43
.00 NA
.00 43
.00 NA
.00 50
NA NA
.00 92
.00
.00
.00
.00
.00
.00
.02
.00
.02
-.32
-.09
.06
-.02
-.02
.09
NA
NA
NA
.00
.00
2.68
NA
1.18
.09
.00
.00
.00
.00
.00
.00
NA
.00
NA
.00
NA
-.01
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.02
.00
.32
.05
.13
49
50
50
51
51
53
86
41
86
1
4
96
4
4
85
NA
NA
NA
30
44
88
NA
98
.02 67
.00 50
.00 45
1.65 30
.00 47
.00 50
.00 44
.00 NA
.00 44
.00 NA
.00 50
NA NA
.00 11
PAGE 19
4th Prior Qtr
=================
.00
.00
.00
.00
.00
.00
.05
.00
.05
.93
-.06
.00
.08
.08
-.12
NA
.00
NA
-166.67
19.35
3.66
NA
7.69
-.06
.00
.00
.00
.00
.00
.00
NA
.00
NA
.00
NA
.06
3
200512
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.07
.00
.66
.04
.13
.06
49
50
47
50
50
47
93
46
93
98
4
50
90
92
8
NA
52
NA
1
92
85
NA
98
7
.00 45
.00 46
.00 50
.00 44
.00 50
.00 44
.00 NA
.00 43
.00 NA
.00 50
NA NA
.01 87
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-Qt1.l\R.TER UTPR REPORT FOR Qt1.l\R.TER ENDED 200612
CAPITAL REQUIREMENTS AS CALCULATED BY S&L
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
3rd Prior Qtr
PAGE 20
4th Prior Qtr Current Quarter 1st Prior Qtr 2nd Prior Qtr
===========;oo6i; ===========200609
===.==.==-=-====.
YRMO, Period End ..
1. TIER 1 (CORE) CAPITAL:

Inv&Adv to Noninclud. (k)
Goodwill and Oth.Intang.
Disallowed service Assets
Other
Add:
ACcLoss/Gns:sec/CF Hedg-tax
Qualifying Intangble Depsts
MinorityInt.inInclud.SubS. '
Other,
Tier 1 (Core) Capital (b)
Allow.Supplement.Capital
Assets Req.to be Deducted
Low Level Rec Deduction
Adjusted Risk-Based Cap. (c)
2. ADJUSTED TOTAL ASSETS:
Total Assets
Deduct:
NoninclSub.Assets (1)

Other
Add:
Accum Loss/Gns:Sec/CF Hedge
Qualfyng Intngibl.e" Assets
Other
Adjusted Total Assets(e)
3. CORE CAPITAL REQUIREMENTS:
Core Cap. Req: (g) = (e) * (j)
4. RISK-BASED CAPITAL REQUIREMENT:
TOTAL UNWEIGHTED ASSETS
Total R-W Assets
Excess ALLL '
Total R-W Assets - Ex. ALLL
R-B Cap Req before (1)or(2)
(2) Low level Recourse Ded.
Risk-based capital Req.
146,912
o
o
941
o
-166
o
o
o
145,805
7,997
o
282
153,520
2,140,531
o
o
941
o
-251
o
o
2,139,339
85,574
2,207,639
978,110
o
978,110
78,249
o
78,249
--=.==.==-=======
S&L Pct
5. FIRREA CAPITAL COMPLIANCE:
Core Cap.Req: (l
Core Capital (I?!
Core cap.Surplus: ,b -(J
Core Cap.Surp($OOO) :!bl-(g
Adjusted Risk-Based cap.!c)
Risk-based Capital Req. hi
RiskBasedcap.Surpls: (Cl- h
R-B Cap surp($OOb): (c - h
6.82
4.00
2.82
15.70
8.00
7.70
6. ASSET BALANCES:
Adjusted Total Assets(e) 99.94
Total R-W Assets - Ex.ALLL 45.69
Total unweighted Assets 1'03 . 14
7. FDICIA PCA CAPITAL RATIOS: '
Total Risk-Based 15.70
Tier 1 (Core) Risk-Based 14.88
Tier 1 (Core) Leverage 6.82
8.48 12
4.00 54
4.48 12
60,231
13.23 68
8.00 50
5.23 68
75,271
99.89 52
65.32 10
101.82 63
13.23 68
12.43 69
8.48 12
($000 at End of Period)
143,244
o
o
1,059
o
-140
o
'0
o
142,045
6,546
o
577
148,014
2,183,547
o
o
1,059
o
'-213
o
o
2,i82,275
87,291
2,244,003
938,853
o
938,853
75,108
o
75,108
136,445
o
o
1,067
o
70
o
o
o
135,448
6,046
o
359
141,135
2,131,046
o
o
1,067
o
107
o
o
2,130,086
85,203
2,201,729
940,120
o
940,120
75,210
o
75,210
==c=== ==_=== =======_========_
200603
133,860
o
o
1,083
o
-161
o
o
o
132,616
5,961
o
164
138,413
2,093,402
o
o
1,083
o
-244
o
o
2,092,075
83,683
2,145,521
906,684
o
906,684
72,535
o
72,535
S&L pct S&L Pct
Groul? 5
S&L Medl.an Pct
===-== ===-
at End of Period)
6.51 8.44 10 6.36 8.46 7 6.34 8.35 5
4.00 4.00 51 4.00 4.00 53 4.00 4.00 51
2.51 4.44 10 2.36 4.46 7 2.34 4.35 5
54,754 50,245 48,933
(Ik of Total Risk-Weighted Assets at End of Period)
15.77 13.43 70 15.01 13.14 67 15.27 13.25 64
8.00 8.00 50 8.00 8.00 50 8.00 8.00 50
7.77 5.43 70 7.01 5.14 67 7.27 5.25 64
72,906 65,925 65,878
(Ik of Total Assets at End of Period)
99.94 99.93 51 99.95 99.99 48 99.94 99.99 45
43.00 "65.35 10 44.12 65.72 10 43.31 64.11 10
102.77 102.08 57 103.32 101.89 63 102.49 101.83 57
15.77 13.43 70 15.01 13.14 67 15.27 13.25 64
15.07 12.32 70 14.37 12.37 67 14.61 12.39 64
6.51 8.44 10 6.36 8.46 7 6.34 8.35 5
1226
200512
128,564
o
o
1,493
o
-18
o
o
o
127,053
4,482
o
517
131,018
2,026,202
o
o
1,493
o
-27
o
o
2,024,682
80,987
2,115,491
913,727
o
913,727
73,098
o
73,098
.====-===:_:=:===
S&L Pct
6.28 8.28 4
4.00 4.00 52
2.28 4.28 4
46,066
14.34 13.38 60
8.00 8.00 50
6.34 5.38 60
57,9'20
99.92 99.94 46
45.10 63.81 10
104.41 101.61 66
n.34 13.38 60
13.85 12.35 60
6.28 8.28 4
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-0UARTER UTPR REPORT FOR OUARTER ENDE0200612
COMPOSITION OF RISK-WEIGHTED ASSET CATEGORIES
($000 Balance at End of Period)
United Western Bank
DOCKET: 06679 TFR STATUS: CoMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Otr 2nd Prior Otr 3rd Prior Otr
PAGE 21
4th Prior Otr
===========;0060; ===========;00606
=
___ .a._._ .. _._. __
YRMO, Period End ...
1. ASSETS IN 0' R-W CATEGORY,
Cash
u.s,Gov.securities
Notes&Obligations FDIC
Other
Subtotal, ot R-W Categ.
2; ASSETS IN 20t R-W CATEGORY,

State/Local Gen.Oblig.
Claims on DomestDepInst
Other
Subtotal,20' R-W categ.
3. ASSETS IN 50' R-W CATEGORY,
Qualif .1-family ResMtg

State/Local ReV. Bonds
Other
Subtotal,50t R-W Categ.
UNWEIGHTED:
185
244,438
o
10,934
255,557
UNWEIGHTED:
753,536
45,015
o
8,745
29,720
837,016
UNWEIGHTED:
605,068
o
3,650
o
o
608,718
4. ASSETS IN lOOt R-W CATEGORY, UNWEIGHTED:
Notes/Obligtns FDIC RW 0
All Other ASsets 506,348
Subtotal,lOOt R-W Categ. 506,348
5. ALL R-W CATEGORIES, UNWEIGHTED:
Subtotal (1+ ... +4) 2,207,639
Other Adj. (by diff.) -67,108
Total consol.Assets 2,140,531
LowLevel Recourse Oed. 0
CUrrent Quarter

S&L Med1an pct
YRMO, Period End ....
====== 2006i; a==
1. ASSETS IN 0' R-W CATEGORY" UNWEIGHTED:
Cash .01 .31, 9
U.S.Gov.Securities 11.42 .11 97
Notes&Obligations FDIC .00 .00 49
Other .51 .06 76
Subtotal, ot R-W Categ. 11.94 1.33 95
2. ASSETS IN 20t R-W CATEGORY, UNWEIGHTED:
High Quality MBS 35.20 5.65 93
Claims on FHLBs 2.10 1.59 58
State/Local Gen.Oblig. .00 .00 31
Claims on DomestDepInst .41 1.21 31
Other 1.39 1.85 46
Subtotal,20t R-W Categ. 39.10 18.07 84
3. ASSETS IN sot R-W CATEGORY, UNWEIGHTED:
Qualif.l-family ResMtg 28.27 27.49 53
Qualif.MultFam ResMtg .00 .00 26
, Other MBS BackBy QualMtg .17 .00 91
State/Local Rev. Bonds .00 .00 39
Other .00 .00 29
Subtotal,50t R-W Categ. 28.44 31.11 43
4. ASSETS IN lOOt R-W CATEGORY, UNWEIGHTED:
Notes/Obligtns FDIC RW .00 .00 44
All Other Assets 23.66 44.64 15
Subtotal, lOOt R-W Categ. 23.66 44.64 13
5. ALL R-W CATEGORIES, UNWEIGHTED: ,
Subtotal (1+ .. ;+4) '103.14 101.82
Other Adj. (by diff.) -3.14 -1.82
Total Consol.Assets 100.00 100.00
LowLevel Recourse Oed. .00 .00
63
36
50
50
($000 at End of Period)
101 101
258,013 264,700
0 0
9,717 9,497
267,831 274,298
771,701 705,700
70,557 43,516
0 0
17,170 16,277
26,800 24,850
886,228 790,343
653,015 707,382
0 0
3,658 2,691
0 0
0 0
656,673 710,073
0 0
433,271 427,015
433,271 .427,015
2,244,003 2,201,729
-60,456 -70,683
2,183,547
0
2,131,046
0
1st Prior Otr 2nd Prior Otr
--===-==-=====-== =-====-==-=-==-==
S&L Pct S&L Pct
====== ====== === ====1==
200609 200606
(t of Total Assets)
.00 .32 5 .00 .34 2
11.82 .14 97 12.42 .22 97
.00 .00 48 .00 .00 49
.45 .05 76 .45 .03 77
12.27, 1.20 97 12.87, 1.36 97
35.34 5.28 94 33.12 5.84 92
3.23 l.80 77 2.04 l.67 58
.00 .00 29 ,00 .00 30
.79 1.19 41 .76 .94 42
1.23 1.31 47 1.17 1.33 47
40.59 18.69 85 37.09 17.38 83
29.91 28.09 55 33.19 27.84 57
.00 .00 26 .00 .00 27
.17 .00 91 .13 .00 92
.00 .00 38 .00 .00 38
.00 .00 30 .00 .00 27
30.07 32.02 47 33.32 33.32 50
.00 .00 44 .00 .00 44
19.94 43.92 13 20.04 42.84 13
19.84 43.92 11 20.04 42.84 11
102.77 102.08 57 103.32 101.89 63
-2.77 -2.08 42 -3.32 -1.89 36
100.00 100.00 50 100.00 100.00 50
.00 .00 50 .00 .00 50
1227
200603 200512
111 127
321,942 299,586
0 0
10,740 11,283
332,793 310,996
551,529 433,930
42,965 36,903
0 0
,16,247 14,200
26,051 69,380
636,792 554,413
790,516 891,623
0 0
2,705 2,853
0 0
0 0
793,221 894,476
0 0
382,715 355,606
,382,715 355,606
2,145,521 2,115,491
-52,119 -89,289
2,093,402 2,026,202
0 0
3rd Prior Otr 4th Prior Ocr
====a __ ======== __
=================
Pct
5'
S&L Med1an Pct
200603 200512
.01 .32 5 .01 .32 7
15.38 .25 95 14.79 .25 93
.00 .00 49 .00 .00 49
.51 79 .56 .09 75
15.90 LSD ,95 15.35 1.64 93
26.35 7.07 85 21.42 6.71 80
2.05 2.05 50 1.82 1.89 46
.00 .00 30 .00 .00 28
.78 l.01 41 .70 .70 50
1.24 1.24 51 3.42 1.77 56
30.42 18.27 75 27.36 18.60 71
37.76 26.43 69 44.00 28.82 78
.00 .00 26 .00 .04 25
.13 .00 91 .14 .00 89
.00 .00 38 .00 .00 38
.00 .00 26 .00 .00 28
37.89 31. 73 63 44.15 33.98 72
.00 .00 44 .00 .00 43
18.28 41.80 10 17.55 39.07 12
18.28 42.34 8 17.55 40.10 9
102.49 101.83 57 104.41 101.61 66
-2.49 -1.83 42 -4.41 -1.61 33
100.00 100.00 50 100.00 100.00 50
.00 .00 50 .00 .00 50
07:16
Months in Period
YRMO, Period End ....
CHANGES IN ASSETS:
1.1
2.2
2.6
3.1
4.0
4.1
5.1
5.5
5.8
CASH,DEP.&INV.SECUR.
MORTGAGE BACKED SECUR.
MORTGAGE LOANS:
Const.Lns,l-4 Unit Res
Const.Lns,5+ unit Res
Conat.Lns,Nonresid.
Subtotal, Const.
Perm.Mtgs,1-4 Unit Res
Perm.Mtgs, 5+ Unit Res
Perm. Mtgs ,Land
perm.Mtgs,NonResid.
Subtotal,Perm.Mtgs
Other (by diff.)
Subtotal, Mtg Lns
NONMORTGAGE LOANS:
Repossessed Assets
Real Estate Invest.
Subtotal Repo.Ast.+REI
EqtyInvNotS9jctFASBl15
& Eg.
Other Assets:
Goodwill
Asts
TOTAL ASSETS
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
CHANGES IN FINANCIAL CONDITION ($000)
United Western Bank
06679 TFR STATUS: COMPLETE
04/28/2007 . CMR STATUS: COMPLETE
DOCKET:
DATA AS OF:
CUrrent Quarter 1st Prior Qcr 2nd Prior Qtr . 3rd Prior Qtr
=================
3
200612
-39,240
-18,135
14,545
2,267
-2,489
14,323
-43,519
-915
12,158
32,469
193
-71
14,445
-2,693
594
o
594
626
2,182
-30
-1,162
397
-43,016
3 3
200609 200606
23,205
67,289
4,375
757
811
5,943
-52,071
-4,440
3,296
15,054
-38,161
-563
-32,7B1
7,756
951
o
951
609
-12,342
-B
-1,546
-632
52,501
- 9,823
153,800
689
666
1,534
2,889
-82,633
-4,476
3,880
-7,691
-90,920
-371
-88,402
-22,014
-637
o
. -637
578
2,263
-24
-1,480
3,383
37,644
=================
3
200603
-1,122
117,669
2,006
-1,249
3,529
4,286
"97,807
-5,258
2,603
15,172
-85,290
-1,013
-82,017
29,638
2,034
o
2,034
6,949
37
-145
-1,122
-4,721
67,200
CHANGES IN LIABILITIES + CAPITAL:
7.1
7.5
7.9
8.0
LIABILITIES:
DEPOSITS AND ESCROWS:
NetNewDepositsRecvd
IntCreditedDeposits
Subtotal
Other Changes
Net Change
DepActs Belw InsLmts
DepActs Abve InsLmts
BORROWINGS:
Net Change
FHLBank Advances
Reverse REPOs
Subord.Debentures
MtgColl.sec.Issued
All Other Brwg
Other Liabilities
Total Liabilities
MINORITY INTEREST
EQUITY CAPITAL:
Perpetual Pref.Stk
Cumul. Perp. Prefstk
NonCum.Perp. Prefstk
CommonStk &Paid-InCap.
UnrlGain/LossAva.i14Sal
Gains/LosscashFlwHedge
Other
Retained Earnings
Other components
Total
TOTAL LIABILITIES & EQUITY
CHANGES TO EQUITY CAPITAL:
Net Income
Lese:Cash Div on Pref
Less:Cash Div on ComStk
Subtotal
Stock Issued
Stock Retired
New Baeis Acctg Adj
oth Adjustments (by diff)
Net Change in Equity Cap
69,064
6,486
75,550
-16,503
59,047
23,512
35,535
-102,875
-125,525
25,000
o
o
-2,350
-2,876
-46,685
1
o
o
o
50
26
o
o
3,592
o
3,668
-43,016
3,591
o
o
3,591
o
o
o
77
3,668
-77,510
6,952
-70,558
20,809
-49,749
-lB,753
-30,996
85,714
57,976
25,000
o
o
2,738
9,704
45,702
o
o
o
o
102
210
o
o
6,487
o
6,799
52,501
6,487
o
o
6,487
o
o
o
312
6,799
1228
146,076
3,242
149,318
-6,409
142,909
-12,967
155,876
-105,585
-104,024
o
o
o
-1,561
-2,330
35,059
o
o
o
o
-231
o
o
2,816
o
2,585
37,644
2,816
o
o
2,816
o
o
o
-231
2,585
-16,567
3,859
-12,708
-4,283
-16,991
65,900
-82,891
75,753
75,976
o
o
o
-223
3,180
61,905
o
o
o
o
143
o
o
5,153
o
5,296
67,201
5,152
o
o
5,152
o
o
o
144
5,296
PAGE 22
4th Prior Qtr
=================
3
200512
-12,351
77,713
-4,460
-342
2,134
-2,668
-150,960
-6,435
847
126,514
-30,034
1,459
-31,243
14,299
1,263
o
1,263
418
-73
-18
-1,196
1,186
49,998
-23,494
4,945
-18,549
30,389
11,840
-15,792
27,632
39,89B
39,977
o
o
o
-79
-2,789
48,993
2
o
o
o
o
12
o
o
990
o
1,002
49,997
988
o
o
988
o
o
o
14
1,002
07:16 04/28/2007
Months in Period
YRMO, Period End ....
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
CHANGES IN FINANCIAL CONDITION (% TA at start of period)
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
S&L Pct
3
200612

S&L Med1an Pct S&L Med1an Pet
3
200609
3
200606
=================
Groul? 5
S&L Med:lan Pct
3
200603
PAGE 23
4th Prior Qtr
S&L Pct
3
200512
CHANGES IN ASSETS: (% of Total Assets at Start of Period, not Annualized)
1.1
2.2
2.6
3.1
4.0
4.5
5.1
5.5
5.8
CASH,DEP.&INV.SECOR.
MORTGAGE BACKED SECOR.
MORTGAGE LOANS:
Const.Lns,1-4 unit Res
Const.Lns,5+ Unit Res
Const.Lns,Nonresid.
Subtotal, Canst.
Perm.Mtgs,1-4 Unit Res
Perm.Mtgs,5+ Unit Res
Perm.Mtgs,Land
Perm.Mtgs,NonResid.
Subtotal,Perm.Mtga
Other (by diff.)
Subtotal, Mtg Lns
NONMORTGAGE LOANS:
Repossessed Assets
Real Estate Invest.
Subtotal ReEo.Ast.+REI

Other Assets:
Goodwill
Asts
TOTAL ASSETS
-1. 80
-.83
.67
.10
- .11
.66
-1.99
-.04
.56
1.49
.01
.00
.66
-.12
.03
.00
.03
.03
.10
.00
-.05
.02
-1. 97
CHANGES IN LIABILITIES + CAPITAL:
7.0
7.1
7.2
7.5
7.9
8.0
LIABILITIES:
DEPOSITS AND ESCROWS:
NetNewDepositsRecvd
IntCreditedDeposits
Subtotal
Other Changes
Net Change
Dep.Aects <$100K+Ese
Dep.Aceta w/Bal>$100
BORROWINGS:
Net Change
FHLBank Advances
Reverse REPOs
Subord.Debentures

Other Liabilities
Total Liabilities
MINORITY INTEREST
EQUITY CAPITAL:
Perpetual Pref.Stk
Cumul. Perp. Prefstk
NonCum.Perp. Prefstk
CommonStk &Paid-InCap.
UnrlGain/LosaAvail4Sal
Gains/LossCashFlwHedge
Other
Retained Earnings
Other
Total Egu:lty
3.16
.30
3.46
-.76
2.70
1.08
1.63
-4.71
-5.75
1.14
.00
.00
- .11
- .13
-2.14
.00
.00
.00
.00
.00
.00
.00
.00
.16
.00
.17
TOTAL LIABILITIES & EQUITY -1.97
CHANGES TO EQUITY CAPITAL:
Net Income
Less:Cash Divan Pref
Less:Cash Div on ComStk
Subtotal
Stock Issued
Stock Retired
New Basis Aectg Adj
Oth Changes (by diff)
Net Change Equity Cap
2.51
.00
.00
2.51
.00
.00
.00
.05
2.56
.11
-.23
.00
.00
.01
.09
.20
.00
.05
.10
.81
.01
.89
.04
.00
.00
.00
.00
.01
.00
.00
.01
12
19
91
80
21
84
2
26
84
86
24
35
46
20
86
50
84
72
83
38
4
53
1.09
3.16
.21
.04
.04
.28
-2.44
-.21
.15
.71
-1. 79
-.03
-1.54
.36
.04
.00
.04
.03
-.58
.00
-.07
-.03
.21
-.10
.00
.00
.02
.08
.11
.00
.09
.15
.62
.01
.79
.08
.00
.00
.00
.00
.00
.00
.00
-.02
83
92
76
65
56
74
7
11
56
79
7
13
11
67
88
53
86
79
2
44
2
46
-.47
7.35
.03
.03
.07
.14
-3.95
-.21
.19
-.37
-4.34
-.02
-4.22
-1.05
-.03
.00
- .03
.03
.11
.00
-.07
.16
-.16
-.10
.03
.00
.04
.12
.64
.00
.02
.08
1.41
.00
1.65
.04
.00
.00
.00
.02
.01
.00
.00
.04
39
97
51
70
58
51
4
14
70
10
4
20
4
7
7
52
5
52
89
36
4
80
-.06
5.81
.10
-.06
.17
.21
-4.83
-.26
.13
.75
-4.21
-.05
-4.05
1.46
.10
.00
.10
.34
.00
-.OJ.
-.06
-.23
.03
-.15
.12
.00
.01
.28
.19
.00
.03
.33
.86
-.01
1.32
.02
.00
.00
.00
.01
.01
.00
.00
.02
43
98
46
19
78
45
6
9
57
74
6
12
6
92
93
53
93
96
39
28
1
4
.77 16 2.46 1. 31 71 1. 80 1. 83 47 3.32 1. 70 71
.61
.52
1.11
-.03
.97
1. 04
.05
-.13
-.01
.00
.00
.00
.00
-.01
.69
.00
.00
.00
.00
.00
.01
.00
.00
.13
.00
.17
80
20
79
8
72
52
76
9
6
90
49
50
8
28
12
94
50
50
50
58
30
50
52
56
43
50
-3.64
.33
-3.31
.98
-2.33
-.88
-1.45
4.02
2.72
1.17
.00
.00
.13
.46
2.14
.00
.00
.00
.00
.00
.01
.00'
.00
.30
.00
.32
.26
.49
.63
.01
.95
.16
.67
-.05
.00
.00
.00
.00
.00
.06
.97
.00
.00
.00
.00
.00
.07
.00
.00
.15
.00
.22
5
20
7
89
8
20
16
94
91
92
49
50
95
92
71
52
50
50
50
64
23
55
49
88
4J.
58
6.98
.15
7.13
-.31
6.83
-.62
7.45
-5.04
-4.97
.00
.00
.00
-.07
- .11
1.67
.00
.00
.00
.00
.00
-.01
.00
.00
.13
.00
.12
-.29
.43
.OB
.03
.54
.05
.16
.90
.00
.00
.00
.00
.00
.03
1.68
.00
.00
.00
.00
.00
-.03
.00
.00
.16
.00
.14
97
11
97
7
97
20
97
4
4
47
49
50
1
20
4B
50
50
50
50
34
66
49
49
39
42
42
-.82
.19
-.63
- .21
-.84
3.25
-4.09
3.74
3.75
.00
.00
.00
-.01
.16
3.06
.00
.00
.00
.00
.00
. 01,
.00
.00
.25
.00
.26
.72
.40
1.09
.00
1. 32
.53
.92
.16
.00
.00
.00
.00
.00
-.01
1.54
.00
.00
.00
.00
.00
-.02
.00
.00
.17
.00
.14
18
13
13
6
15
87
9
89
92
49
49
50
18
87
71
49
49
50
49
32
95
43
5'1
75
43
74
.77 16 2.46 1. 31 71 1.80 1. 83 47 3.32 1. 70 71
1. 90
.00
.00
1.45
.00
.00
.00
.18
1. 85
(% of Beginning
65 4.75 2.20
46 .00 .00
29 .00 .00
76 4.75 1.44
47 .00 .00
50 .00 .00
48 .00 .00
32 .23 .87
65 4.98 2.39
Equity Capital, not Annualized)
91 2.10 2.40 47 4.01 2.41
47 .00 .00 47 .00 .00
29 .00 .00 30 .00 .00
94 2.10 1.64 67 4.01 1.53
50 .00 .00 49 .00 .00
50 .00 .00 50 .00 .00
50 .00 .00 50 .00 .00
25 -.17 -.16 47 .11 -.11
82 1.93 1.55 66 4.12 1.33
1229
83
47
31
89
49
50
49
74
84
-.62
3.93
-.23
-.02
.11
-.14
-7.64
-.33
.04
6.40
-1.52
.07
-1. 58
.72
.06
.00
.06
.02
.00
.00
-.06
.06
2.53
-1.19
.25
-.94
1. 54
.60
-.80
1.40
2.02
2.02
.00
.00
.00
.00
-.14
2.48
.00
.00
.00
.00
.00
.00
.00
.00
.05
.00
.05
2.53
.77
.00
.00
.77
.00
.00
.00
.01
.79
.05
-.28
.09
.00
.03
.20
.34
.00
.06
.16
.71
.02
1.38
.09
.00
.00
.00
.01
.02
.00
.00
.01
27
98
6
15
66
12
6
12
46
98
18
86
15
83
95
54
93
60
30
35
3
67
1.29 72
.20
.36
.67
-.02
.59
.02
.36
.14
.00
.00
.00
.00
.00
.00
1.18
.00
.00
.00
.00
.00
-.02
.00
.00
.15
.00
.13
16
20
16
95
50
18
70
75
76
52
50
50
24
18
76
95
50
50
50
32
80
50
50
30
43
30
1.29 72
2.49
.00
.00
1.55
.00
.00
.00
-.09
1.36
20
47
28
35
48
49
51
70
33
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
LENDING, INVESTMENT, FORECLOSURE, AND RESTRUCTURING ACTIVITY ($000)
07:16 04/28/2007
Months in Period
YRMO, Period End ....
DOCKET:
DATA AS OF:
CUrrent Quarter
=================
3
200612
1.1 CASH, DEPOSITS, & INVESTMENT SECURITIES:
United Western Bank
06679 TFR STATUS: COMPLETE
04/28/2007 CMR STATUS: COMPLETE
1st Prior Qtr 2nd Prior Qtr
=======;========= =================
3
200609
3
200606
Net BS ChngInCsh,Dep,&InvSc -39,240.
23,205
-9,823
2.2 MORTGAGE BACKED SECURITIES:
Pass-Through:
Purchases
Sales

Other Mortgage Backed Securities:
Purchases
Sales
Other Balance Changes
Net Subtotal (Other MBS)
Net Subtotal (Total MBS)
Net Other Chngs (by diff.)
Net BS Chng in MtgBckdSec
2.6 MORTGAGE LOANS:
Constr. Lns. Closed:1-4 Res
Constr. Lns. Closed:5+ Res.
Constr. Lns. Closed:Nonres.
Perm. Mtgs. Closed:1-4 Res.
Perm. Mtgs. Closed:5+ Res.
Perm. Mtga. Closed:Nonres.
Perm. Mtga. Closed:Land
Total New Originations
Refinancing Loans(b)
Mtg Purchases: 1-4 Dwelling
Mtg Purchases: 5+ Dwelling
Mtg Purchases: Nonres.
Total Mtg Purchases
Noncash Trans,excl.Frcl+NCO
TotalDebita:Orig+Prch+NnCsh
Total Mtgs Sold
Mtga Sold:1-4 Dwell
Mtgs Sold:5+ Dwell
Mtga Sold:Nonres
Cash Repayment of Principal
Foreclosures (Frcl)
Net Charge-offs (NCO)
Additions to Allowances
Total Credits:Sales+Misc.
(by diff.)
Net BS Chng in Mtge Loans
3.1 NONMORTGAGE LOANS:
Commer.Lns Closed or Purch.
Consmr Lna Closed or Purch.
Net Subtotal .
Net Other Chngs (by
Net BS Chng in NonMtge Lns
4.0 REPOSSESSED ASSETS:
Foreclosures
ChgOffs on Repos'd (VA60)
Chg in VA (Chg in SC440)
Otn:BS Chg+COs+ChgAll.
Net BS Chng Repo'd Assets
5.8 OTHER ASSET CHANGES:
Net BS Chng in Total Assets
DEBT RESTRUCTURING ACTIVITY:
Cmplince
MORTGAGE LOAN FORECLOSURE ACTIVITY:
Construction
Permanent Loans:
1-4 Family
5+ Dwelling Units
Nonresidential
Land
Total
1,273
8,362
-25,223
-32,312
55,125
14,517
-26,390
14,218
-18,094
-41
-18,135
22,740
2,228
1,999
3,228
o
61,101
16,107
107,403
o
3,890
o
1,214
5,104
537
113,044
1,228
o
o
1,228
99,737
2,635
198,
588
104,386
8,6Sa
5,787
14,445
18,239
208
18,447
-21,140
-2,693
2,635
o
o
-2,.041
594
2,013
-43,016
2,968
7,468
361
2,181
o
70
23
2,635
51,753
o
-15,344
36,409
51,136
o
-20,445
30,691
67,100
189
67,289
10,109
1,819
2,010
4,703
o
27,316
9,984
55,941
o
5,200
o
o
5,200
-4,851
56,290
3,636
446
o
3,190
86,763
.1,965
74
405
92,843
-36,553
3,772
-32,781
11,220
1,131
12,351
-4,595
7,756
1,965
o
o
-1,014
951
-13,919
52,501
2,147
6,874
o
1,955
o
o
10
1,965
1230
72,572
10,379
-16,749
45,444
126,841
o
-19,189
107,652
153,096
704
153,800
7,561
1,439
445
646
222
27,711
6,525
44,549
o
3,441
o
o
3,441
10,801
58,791
33,858
998
o
32,860
114,708
1,884
140
208
150,798
-92,007
3,605
-88,402
9,756
82
9,838
-31,852
-22,014
1,884
o
o
-2,521
-637
4,720
37,644
1,890
3,816
o
1,429
o
455
o
1,884
3rd Prior Qtr
=================
3
200603
-1,122
75,178
o
-14,632
60,546
69,632
o
-13,078
56,554
117,100
569
117,669
6,483
777
2,056
1,034
137
36,842
4,501
51,830
o
8,975
o
161,940
170,915
-166,716
56,029
24,568
6,913
o
17,655
114,708
2,207
'-37
688
142,134
-86,105
4,088
-82,017
52,518
75
52,593
-22,955
29,638
2,207
o
o
-173
2,034
998
67,200
3,049
3,422
o
2,019
o
186
2
2,207
PAGE 24
4th Prior Qtr
=================
3
200512
-12,351
100,004
17,021
-15,416
67,567
24,627
o
-14,824
9,803
77,370
343
77,713
10,167
1,040
o
o
4,188
26,381
3,957
45,733
o
20,959
o
197,237
218,196
-58,147
205,782
38,544
3,673
o
34,871
202,040
3,036
937
99
244,656
-38,874
7,631
-31,243
29,640
99
29,739
-15,440
14,299
3,036
o
o
-1,773
1,263
317
49,998
3,055
4,526
o
2,OS3
983
o
o
3,036
07:16 04/28/2007
Months in Period
YRMO, Period End ....
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
LENDING, INVESTMENT, FORECLOSURE, AND RESTRUCTURING ACTIVITY (%)
United western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
Current Quarter 1st Prior Qtr 2nd Prior Qtr
3rd Prior Qtr
=================
=================
3
200612
3
200609
Groul? 5
S&L Medl.an Pct.
3
200606
3
200603
PAGE 25
4th Prior Qtr
=================
SI<L Pct
3
200512
1.1 CASH, DEPOSITS, & INVESTMENT SECURITIES:
Net BS ChngInCsh,Dep,&InVSC -l.BO .11 12
(% of Total Assets at Start of Period, not Annualized)
1.09 .21 83 -.47 -.16 39 -.06 .03 43 -.62
2.2 MORTGAGE BACKED SECURITIES:
Pass-Through:
Purchases .06
Sales .38
Other Balance Changes -1.16
Net Subtotal (Pass Tnrough) -1.48
Other Mortgage Backed Securities:
Purchases 2.52
Sales .66
Other Balance Changes -1.21
Net Subtotal (Other MBS) .65
Net Subtotal (Total MBS) -.83
Net Other Chngs (by diff.) .00
Net BS Chng in MtgBckdSec -.83
2.6 MORTGAGE LOANS:
Constr. Lns. Closed:1-4 Res
Constr. Lns. Closed:5+ Res.
Constr. Lns. Closed:Nonres.
Perm. Mtgs. Closed:1-4 Res.
Perm. Mtgs. Closed:5+ Res.
Perm. Mtgs. Closed:Nonres.
Perm. Mtgs. Closed:Land
Total New Originations
Refinancing Loans(b)
Mtg Purchases: 1-4 Dwelling
Mtg Purchases: 5+ Dwelling
Mtg Purchases: Nonres.
Total Mtg Purchases
Noncash Trans,excl.Frcl+NCO
TotalDebits:Orig+Prch+NnCsh
Total Mtgs Sold
Mtgs Sold:1-4 Dwell
Mtgs Sold:5+ Dwell

Foreclosures (Frcl)
Net Charge-offs(NCO)
Additions to Allowances
Total Credits:Sales+Misc.
Net Subtotal
Net Other Chngs (by diff.)
Net BS Chng in Mtge Loans
3.1 NONMORTGAGE LOANS:
Commer.Lns Closed or Purch.
Consmr Lns Closed or purch.
Net Subtotal
Net Other Chngs (by dinf.)
Net BS Chng in NonMtge Lns
4.0 REPOSSESSED ASSETS:
Foreclosures
ChgOffs on Repos'd (VA60)
Chg in VA (Chg in SC440)
Otn:BS Chg+COs+ChgAll.
Net BS Chng Repo'd Assets
5.8 OTHER ASSET CHANGES:
1. 04
.10
.09
.15
.00
2.80
.74
4.92
.00
.18
.00
.06
.23
.02
5.18
.06
.00
.00
.06
4.57
.12
.01
.03
4.78
.40
.27
.66
.84
.01
.84
-.97
-.12
.12
.00
.00
-.09
.03
.09
Net BS Chng in Total Assets -1.97
DEBT RESTRUCTURING ACTIVITY:
TDR During period .14
Amt incld ScdSC in Cmplince .34
MORTGAGE LOAN FORECLOSURE ACTIVITY:
Construction .02
Permanent Loans:
1-4 Family .10
5+ Dwelling Units .00
Nonresidential .00
Land .00
Total .12
.00
.00
- .21
- .11
.00
.00
-.03
.00
-.19
.00
- .23
.52
.00
.11
2.00
.04
.47
.12
6.04
.34
.00
.00
.00
.01
-.01
6.06
.62
.62
.00
.00
3.85
.00
.00
.01
5.53
.71
.05
.89
.46
.14
.94
-1. 06
.04
.00
.00
.00
.00
.00
.03
68
89
13
4
94
97
5
90
17
26
19
64
65
45
5
21
93
71
43
14
71
43
86
65
79
45
26
12
43
87
56
91
76
72
45
38
87
46
61
13
45
52
20
91
43
47
10
86
64
.77 16
.00 93
.01 89
.00 94
.00 91
.00 48
.00 90
.00 93
.00 91
2.43
.00
-.72
1.71
2.40
.00
-.96
1.44
3.15
.01
3.16
.47
.09
.09
.22
.00
1.28
.47
2.63
.00
.24
.00
.00
.24
-.23
2.64
.17
.02
.00
.15
4.07
.09
.00
.02
4.36
-1. 72
.18
-1.54
.53
.05
.58
-.22
.36
.09
.00
.00
-.05
.04
-.65
2.46
.10
.32
.00
.09
.00
.00
.00
.09
.00 97
.00 43
-.lB 20
- .06 95
.00 95
.00 47
-.03 5
.00 95
- .13 94
.00 74
-.10 92
.67 44
.00 68
.10 47
2.54 5
.02 23
.n 71
.15 61
6.28 16
.29 14
3.47
.50
-.80
2.17
6.06
.00
-.92
5.14
7.31
.03
7.35
.36
.07
.02
.03
.01
1.32
.31
2.13
.00
.00
.00
.00
.00
74 .16
-.02
6.96
.62
.51
.00
.00
3.71
.00
.00
.00
5.14
.67
.04
.79
.52
.18
1.11
-.B1
.OB
.00
.00
.00
.00
.00
-.03
43 .00
42 .00
70 .16
25 .52
14 2.81
31 1.62
28 .05
42 .00
8B 1.57
53 5.4B
89 .09
77 .. 01
74 .01
41 7.20
11 -4.40
B6 .17
11 -4.22
52 .47
35 .00
34 .47
74 -1.52
67 -1. 05
89 .09
45 .00
49 .00
14 - .12
88 -.03
7 .23
1. 31 71 1.80
.00 94
.01 89
.00 47
.00 92
.00 49
.00 44
.00 97
.00 89
1231
.09
.18
.00
.07
.00
.02
.00
.09
.00 98
.00 92
-.19 23
-.05 97
.00 97
.00 47
-.03 7
.00 97
-.12 97
.00 94
- .10 97
.51 39
.00 58
.15 36
2.96 2
.02 44
.53 73
.30 51
7.48 11
.29 16
.00
.00
.00
.03
.00
7.73
.64
.35
.00
.00
4.14
.. 00
.00
.01
6.27
1.61
.03
1.65
.48
.22
1.29
-1.30
.04
.00
.00
.00
.00
.00
.08
70
41
40
51
92
14
63
29
43
97
58
91
B8
58
52
4
82
4
48
5
29
42
7
91
47
52
5
7
70
1.83 47
.00 89
.01 79
.00 47
.00 91
.00 48
.00 95
.00 47
.00 91
3.71
.00
-.72
2.99
3.44
.00
-.65
2.79
5.78
.03
5.81
.32
.04
.10
.05
.01
1.82
.22
2.56
.00
.44
.00
7.99
8.44
-8.23
2.77
1.21
.34
.00
.87
5.66
.11
.00
.03
7.01
-4.25
.20
-4.05
2.59
.00
2.60
-1.13
1.46
.11
.00
.00
-.01
.10
.05
3.32
.15
.17
.00
.10
.00
.01
.00
.11
.00 98
.00 43
-.24 28
-.16 98
.00 93
.00 46
-.03 13
.00 93
-.15 98
.00 93
-.15 98
.70 34
.00 59
.12 46
2.60 3
.03 43
.71 80
.16 51
7.06 12
.30 16
.00
.00
.00
.03
-.01
7.31
.49
.40
.00
.00
3.59
.00
.00
.00
6.05
1.35
.01
1.32
.52
.18
.99
-.92
.02
.00
.00
.00
.00
.00
.06
75
42
96
93
1
12
63
48
43
95
69
87
9
84
59
6
87
6
86
13
74
45
92
87
46
48
36
93
43
1. 70 71
.00 93
.01 84
.00 46
.00 92
.00 47
.00 89
.00 98
.00 87
5.06
.86
-.78
3.42
1.25
.00
-.75
.50
3.92
.02
3.93
.51
.05
.00
.00
.21
1.33
.20
2.31
.00
1.06
.00
9.98
11.04
-2.94
10.41
1. 95
.19
. 00
1. 76
10.22
.15
.05
.01
12.38
-1. 97
.39
-1. 58
1.50
.01
1.50
-.78
.72
.15
.00
.00
-.09
.06
.02
2.53
.15
.23
.00
.10
.05
.00
.00
.15
.05 27
.00 96
.00 92
-.34 35
- .18 98
.00 87
.00 46
-.05 15
.00 86
-.19 98
.00 %
-.28 98
.70 46
.00 64
.05 19
3.10 2
.05 69
.71 76
.11 53
7.39 12
.47 16
.00
.00
.00
.06
-.01
8.15
.72
.63
.00
.00
3.82
.00
.00
.00
7.11
1.34
.04
1.38
.37
.12
:\..00
-.79
.09
.00
.00
.00
.00
.00
.07
73
42
98
93
6
63
66
35
45
96
92
93
95
55
70
12
87
15
75
9
61
50
83
93
47
50
9
95
41
1.29 72
.00 95
.01 86
.00 45
.00 95
.00 98
.00 46
.00 50
.00 93
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
QUESTIONS, BUSINESS STRATEGIES, AND NEW DEPOSIT YIELDS
United Western Bank
DOCKET: 06679 TFR STATUS. COMPLETE
DATA AS OF. 04/28/2007 CMRSTATUS. COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
PAGE 26
4th Prior Qtr
========e=======; ================; =_===_=R===== __ =; ==--==-===._._==- .-.===-=-=-=====-
Months in Period
YRMO, Period End ..
200612 200609 200606
3
200603
3
200512
SUPPLEMENTARY QUARTERLY QUESTIONS:
(O=No, l=Yes in One Qtr. of Period, 2=Yes in Two Qtrs. of Period, Etc.)
Did reporting association acquire any through merger? 0 0
As a result of a branch or bulk deposit purCohase, were assetsoor liab.included ion
sheet for the first time?
Has there been a change in control of
o o
Has there been a merger accounted for underothe purchase
o
o
reporting association's balance
o . I
o
o
(O=Not restated, Other=Restatement Date Formated as MMODYY)
o
o
o
o
If reporting association's bal. sheet. is restated for the first time using push-down accounting, enter the date of
the reorganization (MMODYY) 0 0 0 0 0
Reporting association's fiscal year-end 12
Code representing nature of work to be performed by independent public
for the current fiscal rear 10 10
Did the reporting as soc ation.change its independent public accountant
quarter? 0 0
12
accountants
10
during the
o
12
10
o
Did the reporting association or its consolidated subsidiaries have outstandingofutures or options
positions at quarter-end? 0 0 . 0
Does the reporting association bave a Subchapter S election in effect for Federal income tax purposes
for the current tax year? 0 0 . 0 0
EXTENSIONS OF S&L CREDIT TO ITS DIRECTORS, AND RELATED INTERESTS:
Aggregate amount ($000) 5,86
2
0 4,000
1
0
No.w/Large Borrowings 0
1232
12
10
o
o
o
o
o
OFFICK OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
07:16 04/28/2007
COMPOSITION AND OFF-BAL. SHEET POSITIONS OF SECTION CMR PORTFOLIO / Part 1 of
3 ($000)
DOCKET:
DATA AS OF:
Current Quarter
=================
YRMO, period End ... 200612
1. COMPOSITION OF SECTION CMR ASSETS.:
SF 1st Mtges & MBS, Fixed Rate:
30YrMtgLns
15YrMtglns
All Fix
30YrSecMtgConventional
30YrSecMtgFHA/VA
lSYrSecMtg
BalloonSecMtg
SF 1st Mtg Sec, All Fix
SF 1st Fix, All Lns+Sec
30YrMtg:Lns+Sec
lSYrMtg:Lns+Sec
BalloonMtg:Lns+Sec
SF 1st Mtges & MBS, Adj. Rate:
Total NonTeaser ARMs
NonTeaser ARMs,CurrIndx
NonTeaser ARMs,Laglndx
Teaser ARMS
Teaser ARMs,CUrrlndx
Teaser ARMs,LagIndx
SF ARMS, Teaser+NonTeaser
Securitized ARMS
Nan-Securitized ARMS
SF 1st MtgLns+MBS: Fix+Adj
MultiFam+NResLns&Sec:
ARM Balloons
ARM FullyAmortizing
Fix.Rate Balloons
Fix.Rate FullyAmortizing
Subtotal
Const.&LandLns, Adj.Rate
Const.&LandLns, Fix.Rate
2ndMtgLns, Adj.Rate
2ndMtgLns, Fix.Rate
Total Mtg Lns, Adj.+Fixed
Total Mtg Lns, Adj.Rate
Total Mtg Lns, Fixed Rate
NonMtg Commerical Lns,Adj.
NonMtg Commercial Lns,Fixed
NonMtg Consumer Lns,Adj.
NonMtg Consumer Lns,Fixed
Total NonMtg Loans
Total Loans
Collaterized Mortgage Obligations:
Floating Rate
Fixed Rate: Total
FIR: Remaining WAL <=5y
FIR: Remaining WAL 5-10y
FIR: Remaining Wal>10y
Superfloaters
InverseFloaters+SuperpOs
Other
Total CMOs
CMO Residuals
Interest-Onlt MBS
Principal-On y MBS
Total Mtg Der. Sec.
Law-Risk MtgDerSec.
High-Risk MtgDerSec.
84,860
27,683
o
112,543
17,177
o
o
o
17,177
129,720
102,037
27,683
o
740,581
660,321
80,260
o
o
a
740,581
263,374
477,207
870,301
77,340
266,361
2,341
51,515
397,557
88,643
4,309
1,807
788
1,363,405
1,174,732
188,673
45,237
3,610
o
222
49,069
1,412,474
342,832
130,809
130,809
o
o
o
o
o
473,641
o
o
o
473,641
473,641
o
United Western Bank
06679 TFR STATUS: COMPLETE
04/28/2007 CMR STATUS: COMPLETE
1st Prior Qtr 2nd PriorQtr
=================
200609 200606
($000 at End of Period)
85,677
28,776
o
114,453
25,582
o
o
o
25,582
140,035
111,259
28,776
o
809,295
726,670
82,625
o
o
o
809,295
287,285
522,010
949,330
77,058
249,410
6,974
28,289
361,731
61,766
1,843
115
o
1,374,785
1,197,644
177,141
45,226
4,134
975
182
50,517
1,425,302
336,676
122,593
122,593
o
o
o
o
o
459,269
o
o
o
459,269
459,269
o
1233
84,588
28,597
o
113,185
15,198
o
o
o
15,198
128,383
99,786
28,597
o
835,810
748,935
86,875
o
o
o
835,810
261,435
574,375
964,193
78,286
243,175
6,997
19,767
348,225
55,371
670
34
o
1,368,493
1,212,676
155,817
39,039
3,465
o
178
42,682
1,411,175
300,710
127,802
127,802
o
o
a
a
a
428,512
o
a
o
428,512
428;512
a
3rd Prior Qtr
================'=
200603
85,173
29,546
o
114,719
10,302
o
o
o
10,302
125,021
95,475
29,546
o
873,614
784,885
88,729
o
o
o
873,614
220,548
653,066
998,635
84,152
256,300
9,268
10,188
359,908
48,684
530
34
o
1,407,791
1,262,784
145,007
59,329
3,849
o
157
63,335
1,471,126
188,962
131,876
86,639
45,237
o
o
a
o
320,838
o
o
o
320,838
320,838
o
PAGE 27
4th Prior Qtr
=================
200512
87,749
30,890
o
118,639
7,656
o
o
o
7,656
126,295
95,405
30,890
o
906,445
815,835
90,610
o
o
o
906,445
162,447
743,998
1,032,740
79,574
258,054
2,741
9,597
349,966
43,931
6
34
o
1,426,677
1,288,038
138,639
31,006
4,650
o
209
35,865
1,462,542
125,012
139,584
110,190
29,394
o
o
o
o
264,596
o
o
o
264,596
202,059
62,537
OFFICE OF .THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
07:16 04/28/2007
COMPOSITION AND OFF-BAL.SHEET POSITIONS OF SECTION CMR PORTFOLIO / Part 2 of 3 ($000)
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
YRMO, Period End ...
===========200612 ===========200609 ===========200606
1. COMPOSITION OF SECTION CMR ASSETS-continued: ($000 at End of Period)
Cash, Deposits & Securities:
Csh,NnInDp,OvNightFF&RepO
Securities. (a)
Zero-Coupon
Govtt + secur;t1es

Other securities
Total Cash, Dep.& Sec.
20,981
o
o
527
2,251
77,B42
o
101,601
ITEMS RELATED TO MTG LNS+SEC
Nonperforming Mtgs .
Accrued Mtg Int.Rece1v.
Advs. for Taxes and Insur
16,22B
10,161
1,013
-12,927
7,820
248
32,757
Unamortized Yld Adj
Total Allowance
Unreal.Gains (Losses)
Total Other Mtg Assets
ITEMS RELATED TO NON-MTG LNS+SEC
Nonperforming NonMtg Lns
Accrued NonMtgLn Int.Recei.
1,217
537
-1,904
936
o
2,722
Unamortized Yld Adj
Total Allowance
Unreal.Gains (Losses)
Total Other NonMtgLn Assets
ITEMS RELATED TO INVESTMENT
Unamortized Yld Adj
Total Allowance
Unreal.Gains (Losses)
Total Other Inv.Sec.Assets
Real Estate Investments
Repossessed Assets
Unconsol.Subs.lnv.
Office Premises and Equip.
Other Assets (b)
Total Consolidated Assets
(a)
(b)
Mtge MutualFunds MktVal
Other Equity Sec.MktVal
Equities: MrkVal-Book
Purch+Excess SrvngRghts
Total Bal of Mtgs Srvcd
ARMS I Curr.Mrkt Indx
ARMs, Lagg.Mrkt Indx
FIR, Coup <B%
FIR, B<=Coup<=B.99
FIR, 9<=Coup<=9.99
F!R,10<=Coup<=10.99
F!R,11<=Coup
SECURITIES
-6,734
o
3
6,737
o
7,468
o
7,280
95,849
2,140,529
o
o
o
15,399
1,095,901
112,442
23,022
5,730
86,721
331,945
265,076
270,965
2. COMPOSITION OF SCHEDULE CMR LIABILITIES:
FixedRate, FixedMaturity Deposits:
Orig.Maturity<=12MOS

Dep.
Bal.Matur.in <= 3 Mos
Bal.Matur.in 4-12 Mos
Bal.Matur.in 13-36MOS
Bal.Matur.in 37+ Mos.
Other Deposits:
Transaction Accounts
MMDAs
Passbook Accts
Non-Int Bearing DemandDep
Total Deposits
F/M FIR Brwgs: Total
FM FR Brw Matur.0-3 Mos
FM FR Brw Matur.4-36 Mas
FM FR Brw Matur.36+ Mos
F/M ViR BrwgS:
FM VR Brw 1
FM VR Brw position 2
FM VR FHLB Advances
Other FM VR Borrowings
Total Borrowings
Escrows for Assets Held
Escrows for Mtgs Serviced
Other Escrows
Unamrtzd Yld Adj On Dep.
Unamrtzd Yld Ad) On BrW.
Other Liabilities
Total Liabilities
Minority Int.Consol.Subs

6,423
13,476
15,475
35,374
661
18,919
15,598
196
414,252
731,207
115
34,840
1,215,788
374,417
363,486
10,000
931
196,000
o

196,000
o
570,417
2,104
21,991
165,048
-72
o
18,340
1,993,616
3
146,911
2,140,530
28,436
o
o
558
28,419
83,009
o
140,422
23,314
9,950
945
-13,246
8,238
209
39,426
2,165
499
-2,254
953
o
3,965
-7,151
o
4
7,155
o
6,874
o
5,098
96,017
2,183,529
o
o
o
16,560
1,167,504
121,622
24,396
5,816
93,537
349,781
282,169
290,183
6,080
13,793
15,459
35,332
697
18,765
14,567
1,303
354,249
724,103
199
26,355
1,140,238
507,292
471,336
35,000
956
166,000
o
o
166,000
o
673,292
2,602
33,850
169,194
-91
o
21,215
2,040,300
2
143,244
2,183,546
1234
27,049
o
o
428
1,987
86,981
o
116,445
24,781
9,676
1,262
-14,131
8,304
-111
41,435
2,133
468
-2,352
908
o
4,045
-7,922
o
4
7,926
o
5,923
o
17,440
97,596
2,130,497

o

18,107
1,240,392
130,568
25,406
6,193
99,012
367,343
298,928
312,942
32,270
13,501
15,440
61,211
30,940
14,342
14,109
1,820
333,911
780,772
160
34,742
1,210,796
461,578
430,598
30,000
980
126,000
o
o
126,000
o
587,578
3,642
38,452
142,741
-124
o
11,512
1,994,597
2
136,445
2,131,044
3rd Prior Qtr
200603
28,483
o
o
3,869
2,014
91,562
o
125,928
24,986
9,109
1,430
-17,057
7,863
244
44,963
1,413
548
-4,653
1,208
o
5,406
-8,267
o
-1
8,266
o
6,560
o
15,177
95,138
2,093,402
o
o
o
19,587
1,331,450
141,949
26,491
6,656
106,397
391,729
320, B12
337,416
62,205
13,675
15,469
91,349
31,499
31,058
26,805
1,.987
322,476
617,705
287
29,661
1,061,478
557,163
536,159
20,000
1,004
136,000
o
o
136,000
o
693,163
3,791
35,643
151,813
-189
o
13,842
1,959,541
2
133,860
2,093,403
PAGE 2B
4th Prior Qtr

200512
26,936
o
o
3,000
2,901
94,090
o
126,927
25,978
8,719
1,539
-17,931
7,494
28
46,701
1,620
298
-2,025
705
o
3,238
-8,389
o
-1
8,388
o
4,525
o
15,140
94,179
2,026,236
o
o
o
20,709
1,412,179
154,570
28,031
6,686,
110,975
408,5B5
339,283
364,049
984
16,233
29,432
46,649
16,939
826
26,896
1,988
312,712
687,260
405
27,159
1,074,185
356,410
335,382
20,000
1,028
261,000

o
261,000
o
617,410
4,356
32,637
158,537
-151
o
10,662
1,897,636
2
128,564
2,026,202
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
COMPOSITION AND OFF-BAL.SHEBT POSITIONS OF SECTION CMR PORTFOLIO / Part 3 of 3 ($000)
07:16 04/28/2007
united Western Bank
PAGE 29
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
==---===.-.=-== == -==='===.=-=- ======= . == ===
YRMO, Period End .
200612 200609 200606
3rd Prior Qtr 4th Prior Qtr
_======._._-== =================
200603 200512
3. Off-Balance Sheet positions
(Contract Code)
Off-Bal.Sheet position 1
1014 1016 1016
Off-Bal.Sheet position 2
1016 2216 2216
Off -Bal. Sheet position 3
2216 4002 4002
Off-Bal.Sheet position 4
4002 9512 9512
Off-Bal.Sheet position 5
9502 0 0
Off -Bal. Sheet position 6
9512 0 0
Off -Bal. Sheet position 7
0 0 0
Off -Bal. Sheet Position 8
0 0 0
Off-Bal.Sheet position 9
0 0 0
Off -Bal. Sheet position 10
0 0 0
Off-Bal.Sheet position 11
0 0 0
Off -Bal. Sheet position 12
0 0 0
Off-Bal.Sheet position 13
0 0 0
Off-Bal.Sheet position 14
0 0 0
Off -Bal. Sheet position 15
0 0 0
Off-Bal.Sheet Position 16
0 0 0
No. positions Listed AbOve
6 4 4
No. positions on
0 0 0
self Valued Pos:CMR 1-9 9
0 0 0
1016 1006
2056 1008
2216 1014
4002 1016
9512 2016
0 2216
0 4002
0 9512
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
5 8
0 0
0 0
4.
SF Isc ARM Bal.w/Lifetime Caps
and Floors
Lifecap-Coupon
0 0 0
201bp<= Lfcp-Cpn <=40 bp
0 0 0
400bp< Lifecap-Cougon
666,522 728,365 752,230
Subtotal, w/Lifetime aps
666,522 728,365 752,230
Subtotal, w/LifetimeFloor
NA NA NA
0 0
0 0
786,254 815,800
786,254 815,800
NA NA
Subtotal, wiD LftmCaps
74,058 80,930 83,581
Subtotal, wlo LftmFloors
NA NA NA
87,361 90,645
NA NA
5.
SF 1st ARM Bal.w/periodic Caps
and Floors
Subtotal, wlPeriodic Caps
666,522 728,365 752,230
Subtotal, w/PeriodFloors
666,522 728,365 752,230
786,254 815,800
78,6,254 815,800
subtotal,wlo PeriodicCaps
74,059 80,930 83,580
Subtotal,wlo PeriodFloors
74,059 80,930 83,580
87,360 90,645
87,360 90,645
6. MF+NR ARMs w/LCap-Yd<300BP
0 0 0 0 0
'1235
OFFICE OF THRiFT SUPERVISION - WEST SUPEaVISORY REGION
, 5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
COMPOSITION AND CONTRACT YIELDS OF SECTION CMR PORTFOLIO / Part
1 of 3 (t)
07:16 04/28/2007
United Western Bank
PAGE 30
DOCKET: 06679 TFR STATUS:
COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
3rd Prior Qtr
4th Prior Qtr
=_===a ===_=_=_ -==========-===== ==.===._===-=
_._-=====-==-_.-.
======a==========
S&L Pct S&L Pct S&L
Pct S&L
Pct SaL Pct =.=.c: _== ___
._._-- _.==-- --=
.. a___ __=._. __ =
..... =-
YRMO, Period End .. 200612 200609 200606
200603
200512
1. COMPOSITION OF SECTION CMR ASSETS: (t Total Assets at End of Period)
SF 1st & MBS, Fi,ced Rate:
3.78 '52 3.92 3.71 53, 3.97 30YrMtg s 3.96 3.33 56 4.07 3.83 53 4.33 3.56 55
15YrMtgLns 1.29 2.96 32 1.32 3.26 31 1.34 2.70 30 1.41 2.77 32 1.52 3.17 36
BalloonMtgLns .00 .57 7 .00 .50 7 .00 .52 8 .00 .54 6 .00 .56 9
SF 1st Mtg Lns, All Fix 5.26 9.15 29 5.24 11.18 31 5.31 8.06 34 5.48 9.31 33 5.86 9.11 33
30YrSecMtgConventional .80 .13 76 1.17 .08 79 .71 .07 78 .49 .08 72 .38 .06 70
30YrSecMtgFHA/VA .00 .00 27 .00 .00 26 .00 .00 25 .00 .00 26 .00 ' .00 25
15YrSecMtg .00 .47 11 .00 .45 12 .00 .42 12 .00 .44 13 .00 .41 13
BalloonSecMtg .00 .00 30 .00 .00 29 .00 .00 31 .00 .00 31 .00 .00 31
SF 1st Mtg Sec, All Fix .80 1.84 39 1.17 1.82 43 .71 1.52 40 .49 1.44 32 .38 1.61 30
SF 1st Fix, All Lns+Sec 6.06 13.89 25 6.41 14.27 29 6.03 14.02 27 5.97 14.01 27 6.23 14.19 27
30YrMtg:Lns+Sec 4.77 4.71 52 5.10 4.17 53 4.68 3.85 54 4.56 4.24 52 4.71 4.26 55
15YrMtg:lns+Sec 1.29 4.92 25 1.32 4.93 23 1.34 4.76 24 1.41 4.58 26 ' 1.52 5.09 26
BalloonMtg:LnS+Sec .00 .81 7 .00 .78 6 .00 .76 7 .00 .93 6 .00 .84 7
SF lst,Mtges & MBS, Adj. Rate:
34.60 14.29 91 37.06 14.94 91 39.23 14.88 90 41.73 Total NonTeaser ARMs
15.30 90 44.74 15.19 90
NonTeaser ARMs,CUrrIndx 30.85 13.38 90 33.28 14.52

35.15 14.88 90 37.49 15.22 89 40.26 14.96 89
NonTeaser ARMs,LagIndx 3.75 .01 92 3'.78 .01 4.08 .02 90 4.24 .02 90 4.47 .03 92
Teas.ARM sUbj2Intro.Rates, .00 .00 29 .00 .00 28 .00 .00 25 .00 .00 24 .00 .00 26
Teaser ARMs,CUrrIndx .00 .00 30 .00 .00 30 .00 .00 27 .00 .00 26 .00 .00 28
Teaser ARMs,LagIndx .00 .00 47 .00 .00 47 .00 .00 46 .00 .00 46 .00 .00 47
'SF ARMS, Teaser+NonTeaser 34.60 14.29 90 37.06 15.04 89 39.23 15.20 89 41.73 16.21 89 44.74 16.42 87
Securitized ARMS 12.30 .44 94 13.16 .44 92 12.27 .50 90 10.54 .72 87 8.02 .90 78
Non-Securitized ARMS 22.29 11.12 81 23.91 12.32 82 26.96 13.08 86 31.20 13.36 86 36.72 11.94 87
SF 1st MtgLns+MBS: Fix+Adj 40.66 35.51 63 43.48 36.53 67 45.26 37.15 65 47.70 38.57 67 50.97 40.17 67
MultiFam+N.ResLns&Sec:
1.16 69 3.53 1.34 65 3.67 ARM Balloons 3.61 1.80 68 4.02 1.61 70 3.93 2.04 69
'ARM'FullyAmortizing 12.44 3.52 81 11.42 3.87 80 11.41 3.75 80 12.24 4.24 81 12.74 4.18 83
Fix.Rate Balloons .11 1.22 29 .32 1.15 37 .33 1.17 37 .44 .86 43 .14 .86 36
Fix.Rate FullyAmortizing 2.41 1.89 57 1.30 1.98 40 .93 2.02 ' 36 .49 1.,43 26 .47 1.27 24
Subtotal 18.57 13.23 64 16.57 12.98 58 16.34 12.62 59 17.19 12.17 63 17.27 11.76 66
Const.&LandLns, Adj.Rate 4.14 4.12 50 2.83 4.15 40 2.60 4.56 37 2.33 3.97 40 2.17 3.67 40
Const.&LandLns, Fix.Rate .20 .68 32 .08 .61 23 .03 .58 19 .03 .47 20 .00 .55 18
2ndMtgLns, Adj.Rate .08 2.91 9 .01 2.62 7 .00 2.81 7 .00 2.65 7 .00 2.72 ,7
2ndMtgLns, Fix.Rate .04 1.15 14 .00 .97 3 .00 .79 6 .00 .71 6 .00 .72 6
Total Mtg LnS, Adld+Fixed 63.69 72.92 32 62.96 73.09 26 64.23 75.50 24 67.25 74.58 35 70.41 , 74.34 40
Total Mtg Lns, j. Rate 54.88 36.42 76 54.85 40.00 73 56.92 39.88 74 60.32 43.77 78 63.57 46.32 78
Total Mtg LnS, FiXed Rate 8.81 28.86 11 8.11 28.17 13 7.31 26.93 12 6.93 25.85 9 6.84 26.25 9
NonMtg Commerical Lns, Adj. 2.11 ,1.46 63 2.07 1.50 64 1.83 1.54 56 2.83 1.36 70 1.53 1.45 53
NonMtg Commercial .17 .53 28 .19 .49 34 .16 .48 27 .18 .47 29 .23 .46 33
NonMtg Consumer LnS, j. .00 .05 9 .04 .05' 44 .00 .05 10 .00 .05 11 .00 .05 12
NonMtg Consumer Lns,Fixed .01 .51 14 .01 .40 11 .01 .45 12 .01 .32 13 .01 .44 12
Total NonMtg Loans 2.29 4.3'7 32 2.31 4.25 35 2.00 4.25 34 3.03 4.10 41 1.77 4.32 29
Total Loans 65.99 83.03 15 65.28 83.44 13 66.24 84.24 12 70.27 83.35 23 72.18 83.19 23
Collaterized Mortgage Obligations:
.00 98 15.42 .00 97 14.11 .00 Floating Rate 16.02 96 9.03 .00 95 6.17 .00 92
Fixed Rate: Total 6.11 .65 83 5.61 .45 83 6.00 .36 83 6.30 .11 81 6.89 .13 87
FIR: Remaining WAL <=5K 6.11 .19 87 5.61 .17 88 6.00 .14 87 4.14 .00 80 5.44 .00 84'
FZR: Remaining WAL Y .00 .00 39 .00 .00 38 .00 .00 39 2.16 .00 90 1.45 .00 93
FIR: Remaining WAL lOy .00 .00 45 .00 .00 44 .00 .00 45 .00 .00 46 .00 .00 46
superfloaters .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
InverseFloaters+SuperPOs .00 .00 49 .00 .00 49 .00 .00 49 .00 .00 49 .00 .00 49
Other .00' .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Total CMOs 22.13 1.33 95 21.03 .85 94 20.U' .87 93 15.33 .41 89 13.06 .47 90
CMO Residuals .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00, .00 50
Interest-Only Strifped MBS .00 .00 47 .00 .00 47 .00 .00 47 .00 .00 48 .00 .0,0 48
y Str pped MBS .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Tota MtgDer. Sec. 22.13 1.33 95 21.03 .85 94 20.11 .87 93 15.33 .41 89 13.06 .47 90
'Low-Risk MtgDerSec. 22.13 .79 95 21.03 .37 94 20.11 .31 93 15.33 .10 89 9.97 .06 87
High-Risk MtgDerSec. .00 .00 36 .00 .00 37 .00 .00 37 .00 .00 38 3.09 .00 90
1236
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
UTPR REPORT FOR ENDED 200612
COMPOSITION AND CONTRACT YIELDS OF SECTION CMR PORTFOLIO / Part 2 of 3 (t)
07:16 04/2B/2007
United Western Bank
PAGE 31
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF. 04/2B/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
=====-=====-==
=--==-==_ _==-== =._.==-= _-=-- ================= -=_.=._==-=---=-=
S&L Pct
S&L Pct S&L Pct
Groul? 5
S&L S&L Med1an Pct Pct
====== === -===== =-==== ==- ==-=== -===== ===
YRMO, Period End ...
200612 200609 200606 200603 200512
1. COMPOSITION OF SECTION CMR ASS.ETS-continued:
(t Total Assets at End of Period)
Cash, Deosits , Securities: .
22 1.30 1.76 35 1.27
CShtNn
.9B l.B9 1.70 37 1.36 1.54 40 1.33 1.74 41
Equ tt Secur ties
.00 .00 23 .00 .00 24 .00 .00 24 .00 .00 23 .00 .00 23
Zero- oUEon Securities
.00 .00 41 .00 .00 43 .00 .00 43 .00 .00 43 .00 .00 42
Gov't + gency Securities
.02 .26 40 .03 .23 3B .02 .15 39 .18 .16 50 ."15 .15 50
TermF&Repo, Int.earn.dep.
.11 .48 33 1.30 .40 76 .09 .22 34 .10 .42 30 .14 .26 38
Structured Securities
3.64 .20 83 3.80 .22 82 4.0B .22 BO 4.37- .04 81 4.64 .11 78
Other Securities
.00 .08 17 .00 .08 15 .00 .08 15 .00 .08 16 .00 .08 15

4.75 7.31 35 6.43 6.37 SO 5.47 5.48 48 6.02 5.92 50 6.26 6.14 SO
NonperformingMtgs
.76 .17 78 1.07 .15 91 1.16 .14 93 1.19 .11 93 1.28 .12 95

.47 .35 90 .46 .35 88 .45 .34 90 .44 .34 90 .43 .33 87
.05 .00 85 .04 .00 91 .06 .00 90 .07 .00 92 .OB .00 B9
Unamortized Y1d Adj
-.60 .00 7 -.61 .00 5 -.66 -.01 4 -.81 -.02 4 -.B8 -.05 4
Total Allowance
.37 .37 49 .38 .39 49 .39 .38 53 .38 .3B 49 .37 .36 SO
Unreal.Gains (Losses)
.01 -.02 94 .01 -.02 92 -.01 -.05 57 .01 -.04 98 .00 -.02 95

.25 92 1.81 .15 92 1.94 .01 96 2.15 .01 98 2.30 .08 98
Nonperforming NonMtg Lns .06
.01 70 .10 .02 B5 .. 10 .01 86 .07 .01 86 .OB .01 86
Accrued NonMtgLn Int.Recei. .03
.05 40 .02 .04 41 .02 .04 42 .03 .03 47 .01 .03 38
Unamortized Yld Adj -.09
.00 12 -.10 .00 J.l - .11 .00 10 -.22 .00 7 -.10 .00 10
Total Allowance .04
.09 36 .04 .10 37 .04 .08 39 .06 .08 44 .03 .08 35
Unreal.Gains (Losses) .00
.00 SO .00 .00 SO .00 .00 52 .00 .00 51 .00 .00 SO
Total . 13 .00
78 .18 .00 89 .19 .00 B7 .26 .00 93 .16 .00 86
ITEMS RELATED TO I STMENT SECURITIES
Unrealized Gains (Losses) .00 .00
84 .00 .00 83 .00 .00 87 .00 .00 . 47 .00 .00 49
Unamortized Yield Adj -.31 .00
2 -.33 .00 2 -.37 .00 3 -.39 .00 4 - .41 .00 4
Total Allowance .00 .00
SO .00 .00 48 .00 .00 48 .00 .00 4B .00 .00 49
TotalOthrInvSecAssets .31 .00'
98 .33 .00 9.B .37 .. 00 9B .39 .00 98 .41 .00 96
Real Estate Investments .00 .00
38 .00 .00 39 .00 .00 39 ;00 .00 40 .00 .00 40
Repossessed Assets .35.03
92 .31 .03 94 .28 .01 92 .31 .01 95 .22 .01 93
Unconsol. Subs. Inv. .00.00
.37 .00 .00 35 .00 .00 36 .00 .00 36 .00 .00 39
Office Premises and Equip. .34 1.04.
18 .23 .93 13 .82 .92 42 .72 .90 40 .75 .91 41
Other Assets (b) 4.48 3.13
66 4.40 2.99 67 4.58 3.06 68 4.54 2.94 69 4.65 2.92 69
Total Consolidated .Assets 100.00 100.00
SO 100.00 100.00 SO 100.00 100.00 SO 100.00 100.00 SO 100.00 100.00 SO
(a) Mtge MutualFunds MktVal
.00 .00 42 .00 .00 44 .00 .00 43 .00 .00 43 .00 .00 43
Ot er Equity Sec.MktVal
.00 .00 26 .00 .00 26 .00 .00 26 .00 .00 26 .00 .00 25
Equities: MrkVal-Book
.00 .00 SO .00 .00 51 .00 .00 SO .00 .00 49 .00 .00 SO
(b) Purch+Excess
.72 .03 88 .76 .03 B9 .. B5 .03 B7 .94 .02 B9 1.02 .02 89
Wtg.Avg.Srvng Fee BP)
50.69 26.53 96 50.60 26.75 96 50.87 26.85 96 50.63 27.55 94 51.29 27.35 94
(t Total Balance Serviced at End of Period)
(b) Purch+Excess
.72 .03 89 .76 .03 89 .85 .03 88 .94 .02 B9 1.02 .02 89
ARMs, CUrr.Mrkt I
10.26 1.95 78 10.42 2.45 81 10.53 2.16 83 10.66 2.12 82 1,0.95 2.25 82
ARMs, Indx
2.10 .00 94 2.09 .00 94 2.05 .00 92 1.99 .00 90 1.98 .00 92
FIR, oup ..at
.52 4.66 25 .50 4.11 26 .50 4.37 26 .50 3.76 28 .47 3.97 28
FIR, 8<=Coup<=8.99
7.91' 40.01 19 8.01 41.38 20 7.98 45.07 20 7.99 44.70 25 7.B6 46.04 23
FIR, 9<=Coup<=9.99
30.29 30.71 48 29.96 29.62 SO 29.62 30.10 49 29.42 29.42 50 28.93 28.57 51
F/R,10<=Coup<=10.99
24.19 6.52 B3 24.17 6.19 83 24.10 5.76 B3 24.09 5.74 80 24.03 6.11 BO
F/R,11<=CouP
24.73 1.51 92 24.85 1. 74 92 25.23 1.61 92 25.34 1.84 94 25.7B 1.94 94
2 COMPOS.ITION OF SCHEDULE CMR LIABILITIES:
FixedRate, FixedMaturity Deposits:
.2B 16.36 2 1.51
Orig.Maturity<=12MOS .30 17.68 2
14.05 3 2.97 13.9B 3 .05 13.0B 3
13<=orig.Maturity<=36MOS .63 8.82 4
.63 9.81 4 .63 11.41 4 .65 9.49 4 .80 8.B1 4
3 7<=Orig . Maturit
t
.72 3.72 7
.71 3.85 7 .72 4.1B 6 .74 4.71 6 1.45 . 97 16
Subtotal, F/R /M Dep. 1.65 34.57 2
1.62 34.52 2 2.87 32.33 3 4.36 31.99 3 2.30 32.45 3
Bal.Matur.in <=3Mos .03 9.59 2
.03 8.33 2 1.45 8.49 6 1.50 7.73 6 .84 7.37 3
Bal.Matur.in 4-12 Mos .88 16.32 2
.86 16.34 2 .67 14.98 3 1.4B 14.77 3 .04 13.16 3
Bal.Matur.in 13-36Mos .73 4.60 7
.67 4.81 4 .66 5.54 4 1.28 5.B8 9 1.33 6.54 7
Bal.Matur.in 37+ Mos. .0.1 .71 4
.06 .93 7 .09 1.17 7 .09 1.32 6 .10 1.45 6
Transaction Accounts 19.35 4.98 91
16.22 4.67 88 15.67 5.11 87 15.40 4.B3 86 15.43 5.09 89
.MMDAs 34.16 11.08 94
3;3.16 10.60 95 36,64 9.77 96 29.51 10.18 93 33.92 9.B3 96
Passbook Accts . .01 5.55 5
.01 6.04 4 .01 ,5.91 6 .01 6.18 6 .02 6.32 6
Non-Int Bearing DemandDep 1.63 4.34 22
1.21 4.01 16 1.63 4.04 28 1.42 3.58 21 1.34 3.31 23
Total 56.80 68.78 12
52.22 66.46 10 56.B2 65.37 16 50.71 67.62 10 53.01 67.05 13
F/M F/R rwgs: Total 17.49 7.56 76
23.23 7.37 B6 21.66 8.25 BO 26.62 6.B3 87 17.59 9.79 73
PM FR Brw Matur.0-3 Mos 16.98 3.64 91
21.59 3.51 92 20.21 4.40 89 25.61 3.57 96 16.55 3.55 B7
PM FR Brw M.atur.4-36 Mos .47 1.61 36,
1.60 1.73 47 1.41 1.86 46 .96 1.27 47 .. 99 1.48 41
PM FR Brw Matur.36+ Mos .04 .14 42
.04 .24 40 .05 .27 40 .05 .25 43 .05 ,38 41
F/M VIR Brwgs: Total 9.16 5.54 60
7.60 5.21 58 5.91 5.91 SO 6.50 5.30 53 12.88 3.50 69
PM VR Brw pos'ition 1 .00 .00 30
.00 .00 32 .00 .00 32 .00 .00 3.3 .00 .00 33
FM VR Brw position 2 .00 .00 42
.00 .00 41 .00 .00 39 .00 .00 40 .00 .00 41
PM VR FIILB Advances 9.16 2.62 74
7.60 2.07 71 5.91 3.33 60 6.50 3.06 60 12.BB 3'.09 78
Other PM VR Borrowings .00 .00 40
.00 .00 41 .00 .00 40 .00 .00 41 .00 .00 42
Total Borrowings . 26.65 18.98 74
30.83 20.91 80 27.57 21.66 75 33.11 20.65 B6 30.47 21.16 BO
Escrows for ASsets Held .10 .09 54
.12 .17 41 .17 .14 59 .18 .12 56 .21 .09 69
Escrows for Mtgs serviced 1.03 .01 94
1.55 .01 94 1.80 .01 92 1. 70 .01 92 1.61 .01 93
Other EScrows 7.71.00 97
7.75 .00 97 6.70 .00 9B 7.25 .00 98 7.82 .00 9B
Unamrtzed Yld On Dep. .00 .00 21
.00 .00 22 -.01 .00 21 -.01 .00 16 -.01 .00 1B
Unamrtzed Y1d Ad on Brw. .00 .00 45
.00 .00 47 .00 .. 00 45 .00 .00 45 .00 .00 45
Other Liabilities .B6 .81 52
.97 .82 61 .77 2B .66 .7B 38 .53 .B4 23
Total Liabilities .93.14 90.37 87
93.44 90.34 91 93.60 90.43 92 93.61 90.34 93 93.65 90.61 96
Minorit
t
Int.Consol.Subs .00 .00 78
.00 .00 77 .00 .00 78 .00 .00 80 .00 .00 80
EQIlity 6.B6 9.38 12
6.56 9.45 8 6.40 9.37 9 6.39 9.41 7 6.35 9.06 4
Total Conso Liab.+Cap. 100.00 100.00 SO
100.00 100.00 SO 100.00 100.00 SO 100.00 100.00 SO 100.00 100.00 SO
1237
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENOED 200612
COMPOSITION AND CONTRACT YIELDS OF SECTION CMR PORTFOLIO / Part
3 of 3 (%)
07:16 04/28/2007
United Western Bank
PAGE 32
DOCKET: 06679 TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr
3rd Prior Qtr 4th prior Qtr
================= =================

Groul? 5
Pet S&L Pet
Groul? 5 Groul?5
Groul? 5
S&L Medlan S&L Medlan Pet S&L Medl.an Pct S&L Medl.an Pct
====== ====== === ====== ======= === ====== ====== ===
====== ===
YRMO, Period End ... 200612 200609 200606 200603 200512
3. AVERAGE CONTRACT YIELDS: (Average Contract Yield
- or Index Plus Margin - at End of Period)
SF FIR 1st Mtgs, 30-Year 6.24 6.26 44 6.24 6:30 41 6.22 6.29 37 6.20 6.27 39 6.24 6.27 44
SF F!R 1st Mtgs, 15-Year 5.51 5.89 26 5.52 5.99 27 5.43 6.03 20 5.42 5.90 20 5.44 5.87 23
SF FIR 1st Mtgs, Balloons NA 6.16 NA NA .6.26 NA NA 6.20 NA NA 6.10 NA NA 5.89 NA
SF FIR Convention'l 30Y MBS 5.57 5.61 41 5.74 5.69 53 5.52 5.64 39 5.17 5.72 16 5.05 5.84 10
SF NonTeas.ARMs:CUrIndx 5.83 5.75 53 5.81 5.69 58 5.71 5.62 57 5.59 5.40 58 5.43 5.30 57
SF NonTeas.ARMs:LagIndx 4.38 6.28 2 4.10 6.04 2 3.85 5.76 4 3.79 5.59 5 3.76 5.44 5
SF Teaser ARMs: CUrIndx NA 5.54 NA NA 5.45 NA NA 5.14 NA NA 4.96 NA NA 4.79 NA
SF Teaser ARMs: LagIndx NA 1.98 NA NA 3.04 NA NA 2.55 NA NA 3.93 NA NA 2.96 NA
MultiFam&NonRes BalloonARMs 31203.2500 31202.8900 31202.9100 31203.0100 31203.2200
MultiFam&NonRes FulAmtzARMs 31200.9100 31200.9300 31.201. 0000
31200.81.00 31200.7500
MultiFam&NonRes F/R Balloon 7.02 6.54 75 6.60 6.49 56 6.60 6.39 60 6.65 6.29 68 5.91 6.27 36
MultiFam&NonRes FIR FulAmtz 7.37 6.79 84 6.78 6.77 51 7.40 6.75 88 7.75 6.65 91 7.86 6.58 96
Const.&LandLns, Fix.Rate 7.83 7.11 B1 7.47 6.91 83 7.93 6.74 90 7.77 6.55 90 10.00 6.40 98
Const.&LandLns, Adj.Rate 31200.7300 31201. 0000 31201..1200 31201.1500 31201.2300
2ndMtgLns, Fix.Rate 7.00 7.24 38 NA 7.26 NA NA 7.21. NA NA 7.14 NA NA 7.12 NA
2ndMtgLns, Adj.Rate
31200.5400 31200.5600 31200.5000 31.200.5000 31200.5000
NonMtgCommercl.al Lns, Fix.R 5.42 7.08 7 5.1.6 7.00 5 5.90 6.82 13 4.67 6.63 7 4.89 6.54 8
NonMtgCommercial Lns, Adj.R 83000.5000 83000.8200 83000.8900
83000.7500 83000.7900
Consumer Lns, Fixed Rate 9.28 7.36 77 9.34 7.23 80 9.56 7.04 88 9.45 7.10 85 9.51 7.00 85
Consumer Lns, Adj.Rate 0.0000 31200.0400 0.0000 0.0000 0.0000
Zero-Coupon .00 .00 41 .00 .00 43 .00 .00 43 .00 .00 43 .00 .00 42
USGov't+Agency 5.76 3.36 94 5.75 3.58 88 5.39 3.37 91 6.23 2.82 95 6.86 2.95 98
TermFF+Repes + IEdepos1ts 4.74 4.94 34 4.85 5.03 36 4.70 4.87 44 4.38 4.55 37 3.55 3.86 30
Other IE Securities .00 4.38 18 .00 4.75 16 .00 4.78 16 .00 4.25 17 .00 4.23 15
DP:F/M FIR Bal.Matur .. 0-3mo 3.84 4.61 4 3.62 4.24 6 4.58 3.88 93 4.33 3.54 96 3.95 3.18 93
DP:F/M F!R Bal.Matur.4-l2mo 4.l6 4.85 5 4.14 4.65 7 3.64 4.29 4 4.56 3.92 96 3.19 3.58 10
DP:F/M F!R Bal.Matr.13-36mo 3.62 4.27 7 3.55 4.28 9 3.48 4.11 7 3.51 4.05 7 3.50 3.90 12
DP:F/M.F/R Bal.Matur.37+ mo 4.53 4.40 59 4.60 4.34 70 4.61 4.29 83 4.60 4.24 87 4.59 4.14 95
DP:Transaction Accounts .93 .95 48 1.01 .95 54 .95 .93 52 .85 .85 50 .79 .79 50
DP:MMDAs 2.72 3.73 26 2.64 3.38 29 2.69 3.28 34 1. 99 2.76 24 1.69 2.50 27
DP:Passbook Accounts 1.29 1.17 54 1.30 1.11 56 1.29 1.00 62 1.28 1.02 58 1.27 1. 00 63
BW:F/M FIR Brwg Mat.0-3 Mos 5.31 5.20 67 5.26 5.13 62 5.28 5.12 71 4.62 4.53 56 3.91 4.11 29
BW:F/M FIR Brwg Mat.4-36 Me 3.92 4.58 23 4.58 4.34 59 4.16 3.89 56 3.64 3.79 36 3.78 3.74 52
BW:F!M F/R Brwg Mat.36+ Mos 5.32 4.94 73 5.33 5.00 68 5.29 4.93 69 5.05 4.73 61 5.84 4.42 86
BW:F!M VIR Borrowings,Pos 1 NA NA
NA NA NA
BW:F/M ViR Borrowings,Pos 2 NA NA NA
NA NA
BW:F/M V/R Borrowings,Pos 3 NA NA NA NA NA
BW:F/M VIR Borrowings,Other NA NA NA
NA NA
4. SF 1st ARM Bal.w/Lifetime

and Floors
LifeCap-Coupon <=200bp
.03 11 .00 .03 12 .00 .01 18 .00 .02 21 .00 .01 23
201bp<= LfCp-Cpn <=400bp .00 .52 4 .00 .42 5 .00 .25 6 .00 .19 6 .00 .12 8

31.14 9.79 91 33.36 10.41 89 35.31 11.23 90 37.56 12.00 90 40.26 13.02 87
31.14 11.84 87 33.36 12.72 86 35.31 12.75 87 37.56 13.21 86 40.26 13.58 84
Subtotal,w/LifetimeFloor NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Lag.I.ARMs,% w/LifeCaps 90.00 99.63 26 90.00 99.70 23 90.00 99.69 19 90.00 99.24 20 90.00 99.74 20
CUrr.I.ARMs,% w/LifeCaps 90.00 98.57 23 90.00 9B.67 23 90.00 98.61 25 90.00 98.60 25 90.00 98.66 '23
5. SF 1st ARM Bal.w/Periodic Caps and Floors
Subtotal,wl PeriodicCap 31.14 10.08 88 33.36 11.12 88 35.31 10.67 89 37.56 11.69 87 40.26 12.14 B7
Subtotal,wl Period FIrs 31.14 8.88 90 33.36 8.S8 se 35.31 9.27 89 37.56 9.40 87 40.26 9.00 87
Lag.I.ARMs,% w/PeriodCap 90.00 97.38 35 90.00 97.08 35 90.00 95.69 38 90.00 96.36 40 90.00 98.35 37
CUr.I.ARMs,% w/PeriodCap 90.00 94.04 35 90.00 96 .33 34 90.00 94.88 35 90.00 96.05 36 90.00 95.35 38
Av.PeriodicCap(BP),LagI 125.83 197.50 12 125.84 197.00 11 125.84 188.00 11 125.85 187.50 14 125.87 197.50 11
Av.PeriodicCap(BP),CurI 177.69 200.00 17 177.60 199.73 19 177.82 199.81 16 177.27 199.9B 18 176.53 199.77 18
6. MF+NR ARMw/LCap-Yd<300BP .00 .00 26 .00 .00 26 .00 .00 26 .00 .00 27 .00 .00 27
7. WtAv Months to Next Reset for Selected Adj.Rate Items
SF NonTeas.ARMs:CUrlndx 21.79 23.45 40 21.53 23.73 40 23.28 24.60 45 20.60 23.77 36 17.79 23.85 25
SF NonTeas.ARMs:LagIndx 11.99 7.00 78 11.99 7.50 74 11.99 7.00 78 11.99 7.00 84 11.99 7.00 84
SF Teaser ARMs: CUrlndx NA 15.00 NA NA 15.00 NA NA 15.00 NA NA 15.00 NA NA 15.00 NA
SF Teaser ARMs: LagIndx NA 2.92 NA NA 12.02 NA NA 10.78 NA NA 11.97 NA NA 12.23 NA
MF+NR BalloonARMs 12.00 4.50 59 12.00 6.00 57 11.00 5.00 57 12.00 5.00 58 12.00 5.00 57
MF+NR FulAmtzARMs 8.00 12.00 38 5.00 12.00 33 6.00 12.00 39 3.00 12.00 35 3.00 12.00 33
8. WARM (months), for selected Fixed-Rate Items
SF FIR 1st Mtgs, 30-Year 294.62 323.90 20 298.71 321. 20 23 301.40 321. 54 26 301. 70 321.10 26 302.38 320.63 25
SF FIR 1st Mtg+MBS,15Yr 108.06 139.81 17 112.94 138.92 25 118.73 136.50 30 122.23 138.79 29 123.64 142.37 26
SF F!R IstMg+MBS,Balloon NA 65.09 NA NA 67.04 NA NA 71.67 NA NA 73.28 NA NA 71. 92 NA
SF FIR Convent'l 30Y MBS 343.56 317.67 92 348.27 317.34 93 345.72 295.00 89 352.80 302.98 97 353.32 2B6.00 97
MultiFam&NR F/R Balloon 100.00 41.00 88 58.00 37.00 71 61. 00 39.00 73 68.00 40.00 74 66.00 41.00 71
MultiFam&NR FIR FulAmrtz 87.00 87.00 50 95.00 89.00 55 141. 00 92.00 72 201. 00 101. 00 95 196.00 l04.00 92
Zero-Coupon Securities .00 .00 41 .00 .00 43 .00 .00 43 .00 .00 43 .00 .00 42
USGov't+Agency Secur. 202.00 3.50 98 205.00 7.00 98 197.00 6.00 98 222.00 7.00 98 187.00 8.00 98
TermFF+Repos +IEdeposits 1.00 1.00 56 1.00 1.00 57 1.00 1.00 57 1.00 1.00 53 1.00 1. 00 53
Other IE securities .00 26.00 18 .00 31.00 16 .00 37.00 16 .00 34.00 17 .00 25.00 15
DP:F/M FIR Matur.37+ mo 46.00 47.00 34 38.00 47.00 4 40.00 47.00 5 42.00 47.00 10 45.00 48.00 22
BW:F/M FIR Matur.36+ Mos B9.00 45.00 76 92 .00 50.00 75 95.00 50.00 77 98.00 48.00 77 104.00 51.00 83
1238
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY' REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
INTEREST RATE RISK INFORMATION
From OTS Interest Rate Risk Model
07:16 04/28/2007
United Western Bank
PAGE 33
DOCKET: 06679
. TFR STATUS: COMPLETE
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
currentQuarter
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr

_c=== ___ =._. __
.= =====-=.=._=-
._=_==.a._._._. __
Groul? 5
Pct
S&L Pct S&L S&L S&L
S&L Medun
Pct Pct Pct
._=_=IS
YRMO, Period End .
200612 200609 20Q606 200603 200512
NPV AS t OF PV ASSETS AFTER:
9.52 75 9.60 9.04 57 9.33 B.4B 55
Shock 300bp
10.92
B.74 9.06 42 9.72 9.53 54
Shock 200bp
11.82 10.52 76 10.44 10.06 61 10.31 9.70 55 9.66 10.03 45 10.34 10.41 46
ward Shock 100bp
12.26 11.21 72 10.90 10.67 51 10.97 10.73 55 10.27 10.64 41 10.67 10.89 45
No change
12.27 11.82 .67 11.00 11.64 42 11.32 11.34 48 10.57 11.59 32 10.61 11.71 34
Ownwrd Shock 100bp
11.80 12.25 39 10.68 12.11 32 11.19 11.96 39 10.42 11.B4 25 9.96 11.66 24
Dwnwrd Shock 200bp
11.21 11.96 34 10.16 12.08 23 10.76 11.94 32 9.79 11.87 18 B.B6 11.46 10
Dwnwrd Shock 300bp
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
BP CHANGE IN NPV AFTER:
-1.99 75 -1.40 -2.19 70 -1.99 -2.41 52
Upward Shock 300bp
-1.35
-1.B3 -2.07 52 -.90 -2.35 74
Shock 200bp
-.46 -1.23 B2 -.57 -1.17 77 -1.01 -1.24 63 -.90 -1.35 5B -.27 -1.43 81
ward Shock 100bp
-.02
_.54 87 -.lQ -.5B 82 -.34 -.67 70 -.30 -.56 67 .06 -.70 88
No change
-.48 .30 12 -.33 .39 B -.12 .44 10. -.15 .;30
Dwnwrd Shock 100bp
14 -.65 .31 7
Dwnwrd Shock 200bp
-1.07 .36 10 -.B5 .57 10 -.56 .67 10 -.78 .26 11 -1.76 .07 7
Dwnwrd Shock 300bp
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
CHANGE IN NPV AS A t OF
BASE CASE NPV AFTER:
-12.69 -20.24 77 -14.4B -23.13 68 -19.68 c25.01 60
Upward Shock 300bp
-19.35 -22.25 58 -9.B4 -23.27 73
Shock 200bp
-4.49 -12.66 85 -6.04 -14.48 79 -10.19 -15.29 66 -9.77 -14.06 66 -3.30 -14.07 81
ward Shock 100bp
-.33 -5.66 91 -1.26 -6.78 85 -3.55 -7.65 72 -3.33 -7.23 67 .37 -7.31 B7
100bp
-4.05 3.33 12 -2.9B 4.17 5 -1.00 5.BB 9 -1.24 4.02 10 -6.36 3.89 6
Dwnwrd Shock 200bP
-9.01 5.24 9. -7.7B 6.4Q 7 -5.00 B.25 9 -7.45 4.06 7 -17.09 2.74 7
Dwnwrd Shock 300bP
NA. NA NA NA NA NA NA NA NA NA NA NA NA NA NA
CHANGE IN NPV AS A " OF
BASE CASE PV ASSETS AFTER:
-1.56 -2.32 81 -1.59 -2.55 76 -2.23 -2.75 55
Shock 300bp
-2.04 -2.60 60 -1.04 -2.77 75
ward Shock 200bp
-.55 -1.4B B5 -.67 -1.44 80 -1.15 -1.72 70 -1.03 -1.6B 67 -.35 -1.67 83
Upward Shock 100bp
-.04 -.66 91 -.14 -.69 83 -.40 -.B2 BO -.35 -.81 73 .04 -.86 87
No change
-.50 .39 11 -.33 .50 7 -.11 .63 9 - .13
Dwnwrd Shock 100bp
.49 10 -.68 .44
'4
Dwnwrd Shock 200bp
-1.11 .63 9 -.86 .75 8 -.57 .86 9 -.79 .56 12 -1.81 .26 6
Dwnwrd.Shock 300bp
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
IRR MEASURES:
12.27 11.82 67 11.00 11.64 42 11.32 11.34 48
Pre Shock NPV(%)
10.57 11.59 32 10.61 11.71 34
Post Shock NPV(t)
11.21 10.46 71 10.16 9.94 55 10.31 9.70 58 9.66 9.73 48 B.86 10.22 37
sensitivity Meas:Decline NPV
1.07 1.29 ;30 .85 1.28 20 1.01 1.60 32 .90 1.53 35 1.76 1.69 54
SELECTED MARKET RATES OF INTEREST
(b):
U.S. Treasury Bills (c):
5.02 4.89 5.01 4.63
3 month
4.08
6 month
5.09 5.02 5.24 4.81 4.37
1 year
5.00 4.91 5.21 4.82 4.38
U.S. Trsry Notes&Bonds
(d) :
4.82 4.71
2 year
5.16 4.82 4.41
3 year
4.74 4.62 5.13 4.83 4.37
5 year
4.70 4.59 5.10 4.82 4.35
7 year
4.70 4.60 5.11 4.83 4.36
10 year
4.91 4.64 5.14 4.86 4.39
30 year
4.81 4.77 5.19 4.90 4.54
Prime Rate
8.25 8.25 8.25 7.75 7.25
FHLMC Net
Ylds (e) :
6.16 6.18
SinEle- amily
6.78 6.37 6.10
Nul i-family (f)
0.00 0.00 0.00 0.00 0.00
11th District COFI
4.36 4.28 3.88 3.60 3.19
Notes:
Interest Rate Risk data is delayed at least one day due
to system constraints.
Interest Rate Risk System for curren data.
Please refer to the
(a)
I.f the 3 month T-Bill rate is less than 3. oot, Downward Shock
It3 is one-half the 3 month T-Bill rate. Otherwise,
Downward Shock #3 is 300 basis points.
(b)
All rates are' as of the last business day of fO.r the presented. Exception: COFI
is a weighted
of the cost of funds for savings inst tutions in the 1th FHLB District and is for the
last month of the
presented.
(Cl
oted on discount basis and annualized using a 360 day year,
(d
Yields on actively traded issues adjusted to constant maturities.
(e
FHLMC Required Net Yields for 30 day commitments.
(f
Under a propietary agreement with Fannie Mae, OTS cannot dislose these
rates.
1239
..
..
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
EXAM RATIO INFORMATION
United Western Bank
DOCKET: 06679 TFR STATUS: COMPLETE
PAGE 34
DATA AS OF: 04/28/2007 CMR STATUS: COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd prior Qtr 3rd Prior Qtr 4th Prior Qtr
Months in Period
YRMO, Period End ....

200612 200609 200606 200603 200512
S&Ls in Peer Group
72 67 67 67 65
CAPITAL ADEQUACY - PCA REQUIREMENTS:
Total Risk-Based Capital
Tier 1 Risk-Based Capital
Tier 1 Leverage Cap (Core)
Tangible Equity Capital
EARNINGS:
Interest&Dividend Income
Interest Expense
Net Interest Income

Fee Income
CoreInc:Before Loss Prov
Provisions for Loss
CoreInc:After Loss Prov
Net Non-Core Income
Income Before Tax
Income Tax
IncTax Before extr Item
Extraordinary items
Net Income
153,520
145,805
145,805
145, B05
30,441
13,957
16,484
12,651
46
467
4,254
219
4,035
658
4,893
1,302
3,591
0
3,591
current Quarter
=================
S50L Pet
YRMO, Period. End.... ====== ====200612
CAPITAL ADEQUACY - PCA REQUIREMENTS:
Total Risk-Based Capital 15.70 13.23 68
Tier 1 Risk-Based Capital 14.88 12.43 69
Tier 1 Lever Capital(Core) 6,82 8.48 12
ASSET QUALITY:
1.18 83
pstDue+NonacLns/OUtLns&Leas
3.14
Nonperf+Repo/TierlCapl+Allo
15.94 3.58 B9
30-99PastDue!Tier1Capl+Allo
12.56 4.14 99
EARNINGS: (as a % of Avg. Assets)
6.04 31
Interest & Dividend Income
5.63
Interest Expense
2.58 3.25 16
Net Interest Income
3.05 2.77 68

2.34 2.32 52
.01 .01 52
*Fee Income
.09 .50 12
Corelnc:Before Loss Prov
.79 .90 41
Provisions for Loss
.04 .05 46
CoreInc:After Loss Prov
.75 .79 46
Net Non-Core Income .16. .14 56
Income Before Tax
.90 1.07 39
Income Tax
.24 .31 42
IncTax Before Extra Item .66 .72 42
Extraordinary Items
.00 .00 SO
Net Income
.66 .72 42
Int BA/Int Brng Liablties 107.15 111.68 15
LIQUIDITY/ASSET LIABILITY MANAGEMENT:
67
Pre-Shock NPV % PV.of Asset 12.27 11.82
Post-Shock NPV Ratio 11.21 10;46
71
sensitivity Meas:Deeline NPV 1.07 1.29
30
OTHER ELEMENTS:
2.92 67
Net Int/Avg.Earning Assets
3.16
Total Nonint
2.37 2.34 52
Net Income/Avg otal Equity
9.90 7.50 67
Net Losses/Avg.TotlLnS&LeaSe -.11
.07 2
Earn Coverage of Net Losses e69.8S
22.28 10
ALLL/Total Loans & Leases .74
.78 44
Nonperf Loans & Leases/ALLL 201.15
68.55 83
148,014 141,135
142,045 135,448
142,045 135,448
142,045 135,448
29,761 28,276
14,657 13,364
15,104 14,912
12,598 11,564
30 28
519 430
2,995 3,750
287 1,295
2,708 2,455
7,356 1,668
10,064 4,123
3,577 1,307
6,467 2,816
0 0
6,487 2,816
1st Prior Qtr 2nd Prior Qtr

Groul? 5
S&L Medl.an Pet
15.77
15.07
6.51
3.78
20.76
12.84
5.54
2.73
2.81
2.34
.01
.10
.56
.05
.50
1.37
1. 97
.67
1.21
.00
1.21
106.25
11.00
10.16
.85
2.92
2.36
18.55
-.05
-236.00
.71
200609
13.43 70
12.32 70
8.44 10
.88 91
2.92 92
4.26 89
6.00 29
3.08 22
2.81 51
2.23 58
.00 54
.48 14
1. 05 27
.06 44
.97 27
.13 91
1.19 80
.38 80
.76 73
.00 50
.76 73
112.07 11
11.64 42
9.94 55
1.28 20
2.93 48
2.26 58
8.53 91
.01 1.3
25.73 14
.80 39
S&L Pet
15.01
14.37
6.36
3.84
21.82
13.95
5.32
2.51
2.80
2.18
.01
.06
.71
.24
.46
.31
.78
.25
.53
.00
.53
106.32
11.32
10.31
1.01
2.95
2.22
8.33
.41
10.36
.66
200606
13.14 67
12.37 67
8.46 7
.79 94
2.28 94
3.13 92
5.B4 23
2.85 26
2.81 47
2.22 45
.00 54
.48 13
1.16 29
.05 85
.93 23
.13 70
1.30 20
.39 29
.86 20
.00 50
.86 20
111.47 11
11.34 48
9.70 58
1.60 32
3.02 48
2.23 47
9.52 47
.02 92
36.62 28
.77 39
138,413
132,616
132,616
132,616
26,544
11,680
14,864
11,546
27
1,115
4,406
1,130
3,276
4,614
7,890
2,738
5,152
0
5,152
3rd Prior Qtr
Graul? 5
S&L Medl.an Pet
15.27
14.61
6.34
3.80
22.56
16.92
5.11
2.25
2.86
2.22
.01
.21
.85
.22
.63
.89
1.52
.53
.99
.00
.99
104.63
10.57
9.66
.90
3.02
2.26
15;71
-.08
200603
13.25 64
12.39 64
8.35 5
.77 94
2.26 94
3.20 94
5.60 23
2.67 26
2.91 45
2.20 52
.00 54
.44 26
1. as 36
.05 82
.94 35
.14 82
1.36 60
.46 66
.90 58
.00 50
.90 58
112.17 4
11.59 32
9.73 48
1.53 35
3.05 47
2.20 51
10.30 80
.01 8
-117.03 18.25
.62 .78 39
131,018
127,053
127,053
127,053
23,365
10,604
12,761
11,411
27
1,665
2,988
534
2,454
-2,119
335
-654
98B
0
988
4th Prior Qtr
S&L Pet
14.34
13.85
6.28
3.45
23.96
14.04
4.60
2.09
2.51
2.25
.01
.33
.59
.11
.48
-.42
.07
-.13
.19
.00
.19
104.94
10.61
8.86
1. 76
2.67
2.26
3.09
.29
200512
13.38 60
12.35 60
8.28 4
.80 93
2.23 93
3.95 89
5.45 4
2.54 24
2.94 28
2.25 48
.00 57
.51 34
1.07 33
.08 60
.92 34
.12 3
1.43 6
.42 7
.93 12
.00 50
.93 12
112.06
11.71 34
10.22 37
1.69 54
3.05 31
2.34 48
9.71 19
.04 83
20 10.70 31.28
.51 .78 28
298.71 45.07 92 326.48 34.74 97 316.30 33.67 95 405.97 38.40 96
40
Displayed as NA if the institution
has not filed section CMR.
1240
07:16 04/28/2007
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 200612
ASSET QUALITY - SUPPLEMENTAL DETAIL
United western Bank
DOCKET: 06679 TPR STATUS:
DATA AS OF: 04/28/2007 CMR STATUS:
COMPLETE
COMPLETE
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
PAGE 35
4th Prior Qtr
===========;oo6i;
==--=-====----=-=
=-=-==-==-=----=-
....... =.-_._-===
YRMO, Period End ....
200609
S.INGLE-FAMILY LOAN DELIQUENCY LOAN CHARGE-OFF DETAIL
LOANS PAST DUE 30-89 DAYS AND STILL ACCRUING: ($000 at End of Period)
Unit 15,425 13,229
Revolv Qpen End 0 0
First Liens 15,425 13,229
Junior Liens 0 0
LOANS PAST DUE 90+
PermMtg, 1-4 Unit
Revolv Qpen End
First Liens
Junior Liens
DAYS AND STILL ACCRUING: ($000
9,083
at End of Period)
7,902
o
7,902
NONACCRUING LOANS:
PermMtg,l-4 unit
Revolv Open End
First Liens
Junior Liens
NET GVA CHARGE-OFFS
permMtg,l-4 Unit
Revolv Open End
First Liens
Junior Liens
o
9,083
o
($000 at End of Period)
5,B59
o
5,B59
o
& CHANGES IN ($000
97
o
97
o
o
6,376
o
6,376
o
During Period) 5B
o
5B
o
200606
12,947
0
12,947
0
7,807
0
7,807
0
7,319
0
7,319
0
155
0
155
0
CUrrent Quarter
1st Prior Qtr 2nd Prior Qtr
-=-====-=========
S&L Pet
--===-=----= .... - -=--=-=-----===-=
S
GMrOeUdPan5 Pet Group 5
..... l. S&L Madl.an Pet
200603
16,133
0
16,133
0
8,757
0
8,757
0
8,344
0
8,344
0
178
0
17B
0
3rd Prior Qtr
=---==.=._-=----=
S&L Pet
====_= ====== .=== == __ == === ==s=== _=_=== _== = __ === ====_= ===_
YRMO, Period End.... 200612 200609 200606 200603
SINGLE-FAMILY LOAN DELlQUENCY LOAN CHARGE-OFF RATES (t of Outstanding Gross Loans in Each Category)
LOANS PAST DUE 30-B9
DAYS AND STILL ACCRUING:
PermMtg,l-4 unit
2.53 .60 91 2.02 .51 92 1.B4 .46 92 2.05 .35 92
Revolv Qpen End
.00 .46 13 .00 .29 17 .00 .16 17 .00 .14 17
First Liens
2.54 .50 90 2.03 .47 B9 1.B4 .44 91 2.05 .36 91
Junior Liens
.00 .21 16
.00 .14 1B NA .14 NA NA .1B NA
LOANS PAST DUE 90+
DAYS AND NON ACCRUING:
PermMtg,l-4 Unit
2.45 .35 91 2.1B .29 90 2.14 .25 91 2.17 .25 91
Revolv Qpen End
.00 .15 16 .00 .09 21 .00 .04 20 .00 .00 25
First Liens
2.46 .36 90 2.19 .29 B7 2.14
.29 89 2.17 .26 91
Junior Liens
.00 .12 1B .00 .09 19 NA .07 NA NA .10 NA
RATES OF GVA CHARGE-OFFS AND
CHANGES IN SVA'S:
PermMtg,l-4 Unit
.02 .00 71 .01 .00 80 .02 .00 88 .02 .00 86
Revolv Qpen End
.00 .00 44 .00 .00 43 .00 .00 44 .00 .00 41
First Liens
.02 .00 74 .01 .00 83 .02 .00 B3 .02 .00 B8
Junior Liens
.00 .00 44 .00 .00 45 NA .00 NA NA .00 NA
200512
14,618
0
14,618
0
10,986
0
10,986
0
B,867
0
B,B67
0
457
0
457
0
4th Prior Qtr
=-=-===--=-===---
S&L pet
200512
1.65 .53 90
.00 .21 15
1.65 .4B 89
NA .22 NA
2.24 .30 90
.00 .04 21
2.24 .32 90
NA .11 NA
.05 .00 93
.00 .00 46
.05 .00 93
NA .00 NA
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
YRMO', Period End....
PAST DUE LOANS: GNMA BUY-BACKS,
30-B9 DAYS PAST DUE:
GNMA BuyBekLNS
He1.d for Sale
USGuar.Ex GNMA BB
All Lns30-89 Days PO
90+ DAYS PAST DUE:
GNMA BuyBekLns
Held for Sale
USGuar Ex GNMA BB
All Lns 90+ Days PO
NONACCRUAL:
GNMA BuyBekLns
Held for Sale
USGuar Ex GNMA BB
All NonAeerual Lns
US GUARANTEED ,
2,870
12,853
4,176
19,496
7,645
9,064
961
9,083
0
4,687
1,595
8,196
AND HELD-FOR-SALE
2,109
12,183
5,588
19,392
6,157
7,B83
1,935
8,683
0
5,411
2,822
15,802
1241
($000 End of Period)
l,B82 939 1,285
13,964 17,499 12,669
3,722 4,703 1,687
19,963 23,931 18,898
6,496 7,190 9,174
7,751 8,956 10,986
1,143 1,629 1,536
7,807 8,985 ,10,987
0 Ii 0
10,077 6,889 7,010
3,716 2,621 4,343
17,711 16,354 16,611
Q7: 16 04/28/2007
YRMO, Period End
PAST DUE LOAN RATES:
30-89 DAYS PAST DUE:
=
USGuar Ex GNMA BB
Tot All Loans 30-89
90+ DAYS PAST DUE:
OFFICE OF THRIFT SUPERVISION - WEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR Qt1J\RTER ENDED 2006'-2
ASSET QUALITY - SUPPLEMENTAL DETAIL
United Western Bank
DOCKET: 06679 TFR STATUS:
AS OF: 04/28/2007 CMR STATUS:
COMPLE'l'E
COMPLETE
current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
= s.= __ ._.=. ==.a.== _.=_ ====a_==._ = ===.===c. __ = __
Group 5
S&L Median Pet S&L
Group 5
Median Pet
200612 200609
Group 5
S&L Median Pet
GrOUp 5
S&L Median Pet
===-== === ===--= -.- =
200606 200603
GNMA BUY-BACK, US GUARANTEED, AND HELD-FeR-SALE (t of Total Assets)
Days PO
.13
.60
.20
.91
.00 94
.00 98
.00 98
.42 79
.10
.56
.26
.89
.00 94
.00 98
.00 98
.39 83
.09
.66
.17
.94
.00
.00
.00
.30

98
88
.04
.84
.22
1.14
.00
.00
.00
.30
94
98
98
91
GNMA BuyBeksLns
Held for Sale
USGuar Ex GNMA BB
Tot All Loans 90+ Days PD
.36
.42
.04
.42
.00 94
.00 98
.00 98
.00 91
.28
.36
.09
.40
.00 94
.00 98
.00 98
.00 92
.30
.36
.05
.37
.00 94
.00 98
.00 98
.00 94
.34
.43
.08
.43
.00 94
.00 98
.00 98
.0094
NONACCRtmL :
.gg .gg .gg .gg .00
LnS
PAGE 36
4th Prior Qtr
S&L
200512
.06
.63
.08
.93
.45
.54
.08
.54
.00
.00
.00
.36
93
98
98
86
.00 93
.00 98
.00 98
.00 93
.00 .00 49
.35 .00 96
.21 .00 98
.82 .16 92
ASSET QUALITY SUMMARY EXCLUDING US GUARANTEED PORTION OF DELINQUENT LOANS AND GNMA BUY-BACK LOANS: (t
Total 30-89 Days PD .58 .41 67 .54 .36 73 .67 .28 83 .87 .26 92
of Total Assets)
.79 .34 89
Total 90+ Days PO .02.00 80 .03 .00 86 .01 ;00 75 .01 .00 73
Total Nonaecrual .31 .17 64 .59 .18 80 .66 .13 85 .66 .13 88
Total NP Loans .48 .29 61 .77 . 23 85 .93 .20 86 .94 .17 91
.01 .0078
.61 .15 87
1.22 .19 90
46.25 250.60 8 39.82 227.33 9
GENERAL ALLOWANCE AND ALLL AS A PERCENT OF NONPIilRFORMING ASSETS LESS LOANS HELD FOR
SALE IN NONPERFORMING 125.28 41 53.23 203.12 17 67.93 212.35 19 62.02 246.08 17 48.12 226.57 12,
lEA/ICL SUMMARY ADDING BACK US GUARANTEED PORTION OF LOANS AND GNMA.BUY-BACKS IN
NONACCRUAL STATUS OF THE NUMERATOR:
lEA less LnSrvRghts/ICL
106.46 117.23
4 105.56 111.41 10 105.57 111.04 10 103.74 111.88
lEA+BOLI+I/O/ICL
108.47 118.95
5 107.56 112.78 11 107.70 112.34 13 105.95 112.75
PURCHASED IMPAIRED LOANS HELD FOR INVESTMENT ACCOUNTED FOR UNDER SOPO.3 - 3 :
2 104.05 111.63 1
2 106.39 112.47 4
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr

YRMO, period End ... ($000 End of Period) 200512
OUtstanding Bal. Contrl.
0 0 0 0 0
Recrd Invstmnt B4 DelLosAl
0 0 0 0
O
Loss Allowances
0 0 0 0 0
S&L Median Pet S&L Median Pct S&L Median Pet S&L Median Pet S&L Median Pet
====i;
====== ------
of Total AsSets)
OUtstanding Bal. Contrl.
.00 .00 47 .00 .00 47 .00 .00 47 .00 .00 47 .00 .00 47
Recrd Invstmnt B4 DelLosAl
.00 .00 47 .00 .00 47 .00 .00 47 .00 .00 47 .00 .00 47
Loss Allowances
.00 .00 49 .00 .00 49 .00 .00 49 .00 .00 49 .00 .00 49
1242
TabC
Exhibit 44 B
(Memo Ex. 2)
1243
TabC
Exhibit 44 B
(Memo Ex. 2)
See Tab C, Exhibit 3
1244
TabC
Exhibit 44 C
(Memo Ex. 3)
See Tab C, Exhibit 8
1245
TabC
Exhibit 44 D
(Memo Ex. 4)
1246
March 5, 2010
Office of Thrift Supervision
Department of the Treasury
Pacific Plaza. 2001 Junipero Serra Boulevard. Suite 650, Daly City. CA 94014-1976
P.O. Box 7165. San Francisco. CA 94120-7165 Telephone: (650) 746-7000 Fax: (650) 7467001
Board of Directors
Attn: Mr. ScotD. Wetzel, Chairman
United Westem Bank
700 17
ili
Street, Suite 100
Denver, CO 80202
RE: Refiling the December 31, 2009 Thrift Financial Report
Dear Members of the Board:
, .. , ....~ : .. ~ ~
Western Region
On Febmary 25, 2010, our examiners concluded the on-site portion of the field visit that began
on January 11,2010. The field visit included a review of United Westem Bank's process for
reviewing mOltgage-backed securities for other-than-:-temporary impairment. During the visit,
the Bank's staff conducted an additional analysis of the Bank's mortgage-backed securities
portfolio for other-than-temporary impairment. This additional analysis included certain
additional assumptions that more accurately reflect cun'ent market conditions and potential
further deterioration in the Bank's portfolio.
Toward the end of the field visit, we reviewed the results of this additional analysis and
discussed the results with Vice-Chairman William Snyder and CFO Chuck Caswell. The results
indicate that a significant additional amount of other-than-temporary impairment must be
recognized in the Bank's December 31, 2009 financial statements and reflected in a revised
Thrift Financial Report. Management and the examiners are in agreement about the amount of
additional other-than-temporary impairment that must be recognized as a result of this process,
but we understand that the total additional expense recognized for the period may also be
affected by an additional valuation allowance associated with the deferred tax asset. This
additional valuation allowance may be required because of the additional other-than-temporary
impairment expense recognized. Based on our discussions with Mr. Snyder and Mr. Caswell, it
is our understanding that the December 31,2009 financial statements will be completed and
issued no later than March 16,2010. It is also our understanding that these financial statements
will reflect the additional other-than-temporary impairment recognized as well as any additional
expense associated with the deferred tax. asset. We expect that a revised December 31, 2009
Tlnift Financial Report will also be filed by this date.
1247
Board of Directors
United Western Bank
Page 2
March 5, 2010
.... - ~ - I'll"
Going forward. we expect the Bank to continue to refine its securities review process to ensure
that the process ~ u l l y reflects changing market conditions as well as any further deterioration in
the Bank's mortgage-backed securities portfolio.
Should you have any questions about this matter._please contact me at (650) 746-7025, or Field
Manager Kevin Swanson at (650) 746-7066.
Sincerely,
~ d - ~ J:S)(
Nicholas J. Dyer
Assistant Director
1248

Board of Directors
UniteclWestern Bank
Page 3
March 5, 2010
epdf: E. Chow
N.Dyer
K. Swanson
S. Harrir
W. Santos
Y. Sosa
K. Walter
A. Dayao
1. Corral-Chavez
Record Copy: Daly City Records Center
1249
TabC
Exhibit 44 E
(Memo Ex. 5)
1250
Office of Thrift Supervision
Department of the Treasury Western Region
Pacific Plaza, 2001 Junipcro Serra Boulevard, Suite 650, Daly City, CA 94014-3897 Daly City Area Office
P.O. Box 7165. San Francisco. CA 94J 20-7 165 Telephone: (6S0) 146-7000 Pax: (6S0) 746-700J
April 28, 2010
Board of Directors
United Western Bank
700 17
th
Street, Suite 100
Denver. CO 80202-3501
Dear Directors:
TIte Office of Thrift Supervision (OTS) commenced an onsite field visit of United Western Bank
("the Bankn) on January 11,2010. AB a result of the findings from the field visit, the OTS has
downgraded the Bank's composite CAMELS rating from a "3" to a "4" anp. designated the Bank
in "troubled condition" as that tenn is defmed at 12 C.F.R. 563.555. The notification of the
downgrade and concurrent "troubled condition" designation was previously provided to you in
separate correspondence dated March 4, 2010, and included an enumeration of the various
operating restrictions the Bank is inunediately subject to related to its "troubled The
component ratings for Capital, Asset Quality, Management, Earnings, Liquidity. and Sensitivity
have also been downgraded. Capital, ABset Quality and Liquidity have been downgraded from a
"3" to a "4." Management and Earnings have been downgraded from a ''2'' to a "4." Sensitivity
has been downgraded from a "2" to a "3;'
The liquidity risk at UWB has increased and is of heightened concernt which is the basis for the
C9mponent downgrade. The Bank's significant concentration in institutional deposits .and the
uncertainty as to whether the FDIC will deem the largest institutional deposit relationship (with
Equity Trust Company) as brokered deposits poses a threat to the viability of the Bank if capital
levels fall below "Well Capitalized," or if the Bank is deemed "Adequately Capitalized" due to a
fonnal enforcement action. Given this fact, we believe the Board should consider all strategic
alternatives available, including the possible sale, merger, or of United Western.
to prevent the potential failure of the institution due to insufficient liquidity.
Capital has been downgraded given current risks to capital posed by the bank's worsening asset
quality trends, the potential impact. of future OTT! from the bank's remaining relatively large
portfolio of below investment grade MBS, and deteriorating earnings. Revised OrrI
calculations performed by the Bank during the field visit resulted in the recording of $18.1
million in additional OTTI for year-end 2009, which decreased core and risk based capital
1251
Board of Directors
United Western Bank
Aprl128, 2010
Page 2
(RBC) to 7.68 percent and 10.07 percent. respectively. .Although these ratios exceed "Well
Capitalized" FDICIA standards, ors has implicitly stated in the Memorandum of Understanding
(MOU) between the Bank. and OTS (effective December 10, 2009). that both year-end 2009 core
capital and risk-based capital (RBC) levels are deficient. We are concerned that the Bank may
not be able to meet and maintain core capital. and RBe levels at 8 percent and 12 percent,
by June 30, 2010.
Asset Quality has been downgraded because of increasing problem asset trends (and the need for
Jargeloan loss provisioning). which is having a negative impact on earnings and capital
fonnation. Also, risks posed by the bank's non-agency MBS portfolio remain significant.
Classified assets (CA) have increased to 148.7 percent of core capital plus allowances for loan
and lease losses (ALLf:.). This includes $210.2 million in noninvestment grade securities OTS
has required the Bank to classify "Substandard." Minus these securities, CA totals still remain
high at $158.7 million or 64 percent of core capital plus ALLL and 6.3 percent of total assets.
Om review also determined that internal processes for monitoring the bank's MBS portfolio for
impairment were inadequate. The following corrective actions must be implemented.:
For monitoring purposes, management still needs to rank order the entire portfolio and
modify the criteria for obtaining credit valuations to broaden the universe of bonds tested to
ensure that all bonds with any potential credit impairment are analyzed.
Management needs to adopt clear,. coherent and consistent written procedures that outline
these practices.
For modeling and credit impainnent analysis, the Bank. must refine the model used to more
accurately reflect current market and specific bond. conditions. Going forward any factors
deemed unrealistic or unduly harsh by management must be addressed in the underlying
assumption inputs into the model used rather than disregarding selective portions of the
model output
The process and model must be revisedand vetted for the bank's first quarter 2010 internal,
review.
Earnings have been downgraded due to material operating losses recorded for the recent three
quarters ended December 31, 2009. Lack of earnings is due to si81:lificant reductions in core
income caused by a shrinking NIM, high loan loss provisioning in recent quarters to address
worsening asset quality {to bring the Bank's level of ALLL to a level that is appropriate for the
1252
Board of Directors
United Western Bank
Apri128, 2010
Page 3
risk in the Bank's loan and material losses recorded on the sale of high risk non-
agency MBS. Management needs to update the bank's business plan to reflect changes in
business strategies planned for 2010 and the impact of regulatory restrictions that have been
imposed on the Bank.
The downgrade in Management is due to the Bank's overall financial condition, which is
considered unsatisfactory due to the Bank's increased risk profile and deteriorating earnings
performance. In particular. the quality of the community bank real estate portfolio has worsened.
the non-agency MBS portfolio continues to pose the possibility of additional OTT! charges, and
earnings performance for the most recent three-quru.ter period ended December 31, 2009, has
been poor. As noted previously. we also found management's review of securities for
impairment to be inadaquate. Further. there is uncertainty regarding the impact that recent
changes in senior management, and those that are in process, will have on the Bank.
The Sensitivity component rating was downgraded due to ongoing market risk within the bank's
MBS portfolio and its potential negative impact on earnings (additional OTTI) and capital (risk
weighting of securities). .
We met with management on February 11,2010, to discuss our fmdings. Although component
ratings were not provided. we advised management that the Bank's composite rating would be
downgraded to a "4" (primarily due to Asset Quality and Earnings concerns) and that a fonnal
enforcement action would be required that will result in the UWB being deemed as "Adequately
. Capitalized."
This notification of composite and component ratings of the Bank is subject to the same
prohibitions on disclosure and release as ors reports of examination. The examination ratings
are furnished to the Bank for its confidential use. OTS examination ratings may not be disclosed
to the public or to any person not officially connected with the Bank as an officer, director,
employee, or attorney under any circumstances by the institution or any of its directors, officers,
or employees. Independent auditors officially connected with the institution may be provided the
ratings if they agree in writing not to disclose them to any other person not officially connected
with the institution as an officer, director, employee. attorney, or auditor.
1253
Board of Directors
United Western Bank:
April 28. 2010
Page 4
If you have any questions, please contact me at (650) 746-7025 or Field Manager Kevin
Swanson at (650) 746-7066.
Sincerely,
Nicholas J. Dyer
Assistant Director
cc: Tom Trujillo, FDIC-Dallas
1254
TabC
Exhibit 44 F
(Memo Ex. 6) .
1255
05:57 11/02/2010
Section
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Denver, CO'
CHARTER: DIF-Ins Federal Stock
Table of Contents
Page
Number
A.Summary Statement .............................................. 1-2
B.Detai1ed Income Statement {$OOO) ................. ............... 3-4
Detailed Income Statement (%Avg.TA) ............................. 5-6
C.Analysis of Net Interest Income: Composition of lEA & ICL ..... 7
Analysis of Net Interest Income: yields and Spreads ........... :8
D.Detailed Balance Sheet {$OOO) ................................... 9-11
Detailed Balance Sheet (tTA) .................................... 12-14
E.Asset Quality ($000) ............................................ 15
Asset Quality {t) ............................................... 16
F .Allowances ($000 & %) , , '" , 17-19
G.Capital Accounts and Re9Uirements ($000 & 'II) 20
. Total Assets by Risk Category ($OOO & If) 21
H.Changes in Financial Condition ($000) ........................ 22
Changes in Financial Condition {i) ......................... :: :23
I.Lending, Investment, Foreclosure, and Restructuring (SOOO) ...... 24
Lending, Investment, Foreclosure, and Restructuring (i) ......... 25
J.Questions, Strategies, New Deposit yields ...................... 26
K.Composition and Off-Bal.Sheet Positions of CMR Portfolio ($000) 27-29
Composition and Avg.Contract Yields of CMR Portfolio (t) ....... :30-32
L. Interest Rate Risk Information .................................. 33
M. Exam Ratio Information .......................................... 34
N.Asset Quality - Supplemental Detail ............................. 35-36
Peer Group Definitions:
Group 1
Group 2
Group 3
Group 4
Group 5
Group 9
Group 6
Assets less than $50 million
Assets between 150 million and $100 million
Assets between 100 million and $300 million
Assets between 300 million and $1 billion
Assets between $1 billion and $5 billion

1256
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
SUMMARY STATEMENT, Part 1
05:57 11/02/2010
United Western Bank
PAGE 1
DOCKET:
06679 TFR STATUS: IN PROCESS
DATA AS OF:
11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr % Change
=====;=========== ================= ================= ================= =================
S&L Median Pct S&L Median Pct S&L Median Pct S&L Median Pct 1 Qtr 1 Year
YRMO, Period End ....
201009 201006 201003 200912 201009 2010.09
S&Ls in Peer Group
75 79 79 77
SUMMARY BALANCE SHEET:
10.28 10.14 52 13.84 9.70 65 27.41 9.76 86
1.1
Cash,Dep.+Inv.Secur.
25.24 8.10 85 -30.3 -65.5
2.2
Mortgage Backed Secur.
20.77 12.14 71 19.30 12.21 65 13.88 11.18 56 12.90 11.31 53 1.0 18.5
2.6 Mortgage Loans:
5.74 Lll 93 7.14 1.33 95 7.16 1.77 95
Construction Lns
9.99 1. 82 96 -24.6 -57.0
permMtg,l-4 Dwel.Units
15.31 25.47 19 15.08 27.62 17 13.43 27.76 15 14.01 29.62 16 -4.7 -12.2
PermMtg,S+ Dwel.Units
2.10 1.49 56 2.04 1.52 55 1.50 1.55 47 1.47 1.47 50 -3.5 6.1
permMtg, Nonresidential
29.16 '13.38 94 26.88 12.36 91 22.81 13.16 87 21.98 12.81 83 1.8 7.5

3.60 .86 78 3.96 .92 80 3.46 1.14 77 3.69 .88 78 -14.7 -24.4
-1.49 - .39 9 -1.40 - .37 11 -1.02 -.38 17 -1.06 -.34 14 -.5 47.6
Net Mtg Loans
54.42 53.18 51 53.70 53.85 48 47.35 54.52 33 50.07 55.75 39 -4.9 -14.5
3.1 Nonmortgage Loans
7.78 7.10 51 7.26 6.83 53 6.00 7.00 45 6.42 7.35 46 .5 -2.1
4.0
Repossessed Assets
1.31 .19 8B .75 .21 75 .93 .28 78 .75 .18 75 62.5 73.7
4.5
Real Estate Investment
.00 .00 43 .00 .00 44 .00 .00 43 .00 .00 42 NA NA
5.1
.46 .72 27 .43 .79 26 .37 .78 20 .38 .78 20 .7 -22.2
5.5
o fice Premises + Eq.
1.07 1..00 51 1.01 .98 51 .87 1.01 36 .91 1.03 41 -1.0 -4.1
5.8 Other Assets
3.91 2.97 63 3.70 2.88 61 3.19 3.18 52 3.33 3.04 55 -.8 -7.3
Total Assets
100.00 100.00 50 100.00 100.00 SO 100 .. 00 100.00 50 100.00 100.00 50 -6.1 -20.4
7.0 Total Liabilities:
77 .26 68 80.20 76.96 65 83.06
7.1
and Escrows
79.78
77.12 81 81.39 76.75 75 -6.6 -19.B
7.2
12.75 9.33 64 11. B4 9.66 60 9.89 10.10 45 10.41 10.72 48 1.1 -10.9
7.5
Other Liabilities
.70 .86 31 .72 .74 45 .61 .76 32 .67 .Bl 39 -8.6 -16.2
Subtotal of 7.0
93.23 89.36 92 92.75 89.59 88 93.56 89.88 93 92.47 90.03 87 -5.7 -18.7
8.0
Total Capital:
.00 .00 48 .00 .00 46 .00 .00 47 .00
perpetual Pref.Stk
.00 46 NA NA
CommonStk +Paid-InCap.
7.98 5.92 69 7.49 5.91 65 6.26 5.58 56 6.46 5.24 60 .1 2.2
UnrlGain/LosSAvai14Sal
-.18 .05 10 ".19 .05 11 - .21 .01 11 -.18 .01 16 -10.5 90.8
Gains/LossCashFlwHedge
.00 .00 51 .00 .00 53 .00 .00 52 .00 .00 52 NA NA
Other
.00 .00 65 .00 .00 64 .00 .00 65 .00 .00 65 NA NA
Retained Earnings
-1.03 4.55 13 -.05 4.53 18 .39 4.64 18 1.24 4.58 23 1966.6 -131. 9
Other Components
.00 .00 60 .00 .00 60 .00 .00 59 .00 .00 58 NA NA
subtotal
6.77 10.64 7 7.24 10.41 11 6.44 10.12 7 7.53 9.97 12 -12.4 -38.2
NonCntrnlnt Cnsld Sub.
.00 .00 88 .00 .00 B6 .00 .00 86 .00 .00 85 .0 .0
Total Capital
6.77 10.64 7 7.25 10.41 11 6.44 10 .12 6 7.53 9.97 12 -12.4 -38.2
Total + Equity
100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 -6.1 -20.4
Group 5

Group 5 Group 5 Group 5
current Quarter 1st 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr

================= ================= ================= =================
YRMO, Period End ....
201009 201006 201003 200912 200909

75 79 79 77 77
2,069,723 2,205,348 2,588,703 2,502,727 2,599,251
FIRREA CAPITAL COMPLIANCE:
6.94 9.60 6 7.42 9.47 11 6.63 9.26
Core Capital(%Adj Tang TA)
5 7.6B 9.11 16 8.77 9.10 43
Risk Based capital(%RWTA)
8.10 15.27 2 9.02 14.82 3 9.18 14.48 2 10.07 14.11 2 11.07 13.51 8
Core Capital
143;845 164,036 172,060 192,839 228,228
Risk Based ($000)
116,706 135,039 139,674 161,669 205,788
Core Cap Surplus ($000)
-22,038 -12,732 68,295 92,439 124,158
RiskBasedCap.Surplus ($000)
-56,205 -44,690 17,918 33,289 57,094
FDICIA PCA cAPITAL RATIOS:
B.l0 15.27 2 9.02 14.82 3 9.18 14.48 2 10.07
Total Risk-Based
14.11 2 11.07 13.51 8
Tier 1 (Core) Risk-Based
6.84 14.15 3 7.75 13.77 3 7.91 13.36 2 8.81 12.88 3 9.82 12.31 10
Tier 1 (Core) Leverage
6.94 9.60 6 7.42 9.47 11 6.63 9.26 5 7.68 9.11 16 8.77 9.10 43
INTEREST EARNING ASSETS:
101.56 110.54 10 103.30 110.20 13 101. 77 108.72 11 103.76
lEA/ICL
109.21 11 109.20 109.49 44
CONSOLIDATED ASSET QUALITY
TREND:
(t of Total Assets)
Non-performing Loans
3.51 1.62 72 3.34 1.65 76 2.92 1.57 70 2.51 1.57 69 1. 77 1.50 56
Repossessed Assets, Gross
1.31 .19 88 .75 .21 75 .93 .28 78 .75 .18 75 .60 .18 70
Repossessed Assets,Net SVA
1.31 .19 88 .75 .21 75 .93 .28 78 .75 .18 75 .60 .18 70
Total NonPerform. Assets
4.81 2.23 7B 4.09 2.03 73 3.85 2.11 68 3.26 2.05 69 2.37 1.89 60
TDR Loans + Reposs'd TDR
2.44 .83 76 1.29 .87 60 1.61 .85 68 1.20 .64 62 1. 03 .51 66
CLASSIFICATION
OF ASSETS:
15.97
Substandard
17.60 4.49 97 4.35 97 13.88 4.80 96 13 .57 4.20 97 5.38 3.76 69
Doubtful
.28 .00 89 .29 .01 90 .19 .00 86 .21 .00 88 .13 .01 82
Loss
.00 .00 49 .00 .00 49 .00 .00 49 .00 .00 50 .00 .00 49
Total Classified
17.87 4.51 96 16.26 4.39 97 14.08 4.86 96 13.78 4.20 97 5.51 3.90 71
Total Classified/NPA
371.34 196.19 83 397.55 162.53 87 365.63 169.50 87 422.47 179.58 89 232.56 164.70 72
Sub+Douht / CoreCap+GVA
199.29 42.93 96 174.74 39.77 96 174.85 40.28 97 150.64 38.56 97 55.61 37.22 71
Sub+Doubt/RBC+ExceSsGVA
267.11 43.02 97 230.53 39.77 98 234.97 40.28 98 196.22 3B.57 97 69.55 37.22 79
Special Mention Assets
2.91 1.10 78 2.97 1.37 80 1.91 1.20 58 1. 74 1.23 62 1.42 1.23 55
ALLOWANCES FOR LOAN & LEASE
LOSSES:
Mtg Loan ALLL, % Mtg Lns
3.03 1.17 86 2.90 1.15 88 2.49 1.11 89 2.46 1.04 92 1.91 .98 88

3.41 1.91 73 2.96 1. 86 68 2.56 1.90 65 1.95 1.89 53 1.21 1.58 3B
41.32 39.21 54 45.00 41.06 53 35.82 41.62 41 43.41 44.23 47 46.32 43.01 56
Tot.GenAlloW+ALLL,%(Cl-LOS)
11.30 19.24 18 11.48 23.05 15 9.97 23.18 13 .10.46 21.30 14 20.38 22.80 44
EFFICIENCY RATIO:
Div) 94.01
%
G&A/(NIM+Fees+FHLB
71.72 86 104.58 69.06 91 108.43 71.77 88 97.07 69.41 89 96.75 69.18 92
1257
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
SUMMARY STATEMENT, Part 2
05:57 11/02/2010
United Western Bank
PAGE 2'
DOCKET, 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr .
================= ================= ================= ================: ===========:::===
5
Pct
5
Pct S&L
5 5
S&L Med1an S&L Med1an Pct S&L Medl.an Pct S&L Medl.an Pct
Months .in Period
3 3 3 3 3
YRMO, Period End ...
201009 201006 201003 200912 200909
SUMMARY INCOME STATEMENT:
(% of Average Total Assets)
1.1 Interest&Dividnd Income
3.92 4.39 23 3.67 4.42 15. 3.12 4.57 6 3.47 4.67 7 3.94 4.81 14
2.1 Interest Expense.
.81 1.17 18 .86 1.37 17 .82 1.47 15 1.04 1.51 15 1.16 1.76 16
3.1 Net Interest Margl.n
3.11 3.11 50 2.81 3.02 35 2.31 3.10 15 2.43 3.12 17 2.78 3.04 33
3.2 Net Prov.for lEA Losses
3.62 .53 92 .B4 .48 73 2.05 .48 85 2.19 .62 84 1.95 .53 BO
3.3 Net Int.After lEA Loss
Provision: (3.1)-(3.2) -.51 2.36 7 1.97 2.37 30 .25 2.45 12 .24 2.23 14 .B3 2.18 19
4.0 Noninterest Income -.18 .78 6 -.71 .60 1 -.77 .63 1 -3.11 .55 1 .22 .61 20
5.1 Noninterest Expense
3.10 2.66 63 3.07 2.56 65 2.60 2.69 46 2.48 2.63 44 2.82 2.57 57
6.0 Income Before Income
Taxes
(3.3)+(4.0)-(5.0)
-3.78 .68 5 -1. 82 .65 11 -3.12 .74 6 -5.34 .51 3 -1.77 .52 15
7.1 Income Taxes
.06 .19 28 .02 .17 28 -.15 .22 13 -.03 .16 32 -.74 .15 10
8.0 Net Inc.Before Extraord
5 -1.84 .45 -2.97
Items: (6.0)-(7.0)
-3.84 .51 7 .49 3 -5.30 .38 1 -1. 03 .40 15
8.1

.00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
9.1
-3.84 .51 5 -1.84 .45 7 -2.97 .49 3 -5.30 .38 1 -1. 03 .40 15
(%

Return on (ROE)
-54.31 4.59 5 1 -12.94 3.46 14
Net Income $00)
-20,354 -11,145 -21,016 -35,956 -6,434
Avg Assets
2,122,33B 2,423,OB9 2,828,324 2,711,820 2,486,797
Avg Equity
149,906 163,206 177,493 207,519 198,941
PROFITABILITY ANALYSIS:
4.21 4.83 21 4.00 4.89 16 3.74 4.97
lEA Yield
8 3.95 5.18 10 4.19 5.23 10
COF (with Cap. Int.)
.88 1.52 13 .96 1.63 15 1.02 1. 72 13 1.25 1.94 16 1.31 2.13 14
Spread, lEA Yld-COF
3.33 3.28 51 3.04 3.10 43 2.72 3.22 30 2.70 3.19 24 2.88 3.13 38
Net Int. Marg. (NIM)
3.11 3.11 50 2.81 3.02 35 2.31 3.10 15 2.43 3.12 17 2.78 3.04 33
Fee Income
.13 .38 19 .11 .42 16 .08 .37 16 .09 .44 17 .11 .40 16
Goodwill Expense (GDW) .02 .01 61 .02 .01 63 .01 .01 62 .02 .01 64 .02 .01 69
(%)
3.05 2.59 65 3.05 2.54 67 2.59 2.63 47 2.45 2.54 44 2.79 2.49 62
102.12 116.95 30 92.05 120.46 21 89.20 120.07 20 99.22 122.51 26 99.57 121. 26 21
core Inc befor Prov
.18 1.06 13 -.15 1. 05 8 -.22 1.02 11 .06 1.09 10 .07 1.07 8
ROM
-3.84 .51 5 -1.84 .45 7 -2.97 .49 3 -5.30 .38 1 -1. 03 .40 15
Return on (ROE)
-54.31 4.59 5 -27.32 4.10 6 -47.36 4.11 3 -69.31 3.78 1 -12.94 3.46 14
Net Income $00)
-20,354 -11,145 -21,016 -35,956 -6,434
MORTGAGE LOAN ACTIVITY:
(% Total Assets at Start of Period)
Mtge Loans originated
1.51 3.46 23 1.95 3.11 28 1.59 2.55 2B 1.65 3.31 20 3.74 3.91 47
Mtge Loans purchased
.OB .00 76 .08 .00 72 .18 .00 78 .11 .00 75 .09 .00 75

.67 .67 50 .46 .56 45 .28 .50 42 .23 .60 39 .60 .82 47
.92 2.44 21 1.57 2.10 33 1..49 1.52 47 1.53 2.06 3B 3.23 1.84 74
Other Changes (by diff.) -3.54 -2.53 22 -3.17 -2.26 23 -2.59 -2.00 35 -4.01 -2.46 25 -4.67 -2.73 11
Net Change in Mtg. Lns.
-2.62 .00 10 -1.60 -.06 13 -1.10 - .22 28 -2.48 -.09 8 -1.44 -.11 30
CHl\NGES IN FINANCIAL COND.:
.02 5 -15.62 .24 2 3.11
1.1 Cash,Dep.+lnv.Secur.
-4.19
1.57 75 .60 .25 56 11.65 .02 97
2.2 Mortgage .Backed Secur. .19 -.02 63 2.56 -.01 85 1.46 -.04 78 -1.54 -.08 12 -1.36 -.03 15
2.6 Mortgage Loans
-2.62 .00 10 -1. 60 -.06 13 -1.10 -.22 2B -2.48 -.09 8 -1.44 - .11 30
3.1 Nonmortgage Loans
.04 .00 65 .19 .00 65 -.22 -.01 31 -.14 .00 34 - .26 . .00 30
4.0 Repossessed Assets
.47 .00 94 -.29 .00 3 .21 .00 83 .12 .01 79 .39 .00 93
4.5 Real Estate Invest.
.00
.00, 51 .00 .00 54 .00 .00 53 .00 .00 55 .00 .00 55
5.1
.00 .00 81 .00 .00 78 .00 .00 82 - .11 .00 6 .00 .00 89
5.5 o fice Premises + Eq.
-.01 .00 40 -.01 .00 32 -.01 -. 01 47 -.01 .00 47 -.02 -.01 23
5.8 Other Assets
-.03 -.04 53 -.04 -.01 46 -.03 .00 41 - .16 .43 10 -.12 -.02 26
Total Assets
-6.15 .58 5 -14.81 .83 2 3.44 .98 72 -3.71 .50 11 8.84 .41 92
7.1 NetofYld Adj
-5.32 .57 3 -14.74 1.03 2 4.52 1.33 7B -.86 1.00 26 6.47 .80 91
7.2 Borrowl.ngs
.13 -.06 76 .19 -.03 83 -.17 -.11 46 -1. 37 -.18 28 .00 -.05 60
7.5 Other Liabilities
-.06 .05 23 .00 .03 37 -.05 .00 32 -.01 -.05 64 .05 .01 64
7.9 NonCtrl Int.Consl.Sub
.00 .00 47 .00 .00 48 .00 .00 48 .00 .00 48 .00 .00 96
8.0 Perpetual Pref.Stk
.00 .00 50 .00 .00 50 .00 .00 49 .00 .00 49 .00 .00 SO
CommonStk +Paid-InCap.
.01 .00 76 .12 .00 82 .01 .00 67 .01 .00 61 2.61 .00 96
UnrlGain/LossAvai14Sal
.02 .00 69 .05 .05 50 -.04 .01 7 -.10 -.01 12 -.02 .05 8
Retained Earnings
-.92 .10 5 - .43 .07 11 -.84 .10 2 -1.38 .08 1 -.27 .06 17
Other components
.00 .00 43 .00 .00 46 .00 .00 42 .00 .00 40 .00 .00 41
Total Liabilit1es + Equity
-6.15 .5B 5 -14.81 .B3 2 3.44 .98 72 -3.71 .50 11 8.84 .41 92
Chng Tot Liab.+ Eg. ($000)
-135,625 -383,355 85,976 -96,524 211,114
MORTGAGE PRINCIPAL REPAYMENTS:
(Non-Annualized % of Avg. Interest Earning Mtg. Backed Sec.)
l- On Mortgage Backed Sec. -5.98 -6.92 71 -5.93 -6.46 61 -B.33 -6.58 26 -13.32 -6.31 4 -8.50 -6.74 22
(Non-Annualized % of Avg. Interest Earning Mtg. Loans)
2. On Mortgage Loans
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
OTHER RATIOS:
(Actual Thrift Investment Percentage)
QTL Test: 1st Mth of Qtr 71.11 80.70 17 71.02 79.17 18 70.05 7B.46 16 70.08 80.20 12 71.66 81.50 19
2nd Mth of Qtr
70.51 80.71 14 71.59 79.10 23 70.24 78.48 16 69.90 80.89 12 70.79 B1.03 15
Qtr. End
72 .55 81.42 26 71.69 79.6B 22 70.BO 78.52 20 69.55 79.09 15 70.13 80.43 12
IRS
Domestic Bldg&Loan Test
.00 .00 48 .00 .00 48 .00 .00 48 .00 .00 48 .00 .00 48
Total Lns / Deposits
77.95 86.47 3B 76.00 87.61 31 64.22 88.01 18 69.40 93.00 21 71. 95 92.37 25
Total Lns+MBS 7 Deposits
103.99 106.76 42 100 "07 106.11 35 BO.93 107.1B 13 85.25 110.49 19 89.57 112.72 19
1258
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
DETAILED INCOME STATEMENT .
($000)
05:57 11/02/2010
United Western Bank
PAGE 3
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDBR
CUrrent Quarter
1st Prior Qtr 2nd Prior Qtr 3rd Prior
Qtr 4th Prior Qtr .c====_=c=_.=_.== == ============= _=._. __ c ___ ==_= __
._-====._.=.=._-.
Months in Period 3 3
3
3
3 YRMO, Period End 201009 201006
201003
200912
200909
DETAILED INCOME STATEMENT
1.1 Interest and Dividend Income:
379 572
791
Deposits & Invmt.Secur.
621
452
Mtge Backed Sec. 4,126 4,343
4,029
4,552
4,821
Servo Fees
14,116 15,089
15,175
16,138
17,007
11 21
21
55
13
NonMtg Commr.Ln&Lease 1,997 2,013
1,889
2,018
2,056
Commercial Loan Fees 0 0
0
0
0 NonMtg Consm.Ln&Lease 115 128
128
120
103
Consumer Loan Fees 0 0
0
0
0

2,112 2,141
2,017
2,138
2,159 64 63
63
76
77
Other Dividends 0 0
0
0
0
SUbtotal of 1.1 20,797 22,208
22,075
23,525
24,516
2.1 Interest Expense:
2,328 3,308
on Escrows
3,810
3,902
3,927 4 4
5
2
1
Advances from FHLBank 934 921
1,053
2,201
2,391
Subordinated Debentures 0 0
0
0
0

0 0
0
0
0 1,024 976
895
923
923
Less: Capitalized Int. 0 0
0
0
0
Subtotal of 2.1 4,290 5,209
5,763
7,028
7,242
3.1 Net Int.Before lEA Loss
Provision: (1.i)-(2.1) 16,507 16,999
16,312
16,497 17,274
3.2 Net Provision for lEA
Losses 19,188 5,068
14,528
14,838
12,108
3.3 Net Int.After lEA Loss
Provision: (3.1)-(3.2) -2,681 11,931
1,784
1,659
5,166
4.0 Noninterest Income:
792 846 Mtg Loan Servo Fees
794
809
836
ServAmort.&Value Adj -416 -545
-565
-549
-565
Other Fees and Charges 311 360
324
371
387
Net Income (Loss) From:
1 0 Sales:Assets Held4Sale
0
0
0
Sales: Lna&LeasHeld4Sale 1,001 1,544
596
626 1,244
Sales:OthrAssetsHld4Sal 0
. 0
0
0
0 OTT ImpairmntChgOnDebt -1,989 -5,308
.-4,277
-21,033
0
REO -376 -1,089
-2,432
-1,374
-587 LOCO Adj.Held4Sale -687 -485
-252
-233
-248
Sale: SecurHeld2Mat 0 0
0
0
0
Sale: LoansHeld4Inv 0 0
0
0
0
Sale: OthASsets4Inv 0 0
0
0
0 GainonTradingAssets 0 0
0
0
0 Oth.Nonlnter.lncome 410 359
354
327
299 Subtotalof 4.0 -953 -4,318
-5,458
-21,056
1,366
5.1 Noninterest
4,093 4,906
4,856
All Personnel .
4,730
5,109
Expense
773 342
345
563
583
Of ice
834 984
833
827
805
Marketing th. ro Serv 408 560
876
389
444 Loan Servicing Fees 478 513
499
509 503
Oth.Nonlnterest Expense 9,578 11,163
10,877
9,608
9,905
Subtotal, G&A Ji:1!:pense 16,164 18,468
18,286
16,626
17,349
Less Godwll&IntglbeExps 100 107
102
106
150 NetProv,NonlEALosSeS 158 52
17
53
58
Subtotal of 5.1 16,422 18,627
18,405
16,785
17,557
6.0 Income Before Inc Taxes -20,056 -11,014
-22,079
-36,182
-11,025
7.1 Income Taxes:
298 131
-1,063
Federal
-226 -4,591
State, Local, and Other 0 0
0
0
0 Subtotal of 7.1 298 131
-1,063
-226 -4,591
8.0 Net Inc.Before Extraord
Income: (6.0)-(7.1) -20,354 -11,145
-21,016
-35,956
-6;434
8.1 Extraord.lncome 0 0
0
0
0
Netlncl-IAtrbl To Inst/Nctl -20,354 -11,145
-21,016
-35,956
-6,434
Netlnc - Atrbl To Noncntrol 0 0
0
0
0 Netlnc(-)Atrbl To Say Inst. -20,354 -11,145
-21,016
-35,956
-6,434
ANALYSIS OF CORE INCOME:
16,507 16,999
16,312
Net Int.BefIEA LossProv
16,497
17,274
Mtg Loan SerVicing Fees 792 846
794
809
836
Serv AmDrt.&Value Adj -416 -545
-565
-549
-565
Other Fees and Charges 311 360
324
371
387
Less G & A 16,164 18,468
18,286
16,626
17,349
Less Goodwll& ntglbeExps 100 107
102
106
150
Core Inc. Bef Provisns 930 -915
-1,523
396
433
LossProv 19,34.6 5,120
14,5.45
14,891
12,166
Core Inc. Aft Provisns -18,416 -6,035
-16,068
-14,495
-11,733
Sale of Avail4Sale Secrties 1 0
0
0 0
Core+ProfitAH4S -18,415 -6,035
-16,068
-14,495
-11,733
1259
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
NOTES TO DETAILED INCOME STATEMENT
($000)
05:57 11/02/2010
united Western Bank
DOCKET: 06679 TPR STATUS: IN PROCEss
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
Months in Period -===============; === ======= =; ================i ============;
YRMO, Period End.. . 201009 201006 201003 200912
Memo: LARGE6T COMPONENT6 OF OTHER NONINTERE6T INCOME AND OTHER NONINTEREST EXPENSE
Other NonInterest Income Items:
Amount
Code (60489)
Amount
Code (60495)
Amount
Expense Items:
Amount
Code (60581)
Amount
Code
Amount
Code
(60583)
(S0585)
SERVICING DATA:
Loans Serviced for others
Loan 6erv. Fee Income
6erv. by Others Expense
MUTUAL FUND & ANNUITY SALE6:

ANALYSIS OF PERSONNEL EXPENSE:
End of Period FTEs-Actual #
Average # FTEs
Personnel Expense
ACCOUNTING

Assets Held-4-6ale
Avg.TradingAccountABSets
Avg.Avai14saleSecurities
Avg.AssetsHeld4Sale
234-
15
14
99
150
99
5,B06
99
851
99
1,563
1
142,803
792
47B
0
0
161
162
4,093
0
190,653
262,246
0
181,436
274,570
($000
234
15
47
99
62
99
6,029
99
1,246
99
2,053
1
126,550
846
513
During
0
163
176
4,906
0
172,218
286,893
0
132,135
287,065
234
15
74
99
40
99
7,034
99
576
99
1,796
1
122,009
794
499
0
0
189
187
4,856
0
92,051
287,237
0
62,592
278,099
240
15
15
99
6B
99
6,748
99
582
99
1,36B
1
117,210
809
509
o
o
185
181
4,730
o
33,133
268,961
o
34,027
273,756
Codes:

PAGE 4
4th Pl:1or Qtr
_._._=====.====--
3
200909
239
15
13
99
42
99
6,491
99
949
99
988
1
110,644
836
503
o
o
177
176
5,109
o
34,921
278,551
o
36,641
281,543
02 - Interest income from income tax refunds
03 - No longer used
04 _ Net income lloss) from leasing or subleasing space in the associat.ion's quarters,future quarters and parking lots
OS - Net income lOSS! from real estate held for inyestment
06 _ Net income (loss from investments in unconso11dated subordinate organizations and pass-through investments,
accounted for using the equity method, after the elimination of intercompany profits
07 - Net income lloss! from leased property.
08 - Net income loss allocable to minority shareholders
09 _ Net income from data processing equipment leased or services provided to others
10 - No longer used
11 - Adjustments to prior periods
12 _ Income receivedlon real estate acquired through foreclosure or deed in lieu of foreclosure on VA or FHA loans
pending conveyance to the insuring agency
13 - No longer usea
14 _ Income from interest-only strip receivables and certain other instruments reported on 6C655
15 _ Income from corporation-owned Life Insurance
19 _ Realized and unrealized gains on derivatives, where such gains are not included in interest income or expense
99 - Other -
S0581, S0583 and 60585:
.: premiums
03 - Interest income on income taxes
04 _ Interest expense on Treasury tax and loan accounts administered under the note option
OS _ Forfeited commitment fees on FHLBank advances not taken down by the association
06 - Supervisory examination fees
07 - Office supplies, and postage
08 - Telephone includ1ng data lines
09 _ Noncapitaiized loan origination expenses, including appraisal reports, credit reports, etc.
10 - prior erioda
: Acquisition and costs, including mergers and branch office acquisitions
13 _ Miscellaneous taxes other than income taxes and real estate taxes
14 - Losses from fraud
15 - Foreclosure expenses
16 - Web site expenses
= shareholders
19.- Realized and unrealized gains on derivatives, where such losses are not included in interest income or expense
99 - Other
1260
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
DETAILED INCOME STATEMENT
(% of Average Total Assets of S&L, Annualized w/o Compounding)
05:57 U/02/2010
United Western Bank
PAGE 5
DOCKET: 06679 TFR STATUS:
IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Otr 3rd
Prior Otr 4th Prior Qtr
================= =================
==========-======= ======:========== e================
Group 5
Pct
Group 5
Pct
Group 5
Group 5
S&L
S&L Med1an S&L Med1an S&L Med1an Pct S&L Med1an Pct Pct
Months in Period 3 3 3 3 3
YRMO, Period End .. 201009 201006 201003 200912 200909
DETAILED INCOME STATEMENT:
1.1 Interest and Dividend Income:
56 Deposits & Invmt.Secur. .07 .09 44 .09 .08 .11 .07 61 .09 .08 55 .07 .07 52
Mtge Backed Sec. .78 .41 68 .72 .50 66 .57 .42 57 .67 .40 57 .78 .52 64
Mtge Loans 2.66 2.78 43 2.49 2.81 35 2.15 2.94 16 2.38 2.99 24 2.74 3.10 37
Mtg Loan servo Fees .00 .01 21 .00 .01 26 .00 .01 23 .01 .01 44 .00 .01 21
NonMtg Commr.Ln&Lease .38 .22 60 .33 .20 56 .27 .21 55 .30 .21 58 .33 .20 62
Commercial Loan Fees .00 .00 21 .00 .00 20 .00 .00 20 .00 .00 19 .00 .00 17
NonMtgConsm.Ln&LeaSe .02 .05 42 .02 .04 42 .02 .05 36 .02 .06 33 .02 .06 32
Consumer Loan Fees .00 .00 17 .00 .00 18 .00 .00 18 .00 .00 18 .00 .00 18

.40 .44 47 .35 .44 45 .29 .45 40 .32 .49 41 .35 .50 44
01. .00 68 . 01 .00 . 65 .01 .00 62 .01 .00 62 .01 .01 58
Other Dividends .00 .00 46 .00 .00 47 .00 .00 46 .00 .00 47 .00 .00 47
Subtotal of 1.1 3.92 4.39 23 3.67 4.42 15 3.12 4.57 6 3.47 4.67 7 3.94 4.81 14
2.1 Interest Expense:
.88 13 .55 1.00 15 .54 Deposits .44 1.08 11 .58 1.15 11 .63 1.31 11
Interest on Escrows .00 .00 92 .00 .00 91 .00 .00 93 .00 .00 85 .00 .00 83
Advances from FHLBank .18 .21 44 .15 .22 41 .15 .24 37 .32 .27 52 .38 .30 55
Subordinated Debentures .00 .00 48 .00 .00 47 .00 .00 47 .00 .00 47 .00 .00 47

.00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
.19 .01 84 .16 .02 78 .13 .02 77 .14 .03 78 .15 .02 76
Less: Capitalized Int. .00 .00 48 .00 .00 48 .00 .00 4B .00 .00 48 .00 .00 .48
Subtotal of 2.1 .81 1.17 18 .86 1.37 17 .82 1.47 15 1.04 1.51 15 1.16 1. 76 16
3.1 Net Int.Before lEA Lass
3.11 50 2.81 3.02 35 2.31 Provision: (1.1)-(2.1) 3.11 3.10 15 2.43 3.12 17 2.78 3.04 33
3.2 Net Provision for lEA
3.62 .53 92 .84 .48 73 2.05 Lossee .48 85 2.19 .62 84 1.95 .53 80
3.3 Net Int.After lEA Loss
2.36 7 1.97 2.37 30 .25 Provision: (3.1) - (3.2) -.51 2.45 12 .24 2.23 14 .83 2.18 19
4.0 Noninterest Income:
83 Mtg Loan Servo Fees .15 .01 8.5 .14 .01 .11 .01 82 .12 .01 80 .13 .01 B2
Serv Amort.&Value Adj -.OB .00 21 -.09 .00 13 -.08 .00 17 -.08 .00 16 -.09 .00 16
Other Fees and Charges .06 .40 10 .06 .40 12 .05 .36 10 .05 .42 11 .06 .40 12
Net Income (Loss) From:
.00 59 .00 .00 30 .00 Sales:Assets Held4Sale .00 .00 35 .00 .00 32 .00 .00 28
Sales:Lns&LeasHeld4Sale .19 .03 61 .25 .02 82 .OB .02 62 .09 .02 60 .20 .00 BO
Sales:OthrAssetsHld4Sal .00 .00 49 .00 .00 49 .00 .00 50 .00 .00 4B .00 .00 50
OTT ImpairmntChgOnDebt -.37 .00 5 -. B8 .00 1 -.60 .00 5 -3.10 .00 1 .00 .00 62
REO Operations&Sales -.07 -.02 31 -.lB -.01 16 -.34 - .02 7 -.20 -.02 15 -.09 -.01 15
LOCOM Adj.Held4Sale - .13 .00 5 -.08 .00 7 -.04 .00 7 -.03 .00 5 -. 04 .00 5
Sale: SecurHeld2Mat .00 .00 50 .00 .00 51 .00 .00 50 .00 .00 49 .00 .00 50
Sale: LoansHeld4Inv .00 .00 48 .00 .00 48 .00 .00 47 .00 .00 48 .00 .00 50
Sale: OthAssets4Inv 00 .00 48 .00 .00 50 .00 .00 50 .00 .00 49 .00 .00 50
GainonTrsdingAssets .00 .00 45 .00 .00 49 .00 .00 48 .00 .00 47 .00 .00 51
Oth.Nonlnter.lncome .08 .08 47 .06 .05 51 .05 .07 42 .05 .06 43 .05 .05 52
Subtotal of 4.0 - .18 .78 6 -.71 .60 1 -.77 .63 1 -3.11 .55 1 .22 .61 20
5.1 Noninterest Expense:
.77 1.32 15 .81 1.27 18 .69 1.27 All Personnel Exp. 16 .70 1.28 14 .82 1.23 21
Expense
.15 .02 89 .06 .02 75 .05 .02 75 .08 .02 85 .09 .02 92
Of ice .16 .46 11 .16 .43 12 .12 .43 8 .12 .45 8 .13 .44 8
Marketing &Oth.Pro Serv .08 .14 23 .09 .13 27 .12 .12 52 .06 .13 15 .07 .12 24
Loan Servicing Fees .09 .00 94 .08 .00 93 .07 .00 93 .08 .00 94 .08 .00 93
Oth.NonInterest Expense 1. 81 .48 92 1.84 .44 92 1.54 .44 91 1.42 .47 91 1.59 .45 94
Subtotal, G&A Expense 3.05 2.59 65 3.05 2.54 67 2.59 2.63 47 2.45 2.54 44 2.79 2.49 62
Less Godwll&IntglbeExps .02 .01 61 .02 .01 63 .01 .01 62 .02 .01 64 .02 .01 69
NetProv,NonlEALosses .03 .00 82 .01 .00 71 .00 .00 75 .01 .00 71 .01 .00 78
Subtotal of 5.1 3.10 2.66 63 3.07 2.56 65 2.60 2.69 46 2.48 2.63 44 2.82 2.57 57
6.0 Income Before Inc Taxes -3.78 .68 5 -1. B2 .65 11 -3.12 .74 6 -5.34 .51 3 -1.77 .52 15
7.1 Income Taxes:
.18 28 .02 .16 31 -.15 Federal .06 .16 13 -.03 .15 29 -.74 .14 8
State, Local, and Other .00 .01 30 .00 .01 25 .00 .02 25 .00 .00 37 .00 .01 31
Subtotal of 7.1 .06 .19 28 . 02 .17 28 -.15 .22 13 - .03 .16 32 -.74 .15 10
B.O Net Inc.Before Extraord
Income: (6.0)-(7.1) -3.84 .51 5 -1.84 .45 7 -2.97 .49 3 -5.30 .38 1 -1.03 .40 15
8.1 Extraord.lncome .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
NetIric(-)Atrbl To InstiNct! -3.84 .51 5 -1.84 .45 7 -2.97 .49 3 -5.30 .38 1 -1. 03 .40 15
NetInc(-)Atrbl To Noncntrol .00 .00 48 .00 .00 48 .00 .00 47 .00 .00 49 .00 .00 50
Netlnc(-)Atrbl To Sav Inst. -3. B4 .51 5 -1.84 .45 7 -2.97 .49 3 -5.30 .38 1 -1. 03 .40 15
ANALYSIS OF CORE INCOME:
3.11 3.11 50 2.81 3.02 35 2.31 3.10 Net Int.BefIEA LossProv 15 2.43 3.12 17 2.78 3.04 33
Mtg Loan Servicing Fees .15 .01 85 .14 .01 83 .11 .01 82 .12 .01 80 .13 .01 82
Serv Amort.&Value Adj -.OB .00 21 -.09 .00 13 -.08 .00 17 -.OB .00 16 -.09 .00 16
Other Fees and Charges .06 .40 10 .06 .40 12 .05 .36 10 .05 .42 11 .06 .40 12
Less G & A Expense 3.05 2.59 65 3.05 2.54 67 2.59 2.63 47 2.45 2.54 44 2.79 2.49 62
Less Goodwill Expense .02 .01 61 .02 .01 63 .01 .01 62 .02 .01 64 .02 .01 69
Core Inc. Bef Provisns .18 1.06 13 -.15 1.05 B -.22 1.02 11 .06 1.09 10 .07 1. 07 8
LossProv 3.65 .53 92 .85 .49 71 2.06 .51 83 2.20 .62 84 1 .. 96 .56 80
Core Inc. Aft Provisns -3.47 .31 9 -1.00 .37 21 -2.27 .35 12 -2.14 .31 15 -1.89 .36 14
Profit:AasetsHeld4Sale 00
.00 59 .00 .00 30 .00 .00 35 .00 .00 32 . 00 .00 28
Sale of Avai14Sale Secrties -3.47 .36 9 -1. 00 .38 20 -2.27 .45 11 -2.14 .31 12 -1.89 .38 12
Avg Assets
2,122,338 2,423,089
2,828,324 2,711,820 2,486,797
1261
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
NOTES TO DETAILED INCOME STATEMENT
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter 1st prior Qtr 2nd Prior Qtr 3rd Prior Qtr
PAGE 6
4th Prior Qtr
===":=====;Oi009 =====-===s-;Oi006 =========-="=;Oi003
==-_ ......... _-..
YRMO, Period End ...
200909
Memo:
Other
LARGEST COMPONENTS OF OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE
NonInterest Total Assets of S&L, Annualized w/o Compounding)
.04 .04 56 .04 .04 52 .03 .03 51 .04
(S0489)
Amount
Code (S0495)
Amount'
Code (S0497)
Other NonInterest
Amount
Code (S0581)
Amount
Code
Amount
Code
(S0583)
(S0585)
.00
.03
Expense Items:
1.09
.16
.29
'15 15 15
.00 43 .01 .00 55 :01 .01 56
99 99 99
.00 89 .01 .00 83 .01 .00 72
99 99 99
.13
.07
.06
94
99
85
99
92
1
1.00
.21
.34
.12
.08
.06
93
99
92
99
93
1
.99
.08
.25
.13
.08
.06
92'
99
48
99
90
1
.00
.01
1.00
.09
.20
.03 55
15
.01 41
99
.00 80
99
.14 94
99
.09 48
99
.06 88
1
.04
.00
.01
1.04
.15
.16
.. 03
.01
.00
.13
.07
.06
61
15
41
99
78
99
94
99
84
99
80
1
SERVICING DATA:
Lns Serv for Others/Assets
Loan Servo Fee Income
Fees t Avg. Servicing
6.90
.15
2.35
3.15 61
.01 85
.25, 98
5.74
.14
2.72
3.61 58
.01 83
.25 94
4.71
.11
2.66
3.85 52
.01 82
.25 98
4.68
.12
2.84
4.36 51
.01 80
.25 96
4.26
.13
3.23
4.23 51
.01 82
.25 98
Servo by Others Expense
.09
MUTUAL FUND " ANNP'ITY SALES:
Tot.AsstsMgd ProPMUtFnds
Fee Income-Sale"Servic.
.00
.00
ANALYSIS OF PERSONNEL EXPENSE:
Labor intensity
'Salary" benefits level
ACCOUNTING CLASSIFICATIONS:
Trading Account Assets
Avail-4-Sale Securities
Assets Held-4-Sale
.76
101.06
.00
9.21
12.67
.00
.00
.00
1.79
77.02
.00
12.06
.19
94
47
50
.08 .00 93 .07 .00 93
(t Total Assets, Beginning of Period)
.00 .00 47 .00 .00 46
.00 .00 50 .00 .00 so
.08
.00
.00
.00
.00
.00
94
46
SO
.08
.00
.00
(Avg. Full-Time Employees/$10 Million of Avg. Assets)
13 .73 1.78 15 .66 1.82 15 '.67 1.77 14 .71
(Avg. Personnel ExPense per Employee, $OOO/Full'-Time Employee)
78 111.50 75.49 103.!7 75.45 81 104.53 74.00 82 116.11
(t of Total Assets)
48 .00 .00 47 .00 .00 46 .00 .00 46 .00
43 7.81 11.30 41, 3.56 11.00 28 1.32 10.77 20 1.34
92 13.01 .07 93 11.10 .07 95 10.75 .08 93 10.72
.00
.00
.00
1.83
74.05
.00
10.20
.08
(.) Av. TradingAccontAssets .00 .00 48
.00 .00 46 .00 .00 46 .00 .00 46 .00 .00
(t of Avg. Trading Assets, not Annualized)
TradingAssets Gain/Less NA 2.53 NA
Av.Avai14saleSecurity 8.55 12.40 44
(*) Av.AssetHld4Sale 12.94 .13 93
Profit+LOCOM on Hld4S -.25 .00 15
See page 4 for COdes.
Tot!i NA .14 NA NA .51 NA NA 4.86
10.75 23 1.25 10.63 19 1.47 10.38
11.85 .08 93 9.83 .09 93 10.09 .11 93 11.32 .21
(t of Avg. Assets Held for Sale, not Annualized)
-.17 .02 16 -.09 .00 14 -.09 .00 22 -.09 1.07
1262
93
46
50
15
88
46
20
93
46
NA
20
93
7
OFFICE OF THRIFT SUPERVISION - MIOWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDEO 201009
ANALYSIS OF NET INTEREST INCOME BEFORE PROVISION FOR lEA LOSSES: Composition of lEA & ICL
05:57 11/02/2010
YRMO, Period End ....
1. INTEREST EARNING ASSETS:
Net Cash,Oep. ,&lnv.sec.jAl)
Cash & Non-IE Deposits A2)
Accrued Int.Rec. A3)
Subtot:(A:Al-A2-A3+A4)
Net MBS (Bl1
Accrued Int.Receiv. (B2
Total Allowances (B3)
Subtot: (B) = (1l1-B2+B3)

Non-Accruing Mtg Lns (C3)
Total Allowances,MTGLns(C4)
Subtot: (C) = (C1-C2-C3+C4j

Non-Accruing NonMtg Lns(03)
Total Allow./NonMortLns(D4)
Subtot: (01= (01-D2-03+04)
EqlnvNtCarried@FairVal (E)
Loan Servicing Rights (Fl
Total lEA: (G) = (A+B+C+O+E+F
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
================= ================= ================= =================
201009 201006 201003 200912
212,855
14,697
239
197,919
429,921
1,542
NA
428,379
1,126,352
4,080
58,428
35,453
1,099,297
160,923
580
4,476
5,709
161,576
9,577
6,012
l,902,7bO
($000 at End of Period)
305,309
13,983
279
291,047
425,628
1,581
NA
424,047
1,184,196
4,637
61,272
35,668
1,153,955
160,137
569
3,821
4,918
160,665
9,513
6,289
2,045,516
709,562
631,701
40,143
34,344
339
311
669,080
597,046
359,410
322,902
1,534
1,484
NA
0
357,876
321,418
1,225,710
1,253,212
4,994
4,851
56,824
49,926
31,616
32,228
1,195,508
1,230,663
155,236
160,670
533
537
4,029
3,126
4,083
3,204
154,757
160,211
9,450
9,388
6,769
7,344
2,393,440
2,326,070
2. INTEREST COSTING LIABILITIES: ($000 at End of Period)

Subordinated Debentures (K)
Mtg Collaterized Secur. (L)
Other Borrowed Money (M)
TotalICL:(N=H+I+J+K+L+M)
Memo: Nonlnt. Oemand Oep
3. NET lEA, lEA-ICL: (E-N)
4. lEA & IeL BALANCES:
Total lEA
Total ICL
4.3 NON - ICL BALANCES:
Total Eguity cayital

4.6 NON - lEA BALANCES:
lEA Adjs. (A1+ ... +DI-E)
Net Repos'd Assets
Net REI
Other (by diff.)
Total Non-lEA (TA-E)
1,609,572
169,754
o
o
94,185
1,873,511
41,744
29,249
=================
S&L pet
1,719,127 2,095,730
169,184
168,623
0
0
0
0
91,848
87,460
1,980,159 2,351,813
49,611
54,525
65,357 41,627

S&L Med1an Pct S&L Med1an Pct
1,981,373
180,607
0
0
79,855
2,241,835
55,657
84,235
=================
S&L Pct
91.93
90.52
92.71
83.56

42 92.75 93.21 46 92.46 92.66 47 92.94
96 89.79 84.61 93 90.85 84.68 95 89.58
92 .22
84.55
53
88
6.77
2.71
9.48
1.32
1.31
.00
5.44
8.07
10.64
4.17
16.44
1.16
.19
.00
5.48
7.29
7
28
3
51
88
43
48
57
7.25
2.97
10.21
1.35
.75
.00
5.14
7.25
10.41
4.69
15.39
1.06
.21
.00
5.27
6.79
11
30
6
58
75
44
47
53
6.44
2.71
9.15
2.18
.93
.00
4.43
7.54
10.12
4.05
15.32
1.08
.28
.00
5.41
7.34
6
33
5
71
78
43
37
52
7.53
2.90
10.42
1.69
.75
.00
4.62
7.06
9.97
4.14
15.45
1.35
.18
.00
5.52
7.78
12
32
11
56
75
42
38
PAGE 7
4th Prior Qtr
=================
200909
616,165
22,609
287
593,269
362,871
1,571
o
361,300
1,317,585
4,936
38,090
26,498
1,301,057
164,342
565
565
2,008
165,220
12,311
7,791
2,440,948
1,939,180
216,636
o
o
79,440
2,235,256
120,078
205,692
=================
S&L Pct
93.91
86.00
8.72
5.28
14.00
.77
.60
.00
4.72
93.56
83.75
9.69
4.67
16.25
.92
.18
.00
4.96
53
60
29
55
39
43
70
42
44
46 6.09 6.44 46

Months in Period
YRMO, Period End ....
CUrrent Quarter
3
201009
5. AVERAGE INTEREST EARNING ASSETS:
Dep&Inv.Sec:(al)=(avg of A) 244,483
Mtg Bckd Sec(bl)=(avg of B) 426,213
Lns: (cl)=(avg of Cl
1,126,626
ME &ML (bc)=(avg of BC 1,621,578
NonMtg Lns: (d1)=(avg of D) 161,121
Eqtylnv Not SbjctFASB Nol15 9,545
Lns ser (F), 6,151
Total lEA: (gl)=(avg of E) 1,974,138
6. AVERAGE INTEREST COSTING LIABILITIES:
Deposits: of H) 1,664,350
FHLBank Adv: avg of J) 169,469
Subord.Debn: ( l)=(avg of K) 0
of L) 0
ot orrwing: (mll=(avg of M) 93,017
Total ICL: (nl = (avg of N) 1,926,835
7. AVG.NET lEA: (gl-nl) 47,303
8. AVG.lEA & ICL BALANCES:
Average Total lEA
Average Total ICL
Average Net lEA
S&L Pct
93.02
90.79
2.23
93.02
84.40
9.06
1st Prior Qtr 2nd Prior Qtr
================= =================
3 3
201006 201003
3rd Prior Qtr
3
200912
($000 Average Balance
During Period)
480,064
633,063
595,158
390,962
339,647
341,359
1,174,732 1,213,086
1,265,860
1,614,173
1,559,279
1,568,901
157,711
157,484
162,716
9,482
9,419
10,850
6,529
7,057
7,568
2,219,478
2,359,755
2,383,509
($000 Average Balance
During Period)
1,907,429
2,038,552
1,960,277
168,904
174,615
198,622
0
0
0
0
0
0
89,654
83,658
79,648
2,165,986 2,296,824
2,238,546
53,492
=================
144,964
=================
S&L Pct
Groul? 5
S&L Med1an Pct
1263
Period)
87.89
82.55
5.35
91.64
83.49
7.88
14
38
21
4th Prior Qtr
=================
3
200909
459,031
377,342
1,317,342
1,733,419
168,358
'12,273
7,989
2,342,334
1,896,939
216,651
o
o
79,448
2,193,037
149,297
=================
S&L Pet
94.19
88.19
6.00
93.30
85.32
IL39
58
74
26
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
ANALYSIS OF NET INTEREST INCOME BEFORE PROVISION FOR n:A LOSSES: Yields and Spreads
05:57 11/02/2010
PAGE 8
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
11/02/2010 CMR STATUS: NONRESPONDER
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
DATA AS OF:
CUrrent Quarter 4th Prior Qtr
.... =._._._.=.-.-
_. __ = __ = __ ===._.= ____ c. __ _____ ==_ _ __ =c_=== ____ ._=_ _._.c . _._== ____ _
Months in Period
YRMO, Period End
3
201009
3 3 3
201006 201003 200912
9. INTEREST I< DIVIDEND INCOME FROM:
Deposits I<,Invmt.secur.(a2!
Mtge Backed Sec. (b2
Mtge Loans (c2
NonMt Loans Net (d2
... +d2
OVd NotSbjctFASBl15
1>otal lEA: (g2) = (f2)
10. INTEREST EXPENSE ON:
Deposits (h21
Escrows (i2
Advances from FHLBank (12
Subordinated Debentures(k2)
Mtg Collaterized Secur. (12)
Other Borrowed Money (m2)
Subtotal,(n2)=(h2+ .. +m2)
capitalized Interest (02)
Total ICL, (r2=n2-02) ,
11. IMPACT OF lEA/ICL IMBALANCES:
379
4,126
14,116
2,112
20,733
64
20,797
2,328
4
934
o
o
1,024
4,290
o
4,290
($000 During Period)
572
4,343
15,089
2,141
22,145
63
22,208
($000 During Period)
3,308
4
921
o
o
976
5,209
o
5,209
791
4,029
15,175
2,017
22,012
63
22,075
3,810
5
1,053
O'
o
895
5,763
o
5,763
16,312
NetIntBeflEALOSSprOV}NIM) 16,507 16,999
Spread*AvglEA*Months 12 ($000 During Period)
=(s2)=(g3-r3)*(gl) 16,402 16,870 16,154
Adj. if lEAoICL: (by diff. 105 129 158
621
4,552
16,138
2,138
23,449
76
23,525
3,902
2
2,201
o
o
923
7,028
o
7,028
16,497
16,042
455,
_= __ a __ = ___ = ____ =
3
200909
452
4,821
17,007

77
24,516
3,927
1
2,391
o
o
923
7,242
o
7,242
17,274
16,781
493

sa Pct sa Pct a_____ == ___ _
12. YIELDS ON AVERAGE lEA COMPONENTS:
Dep.I<Invmt.Secur:la3=a2/a1) .62 1.18
Mtge Backed Sec b3=b2/b1! 3.87 3.47
Mtge Loans: c3=c2/c1 5.01 5.60
NonMtg Loans: (d3=d2/d1 5.24 5.81
Equity Invest: (e3=e2.e1 2.68 .65
Subtotal: (f3)=(f2/1) 4.20 4.82
lEA yield (g3_g2/g1) 4.21 4.83
13. YIELDS ON AVERAGE ICL COMPONENTS:
Deposits: jh3=ba/h1l .55 1.28
FHLBank Adv: 13=12/11,2.19 3.21
Subord.Deben: k3=k2/kl NA 5.14
Mtg Cltrzd Sec.: 13=12/11) NA NA
Other Borrowing:: m3=m2/ml) 4.37 1.88
Subtotal: (n3)=(n2/n1!
.88 1.52
Int. (03-02/n1
.00 .00
CO w/o Cap.Int. (r3=r2/n1) .88 1.52
.88 1.52

26 .48 1.24 25 .50 1.32 25 .42 1.47 17
67 4.44 3.72 74 4.74 3.96 80 5.33 4.32 86
20 5.14 5.55 20 5.00 5.56 19 5.10 5.65 18
30 5.43 5.86 35 5.12 5.89 28 5.26 5.99 28
71 2.66 .4369 2.68 .73 67 2.80 .4867
(t Average Total lEA, Annualized w/o Compounding)
21 3.99 4.85 16 3.73 4.95 8 3.94 5.15 10
21 4.00 .'.89 16 3.74 4.97 8 3.95 5.18 10
.39
5.11
5.16
5.13
2.51
4.17
4.19
10
25
NA
NA
81
(t of Various Liabilities, Annualized w/o co
1
m.p0
9
und1
8
'ng) .82
.70 1.36 12 .76 1.51 11 .79
13
48
13
13
2.19 3.69 14 2.45 3.66 13 4.40 3.71 81 4.38
NA 5.05 NA NA 4.94 NA NA 5.09 NA NA
NA NA NA NA NA NA NA NA NA NA
4.37 3.33 78 4.34 2.49 77 4.60 2.51 83 4.61
(t Average Total ICL, Annualized w/o Compounding)
.96 L 63 15 1.02 1.72 13 1.25 1. 94 16
COF w/Cap. Int. : (r4=r3+03)
(t Avg. Total ICL
.00 .00 48 .00 .00 48 .00 .00 48
.96 1.63 15 1.02 1.72 13 1.25 1.94 16
U ,1.72 13 1.25 1.M U
Excluding Escrows, Annualized w/o Comp.; Comparable
1.31
.00
1.31
1.31
to 11th
NA
Note: COF+caplnt-Escrowlnt NA NA NA NA NA NA NA NA NA NA NA NA
14. lEA-ICL YIELD SPREADS:
(Yield

Annualized: (U3)=(g3-r4) 3.33 3.28 51 3.04 2.72 3.22 30 2.70 3.19 24 2.88
15. IMPACT OF lEA/ICL IMBALANCES:
(t Average Total Assets, Annualized w/o
Netlnt.Bef.lEALossProv(NIM)
3.11 3.11 50 2.81 3.02, 35 2.31 3.10 15 2.43 .12 17 2.78

3.10 2.98 59 2.78 2.91' 41 2.27 2.87 17 2.38 2.97 19 2.71
A j.if I <>ICL: by dif .) .01 .12 13 .02 .14 11 .03 .U U .14 U .07
16. COMPOSITION OF AVG. lEA:
(t of Average lEA)
Dep and Inv Sec
12.38 8.10 65 21.63 9.35 81 26.83 7.94 85 24.97 6.56 83 19.60
Mtg Backed Sec
21.59 14.42 68 17.62 13.23 61 14.39 12.87 53 14.32 12.97 53 16.11
Mtg Loans
57.07 57.09 48 52.93 57.71' 40 51.41 59.17 35 53.11 59.54 38 56.24
Non Mtg Loans
8.16 8.16 50 7.11 7.24 48 6.67 8.36 46 6.83 8.34 46 7.19
EqlnvNtCarriedFairVal
.48 .83 28 .43 .86 22 .40 .88 21 .46 .91 25 .52
LnS ser
(F) .01 85 .29 .01 82 .30 ' .01 81 .32 .01 80 .34
17. COMPOSITION OF AVG. ICL:
,(t of Average ICL)

86.38 88.63 42 88.06 87.69 51 88.76 87.10 58 87.57 85.60 55 86.50
8.80 8.40 52 7.80 8.10 46 7.60 8.63 42 8.87 9.34 47 9.88
Subord. Deben.
.00 .00 47 .00 .00 46 .00 .00 46 .00 .00 46 .00
Mtg. Cltrzd. Sec.
.00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00
ot er Borrowing
4.83 1.30 73 4.14 1.10 66 3.64 1.60 61 3.56 2.06 60 3.62
1264
1.62 16
'4.44 81
5.64 21
6.08 24
1.22 63
5.23 10
5.23 10
1.88 7
3.81 80
5.26 NA
NA NA
2.61 85
2.13 14
.00 48
2.13 14
2.13 14
Dist. COF)
NA NA
3.13 38
3.04' 33
2.90 37
.16 16
6.59 80
13.04 58
60.86 44
8.21 47
.90 25
.02 82
85.16 55
10.51 ,47
.00 46
.00 50
1.67 58
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: ASSETS; Part 1 of 2
($000 Balance at End of Period)
united western Bank
06679 TFR STATUS: IN PROCESS
11/02/2010 CMR STATUS: NONRESPONDER
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
DOCKET:
DATA AS OF:
Current Quarter
PAGE 9
4th Prior Qtr
a_.a==_ ===
========;Oi006 _========loia;] ========;oo9ii
=-===-== _--_.-
YRMO, Period End.... .
DETAILED BALANCE SHEET ASSETS:
1.1 Cash,Dep.&Inv.Secur.:
Cash &Non-Lnt.EarningDep.
USGov&Agency Securities
Sec. Subject to FASB 115
Int.-EarningDep.inFHLBS
Other Int.-EarningDep.
Fed Funds Sold&Repos *
State &Muni Obligations

Subtotal,IEDep&MiscSec.
Accrued Int.Receivab1e
Subtotal of 1.1
2.2 Mortgage Bckd.Secur.
Pass Through:
Guaranteed By
Oth PassThru Securities

by FNMA/FHLMC/GNMA
Col laterized by MBS
Other
Subtotal Other MBS
Accrued Int. Receivable
General Allowances
Subtotal of 2.2
LoanS:
1-4 Dwelling units
5+ Dwelling Units

Subtot., Gross Constr.Lns
Residential Permanent Mortgages:
1-4 Dwelling Units:
Revolving , Open-EndLns
All Other
Secured by First Liens

5+ Dwelling Units
Subtotal, Res.Property
Non-Res. (Except Land)
Land Perm. Mort.
Subtotal, Permanent Mtg.
Gross Subtotal of Mtg Lns
Accrued Inter.Receivable
Advances for Taxes&Insur.
ALLL
Subtotal of 2.6
3.1 Nonmortgage Loana
Commercial Loans:
Secured, oth.than Mtgs
unsecured
credit Card Loans - BUS
Financing Leases
Subtotal,commercial Lns
Consumer Lns: Closed-End
Loans on Deposits
Home Improvement Loans
Education Loans
Auto Loans
Mobile Home Loans
credit Cards
Other, including Leases
Consumer Loans: SUbtotal
Subtotal, NonMt9 Loans
Accrued Int.Receivable
ALLL
Subtotal of 3.1
201009
14,697
41,649

87
156,158



25
156,270
239
212,855,
23,583
73,760
97,343
168,682

162,354
331,036
1,542
NA
429,921
64,550
23,630
88,180
30,560
118,740
17,450
297,986
1,536
316,972
43,456
360,428
603,445
. 74,485
1,038,358
1,157,098
4,080
627
35,453
1,126,352
146,666
9,858

631
157,155
3,146


591
83
5,077
8,897
166,052
580
5,709
160,923
13,983
42,842
84
248,093


28
248,205
279
305,309
9,874
80,274
90,148
158,108

175,791
333,899
1,581
NA
425,628
73,135
28,478
101,613
55,895
157,508
17,530
313,394
1,544
332,468
45,018
377,486
592,797
87,308
1,057,591
1,215,099
4,637
128
35,668
1,184,196
145,665
8,724
674
155,063
3,174


674
86

5,489
9,423
164,486
569
4,918
160,137
1265
40,143
43,989
34
625,028


29
625,091
339
709,562
80,143
89,686
169,829

o
188,047
188,047
1,534
NA
359,410
82,353
33,308
115,661
69,673
185,334
17,873
328,275
1,547
347,695
38,920
386,615
590,557
89,625
1,066,797
1,252,131
4,994
201
31,616
1,225,710
139,677
8,807

713
149,197
3,217


790
87

5,495
9,589
158,786
533
4,083
155,236
34,344
4S,295
52
551,668



31
551,751
311
631,701
12,214
104,517
116,731

204,687
204,687
1,484

322,902
97,410
43,671
141,081
108,923
250,004
1.8,325
330,658
1,598
350,581
36,773
387,354
550,209
92,230
1,029,793
1,279,797
4,851
792
32,228
1,253,212
144,292
8,279
NA
766
153,337
3,519


781
89

5,611
10,000
163,337
537
3,204
160,670
200909
22,609
47,305
4,621
541,307
o

36
545,964
287
616,165
12,660
121,765
134,425

o
226,875
226,875
1,571
o
362,871
111,966
46,572
158,538
117,877
276,415
18,392
341,102
1,587
361,081
40,948
402,029
561,506
98,465
1,062,000
1,338,415
4,936
732
26,498
1,317,585
146,006
11,586
NA
827
158,419
874
o

808
91
o
5,593
7,366
165,785
565
2,008
164,342
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: ASSETS, Part 2 of 2
. ($OOO'Balance at End of Period)
united Western Bank
06679 TFR STATUS: IN PROCESS DOCKET:
DATA AS OF:
CUrrent Quarter
11/02/2010 CMR STATUS: NONRESPONDER
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr

YRMO, Period End .
DETAILED BALANCE SHEET ASSETS:
4.0 Net Repossessions

1-4 Dwelling units'

Land
USGov Guar or Ins REO
Subtotal, REO
Other Repossessions


Net Repos'ns '& REI
5.1 EqInvNtSbictFASB Nol15
FHLBiiink Stock
Other
5.5 Office Premises and Sq.
5.8 Other Assets
Bank Owned Life Insurance:
Life Insurance
Assets
Servicing Assets On:
Mortgage LoanS
'
IO Strip Rec.&oth Instrum
Other Assets
General Allowance
TOTAL ASSETS
Memo: Loans in process on:
Mortg. Construction Loans
Other Mortg. Loans
Total Mortg. Loans
Nonmortgage Loans
201009
3,927
2,095
0
6,347
11,487
3,169
27,025
0
27,025
0
27,025
0
27,025
9,577
,9,577
0
22,053
81,017
0
26,883
5,844
168
517
0
48,226
621
2,"069,723
7,611
22
7,633
734
__ __ ._==lIIa._ ======.-._.====== ._=.=======111=====_
201006 201003 200912
3,090 9,184 8,643
2,129 2,711 2,280
0 1,175 1,360
4,838 5,653
1,009
4,163 3,033
3,058
2,415 2,320
2,360
16,635 24,076 18,710
0
0 '0
16,635 24,076
18,71g
0 0
16,635 24,076
18,710
0 0
0
16,635 24,076 18,710
9,513 9,450
9,388
9,513 9,450 9,388
0 0
0
22,285 22,568
22,774
81,645 ,82,691 83,370
0 0
0
26,649 26,415
26,182
6,157 6,650 7,215
132 119 129
609 662
760
0 0
0
48,678 49,495
49,734
580 650
650
2,205,348 2,588,703 2,502,727
8,083
13,196 23,605
63 68 204
8,146 13,264
23,809
1,019
0 63
Memo: Detail of Other Assets: (Largest Components of 'Other Assets)
26,343 24,711
Amount
Code (SC691)
Amount
Code (SC693)
Amount
Code (SC697)
COMMITMENTS OUTSTANDING:
To Originate:
1-4 Mortgages

Non-Mortgage Loans
To Purchase:
Loans
MBS
Inv. Securities
To Sell:
Loans
MBS
Inv. Securities
3
5,291
9
9,238
4
0
0
42,542
8,444
0
0
0
0
0
0
23,842 19,864
,3 3
3
5,731 5,903
5,551
9 9
9
11,442
13,806 16,441
4 4'
4
($000 at End of Period)
0 0
0
0 0
0
32,964 30,387
29,637
11,145 12,866 4,441
0 0
0
0
0 0
0 0
0
0 0
0
0 0
0
0
0
0
1266
PAGE 10
4th Prior Qtr
200909
6,897
2,957
0
1,241
2,230
2,236
15,561
0
.15,561
0
15,561
0
15,56'1
12,311
12,311
0
22,992
87,424
0
2,5,942
7,699
92
844
0
53,509
662
2,599,251
42,782
783
43,565
123
21,998
3
10,646
14
12,307
4
0
0
30,682
3,491
0
0
0
0
0
0
05: 57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: LIABILITIES & CAPITAL
($000 Balance at End of Period)
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
YRMO, Period End....
DETAILED BALANCE SHEET LIABILITIES & CAPITAL:
7.1 Deposits and Escrows:
Deposits'
Escrows
Subtotal of 7.1
7.15 Unamortized Yld Adj
7.2 Borrowings:
Advances from FHLBank
Reverse REPOs+FFunds Pur.
Subordinated Debentures

Subtotal of 7.2
7.5 Other Liabilities:
Accrued Int.Payable:Depos
Accrued Int.Payable:Other
Accrued Taxes
Deferred Incoll1e Taxes

TOTAL LIABILITIES
8.0 Total Equity Capital:
Perpetual Preferred Stock
Cumul. Perp. Prefstk

Paid in Excess of Par
Retained Earnings
Accum Oth. Compo Income
UnrealGain/Loss Avai14Sal
Gains/Loss Cash Flow Hdg
Other
Other Components
Subtotal
NonCtrl Int.Conel.Sub
Total Equity Capital
1,529,079
122,250
1,651,329
-13
169,754
85,781

0
8,404
263.,939
774
390
347

12,926
14,437
1,929,692
0
0
0
113
165,116
-21,389
-3,814
-3,814

0
0
140,026
5
140,031
2,069,723
139,514
1,642,307
126,468
1,768,775
-37
169,184
79,565
0
0
12,283
261,032
1,600
409
184

13,604
15,797
2,045,567
0


113
164,961
-1,035
-4,263
-4,263
0
0
0
159,776
5
159,781
2,205,348
159,172
TOTAL LIABIL .... EQUITY CAP.
Memo: Equity - Goodwill
SuPPLEMENTAL DEPOSIT DATA:
Accnts w/Bal belw
Accnts w/Bal abve InsL1mt
AvgBal DepAct belw
AvgBal DepAct abve InsL1m1t
AvgBal: All Deposit Accts
(Average
1,004,890
Deposits in
1,051,508
BrokrOrigDep;FuIIInsurd<100

Total Broker Orig.Deposits
IntExp FullInsrd BrokerDep
IntExp on oth BrokerDepos1t
Uninsured DeP9sits
Insured
Preferred Depos1ts
Time Deposits > 250K
Non-Interest Demand Dep.
AvgDailyDep FullInsrdBrkrDe
AvgDailyDep Other Broker De
647,213
117,257
4,689,949
189,722
10,176
41,730
o
51,906
482
o
26,830
1,624,486
o
16,071
41,744
89,373
o
Memo: Detail of Other Liabilities:
Amount
Code (SC791)
Amount
Code (SC794)
Amount
Code (SC797)
CONTINGENT LIABILITIES:
Unused Lines of Credit:
Open-End Consumer Lines
Commercial Lines
Letters of Credit:
Commercial
Obligations & Direct
Sub.
Recourse obligations
Amt whr
Amt whr Recourse<=120Days
3,376
5
798
16
1,532
22
1,452
38,379
o
6,070
Credit Substitutes:
232,639
228,065
4,574
3,983
592
o Other Contingent Liab.
Contingent Assets
* Excludes deposits from FDIC-insured

subsidiaries
718,867
114,046
3,282,498
187,560
65,720
100,468
0
166,188
997

49,625
1,719,113
a
26,921
49,611
242,630
0
3,517
5
846
16
1,824
22
1,430
46,293

6,070
254,442
249,579
4,863
4,219
644
0
0
1267
2,014,481
135,919
2,150,400
-145
168,623
79,963
0
0
7,497
256,083
1,328
390
272
0
13,745
15,735
2,422,073
0
0
0
113
161,832
10,110
-5,430
-5,430
0
0

166,625
5
166,630
2,588,703
165,968
Real Dollars)
1,241,749
909,979
130,959
1,619,180
214,230
125,486
148,088
0
273,574
1,557
0
48,441
2,101,814
0
25,136
54,525
403,868

3,657
5
880
16
1,578
22
2,205
46,540
0
7,209
172,450
167,386
5,064
4,419
645

0
1,892,827
144,469
2,037,296
-266
180,607
78,635
o
o
1,220
260,462
1,004
915
456

14,504
16,879
;',314,371
o
o
o
113
161,660
31,125
-4,547
-4,547
o


188,351
5
188,356
2,502,727
187,596
1,121,040
917,260
127,725
1,887,366
220,048
575,648
NA
o
575,648
NA
NA
399,613
1,637,417
o
NA
55,657
NA
NA
3,798
5
906
16
1,296
22
2,380
42,650

8,471
228,639
222,570
6,069
4,246
1,074

o
PAGE 11
4th Prior Qtr
=================
200909
1,953,157
106,377
2,059,534
-276
216,636
78,513


927
296,076
748
1,057
412
o
15,018
17,235
2,372,569
o
o

113
161,482
67,081
-1,999
-1,999
o

o
226,677
5
226,682
2,599,251
225,838
821,514
1,238,768
91,841
3,450,607
221,440
264,075
NA

264,075
NA
NA
324,825
1,734,433
o
NA
120,078
NA
NA
3,939
5
992
16
850
22
2,546
44,815
o
8,783
7,129
o
7,129
5,909
1,220

o
OFFICE OF THRIFT SUPERVISION - MIDWEST SuPERVISORY REGION
5"QUARTER UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET : ASSETS , Part 1 of 2
(t of Total Assets at End of Period)
05:57 11/02/2010
United Western Bank
PAGE 12
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
a=====.-========= ==-==._=====._=-- =====_.==._._==== _==c ===== _.=======-==-
S&L Pct S&L Pct
5
S&L S&L S&L Median Pct Pct Pct
YRMO, Period End
201009 201006 201003 200912 200909
DETAILED BALANCE SHEET ASSETS:
.71 .B4' 3B .63 .85 35 1.55 .84 82 1.37 1.05 64 .87 .85 51
USGov&Agency Securities
2.01 1.09 61 1.94 1.08 58 1.70 1.19 53 1.81 .69 60 1.82 .62' 66
Sec. SUbject to FASB 115
.00 .00 26 .00 .00 26 .00 .00 26 .00 .00 26' .00 .00 25

.00 .04 30 .00 .05 23 .00 .04 22 .00 .04 24 .18 .02 71
Other Int. - arningDep.
7.54 1.96 73 11.25 ,2.19 86 24.14 2.36 96 22.04 .66 96 20..83 .69 96
Fed Funds Sold&Repos *
.0.0 .00 38 .0.0 .00 35 .00 .00 35 .00 .00 32 .00 .0.0 33
State &MuDi Obligations
.00 .08 17 .00 .03 21 .00 .01 23 .00 .02 23 .00 .02 23
Securties Bkd NonMort Lns
.00 .00 45 .00 .00
'44 ' .00 .00 43 .00 .00 44 .00 .00 44
Other Invest.Securities
.00 .11 40 .00 .01 42 .00 .01 42 .00 .02 41 .00 .0.1 44
Subtotal,IEDep&MiscSec.
7.55 4.99 61 11.25 5.44 75 24.15 5.52 93 22.05 3.89 93 21.00. 4.0.3 91
Accrued Int.Receivable
,01 .02 39 .01 .01 ' 48 .01 .02 45 .01 .01 47 .01 .01 47
Subtotal of 1.1
10..28 10.14 52 13.84 9.70. 65 27.41 9.76 86 25.24 8.10 85 23.71 7.64 84
2.2 Mortgage Bckd.Secur.
Pass Through:
1.14 5.06 23 .45 4.35 25 3.10 4.45
Guaranteed By
36 .49 5.02 20 .49 4.73 20
Oth PassThru Securities
3.56 .00 97 3.64 .00 97 3.46 .00. 97 4.18 .0.0. 97 4.68 .00 97
SUbtotal Pass Through
4.70 5.06 46 4.09 4.65 45 6.56 5.10. 60. 4.66 5.02 46 5.17, 4.95 52,
Other MortBkd Securit1es
by
8.15 .01 80 7.H .02 81 .00 .00 26 '.00 .00 26 .00 .00 27
collaterized MBS
.00 .00 33 .00 .00 36 .00 .00 36 .00 .00 37 .00 .00 37
Other
7.84 .00 90 7.97 .00 8,B 7.26 .00 87 8.18 .00 87 8.73 .00 88
Subtotal Other MBS
15.99 2.71 85 15.14 1.B9 81 7.26 1.77 65 8.18 1.51 69 8.73 1.47 71
Accrued Int. Receivable
.07 .05 65 .07 .05 65 .06 .03 60 .06 .04 57 .06 .04 61
General Allowances
NA NA NA NA NA NA NA NA NA .00 .00 50 .00 .00 50
Subtotal of 2.2
20.77 12.14 71 19.30 12.21 65 13.88 11.18 56 12.90 11.31 53 13.96 11.82 56
Loans:
1-4 Dwelling units
3.12 .40 93 3.32 .37 95 3.18 .48 90 3.89 .60 93 4.31 .68 93
5+ Dwelling units
1.14 .09 94 1.29 .09 95 1.29 .08 93 1.74 .08 96 1.79 .08 96
Subtotal,
4.26 .68 97 4.61 .67 96 4.47 .74 95 5.64 .82 96 6.10 .98 96
Non-Res.property ns r.
1.48 .32 86 2.53 .44 91 2.69 .61 90 4..35 .61 96 4.54 .72 94
Subtot., Gross Constr.Lns
5.74 1.11 93 7.14 1.33 95 7.16 1.77 95 9.99 1.82 96 10.63 1.87 94
Residential permanent
Mortgages:
1-4 Dwelling units:
.84 2.61 28 .79 2.51 28 .69 2.52 27
Revolving,Open-EndLnS
.73 2.53 28 .71 2.44 28
All Other
14.40 20.84 35 14.21 21.14 3D, 12.68
Secured First Liens
21.40 28 13.21 21.86 32 13.12, 22.21 30
Secured bI unior Liens:
.07 1.05 15 .07 1.06 15 .06 1.14 12 .06 1.24 12 .06 1.33 11
Subtota ,1-4 units
15.31 25.47 19 15.08 27.62 17 13.43 27.76 15 14.01 29.62 16 13.89 29.86 16
5+ Dwelling units
2.10 1.49 56 2.04 1.52 55 1.50 1.55 47 1.47 1.47 50. 1.58 1.49 51
Subtotal, Res.Property
17.41 36.36 19 17.12 37.64 17 14.93 38.17 12 15.48 37.93 15 15.47 38.67 15
Non-Res. (Except Land)
29.16 13.38 94 26.88 12.36 91 22.81 13.16 87 21.98 12.81 83 21.60 12.80 84
Land Perm. Mort.
3.60 .86 78 3.96 .92 BO 3.46 1.14 77 3.69 .88 78 3.79 .89 79
Subtotal, Permanent Mtg. 50.17 52.05 47 47.96 53.13 38 41.21 52.71 25 41.15 53,.54 25 40.86 53.29 25
Gross SUbtotal ofMtg Lns
55.91 53.34 52 39 51 48.37 54.78 33 51.14 56.06 39 51.49 57.02 42
Accrued Inter.Receivable
.20 .19 56 .21 .20 55 .19 .20 46 .19 .20 46 .19 .21 43
Advances for Taxes&Insur.
.03 .00 80 .01 .00 65 .01 .00 70. .03 .00 84 .03 .00 82
ALLL
1.71 .59 89 1.62 .60 87 1.22 .60 78 1.29 .56 87 1.02 .55 83
Subtotal of 2.6
54.42 53.18 51 53.70 53.85 48 47.35 54.52 33 50..07 55.75 39 50.69 57.06 42
3.1 Nonmortgage LOans
Commercial LOans:
7.0.9 2.55 80 6.61 2.15 76 5.40 2.48
Secured, Oth.than Mtgs
71 5.77 2.32 71 5.62 1.86 71
Unsecured
.48 .26 65 .40 .20 61 .34 .21 57 .33 .26 53 .45 .22 61
Credit card Loans - SUs
.00 .00 43 .00 .00 43 .00 .00 42 NA NA NA NA NA NA
Financing Leases
.03 .00 86 .03 .00 88 .03 .00 86 .03 .00 85 .03 .00 88
Subtotal,Commercial Lns 7.59 4.49 68 7.03 4.05 67 5.76 4.31 61 6.13 3.66 64 6.09 3.56 64
Consumer LnS: Closed-End
.04 82 .14 .04 85
Loans on Deposits
.15
.12 .04 83 .14 .04 84 .03 .04 46
Home I1!IProvement Loans
.00 .00 40 .00 .00 40 .00 .00 39 .00 .00 39 .00 .00 41
Education Loans
.00 .00 41 .00 .00 42 ;00 .00 42 .00 .00 41 .00, .00 40
Auto Loans
.03 .05 43 .03 .04 48 .03 .04 47 .03 .04 48 .03 .04 46
Mobile Home Loans
.00 .00 73 .00 .00 77 .00 .00 75 .00 .00 75 .00 .00 75
Credit Cards
.00' .00 36 .00 .00 37 .00 .00 36 .00 .00 35 .00 .00 35
Other, Including Leases
.25 .19 53 .25 .17 52 .21 .21 50 , .22 .13 52 .22 .13 53
Consumer Loans: SUbtotal
.43 .58 42 .43 .59 47 .37 .69 45 .40 .72 44 .28 .77 39
Subtotal, NonMtg Loans
8.02 7.27 51 7.46 6.87 53 6.13 7.0B 45 6.53 7.41 46 6.38 7.79 47
Accrued Int.Receivable
' .03 .03 48 .03 .03 45 .02 .03 41 ,02 .03 42 .02 .03 44
ALLL
.28 .15, 6B .22 .13 62 .16 .13 55 .13 .13 48 .08 .11 37
Subtotal of 3.1
7.78 7.10 51 7.26 6.83 53 6.00 7.00 45 6.42 7.35 46 6.32 7.72 47
1268
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: ASSETS, Part 2 of 2
(t of Total Assets at End of Period)
05:57 11/02/2010
United Western Bank
PAGE 13
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: n/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
================= ================= ================= ================= =================
S&L Pct
Graul? 5
Pct
Group 5 Graul? 5 Group 5
S&L Medl.an S&L Medl.an Pct S&L Medl.an Pct S&L Medl.an Pct
YRMO, Period End ..
201009 201006 201003 200912 200909
DETAILED BALANCE SHEET ASSETS:
4.0 Net Repossessions
&REI:
Repossessed Assets:
.19 .00 86 .14 .00 86 .35 .00 95 .35 .00 94
Construction
.27 .00 92
1-4 Dwelling Units
.10 .07 55 .10 .08 56 .10 .08 56 .09 .04 61 .11 .05 66
5+ Dwelling Units
.00 .00 36 .00 .00 35 .05 .00 82 .05 .00 85 .00 .00 39
Nonresidential
.31 .03 B5 .22 .02 87 .22 .01 85 .04 .01 56 .05 .00 69
Land
. 56 .02 89 .19 .02 77 .12 . .03 70 .12 .01 73 .09 .00 73
USGov Guar or Ins REO
.15 .00 93 .11 .00 95 .09 .00 97 .09 .00 98 .09 .00 98
Subtotal, REO
1.31 .19 88 .75 .20 75 .93 .28 80 .75 .18 75 .60 .1B 70
Other
.00 .00 33 .00 .00 35 .00 .00 34 .00 .00 33 .00 .00 33

1.31 .19 BB .75 .21 75 .93 .28 78 .75 .18 75 .60 .18 70
.00 .00 48 .00 .00 48 .00 .00 48 .00 .00 48 .00 .00 48
Net Repossessed Assets
1.31 .19 a8 .75 .21 75 .93 .28 78 .75 .18 75 .60 .18 70
Real Est. Held4Investmt
.00 .00 43 .00 .00 44 .00 .00 43 .00 .00 42 .00 .00 42
Net Repos'ns & REI 1.31 .24 88 .75 .21 73 .93 .28 77 .75 .18 74 .60 .18 69

Nol15 .46 .72 27 .43 .79 26 .37 .7B 20 .38 .78 20 .47 .80 25
.46 .68 28 .43 .77 28 .37 .78 21 .38 .78 20 .47 .79 28
Other
.00 .00 31 .00 .00 32 .00 .00 32 .00 .00 32 .00 .00 32
5.5 Office Premises and Eq.
1.07 1.00 51 1.01 .98 51 .87 1.01 36 .91 1.03 41 .88 1.02 39
5.8 Other Assets
3.91 2.97 63 3.70 2.88 61 3.19 3.18 52 3.33 3.04 55 3.36 2.64 65
Bank Owned Life Insurance:
L,ife Insurance
.00 .00 38 .00 .00 38 .00 .00 38 .00 .00 37 .00 .00 37
1.30 .00 71 1.21 .00 70 1.02 .00 66 1.05 .00 67 1.00 .00 67
Intangible Assets
Servicing Assets On:
.28 .00 84 .28 .01 82 .26 .01 B1 .29 .01 80
Mortgage Loans
.30 .01 80
Non-Mortgage Loans
.01 .00 98 .01 .00 98 .00 .00 98 .01 .00 98 .00 .00 98
Goodwill and Oth.Intang.
.02 .09 39 .03 .09 42 .03 .09 42 .03 .09 43 .03 .07 46
10 Strip Rec.&Oth Instrum
.00 .00 48 .00 .00 48 .00 .00 48 .00 .00 48 .00 .00 48
Other Assets
2.33 1.22 80 2.21 1.20 80 1.91 1.28 75 1.99 1.26 76 2.06 .81 82
General Allowance
.03 .00 98 .03 .00 97 .03 .00 98 .03 .00 98 .03 .00 98
TOTAL ASSETS
100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50
Memo: Loans in Process on:
.94
Mortg. Construction Loans
.37 .36 52 .37 .34 51 .51 .39 52 .51 65 1.65 .68 79
Other Mortg. Loans
.00 .00 47 .00 .00 50 .00 .00 50 .01 .01 50 .03 .02 51
Total Mortg. Loans
.37 .48 46 .37 .51 45 .51 .55 48 .95 .76 56 1.68 .79 73
Nonmortgage Loans
.04 .00 67 .05 .00 67 .00 .00 30 .00 .00 62 .00 .00 62
Memo; Qetail of Other
Assets: (Largest Components of Other Assets)
Amount
1.27 .37 84 1.12 .44 83 .92 .48 76 .79 .47 78 .85 .39 76
Code (SC691)
3 3 3 3 3
Amount
.26 .29 40 .26 .29 41 .23 .35 31 .22 .31 41 .41 .13 80
Code (SC693)
9 9 9 9 14
Amount
.45 .17 8B .52 .17 83 .53 .14 86 .66 .15 88 .47 .07 85
Code (SC697)
4 4 4 4 4
COMMITMENTS OUTSTANDING:
('I; Total Assets, End of Period)
To Originate:
1-4 Mortgages
.00 .60 6 .00 .52 5 .00 .34 6 .00 .37 5 .00 .39 5
5+ Mortgages
.00 .00 36 .00 .00 33 .00 .00 31 .00 .00 32 .00 .00 30
All Other RE
2.06 .13 98 1.49 .21 93 1.17 .13 88 1.18 .16 88 1.1B .12 87
Non-Mortgage Loans
.41 .00 BO .51 .00 78 .50 .03 85 .1B .00 71 .13 .01 62
Net purch (Sale) Commit.
.00 -.04 71 .00 -.04 70 .00 .00 65 .00 -. 01 68 .00 -.01 67
1269
05: 57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: LIABILITIES & CAPITAL
(% of Total Liabil. & Cap. at End of Period)
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Otr 2nd Prior Qtr 3rd Prior Qtr
================= ================= ================= =================
S&L Pct S&L Pct S&L Pct S&L Pct
YRMO, Period End.... 201009
DETAILED BALANCE SHEET LIABILITIES & CAPITAL:
7.1 Deposits and Escrows:
Deposits
Escrows'"
Subtotal of 7.1
7.15 Unamortized Yld Adj
7.2 Borrowings:
Advances from FHLBank
Reverse REPOs+FFunds Pur-
Subordinated Debentures

All Other
Subtotal of 7.2
7.3 Other Liabilities:

Accrued Taxes
Deferred Income Taxes

TOTAL LIABILITIES
8.0 Total Equity Capital:
Perpetual Preferred Stock
CUmul. Perp. Prefstk

Paid in Excess of Par
Retained Earnings
Accum Oth. Camp. Income
UnrealGain/Loss Avai14Sai
GainS/LOSS Cash Flow Hdg
Other
Other Components
Subtotal
NonCtrl Int.Conal.Sub
Total Equity Capital
73.88
5.91
79.79
.00
8.20
4.14
.00
.00
.41
12.75
.04
.02
.02
.00
.62
.70
93.23
.00
.00
.00
.01
7.98
-1.03
-.18
-.18
.00
.00
.00
6.77
.00
6.77
76.94
.24
77 .26
.00
6.31
.33
.00
.00
.00
9.33
.02
.02
.03
.00
.65
.86
89.36
.00
.00
.00
.00
5.92
4.55
.03
.05
.00
.00
.00
10.64
.00
10.64
38
96
67
18
60
77
47
50
75
64
72
52
38
36
46
31
92
48
50
48
71
69
13
14
10
51
65
60
7
88
7
74.47
5.73
80.20
.00
7.67
3.61
.00
.00
.56
11.84
.07
.02
.01
.00
.62
.72
92.75
.00
.00
.00
.01
7.48
-.05
-.19
-.19
.00
.00
.00
7.24
.00
7.25
201006
76.41
.23
76.95
.00
7.42
.00
.00
.00
.00
9.66
.02
.02
.03
.00
.58
.74
89.59
.00
.00
.00
.00
5.67
4.53
.02
.05
.00
.00
.00
10.41
.00
10.41
42
98
65
16
53
75
46
50
77
60
73
42
33
37
60
45
88
46
50
46
68
65
18
15
11
53
64
60
11
86
11
77.82
5.25
83.07
-.01
6.51
3.09
.00
.00
.29
9.89
.05
.02
.01
.00
.53
.61
93.56
.00
.00
.00
.00
6.25
.39
-.21
- .21
.00
.00
.00
6.44
.00
6.44
201003
76.70
.24
77.17
.00
6.78
.00
.00
.00
.00
10.10
.03
.02
.05
.00
.54
.76
89.88
.00
.00
.00
.00
5.41
4.64
.00
.01
.00
.00
.00
10.12
.00
10.12
57
98
81
16
47
71
46
50
73
45
70
41
32
38
48
32
93
47
50
47
68
56
18
17
11
52
65
59
7
86
6
75.63
5.77
81.40
-.01
7.22
3.14
.00
.00
.05
10.41
.04
.04
.02
.00
.58
.67
92.47
.00
.00
.00
.00
6.46
1.24
-.18
- .18
.00
.00
.00
7.53
.00
7.53
200912
75.63
.23
76.76
.00
8.02
.00
.00
.00
.01
10.72
.03
.03
.04
.00
.60
.81
90.03
.00
.00
.00
.00
5.11
4.58
.00
.01
.00
.00
.00
9.97
.00
9.97
50
97
75
14
46
75
46
50
56
48
60
55
42
39
48
39
87
46
50
46
67
60
23
23
16
52
65
58
12
85
12
PAGE 14
4th Prior Qtr
=================
S&L Pet
200909
75.14
4.09
79.24
-.01
8.33
3.02
.00
.00
.04
11.39
.03
.04
.02
.00
.58
.66
91.28
.00
.00
- .00
.00
6.21
2.58
-.08
-.08
.00
.00
.00
8.72
.00
8.72
74.44
.25
74.99
.00
8.03
.00
.00
.00
.02
11.65
.04
.03
.04
.00
.60
.87
90.31
.00
.00
.00
.00
5.07
4.50
.01
.02
.00
.00
.00
9.69
.00
9.69
55
97
65
12
51
73
46
50
53
48
47
57
35
37
47
33
70
47
50
47
67
57
29
32
20
52
66
58
29
85
29
TOTAL LIABIL.+ EQUITY CAP. 100.00 100.00
Memo: Equity - Goodwill 6.74 9.81
SUPPLEMENTAL DEPOSIT DATA:
50 100.00 100.00 50 100.00 100.00 50 100.00 100.00
7 7.22 9.68 11 6.41 9.21 6 7.50 9.33
(Average Deposits in $OOOs)
50 100.00 100.00
14 8.69 9.12
50
41
Accnts w/Bal belw InsLimt 48.55
Aecnts w/Bal abve InsLimt 31.27
AvgBal DepAct belw InsLimit117.26
AvgBal DepAct abve InsLimit4689.95
AvgBal: All Deposit Accts 189.72
BrokrOr igDep , Fulllnsurd<100 .49
BrokrORigDep,FullInsrdl-25K 2.02
Other BrokerOrig.Deposits .00
Total Broker orig.Deposits 2.51
IntExp FullInsrd BrokerDep .02
IntExp on Oth .00
Uninsured Deposits 1.30
Insured Deposits 78.49
preferred Deposits .00

AvgDailyDep FullInsrdBrkrDe 4.32
AvgDailyDep Other Broker De .00
Memo: Detail of Other Liabilities:
Amount .16
Code (SC791)
Amount .04
Code (SC794)
Amount .07
Code (SC797)
CONTINGENT LIABILITIES:
Unused Lines of Credit:
.07
1. 85
59.62
14.62
13.03
625.32
16.46
.05
.01
.00
.59
.00
.00
6.72
68.19
.00
2.54
3.11
.19
.00
23 47.68 60.38 21 47.97 60.59 17
88 32.60 12.52 88 35.15 12.58 91
98 114.05 12.93 98 130.96 13.28 98
96 3282.50 598.90 96 1619.18 610.03
97 187.56 16.73 97 214.23 16.92 98
65 2.98 .06 72 4.85 .12 76
76 4.56 .00 86 5.72 .00 86
38 .00 .00 38 .00 .00 40
63 7.54 .89 76 10.57 1.54 77
71 .04 .00 83 .06 .00 86
40 .00 .00 40 .00 .00 40
6 2.25 6.75 13 1.87 7.-29 8
82 77.95 67.87 82 81.19 66.74 86
27 .00 .00 28 .00 .00 27
15 1.22 2.24 27 .97 2.02 23
32 2.25 2.85 36 2.11 2.86 38
73 11.00 .99 85 15.60 .74 86
42 .00 .00 42 .00 .00 43
(Largest
.16 50
Components of Other Liabilities)
.16 .15 53 .14 .10 55
5
.06 40
16
.02 77
22
2.86
.86
9
65
5 5
.04 .04 42 .03 .04 46
16 16
.08 .02 83 .06 .01 77
.06
2.10
3.14
.82
22 22
10
68
.09
1.80
3.44
.97
7
62
Open-End Consumer Lines
Commercial Lines
Letters of Credit:
Commercial .00 .00 40 .00 .00
.05
41
72
.00
.28
.00
.07
41
68
Obligations &
Sub.
Recourse Obligations
Amt whr Recourse<=120Days
Amt whr Recourse<=120Days
Other Contingent Liab;
.29 .02 77 .28
Direct Credit Substitutes:
11.24 .00 86 11.54
11.02 .00 98 11.32
.22 .00 86 .22
.19 .00 94 .19
.03 .00 85 .03
.00 .00 46 .00
.00 .00 48 .00 Contingent Assets
Excludes deposits from FDIC-insured subsidiaries
.00
.00
.00
.00
.00
.00
.00
87
98
86
93
85
46
48
1270
6.66
6.47
.20
.17
.02
.00
.00
.00
.00
.00
.00
.00
.00
.00
87
98
86
93
83
46
48
44.79 58.86 14
36.65 12.35 88
127.72 12.83 98
93 1887.37 639.56
220.05 16.38 97
23.00 .75 88
NA NA NA
.00 .00 41
23.00 .75 88
NA NA NA
NA NA NA
15.97 8.51 73
65.43 63.39 52
.00 .00 28
NA NA NA
2.22 3.04 39
NA NA NA
NA NA NA
.15
.04
.05
.10
1. 70
.00
.34
9.14
8.89
.24
.17
.04
.00
.00
.15
.04
.01
3.42
1.12
.00
.07
.00
.00
.00
.00
.00
.00
.00
50
5
46
16
76
22
7
57
41
73
85
98
84
93
84
46
48
31.61 60.75 7
47.66 11.64 93
91.84 12.16 98
91 3450.61 628.59
221.44 15.62 97
10.16 .71 78
NA NA NA
.00 .00 41
10.16 .71 78
NA NA NA
NA NA NA
12.50 7.59 65
66.73 64.75 55
.00 .00 28
NA NA NA
4.62 3.09 65
NA NA NA
NA NA NA
.15
.04
.03
.10
1.72
.00
.34
.27
.00
.27
.23
.05
.00
.00
.15
.04
.02
3.49
1.00
.00
.07
.00
.00
.00
.00
.00
.00
.00
48
5
43
16
66
22
8
56
41
74
70
44
84
92
84
46
48
96
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5cQUARTER UTPR REPORT FOR QUARTER ENDED 20100S
ASSET QUALITY ($000)
United Western Bank
DOCKET.:
DATA AS OF:
06679 TFR STATUS: IN PROCESS
11/02/2010 CMR STATUS: NONRESPONDER
1st Prior Qtr 2nd prior Qtr 3rd Prior Qtr CUrrent Quarter
================= ================= =================
YRMO, Period End ....
20100S 201006 201003
1. LOANS PAST DUE 30-8S DAYS AND
Construction Loans
permMtg,1-4 vnit
PermMtg,5+Um.t
PermMtg, NonResBldg
PermMtg,Land
Total Mtg. Loans
NonMtg Commercial Loans
Loans on Deposits
Home Loans
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other

STILL ACCRUING:
3,000
11,986
2,329
15,506
14,210
47,031
2,320
o
o
o
o
o
o
o
o
Guaranteed by USGov Agney
Subtot PD30-89 less GovGuar
2. LOANS PAST DUE 90+ DAYS AND STILL
Construction Loans
49,351
5,683
43,668
ACCRUING:
o
9,694
PermMtg,l-4 Vnit
PermMtg,5+Um.t
PermMtg, NonResBldg
PermMtg,Land
Total Mtg. Loans
NonMtg Commercial Loans
Loans on Deposits
Home Improv. Loans
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other
Loans
Guaranteed by USGov Agney
Subtot PD90+ less GovGuar
3. NONACCRUING LOANS:
Construction Loans
PermMtg,l-4 Unit
PermMtg,5+Unit
PermMtg,NonReSBldg
Loans
NonMtg Commercial Loans
Loans on Deposits
Home Improv. Loans
Education Loans
Auto Loans
Mobile Home Loans
Credi t Cards
Other
Loans
Guaranteed by USGov Agncy
Subtot NonAerl less GovGuar
4. NONPERFORMING LOANS: (a)
Sum of Subtotals 2 and 3
Guaranteed by USGoV Agncy
Sum Subtot 2+3 less GovGuar
5. NONPERFORMING ASSETS:
NonPerformLns(Subtot 4) (a)
REO: Construction
REO:1-4 Dwelling units
REO:5 or More DWelling U.
REO:Nonresidential Bldgs
REO:Land
USGov Guar or Ins REO
Subtotal, Gross REO
Othr Reposs'd Assets,Gross
Reposs'd Assets,Net of SVAs
NPA: PD90+NonAc+Repos'd(b)

6. TROUBLED DEBT RESTRUCT.
7. CLASSIFICATION OF ASSETS:
Classified Substandard
Classified Doubtful
Classified Loss
Total Classified Assets

Construction Loans
1-4 Unit SeerdBy open-End
1-4 Unit SecrdBy 1st Lien
1-4 Unit SeerdBy Jr Liens
MultiFamily
NonResidential Property
Land Loans
Total Loans
o
o
o
9,694
o
o
o
o
o
o
o
o
o
9,694
9,194
500
10,824
20,695
2,079
15,870
8,960
58,428
3,996
o
o
o
o
o
o
480
480
62,904
897
62,007
72,598
13,260
62,507
72,598
3,927
2,095
o
6,347
11,487
3,169
27,025
o
27,025
99,623
13,260
86,363
50,532
364,212
5,733
o
369,S45
60,263
6,755
o
13,402
o
o
5,117
o
25,274
($000 at End of
6,063
ll,725
4,150
30,399
o
52,337
1,877
o
o
o
o
o
o
487
487
54,701
5,746
48,955
o
8,464
o
o
o
8,464
o
o
o
o
o
o
o
o
o
8,464
8,463
1
20,114
13,265
o
17,681
10,212
61,272
3,821
o
o
o
o
o
o
o
o
65,093
120
64,973
73,557
10,998
64,974
73,557
3,090
2,129
o
4,838
4,163
2,415
16,635
o
16,635
90,192
10.998
79,194
28,373
352,235
6,326
o
358,561
65,568
10,145
o
11,733
o
o
4,486
5,649
32,013
1271
Period)
6,454
11,733
o
31;307
7,433
56,927
833
o
o
o
8
o
o
270
278
58,038
6,386
51,652
o
9,715
o
4,718
o
14,433
299
o
o
o
o
o
o
o
o
14,732
9,715
5,017
24,133
12,501
o
13,430
6,760
56,824
4,029
o
o
o
o
o
o
o
o
60,853
60
60,793
75,585
12,095
65,810
75,585
9,184
2,711
1,175
5,653
3,033
2,320
24,076
o
24,076
99,661
12,095
87,566
41,771
359,440
4,955
o
364,395
49,522
12,307
o
9,877
129
o
4,403
6,745
33,461
200912
3,690
14,365
703
8,369
7,390
34,517
2,294
o
o
o
o
o
o
1
1
36,812
6,982
29,830
412
7,986
1,469
o
o
9,867
o
o
o
o
o
o
o
o
o
9,867
7,986
1,881
19,244
13,723
o
15,148
1,811
49,926
3,126
o
o
o
o
o
o
o
o
53,052
65
52,987
62,919
10,411
54,868
62,919
8,643
2,280
1,360
1,009
3,058
2,360
18,710
o
18,710
81,629
10,411
71,218
30,040
339,676
5,180
o
344,856
43,457
3,947
o
8,117
870
o
4,657
944
18,535
PAGE 15
4th Prior Qtr

200909
5,130
14,940
2,131
20,106
16,425
58,732
1,402
o
o
o
o
o
o
o
o
60,134
6,583
53,551
o
7,204
o
o
o
7,204
124
o
o
o
o
o
o
o
o
7,328
7,204
124
14,557
13,393
1,511
7,339
1,290
38,090
565
o
o
o
o
o
o
o
o
38,655
66
38,589
45,983
9,506
38,713
45,983
6,897
2,957
o
1,241
2,230
2,236
15,561
o
15,561
61,544
9,506
52,038
26,773
139,715
3,411
o
143,126
36,887
2,369
o
12,183
o
1,511
5,466
346
21,875
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
ASSET QUALITY (%)
05:57 11/02/2010
United Western Bank
PAGE 16
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
================= =================
================= =================
Graul? 5 Graul? 5
Pct S&L
Graul? 5 Graul? 5
S&L Pct S&L
Pct S&L Pct S&L Pct
====== === ====== ====== === ====== ====== === ==:===
======
YRMO, Period End ... 201009 201006 201003 200912 200909
1. DELINQUENCY LOAN RATES BY LOAN CATEGORY - LOANS PAST DUE 30-89 DAYS AND STILL ACCRUING
(% of Outstanding Gross Loans in Each Category)
construction Loans 2.53 .00 86 3.85 .00 81 3.48 .00 81 1.48
.00 72 1.86 .31 66
PermMTG, 1-4 Unit 3.78 .91 91 3.53 .94 90 3.37 1.16 93 4.10
1.00 94 4.14 1.15 94
PermMTG, 5+ Unit 5.36 .00 95 9.22 .00 94 .00 .00 27 1. 91
.00 78 5.20 .00 86
PermMTG,NonResBldg 2.57 .86 80 5.13 .54 93 5.30 .76 91 1.52 .43 80 3.58 .35 90
PermMTG, Land 19.08 .33 98 .00 .11 24 8.29 .54 93 8.01 .02 95 16.68 .32 96
Total Mtg. Loans 4.06 1.01 90 4.31 1.06 96 4.55 1.17 94 2.70 .97 82 4.39 1.01 94
NonMtg Commercial Loans 1.48 .44 75 1.21 .24 74 .56 .45 53 1.50 .39 72 .88 .. 41 66
Loans on Deposit .00 .00 35 .00 .00 35 .00 .00 38 .00 .00 33 .00 .00 33
Home Improv. Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Education Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Auto Loans .00 .74 12 .00 .48 14 1.01 .64 66 .00 .95 13 .00 .72 16
Mobile Home Loans .00 .00 34 .00 .00 36 .00 .00 35 .00 .00 26 .00 .00 29
Credit Cards NA 1.05 NA NA 1.10 NA NA 1.09 NA NA 1.50 NA NA 1.46 NA
Other .00 .85 7 8.87 .61 94 4 .. 91 .61 95 .02 .79 17 .00 .81 12

.00 .83 7 5.17 .85 89 2.90 .74 86 .01 1.21 12 .00 1.14 8
3.83 .99 94 4.07 1.08 97 4.20 1.19 97 2.60 .96 81 4.06 1.01 96

.44 .00 91 .43 .00 93 .46 .00 96 .49 .00 97 .44 .00 97
3.39 .88 90 3.64 1.01 94 3.74 1.16 96 2.11 .96 77 3.61 1. 00 92
2. DELINQUENCY LOAN RATES BY LOAN CATEGORY - LOANS PAST DUE 90+ DAYS AND NONACCRUAL
(% of Outstanding Gross Loans Each
Construction Loans 9.12 3.99 63 12.77 6.30 64 13.02 5.71 0 7.86
5.57 59 5.27 5.74 48
permMtg,l-4 Unit 9.59 1.91 93 6.54 2.00 89 6.39 1.91 87 6.19 1. 76 90 5.70 1.66 92
PermMtg,5+Unit 4.78 1.11 67 .00 .88 18 .00 .89 19 3.99 .42 79 3.69 .37 83
PermMtg,NonRes.Bldg. 2.63 2.22 57 2.98 2.24 61 3.07 2.43 62 2.75 2.13 59 1.31 2.10 38
PermMtg, Land 12.03 7.23 56 11.70 4.59 69 7.54 4.40 59 1. 96 4.85 36 1.31 5.78 34
Total Mtg. Loans 5.89 2.88 76 5.74 2.78 76 5.69 2.85 74 4.67 2.71 73 3.38 2.36 61
NonMtg Loans 2.54 1.23 70 2.46 1.23 67 2.90 1.42 72 2.04 .77 65 .43 1.02 38
Loans on .00 .00 47 .00 .00 47 .00 .00 48 .00 .00 46 .00 .00 42
Home Improv. Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Education Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Auto Loans .00 .02 23 .00 .02 22 .00 .03 21 .00 .03 21 .00 .06 18
Mobile Home Loans .00 .00 36 .00 .00 32 .00 .00 30 .00 .00 30 .00 .00 29
Credit Cards NA .59 NA NA .88 NA NA :93 NA NA .57 NA NA .38 NA
Other 9.45 .20 92 .00 .22 17 .00 .18 18 .00 .06 22 .00 .18 19

5.40 .32 91 .00 .22 12 .00 .27 13 .00 .19 16 .00 .25 12
5.64 2.46 79 5.47 2.43 79 5.47 2A4 77 4.45 2.27 73 3.10 2.22 65
Guaranteed by USGov Agncy 1. 03 .. 00 90 .82 .00 92 .88 .00 94 .74 .00 97 .64 .00 97
Subtot PD90+ less GovGuar 4.86 2.33 78 4.83 2.40 76 4.77 2.39 73 3.88 2.27 69 2.61 2.10 57
3. NON-PERFORMING ASSET RATES (Non-Performing Loans and Repossessed Assets by
Construction Lns, Net LIP 12.03 7.78 60 14.45 9.81 61 17.13 8.13
7.68 57 7.57 7.00 52
PermMtg,l-4 Unit 10.18 2.78 93 7.13 2.66 85 7.11 2.79 88 6.80 2.04 90 6.47 1.95 90
PermMtg,5+Unit 4.78 1.63 66 .00 1.09 17 2.93 1.39 61 7.42 .96 81 3.69 .58 79
PermMtg,NonRes.Bldg. 3.64 3.18 55 3.77 2.78 59 3.99 2.87 63 2.93 2.52 52 1.52 2.36 38
Loans
23.78 15.06 61 15.72 11.61. 61 10.57 11.13 46 5.11 10.57 31 3.50 10.84 34
7.95 3.75 79 6.91 3.57 79 7.43 3.80 79 5.95 3.42 76 4.38 3.16 65
Non-Mortgage Loans 2.70 .94 75 2.32 .90 71 2.73 .97 75 1.91. .56 68 .42 .90 44
Subtotal, PD90+NnAc+Repos'd 7.38 3.08 81. 6.46 3.08 80 6.95 3.28 81 5.58 2.80 78 4.05 2.68 69
Guaranteed by USGov Agncy 1.0l .00 90 .Bl .00 92 .86 .00 94 .73 .00 97 .63 .00 97
Subtot NonAcrl less GovGuar 4.72 2.23 79 4.77 2.29 79 4.33 2.30 74 3.70 2.21 68 2.58 1. 98 59
4. ASSET QUALITY SUMMARY: (% of Total Assets)
76 NonPerformLns(Subtot 4) 3.51 1.62 72 3.34 1.65 2.92 1.57 70 2.51 1.57 69 1.77 1. SO 56
REO: Construction .19 .00 86 .14 .00 86 .35 .00 95 .35 .00 94 .27 .00 92
REO:1.-4 Dwelling Units .10 .07 55 .10 .08 56 .1.0 .08 56 .09 .04 61 .11 .05 66

.00 .00 36 .00 .00 35 .05 .00 82 .05 .00 85 .00 .00 39
.31 .03 85 .22 .02 87 .22 .01 85 .04 .01 56 .05 .00 69
REO: Land .56 .02 89 .19 .02 77 .12 .03 70 .1.2 .01. 73 .09 .00 73
USGov Guar or Ins REO .15 .00 93 .11 .00 95 .09 .00 97 .09 .00 98 .09 .00 98
Subtotal, Gross REO 1.31 .19 88 .75 .20 75 .93 .28 80 .75 .18 75 .60 .18 70

.00 .00 33 .00 .00 35 .00 .00 34 .00 .00 33 .00 .00 33
1.31 .19 88 .75 .21 75 .93 .28 78 .75 .18 75 .60 .18 70
NPA: PD90+NonAc+Repos'd 4.81 2.23 78 4.09 2.03 73 3.85 2.11 68 3.26 2.05 69 2.37 1. 89 60
Classified Substandard 17.60 4.49 97 15.97 4.35 97 1.3.88 4.80 96 1.3.57 4.20 97 5.38 3.76 69
Classified Doubtful .2B .00 89 .29 .01 90 .19 .00 86 .21 .00 88 .13 .01 82
Classified Loss .00 .00 49 .00 .00 49 .00 .00 49 .00 .00 50 .00 .00 49
Total Classified Assets 17.87 4.51 96 16.26 4.39 97 14.0B 4.86 96 13.78 4.20 97 5.51 3.90 71
Special Mention Assets 2.91 1.10 78 2.97 1.37 80 1.91 1.20 58 1. 74 1.23 62 1.42 1.23 55
Sllb+Doubt I CoreCap+GVA 199.29 42.93 96 174.74 39.77 96 174.85 40.28 97 150.64 38.56 97 55.61 37.22 71
5. CONSOLIDATED ASSET QUALITY TREND: (% of Total Assets)
Non-Performing Loans 3.51 1.62 72 3.34 1.65 76 2.92 1.57 70 2.51 1.57 69 1.77 1.50 56
Repossessed Assets, Gross 1.31 .19 88 .75 .21 75 .93 .28 78 .75 .18 75 .60 .1.8 70
Repossessed Assets,Net SVA 1.31 .19 88 .75 .21. 75 .93 .28 78 .75 .18 75 .60 .18 70
Total NonPerform. Assets 4.81 2.23 78 4.09 2.03 73 3.85 2.1.1 68 3.26 2.05 69 2.37 1.89 60
2.44 .83
76 1.29 .87 60 1.61 .85 68 1.20 .64 62 1.03 .51 66
Construction Loans 5.69 .27 72 6.44 .39 75 6.64 .55 81 1.58 .50 60 .86 .32 57
1-4 Unit SecrdBy Open-End .00 .00 26 .00 .12 23 .00 .09 22 .00 .03 23 .00 .00 27
1-4 Unit SecrdBy 1st Lien 4.50 1.18 91 3.74 1.18 85 3.01 1.26 81 2.45 1.05 78 3.57 .89 89
1-4 Unit SecrdBy Jr Liens .00 .00 26 .00 .00 26 8.34 .00 97 54.44 .00 98 .00 .00 27
MultiFamily .00 .00 32 .00 .00 33 .00 .00 35 .00 .00 36 3.69 .00 92
NonResidential Property .85 .29 55 .76 .15 62 .75 .34 58 .85 .23 64 .97 .31 68
Land Loans .00 .00 25. 6.47 .08 81 7.53 .06 84 1.02 .03 57 .35 .22 53
Total Loans 2.18 1.03 71 2.63 1.08 74 2.67 1.02 79 1.45 .96 68 1.63 .82 74
1272
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
, 5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
ALLOWANCES
05:57 11/02/2010
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter ' 1st Prior Qtr ,2nd Prior Qtr 3rd Prior Qtr
Months in period
YRMO, Period End ...
================; ================; =========== _-=;
201009 201006 201003 200912
1. TOTAL ALLOWANCES:
Balance
Net Provision for Loss
Add Recoveries on:
Recoveries
Acquisitions
Deduct: Charge-offs+Sales
Ending Balance
46,721
99
o
17,371
48,795
1a. TOTAL GENERAL ALLOWANCES:
Balance
Net Provision for Loss
Transfers
Recoveries
Acquisitions
Deduct: Charge-offs+sales
Ending Balance
16,019
-1,050
99
o
14,447
41,7,86
lb. TOTAL SPECIFIC ALLOWANCES:
Balance 5,556
Net Provision for Loss 3,327
Transfers 1,05g
2,924
Ending Balance 7,009
2. ALLOCATION OF ENDING ALLOWANCE BALANCE:
Cash, Deposits, & Inv.Sec.:
Mortgage Loans:
ALLL
Loans:


Other:
General Allowance
All Assets:
General Allowance+ALLL
Specific Allowance
Total Allowances
35,453
5,709
o
NA
621
41,786
7,009
48,795
.-.==-=--=-=-===-
S&L Pct
($000 at Start of Period)
44,860 37,727
($000 During Period)
5,120, 14,545
168 74
o 0
3,427
($000 at End of Period)
46,721
($000
($000
36,347
During Period)
5,155
510
168
o
1,015
41',165
8,513
During Period)
-35
-510
o
2,412
5,556
35,668
4,918
o
NA
580
41,165
5,556
46,721
7,486
44;860
36,081
7,662
o
74
'0
7,470
36,347
1,646
6,883
o
o
16
8,513
31,616
4,083
o
NA
650
36,347
8,513
44,860
-====-=-=====---= ======='==========
S&L Pct
Group 5
S&L Medl.an Pct
30,442
14,891
89
o
,7,695
37,727
29,167
13,786
o
89
o
6,961
36,081
1,275
1,105
o
o
734
1,646
32,228
3,204
o
o
650
36,081
1,646
37,727
=====--==-====-==
Group 5
S&L Medl.an Pct
PAGE 17
4th Prior Qt%'
3
200909
28,609
12,166
129
o
10,462
30,442
22,385
10,321
288
'129
o
3,956
29,167
6,224
1,845
-288
o
6,506
1,;275
26;498
2,008
o
o
662
29,167
1,275
30,442
-====-=======-===
S&L Pct
====== .-.-==
=-==== ==- ====== ====== -== =====- ------ -== --=-== ==---=
3. GEN. ALLOWANCE+ALLL ALLOCATED TO:
(t of Net Assets in Each

Gross of GA/ALLL and LIP)
Loans + LIP 3.03 1.17
86 2.90 1.15 88 2.49 2.46 1.04 92 1.91 .98 88
Nonmor gage Loans + LIP 3.41 1.91
73 2.96 1.86 68 2.56 1.90 65 1.95 1.89 53 1.21 1.58 38
Reiossessed Assets .00 .00
48 .00 .00 47 .00 .00 48 .00 .00 48 .00 .00 47
NA NA
NA NA NA NA NA NA NA .00 .00 SO .00 .00 50
Other Assets NA NA
NA NA NA NA NA NA NA NA NA NA NA NA NA
All Assets (Net of LIP) 2.03 .91
88 1.88 .87 85 1.41 .85 72 1.45 .87 78 1.13 .82 71
GA+ALLL4LnS+REO,tLns+REO, 3.05 1.40
89 2.91 1.29 89 2.49 1.27 86 2.42 1.26 89 1.88 1.17 81
GA+ALLL4Lns+REO,t(NPA-SVA) 41.32 39.21
54 4S.00 41.06 53 35.82 41.62 ' 41
43.41 44.23 47 46.32 43.01 56
Tot.GA+ALLL, (tClsfd-LOSS) 11.30 19.24
18 11.48 23.05 15 9.97 23.18 13 10.46 21.30 14 20.38 22.80 44
1273
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
GVA Clll\RGE-OFFS AND C!II\NGE IN SVAs
($000)
united western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: ,NONRESPONDER
Current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
PAGE 18
4th Prior Qtr
Months in =_._=--=_._--==-; .. ======== ===; ===========-====i- ======= ======; -=._=--====-=----
YRMQ, PeriOd End. . ' 2010'09 201006 201003 200912
4. NET GVA CHARGE-OFFS AND C!II\NGES IN SVAs ($000 During Period)
Deposits r. Inv. Sec.
0 0
MPS
0' 0
Mortgage L9ans:
Constructl.on:
991 -133
1-4 Dwell unit
5+ Dwell unit
1.974 169
NonResidential
2,676 -691
Total Constr.
5,641 -655
Permanent:
0 323
1-4 Closed End
1-4 Open End
1,123 0
Total 1-4 Perm.
1,123 323
5+ Dwell. unit
2,071 0
Nonresidential
3,317 459
Land
6,377 -21
Total Perm. Mtg.
12,888 761
Total MOrtgage Loans
18,529 106
Loans: 77 74
Consumer:
0 0
LoanS on Deposits
HILs
0 0
Education Loans
0 0
Auto Loans
0 0
Mobile Home Loans
0 0
Credit Cards
2 0
Other
0 0
Total Consumer Loans
2 0
Total Non-Mortgage Loans
79 74
Repossessed Assets:
Real Estate:
0 0
Construction
1-4 Dwell. unit
0 0
5+ Dwell. unit
0 0
Nonresidential
0 0
Land
0 0
Total RepoS'ed RE
0 0
Other Repos'ed Assets
0 0
Total Repossessions
0 0
RE Held for Investment
0' 0
Inv. in SUbordinate Firms
0 0
Other Asset;s
117 121
Total Assets
18,725 301
1274
0
0
621
355
8,568
9,544
678
0
678
0
3,601
-21
'4,258
13,802
454
0
0
0
0
,0
0
5
5
459
0
0
0
0
0
0
0
0
0
0
19
14,280
o
o
1,309
o
580
1,889
495
o
495
162
2,019
3,300
5,976
7,865
44
o
o
o
o
o
o
o
o
44
o
o
o
o
o
o
o
o
o
o
68
7,977
3
200909
o
1,958
681
1,783
639
3,103
27
o
27
-47
-1
o
-21
3,082
335
o
o
o
o
o
o
3
3
338
o
o
o
o
o
o
o
o
o
o
6
5,384
05:57 11/02/2010
Months in period
YRMO, Period End ....
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
GVA CHARGE-OFFS AND CHANGE IN SVAs
('I; of Category)
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
================3
201009
================= = = = = = = = = = ~ = = = = = = = =================
3 3 3
201006 201003 200912
5. RATES OF GVA CHARGE-OFFS AND Changes in SVAs (%- of Category)
Deposits & Inv. Sec. .00 .00 50 .00 . 00 50
MPS
Mortgage Loans:
Construction:
1-4 Dwell Unit
5+. Dwell unit
NonResidential
Total Constr.
Permanent:
1-4 Closed End
1-4 Open End
Total 1-4 Perm.
5+ Dwell. Unit
Nonresidential
Land
Total Perm. Mtg.
Total Mortgage Loans
N g ~ ~ : ~ ~ ~ ~ : l e Loans:
Consumer:
Loans on Deposits
HILs
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other
Total Consumer Loans
Total Non-Mortgage Loans
Repossessed Assets:
Real Estate:
Construction
1-4 Dwell. Unit
5+ Dwell. unit
Nonresidential
Land
Total Repos'ed RE
Other Repos'ed Assets
Total Repossessions
RE Held for Investment
EqtyInv Not SbjctFASBl15
Other Assets
Total Assets
.00
1.44
7.58
6.19
4.08
.00
6.42
.35
4.68
.55
7. B8
1.23
1.64
.05
.00
NA
NA
.00
.00
NA
.00
.02
.05
.00
.00
NA
.00
.00
.00
NA
.00
NA
.00
NA
.88
.00 50 .00
.00 82 - .17
.00 91 .55
.00 94 -1.10
.00 92 -.38
.10 15 .10
.06 98 .00
.11 78 .09
.00 95 .00
.04 79 .08
.00 90 -.02
.17 94. .07
.18 94 .01
.12 42 .05
.00 45 .00
.00 NA NA
.00 NA NA
.01 32 .00
.00 51 .00
.52 NA NA
.12 27 .00
.13 32 .00
.20 34 .05
.00 39 .00
.00 37 .00
.00 NA .00
.00 41 .00
.00 39 .00
.00 34 .00
.00 NA NA
.00 34 .00
.00 NA NA
.00 49 .00
NA NA
.12 92
NA
.01
.00 SO
.00 7
.00 89
.00 3
.00 2
.05 61
.05 26
.07 57
.00 42
.03 58
.00 4
.11 42
.13 10
.06 45
.00 48
.00 NA
.00 NA
.00 46
.00 53
.81 NA
.31 18
.15 22
.16 29
.00 42
.00 33
.00 46
.00 44
. 00 36
.00 32
.00 NA
.00 32
.00 NA
.00 50
NA NA
.12 12
1275
.00
.00
.69
.92
9.59
4.38
.20
.00
.19
.00
.63
-.02
.41
1.14
.30
.00
NA
NA
.00
.00
NA
.09
.05
.29
.00
.00
.00
.00
.00
.00
NA
.00
NA
.00
NA
.56
.00 50
.00 50
.00 72
.00 84
.00 96
.00 92
.07 74
.00 30
.09 66
.00 3B
.02 87
.00 4
.12 82
.16 91
.10 65
.00 51
.00 NA
.00 NA
.01 32
.00 53
.52 NA
.31 34
.18 30
.24 52
.00 45
.00 34
.00 43
.00 38
.00 40
.00 32
.00 NA
.00 33
.00 NA
.00 50
NA NA
.11 86
.00
.00
1.25
.00
.51
.72
.15
.00
.14
.42
.36
3.46
.57
.62
.03
.00
NA
NA
.00
.00
NA
.00
.00
.03
.00
.00
.00
.00
.00
.00
NA
.00
NA
.00
NA
.31
.00 50
.00 49
.00 83
.00 45
.00 81
.00 79
.OB 64
.01 28
.11 54
.00 91
.00 84
.00 85
.12 B9
.15 90
.18 37
.00 48
.00 NA
.00 NA
.10 27
.00 50
.71 NA
.48 18
.27 17
.25 25
.00 39
.00 37
.00 39
.00 43
.00 34
.00 ,32
.00 NA
.00 34
.00 NA
.00 49
NA NA
.12 74
PAGE 19
4th Prior Qtr
.00
.52
.59
3.55
.52
1.07
.01
.00
.01
- .11
.00
.00
.00
.23
.21
.00
NA
NA
.00
.00
NA
.05
.04
.20
.00
.00
NA
.00
.00
.00
NA
.00
NA
.00
NA
.22
3
200909
.00 50
.00 98
.00 74
.00 91
.00 B9
.00 77
.04 28
.00 2B
.05 21
.00 5
.02 5
.00 35
.10 2
.13 66
.12 55
.00 46
.00 NA
.00 NA
.08 26
.00 4B
.84 NA
.46 31
.25 29
.28 4B
.00 40
.00 37
.00 NA
.00 41
.00 32
.00 35
.00 NA
.00 35
.00 NA
.00 50
NA NA
.09 66
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
CAPITAL REQUIREMENTS AS CALCULATED BY S&L
05:57 11/02/2010
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr . 2nd Prior Qtr 3rd Prior Qtr
YRMO, Period End., ..
========-==;Oi009
1. TIER 1 (CORE) CAPITAL:
capital
Inv&Adv to Noninelud. (k)
Goodwill' and Oth.Intang.
Disallowed Service Assets
Other
Add:
AceLoss/Gns:see/CF
Q\1alifying Intangble Depsts
MinorityInt.inInelud.Subs.
Other .
Tier 1 (Core) Capital (b)


Adjusted Risk-Based Cap. (c)
2. ADJUSTED TOTAL ASSETS:
Total Assets
Deduct:
NoninelSub.Assets (1)
Goodwill &Oth.Intangibles
Disallwd.Ser.Assts/Other
Other .
Add:
Accum Loss/Gns:See/CF Hedge
Qualfyng Intngible ASsets
Other
Adjusted Total Assets (e)
3. CORE CAPITAL REQUIREMENTS:
Core Cap.Req: (g)=(e)*(j)
4. RISK-BASED CAPITAL REQUIREMENT:
TOTAL UNWEIGHTED ASSETS
Total R-W Assets
Excess ALLL
Total R-W Assets - Ex. ALLL
R-B Cap Req before (1)or(2)
(2) Low level' Recourse Ded.
RiSk-based Capital Req.
140,031
o
o
o
o

o
o
143,845
18,143
o
45,282
116,706
2,069,723
o
o
o
o
3,814
o
o
2,073,537
165,883
2,306,583
1,462,716
21,791
1,440,925
172,911
o
172,911
===-=====-=-=-=--
Groul? 5
S&L Med1an Pet
5. FIRREA CAPITAL COMPLIANCE:
Core Capital ll?!
6.94 9.60 6
Core Cap.Req:
8.00 4.00 98
Core Cap. Surplus: b -
-1.06 5.61 2
Core cap.surp($OOO):!bl- 9
-22,038
Adjusted Risk-Based cap.(e!
8.10 15.27 2
Risk-based Req. lh
12.00 8.00 98
RiskBasedCap. h
-3.90 7.27 1
R-B Cap Surp($OO): e - h)
-56,205
6. ASSET BALANCES:
Adjusted Total Assets (e)
100.18 99.46 89
Total R-W Assets - Ex.ALLL
69.62 65.72 57
Total Unweighted Assets
111.44 102.35 85
7. iroICIA PCA CAPITAL RATIOS: .
15.27 2
Total Risk-Based 8.10
Tier' 1 (Core) Risk-Based 6.84
14.15 3
Tier 1 (Core) Leverage 6.94
9.60 6
201006 201003 200912
($000 at End of Period)
159,781 166,630
o
o
o
o
188,356
o
o
64
o
o
o
8
o
4,263
o
o
o
164,036
18,979
o
47,976
135,039
2,205,348
o
o
8
o
4,263
o
o
2,209,603
176,768
2,458,371
1,518,243
20,500
1,497,743
179,729
o
179,729
5,430
o
o
o
172,060
19,217
o
51,603
139,674
2,588,703
o
0
'0
o
5,430
o
o
2,594,133
103,765
2,767,543
1,537,352
15,406
1,521,946
121,756
o
121,756
4,547
o
o
o
192,839
20,236
o
51,406
161,669
2,502,727
o
o
64
o
7,326
o
o
2,509,989
100,400'
2,734,529
1,618,834
14,078
1,604,756.
128,380
o
128,3BO
-====--===-===-=- -==-=-=======--=-
----====-==---=--
S&L Pet S&L Pet S&L Pet
= __ =__ c=====
-=-=-= ------ --=
=====- =-===- -==
('II of Total Total Adjusted ASsets at End of Period)
7.42 9.47 11 6.63 9.26 5 7.68 9.11 16
8.00 4.00 98 4.00 4.00 52 4.00 4.00 53
-.58 5.47 1 2.63 5.26 5. 3.68 5.11 15
-12,732 68,295 92,439
('II of Total Risk-Weighted Aasets at End of Period)
9.02 14.82 3 9.18 14.48 2 10.07 14.11 2
12 . 00 8.00 98 8.00 8.00 50 8.00 B.OO 50
-2.98 6.82 1 1.18 6.48 2 2.07 6.11 2
-44,690 17,918 33,289
(t of Total Assets at End of Period)
100.19 99.61 88 100.21 99.65 90 100.29 99.69 88
67.91 66.32 56 58.79 65.96 31 64.12 67.40 35
111.47 102.66 87 106.91 102.80 77 109.26 102.76 82
9.02 14.82 3 .9.18 14.48 2 10.07 14.11 2
7.75 13.77 3 7.91 13.36 2 8.81 12.88 3
7.42 9.47 11 6.63 9:.26 5 7.68 9.11 16
1276
PAGE 20
4th Prior Qtr
200909
226,682
o
o
453
o
1,999
o
o
o
228,228
23,233
o
45,673
205,788
2,599,251
o
o
453
o
2,963
o
o
2,601,761
104,070
3,080,462
1,858,677
o
1,858,677
148,694
o
148,694
-=-=====-===-===-
S&L Pet
8.77 9.10 43
4.00 4.00 53
4.77 5.10 43
124,158
.11.07 13.51 8
8.00 8.00 50
3.07 5.51 8
57,094
100.10 99.60 B4
71.51 68.97 57
118.51 102.90 94
11.07 13 .. 51 8
9.82 12.31 10
8.77 9.10 43
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION OF RISK-WEIGHTED ASSET CATEGORIES
($000 Balance at End of Period)
05:57 11/02/2010
DOCKET:
DATA AS OF:
CUrrent Quarter
YRMO, period End .... 201009
1. ASSETS IN 0% R-W CATEGORY,
Cash
UNWEIGHTED:
1,432
286,714
52
169,314
457,512
U.S.Gov.Securities
Notes&Obligations FDIC
Other
Subtotal, 0% R-W Categ.
2. ASSETS IN 20% R-W CATEGORY,
High Quality MBS
Claims on FHLBS
UNWEIGHTED:
39,659
9,664
o
109
60,446
109,878
State/Local Gen.Oblig.
Claims on DomestDepInst
Other
Subtotal,20% R-W Categ.
3. ASSETS IN 50% R-W CATEGORY,
Qualif.1-family ResMtg

UNWEIGHTED:
277,473
2,957
316,476
o
o
596,906
State/Local Rev. Bonds
Other
Subtotal,SO% R-W Categ.
4. ASSETS IN 100% R-W CATEGORY, UNWEIGHTED:
Notes/Obligtns FDIC RW 10,262
All Other Assets 1,132,025
Subtotal,100% R-W Categ. 1,142,287
5. ALL R-W CATEGORIES, UNWEIGHTED:
Subtotal (1+ ... +4) 2,306,583
Other Adj. (by diff. l -236,860
Total Consol.Assets 2,069,723
LowLevel Recourse Ded. 0
CUrrent Quarter
=================
Groul? 5
S&L Med1an Pct
====== ====== ===
YRMO, Period End .... 201009
1. ASSETS IN 0% R-W CATEGORY, UNWEIGHTED:
Cash .07 .38 18
U.S.Gov.Securities 13.85 1.15 93
Notes&Ob1igations FDIC .00 .00 88
Other 8.18 1.30 84
Subtotal, 0% R-W Categ. 22.10 6.52 93
2. ASSETS IN 20% R-W CATEGORY, UNWEIGHTED:
High Quality MBS 1.92 7.43 30
Claims on FHLBs .47 1.20 15
State/Local Gen.Oblig. .00 .01 23
Claims on DomestDeplnst .01 .41 10
Other 2.92 2.41 60
Subtotal,20% R-W Categ. 5.31 16.89 13
3. ASSETS IN 50% R-W CATEGORY, UNWEIGHTED:
Qua1if.1-family ResMtg 13 .41 20.97 30
Qua1if.MultFam ResMt
I
.14 .00 60
Other MBS BackBy Qua Mtg 15.29 .00 98
State/Local Rev. Bonds .00 .00 34
Other .00 .00 35
Subtotal,50% R-W Categ. 28.84 25.13 63
4. ASSETS IN 100% R-W CATEGORY, UNWEIGHTED:
Notes/Obligtns FDIC RW .50 .00 72
All Other Assets 54.69 46.08 68
Subtotal, loot R-W Categ. 55.19 48.49 67
5. ALL R-W CATEGORIES, UNWEIGHTED:
United Western Bank
06679 TFR STATUS: IN PROCESS
11/02/2010 CMR STATUS: NONRESPONDER
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
================= ================= =================
201006 201003 200912
($000 at End of Period)
1,481
1,342
266,159
183,094
62
59
260,466
639,449
528,168
823,944
45,352
50,530
9,597
9,485
0
0
129
24,380
56,797
51,615
111,875
136,010
294,009
310,400
3,062
2,719
344,991
278,152
0
0
2,859
3,607
644,921
594,878
10,832
16,432
1,162,575
1,196,279
1,173,407
1,212,711
2,458,371
2,767,543
-253,023
-178,840
2,205,348
2,588,703
0
0
1st Prior Qtr 2nd Prior Qtr
=================
============.=====
Groul? 5
Pct
Graul? 5
S&L Med1an S&L Med1an Pct
====;;:= ==:::===
201006 201003
(% of Total Assets)
.07 .33 23 .05 .35 20
12.07 1.06 96 7.07
.89 93
.00 .00 92 .00 .00 95
11.81 1.37 91 24.70 1.58 96
23.95 5.60 95 31. 83 5.66 96
2.06 7.26 31 1.95 6.55 30
.44 1.21 13 .37 1.27 10
.00 .00 25 .00 .00 26
.01 .64 8 .94 .54 63
2.58 2.28 53 1..99 2.17 48
5.07 16.72 11 5.25 17.79 16
13.33 21. 60 28 11. 99 21. 88 25
.14 .00 60 .11 .00 61
15.64 .00 98 10.74 .00 97
.00 .00 35 .00 .00 35
.13 .00 81 .14 .00 82
29.24 27.07 56 22.98 25.90 43
.49 .00 70 .63 .00 75
52.72 46.95 63 46.21 48.62 47
53.21 49.76 63 46.85 49.40 46
3rd
1,525
122,138
54
537,637
661,354
66,302
9,440
o
46,850
37.737
160,329
313,696
2,731
325,680
o
10,049
652,156
20,470
1,240,220
1,260,690
2,734,529
-231,802
2,502,727
o
Prior Qtr
=================
S&L
Pct
200912
.06 .36 21
4.88 .58 87
.00 .00 88
21.48 .65 96
26.43 3.63 96
2.65 6.37 33
.38 1.40 10
.00 .00 27
1.87 .62 78
1.51 1.61 46
6.41 16.13 16
12.53 22.09 28
.11 .00 60
13.01 .00 98
.00 .00 35
.40 .00 87
26.06 25.60 52
.82 .00 78
49.55 49.06 51
50.37 49.62 52
PAGE 21
4th Prior Qtr
=================
4th
200909
1,386
122,245
o
523,331
646,962
73,748
12,326
o
43,804
35,215
165,093
323,610
o
561,888
o
o
885,498
137,511
1,245,398
1,382,909
3,080,462
-481,211
2,599,251
o
Prior Qtr
=================
Graul? 5
S&L Med1an Pct
200909
.05 .31 20
4.70 .48 88
.00 .00 48
20.13 .41 97
24.89 2.82 97
2.84 7.53 33
.47 1.23 14
.00 .00 27
1.69 .62 70
1. 35 1.61 43
6.35 16.33 14
12.45 22.34 26
.00 .00 27
21.62 .00 98
.00 .00 35
.00 .00 37
34.07 25.86 65
5.29 .00 96
47.91 47.91 50
53.20 49.53 56
Subtotal (1+ ... +4) 111.44 102.35
Other Adj. (by dUf.l -11.44 -2.35
Total Canso1.Assets 100.00 100.00
LowLevel Recourse Ded. .00 .00
85 111.47 102.66
14 -11.47 -2.66
50 100.00 100.00
46 .00 .00
87 106.91 102.80
12 -6.91 -2.80
50 100.00 100.00
45 .00 .00
77109.26 102.76
22 -9.26 -2.76
50 100.00 100.00
45 .00 .00
82 118.51 102.90
17 -18.51 -2.90
50 100.00 100.00
45 .00 .00
94
5
SO
46
1277
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
CHANGES IN FINANCIAL CONDITION ($000)
DOCKET:
DATA AS OF:
current Quarter
united Western Bank
06679 TFR STATUS: IN PROCESS
11/02/2010 CMR STATUS: NONRESPONDER
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
--=-=.-.. _-=_._.-
= ___ =._=._ .... =_= == a==a_._._._._ =====_==_===_=_:=
Months in Period
YRMO " Period End ..
CHANGES IN ASSETS:
1.1
2.2
2.6
3.1
5.1
5.5
5.8
CASH,DEP.&INV.SECUR.
MORTGAGE BACKED SECOR.
MORTGAGE LOANS:
Const.LnS,l-4 Unit Res
Const.LnS,5+ unit Res
Const.LnSiNonresid.
SUbtota , Const.
Perm.Mtgs,l-4 unit ReS
Perm.Mtgs,5+ Unit Res
Perm.Mtgs,Land
Perm. Mtgs, NonResid.
Subtotal,Perm.Mtgs
Other (by diff.)
Subtotal, Mtg Lns
NONMORTGAGE LOANS:

Subtotal Repq.Ast.+REI
EqtyInvNotSbjctFASB115
Office Premises & Eq.
Other Assets:
Goodwill
Asts
TOTAL ASSETS
3
201009
-92,454
4,293
-8,585
-4,848
-25,335
-38,768
-15,496
-1,562
-12,823
10,648
-19,233
157
-57,844
786
10,390
o
10,390
64
-232
-92
-277
-259
-135,625
3 3 3
201006 201003 200912
-404,253
66,218
-9,218
-4,830
-13,778
-27,826
-15,227
6,098
-2,317
2,240
'-9,206
-4,482
-41,514
4,901
-7,441
o
-7,441
63
-283
-53
-480
-513
-383,355
77,861
36,508
-15,057
-10,363
-39,250
-64,670
-2,886
2,147
-2,605
40,348
37,004
164
-27,502
-5,434
5,366
o
5,366
62
-206
-98
-575
-6
85,976
,15,536
-39,969
-14,556
-2,9,01
-8,954
-26,411
-10,500
-4,175
-6,235
-11,297
-32,207
-5,755
-64,373
-3,672
3,149
o
3,149
-2,923
-218
-84
-447
-3,523
-96,5,24
CHANGES IN LIABILITIES + CAPITAL:
7.1 LIABILITIES:
DEPOSITS AND ESCROWS:
NetNeWDepositsRecvd
IntcreditedDeposits
Subtotal "
Other Changes
, Net Change
DepActs Belw InsLmts
DepActs Abve InsLmts
BORROWINGS:

Reverse REPOs
Subord.Debentures
MtgColl.Sec.Issued
All other Brwg .
7.5. Other Liabilities
Total Liabilities
NonCotrol IntConsldtd subsr
8.0 EQUITY
perpetual Pref.Stk
'CUmul. perp. Prefstk
NonCUm.Perp. Prefstk
CommonStk &Paid-InCap.
unrlGain/LossAvai14Sal
Gains/LossCashFlwHedge
Other
Retained Earnings
Other components
Subtotal
Total Equity capital
TOTAL LIABILITIES & EQUI'TY
CHANGES TO EQUITY CAPITAL:
Net Income
Less:Cash Div on Pref
Less:Cash Div on ComStk
Subtotal
stock Issued
Stock Retired
New Basis Acctg Adi
Oth Adjustments(oy diff)
Net Change in Equity Cap
NA
3,154
NA
NA
-116,943
-46,618
-71,654
2,907
570
6,216
o
o
-3,879
-1,360
-115,875
o
o
o
o
155
449
o
,0
-20,354
o
-19,750
-19,750
-135,625
-20,354
o
o
-20,354
o
o
o
604
-19,750
NA
3,037
NA
NA
-.383,930
-190,241.
-191,112
4,949
561
-398
o
o
4,786
62
-376,506
o
o
o
o
3,129
1,167
o
o
-11,145
o
-6,849
-6,849
-383,355
-11,145
o
o
,-l1,14g
o
o
4,296
-6,849
1278
NA
3,487
NA
NA
111,914
120,709
-7,281
-4,379
-11,984
1,328
o
o
6,277
-1,144
107,702
o
o
o
o
172
-883
o
o
-21,015
o
-21,726
-21,726
85,976
-21,016
0'
o
-21,016
o
o
o
-710
-21,726
NA
3,646
. NA
NA
-23,112
299,526
-321,508
-35,614
-36,029
122
o
o
293
-356
-58,198
o
o
o
o
178
-2,548
o
o
-35,956
o
-38,326
-38,326
-96,524
-35,956
o
o
-35,956
o
o
o
-2,370
-38,326
PAGE 22
4th Prior Qtr
3
200909
278,150
-32,439
-8,650
-7,289
-10,236
-26,175
-13,473
-6,632
-3,ll9
22,083
-1,141
-7,117
-34,433
-6,263
9,388
o
9,388
77
-508
115
-396
-2,577
211,114
NA
3,902
NA
NA
153,223
92,308
62,213
-45
-29
-16
o
o
o
1,276
155,631
2
o
o
o
62,308
-393
o
o
-6,434
o
55,481
55,483
211,114
-6,434
o
o
-6,434
o
o
o
61,917
55,481
96
05:57 11/02/2010
Months in Period
YRMO, Period End ....
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
CHANGES IN FINANCIAL CONDITION (% TA at start of period)
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
================= =================
S&L Pet S&L pct S&L pct
3
201009
3
201006
3
201003
=================
Graul? 5
S&L Pet
3
200912
PAGE 23
4th Prior Qtr
=================
S&L Pct
3
200909
CHANGES IN ASSETS: (% of Total Assets at Start of Period, not Annualized)
1.1
2.2
2.6
3.1
4.0
4.5
5.1
5.5
5.8
CASH,DEP.&INV.SECUR.
MORTGAGE BACKED SECUR.
MORTGAGE LOANS:
Const.Lns,l-4 Unit Res
Const.Lns,S+ Unit Res
Conet.Lns,Nonresid.
Subtotal, Canst.
Perm.Mtgs,l-4 Unit Res
Perm.Mtgs,5+ Unit Res
perm.Mtgs,Land
perm.Mtgs,NonResid.
Subtotal,Perm.Mtgs
Other (by diff.)
Subtotal, Mtg Lns
NONMORTGAGE LOANS:
Repossessed Assets
Real Estate Invest.
Subtotal ReEo.Ast.+REI

Other Assets:
Goodwill
Asts
-4.19
.19
-.39
-.22
-1.15
-1.76
-.70
-.07
-.58
.48
-.87
.01
-2.62
.04
.47
.00
.47
.00
-.01
.00
- .01
-.01
TOTAL ASSETS -6.15
CHANGES IN LIABILITIES + CAPITAL:
7.0
7.1
7.2
7.5
8.0
LIABILITIES:
DEPOSITS AND ESCROWS:
NetNewDepositsRecvd
IntCreditedDeposits
Subtotal
Other Changes
Net Change
Dep.Aceta <$100K+Esc
Dep.Aeeta w/Bal>$100
BORROWINGS:
Net Change
FHLBank Advances
Reverse REPOs
Subord.Debentures
MtgColl. Sec. Issued
All Other Brwg
Other Liabilities
Total Liabilities
NA
.14
NA
NA
-5.30
-2.11
-3.25
.13
.03
.28
.00
.00
-.18
-.06
-5.25
EQUITY CAPITAL:
Perpetual Pref.Stk .00
CUmul. Perp. Prefstk .00
NonCUm.Perp. Prefstk .00
CommonStk &Paid-InCap. .01
UnrlGain/LossAvail4Sal .02
GainS/LossCashFlwHedge .00
Other .00
Retained Earnings -.92
Other components _ : gg
.00
Total Equity Capital -19750.00
TOTAL LIABILITIES & EQUITY -6.15
CHANGES TO EQUITY CAPITAL:
Net Income
Less:Cash Div on Pref
Less:Cash Div on ComStk
Subtotal
Stock Issued
Stock Retired
New Basie Acctg Adi
Oth Changes (by aUf)
Net Change Equity Cap
-12.74
.00
.00
-12.74
.00
.00
.00
.38
-12.36
.02
-.02
.00
.00
.00
-.03
-.07
.00
-.01
.00
.00
-.01
.00
.00
.00
.00
.00
.00
.00
.00
.00
-.02
.58
NA
.20
NA
NA
.62
-.10
.82
-.06
-.01
.00
.00
.00
.00
.05
.36
63
5
9
2
1
18
19
9
84
25
65
10
65
94
51
94
81
40
28
10
53
-15.62
2.56
-.36
-.19
-.53
-1.07
-.59
.24
-.09
.09
-.36
- .17
-1. 60
.19
- .29
.00
-.29
.00
-.01
.00
-.02
-.02
5 -14.81
NA NA
23 .12
NA NA
NA NA
3 -14.83
14 -7.35
3 -7.38
76 .19
81 .02
89 -.02
49 .00
50 .00
3 .18
23 .00
5 -14.54
.24
-.01
-.02
.00
.00
-.08
-.02
.00
-.01
.00
.00
-.01
-.06
.00
.00
.00
.00
.00
.00
.00
.00
-.01
.83
NA
.22
NA
NA
.86
.11
.42
-.03
-.02
.00
.00
.00
.00
.03
.72
2
85
12
8
5
1
20
78
32
65
30
11
13
65
3
54
3
78
32
41
8
48
2
NA
17
NA
NA
2
2
1
83
85
15
49
50
96
37
2
.00 50
.00 50
.00 50
.00 76
.00 69
.00 51
.00 51
.10 5
.00 43
.13 3
.00 47
.00 .00 50
.00 .00 50
.00 .00 50
.12 .00 82
.05 .05 50
.00 .00 52
.00 .00 47
-.43 .07 11
.00 .00 46
-.26 .20 15
.00 .00 48
3.11
1.46
-.60
- .41
-1. 57
-2.58
-.12
.09
-.10
1.61
1.48
.01
-1.10
-.22
.21
.00
.21
.00
- .01
.00
-.02
.00
3.44
NA
.14
NA
NA
4.47
4.82
-.29
-.17
-.48
.05
.00
.00
.25
-.05
4.30
1.57
-.04
-.03
.00
.00
-.04
-.18
.00
.00
.00
-.03
-.02
-.22
-.01
.00
.00
.00
.00
-.01
.00
.00
-.01
75
78
3
3
2
2
55
71
26
93
86
75
28
31
83
53
83
82
47
28
3
51
.60
-1.54
-.56
- .11
-.34
-1.02
-.40
- .16
-.24
-.43
-1.24
-.22
-2.48
- .14
.12
.00
.12
- .11
-.01
.00
-.02
- .14
.98 72 -3.71
NA
.23
NA
NA
1.20
.73
.37
- .11
-.03
.00
.00
.00
.00
NA NA
18 .14
NA NA
NA NA
80 -.89
83 1l.52
23 -12.37
46 -1.37
36 -1.39
81 .00
49 .00
50 .00
96 .01
.00 32
.81 SO
-.01
-2.24
.00 .00 49 .00
.00 .00 50 .00
.00 .00 49 .00
.01 .00 67 .01
-.04 .01 7 -.10
.00 .00 51 .00
.00 .00 47 .00
-.84 .10 2 -1.38
.00 .00 42 .00
-.87 .15 2 -1.47
.00 .00 48 .00
.25
-.08
-.04
.00
.00
.00
-.15
.00
.00
.00
.00
-.02
-.09
.00
.01
.00
.01
.00
.00
.00
.00
.43
56
12
8
11
14
10
38
7
19
S
19
12
8
34
79
55
79
6
47
32
5
10
.50 11
NA
.28
NA
NA
1.06
.35
.53
- .18
.00
.00
.00
.00
.00
-.05
.36
NA
16
NA
NA
23
94
2
2S
19
87
49
50
91
64
IS
.00 49
.00 50
.00 49
.00 61
-.01 12
.00 47
.00 44
.08 1
.00 40
.11 1
.00 4S
2034.00 2 -6849.002722.00 11 -21726.002743.00
2 -38326.00
.58
1.16
.00
.00
.98
.00
.00
.00
.08
1.16
5 -14.81 .83
(%
5
48
42
5
48
49
50
68
2
of Beginning
-6.69 1.03
.00 .00
.00 .00
-6.69 .71
.00 .00
.00 .00
.00 .00
2.58 .52
-4.11 1.76
2 3.44 .98 72 -3.71
Equity Capital, not Annualized)
6 - 1.16 1.03 3 -15.86
48 .00 .00 49 .00
41 .00 .00 41 .00
7 -11.16 .82 3 -15.86
48 .00 .00 48 .00
48 .00 .00 49 .00
50 .00 .00 50 .00
75 -.38 .36 3 -1.05
10 -11.53 1.21 3 -16.91
1279
.50 11
.95
.00
.00
.68
.00
.00
.00
.02
1.02
1
46
40
1
48
49
50
11
1
11.65
-1.36
-.36
-.31
-.43
-1.10
-.56
-.28
-.13
.92
-.05
-.30
-1.44
-.26
.39
.00
.39
.00
-.02
.00
-.02
- .11
8.84
NA
.16
NA
NA
.02
-.03
-.01
.00
.00
-.02
-.24
.00
-.01
.01
-.04
-.02
- .11
.00
.00
.00
.00
.00
-.01
.00
.00
-.02
97
15
11
3
11
5
39
6
24
84
4B
8
30
30
93
55
93
89
23
94
6
28
.41 92
NA NA
.29 17
NA NA
NA NA
.63 92 6.42
3.87
2.61
12.91 12
-12.72 98
.00
.00
.00
.00
.00
.00
.05
6.52
.00
.00
.00
2.61
-.02
.00
.00
-.27
.00
2.32
.00
2136.00
8.84
-3.76
.00
.00
-3.76
.00
.00
.00
36.17
32.41
- .05 60
-.02 56
.00 17
.00 48
.00 50
.00 54
.01
.01
64
91
.00 50
.00 50
.00 50
.00 96
.05 8
.00 50
.00 52
.06 17
.00 41
.22 96
.00 96
2 55483.00
.41 92
.89
.00
.00
.62
.00
.00
.00
.99
1.91
14
48
39
15
48
49
50
96
96
3535.00
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
S-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
LENDING, INVESTMENT, FORECLOSURE, AND RESTRUCTURING ACTIVITY ($000)
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
================= ================= ================= =================
Months in Period
YRMO, Period End ....
3 3 3 3
201009 201006 201003 200912
1.1 CASH, DEPOSITS, &. INVESTMENT SECURITIES:
Net BS ChngInCsh,Dep,&'InvSc -92,454
2.2 MORTGAGE BACKED SECURITIES:
Pass-Through:
Purchases
Sales
.
Other Mortgage Backed Secur1t1es:
Purchases
Sales
Other Balance Changes
Net Subtotal (Other MBS)
Net Subtotal (Total MBS)
Net Other Chngs (by diff.)
Net BS Chng in MtgBckdSec
2.6 MORTGAGE LOANS:
Constr. Lns. Closed:1-4 Res
Constr. Lns. Closed:5+ Res.
Constr. Lns. Closed:Nonres.
Perm. Mtgs. Closed:1-4 Res.
Perm. Mtgs. Closed:5+ Res.
Perm. Mtgs. Closed:Nonres.
Perm. Mtgs. Closed:Land
Total New Originations
. Refinancing Loans(b)
Mtg Purchases: 1-4 Dwelling
Mtg Purchases: 5+ Dwelling
Mtg Purchases: Nonres.
Total Mtg Purchases
Noncash Trans,exe1.Frcl+NCO
TotalDebits:Orig+Prch+NnCsh
Total Mtgs Sold
Mtgs Sold:1-4 Dwell
Mtgs Sold:5+ Dwell
Mtgs Sold:Nonres
Cash Repayment of Principal
Foreclosures (Frcl)
Net Charge-offs (NCO)
Additions to Allowances
Total Credits:Sales+Misc.
Net Subtotal
Net Other Chngs (by diff.)
Net BS Chng in Mtge Loans
3.1 NONMORTGAGE LOANS:
Commer.Lns Closed or Pureh.
Consmr Lns Closed or Pureh.
Net Subtotal
Net Other Chngs (by diff.)
Net BS Chng in NonMtge Lns
4.0 REPOSSESSED ASSETS:
Foreclosures
ChgOfrs on Repos'd (VA60)
Chg in VA (Chg in SC440)
Oth:BS Chg+COs+ChgAll.
Net BS Chng Repo'd Assets
5.8 OTHER ASSET CHANGES:
Net BS Chng in Total Assets
DEBT RESTRUCTURING ACTIVITY:
TDR During period
Amt incld SedSC in Cmplince
MORTGAGE LOAN 'FORECLOSURE ACTIVITY:
Construction
Permanent Loans:
1-4 Family .
5+ Dwelling Units
Nonresidential
Land
Total
29,825

-12,057
17,768

o
-13,437
-13,437
4,331
-38
4,293
1,378
615
4,763
6,551
o
19,547
516
33,370
o
1,737
o
o
1,737
NA
NA
14,817
157
o
14,660
NA
12,822
14,247
14,032
55,918
NA.
NA
-57,844
24,273
342
24,615
-23,829
786
12,822
o
o
-2,432
10,390
-796
-135,625
31,048
39,993
B37
1,989

2,480
7,516
12,822
-404,253
89,341
o
-10,913
78,428
o
o
-12,256
-12,256
66,172
46
66,218
3,714
156
2,505
4,874
o
35,881
3,445
50,575
o
1,896
o
169
2,065
NA
NA
11,990
o
o
11,990
NA
3,458
816
4,86B
21,132
NA
NA
-41,514
25,249
882
26,131
-21,230
4,901
3,458
o
o
-10,899
-7,441
-1,266
-383,355
3,458
2B,373
1,012
1,316
o
o
1,130
3,458
1280
77,861
64,748
o
-11,650
53,098
o
o
-16,640
-16,640
36,458
50
36,508
5,409
60
2,977
3,088
o
27,958
349
39,841
o
4,444

a
4,444
NA
NA
7,089
o

7,089
NA
8,338
6,967
6,355
28,749
NA
NA
-27,502
18,671
490
19,161
-24,595
-5,434
B,338
o
o
-2,972
5,366
-823
85,976
11,B41
38,793
2,134
1,559
o
4,645
o
8,338
15,536
5,595
o
-23,289
-17,694
o

-22,188
-22,188
-39,882
-87
-39,969
10,319
2,251
10,861
3,954
738
13,744
1,041
42,908
o
2,769
o
o
2,769
NA
NA
5,942

o
5,942
NA
6,726
6,834
12,564
32,066
NA
NA
-64,373
26,587
3,295
29,B82
-33,554
-3,672
6,726
o
o
-3,577
3,149
-7,195
-96,524
6,725
30,040
1,747
1,900
1,360
o
1,719
6,726
PAGE 24
4th Prior Qtr
=================
3
200909
278,150


-8,685
-8,685


-23,399
-23,399
-32,084
-355
-32,439
15,663
3,342
13,908
8,441
395
43,031
4,469
89,249
o
2,263
o
o
2,263
NA
NA
14,430
o
o
14,430
NA
11,409
1,588
8,483
35,910
NA
NA
-34,433
18,148
347
18,495
-24,758
-6,263
11,409
o
o
-2,021
9,388
-3,289
211,114
11,409
26,773
6,897
3,310
o
1,202
o
11,409
05:57 11/02/2010
Months in Period
YRMO, Period End ....
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
LENDING, INVESTMENT, FORECLOSURE, AND RESTRUCTURING ACTIVITY (%)
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
=================
S&L Pet S&L Pet S&L Pet
3
201009
3
201006
===:::== ===
3
201003
=================
Groul? 5
S!<L MedLan Pet
3
200912
PAGE 25
4th Prior Qtr
=================
Groul? 5
S!<L MedLan Pet
3
200909
1.1 CASH, DEPOSITS, & INVESTMENT SECURITIES: (% of Total Assets at Start of Period, not Annualizedr
Net BS ChngInCsh,Dep,!<InvSc -4.19 .02 5 -15.62 .24 2 3.11 1.57 75 .60 .25 56 11.65
2.2 MORTGAGE BACKED SECURITIES:
Pass-Through:
Purchases 1.35
Sales .00

Other Mortgage Backed Securities:
Purchases .00
Sales .00
Other Balance Changes -.61
Net Subtotal (Other MaS) -.61
Net Subtotal (Total MaS) .20
Net Other Chngs (by diff.) .00
Net BS Chng in MtgBckdSec .19
2.6 MORTGAGE LOANS:
Constr. Lns. Closed:1-4 Res
Constr. Lns. Closed:5+ Res.
Constr. Lns. Closed:Nonres.
Perm. Mtgs. Closed:1-4 Res.
Perm. Mtgs. Closed:5+ Res.
Perm. Mtgs. Closed:Nonres.
Perm. Mtgs. Closed:Land
Total New Originations
Refinancing Loans (b)
Mtg Purchases: 1-4 Dwelling
Mtg Purchases: 5+ Dwelling
Mtg Purchases: Nonres.
Total Mtg Purchases
Noncash Trans,excl.Frcl+NCO
TotalDebits:Orig+Prch+NnCsh
Total Mtgs Sold
Mtgs Sold:1-4 Dwell
Mtgs Sold:5+ Dwell

Foreclosures (Frel)
Net Charge-offs (NCO)
Additions to Allowances
Total Credits:Sales+Misc.
M:f (by diff.)
Net BS Chng in Mtge Loans
3.1 NONMORTGAGE LOANS:
Commer.Lns Closed or Purch.
Consmr Lns Closed or Purch.
(by diff.)
Net BS Chng in NonMtge Lns
4.0 REPOSSESSED ASSETS:
Repos'd (VA60)
Chg in VA (Chg in SC440)
Oth:BS Chg+COs+ChgAll.
Net BS Chng Repo'd Assets
5.8 OTHER ASSET CHANGES:
.06
.03
.22
.30
.00
.89
.02
1.51
.00
.08
.00
.00
.08
NA
NA
.67
.01
.00
.66
NA
.58
.65
.64
2.54
NA
NA
-2.62
1.10
.02
1.12
-1. 08
.04
.58
.00
.00
- .11
.47
-.04
Net BS Chng in Total Assets -6.15
DEBT RESTRUCTURING ACTIVITY:
TDR During . 1.41
Amt ineld SedSC Ln cmplLnee 1.81
MORTGAGE LOAN FORECLOSURE
Construction
Permanent Loans:
1-4 Family

Land
Total
ACTIVITY:
.04
.09
.00
.11
.34
.58
.00
.00
-.51
-.04
.00
.00
- .12
.00
-.02
.00
-.02
.07
.00
.00
1.98
.00
.25
.00
3.46
1.40
.00
.00
.00
.00
NA
NA
.67
.61
.00
.00
NA
.04
.04
.05
1.30
NA
NA
.00
.39
.08
1.19
-1.46
.00
.04
.00
.00
-.06
.00
-.06
.58
.16
.62
.00
.02
.00
.00
.00
.04
72
37
46
82
30
40
25
13
63
44
63
48
85
88
19
24
86
71
23
13
80
46
44
76
NA
NA
50
28
45
97
NA
89
93
90
63
NA
NA
10
60
25
47
53
65
89
42
50
36
94
53
3.45
.00
- .42
3.03
.00
.00
- .47
- .47
2.56
.00
2.56
.14
.01
.10
.19
.00
1.39
.13
1.95
.00
.07
.00
.01
.08
NA
NA
.46
.00
.00
.46
NA
.13
.03
.19
.82
NA
NA
-1.60
.98
.03
1.01
-.82
.19
.13
.00
.00
- .42
-.29
-.05
5 -14.81
92 .13
81 1.10
88
72
44
86
97
89
.04
.05
.00
.00
.04
.13
.08
.00
-.30
-.01
.00
.00
-.10
.00
-.01
.00
-.01
.07
.00
.00
1.83
.02
.27
.00
3.11
.86
.00
.00
.00
.00
NA
NA
.56
.50
.00
.00
NA
.07
.03
.05
1.14
NA
NA
-.06
.48
.07
1.24
-1.12
.00
.07
.00
.00
-.05
.00
-.01
.83
.19
.60
.00
.03
.00
.00
.00
.07
91
40
42
95
31
40
26
17
83
65
85
62
70
78
17
21
93
82
28
15
76
46
93
72
NA
NA
45
16
46
93
NA
60
53
75
43
NA
NA
13
61
38
48
53
65
60
42
48
12
3
47
2
37
66
83
60
42
33
80
60
1281
2.59
.00
- .47
2.12
.00
.00
-.66
-.66
1.46
.00
1.46
.22
.00
.12
.12
.00
1.12
.01
1.59
.00
.18
.00
.00
.18
NA
NA
.28
.00
.00
.28
NA
.33
.28
.25
1.15
NA
NA
-1.10
.75
.02
.77
-.98
-.22
.33
.00
.00
- .12
.21
-.03
3.44
.47
1.55
.09
.06
.00
.19
.00
.33
.00
.00
-.36
-.15
.00
.00
-.09
.00
-.04
.00
-.04
.07
.00
.00
1.55
.00
.18
.00
2.55
.85
.00
.00
.00
.00
NA
NA
.50
.39
.00
.00
NA
.06
.02
.07
1.03
NA
NA
-.22
.35
.07
1.12
-1. 05
-.01
.06
.00
.00
-.04
.00
-.01
87
36
41
93
31
45
21
10
78
70
78
75
67
78
12
23
90
58
28
15
85
46
43
78
NA
NA
42
15
48
91
NA
83
86
81
53
NA
NA
28
62
31
46
53
31
83
41
SO
25
83
41
.98 72
.27 68
.61 73
.00
.02
.00
.00
.00
.06
91
66
43
95
34
83
.22
.00
-.90
-.68
.00
.00
-.85
-.85
-1. 53
.00
-1.54
.40
.09
.42
.15
.03
.53
.04
1.65
.00
.11
.00
.00
.11
NA
NA
.23
.00
.00
.23
NA
.26
.26
.48
1.23
NA
NA
-2.48
1.02
.13
1.15
-1.29
- .14
.26
.00
.00
- .14
.12
-.28
-3.71
.26
1.16
.07
.07
.05
.00
.07
.26
.00
.00
-.33
-.19
.00
.00
-.06
.00
-.10
.00
-.08
.08
.00
.02
1.99
.00
.27
.00
3.31
.90
.00
.00
.00
.00
NA
NA
.60
.56
.00
.00
NA
.08
.03
.06
1.13
NA
NA
-.09
.61
.09
1.18
-1.27
.00
.08
.00
.00
-.04
.01
.42
64
37
29
30
32
42
15
11
12
43
12
75
87
91
7
61
60
70
20
16
80
44
44
75
NA
NA
39
14
48
94
NA
83
87
92
53
NA
NA
8
60
55
47
48
34
83
41
SO
24
79
6
.50 11
.21 52
.45 71
.00
.02
.00
.00
.00
.08
91
71
96
32
89
83
.00
.00
-.36
-.36
.00
.00
-.98
-.98
-1.34
-.01
-1. 36
.66
.14
.58
.35
.02
1.80
.19
3.74
.00
.09
.00
.00
.09
NA
NA
.60
.00
.00
.60
NA
.48
.07
.36
1.50
NA
NA
-1.44
.76
.01
.77
-1. 04
- .26
.48
.00
.00
-.08
.39
- .14
8.84
.48
1.12
.29
.14
.00
.05
.00
.48
.02 97
.00 28
.00 37
-.37 52
-.10 32
.00 29
.00 43
- . 08 14
.00 7
- .03 15
.00 11
-.03 15
.07
.00
.02
2.22
.01
.33
.00
3.91
.66
.00
.00
.00
.00
NA
NA
.82
.71
.00
.00
NA
.04
.02
.04
1.11
NA
NA
-.11
.36
.09
1.16
-1.09
.00
.04
.00
.00
-.04
.00
-.02
85
88
91
12
57
92
85
47
16
79
43
43
75
NA
NA
47
14
48
96
NA
88
65
88
53
NA
NA
30
60
25
43
53
30
88
42
51
32
93
30
.41 92
.21 69
.39 74
.00
.02
.00
.00
.00
.04
98
87
43
89
34
88
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
QUESTIONS, BUSINESS STRATEGIES, AND NEW DEPOSIT YIELDS
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
PAGE 26
11/02/2010 CMR STATUS: NONRESPONDER
1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr
DATA AS OF:
Current Quarter 4th Prior Qtr
================3
================= ================= ================= =================
Months in Period
YRMO, Period End ....
201009
3
201006
3
201003
3
200912
3
200909
SUPPLEMENTARY QUARTERLY QUESTIONS:
(O=No, l=Yes in One Qtr. of Period, 2=Yes in Two Qtrs. of Period, Etc.)
Did reporting association acquire any through merger?NA NA
NA NA
bulk deposit were liab.includedNk
n
reporting association's balance
NA NA
Has there been a change in control of
NA NA NA NA
Has there been a merger accounted for purchase
NA NA NA
(O=Not restated, Other=Restatement Date Formated as MMDDYY)
If reporting association's bal.sheet is restated for the first time using push-down accounting, enter the date of
the reorgan1zation (MMDDYY) NA NA NA NA NA
Reporting association's fiscal year-end 12 12
Code representing nature of work to be performed by independent public accountants
for the current fiscal 'fear ,,10 . 10 10
Did the reporting assoc1ation change 1tS 1ndependent public accountant during the
quarter? 0 O' 0
12
10
o
Did the reporting association or its consolidated subsidiaries have outstanding futures or options
positions at quarter-end? 0 0 0 0
Does the reporting association have a Subchapter S election in effect for Federal income tax purposes
for the current tax year? 0 0 0 0
EXTENSIONS OF S&L CREDIT TO ITS DIRECTORS, AND RELATED INTERESTS:
Aggregate amount 1$000) g 0
0
5,000
1
5, 000
No.w/Large Borrow1ngs 1
1282
12
10
o
a
o
5,000
1
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND OFF-SAL. SHEET POSITIONS OF SECTION CMR PORTFOLIO / Part 1 of 3 ($000)
PAGE 27
05: 57 11/02/2010 '
united Western Bank
06679 TFR STATUS: IN PROCESS
11/02/2010 CMR STATUS: NONRESPONDER
1st Prior Qtr 2nd Prior Qtr 3rd
DOCKET:
DATA AS OF:
CUrrent Quarter Prior Qtr 4th Prior Qtr
YRMO, Period End ...
==as=======2oio09
201006 201003 200912
a==._===_==.==_.=
200909
1. COMPOSITION OF SECTION CMR ASSETS:
($000 at End of Period)
SF 1st Mtges I'< MBS, Fixed Rate:
30YrMtgLns
0 54,866 54,468 53,280 54,374
15YrMtglns
0 10,620 12,638 12,335 13,986

0 1,232 1,394 1,151 1,156
All Fix
0 66,718 68,500 66,766 69,516,
,30YrSecMtgConventional
0 16',620 17,266 18,720 20,169

0 10,776 69,031 5,437 0
15YrSecMtg
0 0 0 0 0
BalloonSecMtg
0 0 0 0 0
SF 1st Mtg Sec,
All Fix
0 27,396 86,297 24,157 20,169
SF 1st Fix, All Los+Sec
0 94,114 154,797 90,923 89,685
30YrMtg:Lns+Sec
0 82,262 140,765 77,437 74,543
15YrMtg:Lns+Sec
0 10,620 12,638 12,335 13,986
BalloonMtg:Los+Sec
0 1,232 1,394 1,151 1,156
SF 1st Mtlles ,I'< MBS, Adj. Rate:
0 328,000
Total onTeaser ARMs
346,481 355,201 ' 368,421
NonTeaser ARMS,CurrIndx '
0 271,681 289,450 298,941 310,994
NonTeaser ARMS,LagIndx
0 56,319 57,031 56,260 57,427
Teaser ARMs '
0 0 0 0 0
TeaserARMS,currIndx
0 0 0 0 0
Teaser ARMs,LagIndx
0 0 0 0 0
SF ARMS, Teaser+NonTeaser
0 328,000 346,481 355,201 368,421
Securitized ARMS
0 101,257 107,022 111,961 116,533
Non-Securitized ARMS
0 226,743 239,459 243,240 251,888
SF 1st MtgLns+MBS: ,Fix+Adj
0 422,114 501,278 446,124 458,106
MultiFam+NResLns&Sec:
0 149,240 143,993
ARM Balloons
132,333 116,277
ARM FullyAmortizing
0 310,461 266,970 285,100 323,361
Fix.Rate Balloons '
0 23,588 14,022 10,999 9,147
Fix.Rate FullyAmortizing
0 133,964 181,776 138,347 141,283
Subtotal
0 617,253 606,761 566,779 590,068
Const.&LandLns, Adj.Rate
0 182,755 211,026 266,856 317,334
Const.&LandLns, Fix.Rate
0 31,873 34,307 54,177 42,097
2ndMtgLos, Adj.Rate
0 18,693 19,035 19,501 19,553
2ndMtgLns, FiX.Rate
0 371 373 408 408
LnS, Adid+Fixed
0 1,273,059 1,372,780 1,353,845 1,427,566
Total tg Lns. j.Rate
0 989,149 987,505 1,058,991 1,144,946
Total Mtg Lns.. Fixed Rate
0 283,910 385,275 294,854 282,620
NonMtg Commerical Lns,Adj.
0 130,093 124,624 130,116 137,815
NonMtg commercial'Los,Fixed
0 21,100 20,388 20,795 20,541
NonMtg Consumer Los, Adj .
0 6,070 6,086 6,438 6,035
NonMtg Consumer Lns,FiXed
0 3,350 3,501 3,562 1,327
Total NonMtg Loans
0 160,613 154,599 160,911 165,718
Total Loans
0 1,433,672 1,527,379 1,514,756 1,593;284
Collaterized Mortgage
Obligations:
0 195,192 151,684
Floating Rate
160,168 168,160
Fixed Rate: Total
0 136,699 47,530 55,606 61,955
FIR: Remaining WAL <=5K
0 112,333 23,952 31,255 54,251
FIR: Remaining WAL 5-1 Y
0 1,040 23,578 24,351 7,704
FIR: Remaining Wal>10y
0 23,326 0 0 0
Superfloaters
0 0 0 0 0'
InverseFloaters+superPOs
0 0 0 0 0
Other
0 0 0 0 0
Total CMOs
0 331,891 199,214 215,774 230,115
CMO Residuals
0 0 0 0 0
Interest-Onlr MBS
0 0 0 0 0
yStr pped MBS
0 0 0 0 0
Tota Mtg Der. Sec.
0 331,891 199,214 215,774 230',115
Low-Ris,k MtgDerSec.
0 166,857 121,130 49,919 60,481
High-Risk MtgDerSec.
0 165,034 78,084 165,855 ,,69,634
1283
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND OFF-SAL. SHEET POSITIONS OF SECTION CMR PORTFOLIO I Part 2 of 3 ($000)
PAGE 28
05:57 11/02/2010
United western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter 1st Prior Qtr ' 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
=========-=;oioo; ===-=======;01006 =========;Oi003 ===========;009i;
-====.===-======-
YRMO, Period End ..
1. COMPOSITION OF SECTION CMR ASSETS-continued: ($000 at End of Period)
cash, Deposits & Securities:
Csh,Nn1nDP,OvNightFF&Repo

Gov't + Securities

Other Securities
Total Cash, Dep.& Sec.
'ITEMS RELATED TO MTG LNS+SEC

Advs. for axes and Insur
Unamortized Yld Adj
Total Allowance
Unreal-Gains (Losses)
Total Other Mtg Assets
ITEMS RELATED TO NON-MTG LNS+SEC
Nonperforming NonMtg Lns
Accrued NonMtgLn Int.Recei.
Unamortized Yld Adj
Total Allowance
Unreal.Gains (Losses)
Total Other NonMtgLn Assets
ITEMS RELATED To INVESTMENT SECURITIES
Unamortized Yld Adj
Total Allowance
Unreal.Gains (Losses)
Total Other Inv.Sec.Assets
Real Estate Investments
Repossessed Assets
Unconsol. SUbs. Inv.
Office Premises and Equip.
Other Assets (b)
Total Consolidated Assets
(a)
(b)
Mtge MutualFunda MktVal
Other Equity Sec.MktVal
'Equities: MrkVal-Book
Purch+Excess SrvngRghts
Total Bal of Mtgs Srvcd
ARMs, Curr.Mrkt Indx
ARMs, Lagg.Mrkt Indx
FIR, Coup <8'
FIR, 8<=Coup<=8.99
FIR, 9<=Coup<=9.99
FIR, 10<=Coup<=10,. 99
F!R,ll<=COUP
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
2. COMPOSITION OF SCHEDULE CMR LIABILITIES:
FixedRate, FixedMaturity Deposits:
orig.Maturity<=12MOS
13<=orig.Maturity<=36MOS .


Bal.Matur.in 4-12, Mos
,Bal.Matur.in 13-36Mos
Bal.Matur.in 37+ Mos.
Other Deposits:
Transaction Accounts
MMDAs
Passbook Accts
Non-Int Bearing DemandDep
Total Deposits .
F/M FIR Brwgs: Total
FM FR Brw Matur.0-3 Mos
FMFR BrwMatur.4-36 Mos
FM FR Brw Matur.36+ Mos
i
FM VR Brw position 2
FM VR FHLB Advances
Other FM VR Borrowings
Held \
Escrows for Mtgs serviced
Other Escrows
Unamrtzd Yld Adj On Dep.
Unamrtzd Yld Ad) On BrW.
Other Liabilities
Total Liabilities
Minority Int.Consol.Subs
Eq!1ity Capital
Total Consol Liab.+Cap.
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
14,263
o
o
117
248,177
39,260
o
301,817
74,520
6,'218
128
33,498
39,966
-2,528
4,874
4,111
569
42
5,114
o
-476
-3,493
o
-1
3,492
o
16,635
o
22,285
91,158
2,205,348
o
o
o
6,289
562,848
55,435
12,328
7,513
50,607
172,625
137,338
127,002
279,381
120,044
32,585
432,010
170,693
133,191
116,273
11,853
518,318
642,123
245
49,611
1,642,307
12,830
12,283
o
547
248,202
o
o
248,202
o
261,032
957
7,797
117,714
-37
o
15,797
2,045,567
5
159,776
2,205,348
1284
40,484
o
o
119
625,062
40,314
o
705,979
79,125
6,528
201
31,705
39,024
-1,999
13,126
4,517
533
59
4,354
o
637
-3,584
o
-1
3,583
o
24,076
o
22,568
92,141
2,588,703
o
o
o
6,770
587,444
57,705
13,104
6,265
52,739
181,189
143,008
133,434
424,374
55,515
31,247
511,136
115,908
328,279
55,652
11,297
621,378
827,003
439
54,525
2,014,481
8,074
7,497
o
577
248,009
o
o
248,009
o
256,083
1,259
12,598
122,062
-145
o
15,735
2,422,073
5
166,625
2,588,703
586,324
o
o
121
52
41,519
o
628,016
60,825
6,335
792
27,400
32,230
-1,826
6,496
3,332
537
83
4,027
o
-241
-3,687
o
-1
3,686
o
18,709
o
22,774
92,757
2,502,727
o
o
o
7,344
611,928
60,307
13,896
5,378
54,056
189,506
1.50,125
138,660
441,650
18,874
11,572
472,096
108,973
334,282
17,618
11,223
425,659
939,056
360
55,657
1,892,828
1,827
1,220
o
607
258,635
o
o
258,635
o
260,462
960
10,795
132,714
-266
,0
16',874
2,314,367
5
188,351
2,502,723
200909
568,808
o
o
124
15
43,373
o
612,321
45,916
6,507
732
1,299
26,179
-2,962
22,775
883
565
8
2,816
o
-1,376
-3,846
o
-1
,3 i 84
5
15,561
o
22,,992
99,735
2,599,251
o
o
o
7,791
641,018
152,897
14',392
4,615
56,760
199,278
157,824
145,252
351,211
, 17,009
12,094
380,314
104,008
249,009
16,541
10,'156
366,551
1,085,812
403
120,078
1,953,158
11,563
10,927
o
636
284,513
o
o
284,513
o
296,076
1,246
15,980
89,151
-276
o
17,235
2,372,570
5
226,677
2,599,253
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND OFF-SAL.SHEET POSITIONS OF SECTION CMR PORTFOLIO /. Part 3 of 3 ($000)
PAGE 29
05:57 11/02/2010,
United Western Bank
DOCKET: 06679 TFR STATUS: . IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr . 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
YRMO, Period End . ..
======-==-;Oi009 ===========;Oi006 ===-=_===aoioa) ===========aoo9ia
3. Off-Balance Sheet positions
Off-Bal.Sheet position 1
Off-Bal.Sheet position 2
Off-Bal.Sheet position 3
Off-Bal.Sheet position 4
Off-Bal. Sheet position 5
Off-Bal.Sheet position 6
Off-Bal.Sheet Position 7
Off-Bal.Sheet position 8
Off-Bal.Sheet position 9
Off-Bal.Sheet position 10
Off-Bal.Sheet position 11
Off-Bal.Sheet position 12
Off-Bal.Sheet position 13
Off-Bal.Sheet position 14
Off-Bal.Sheet position 15
Off-Bal.Sheet position 16
No.positions Listed Above

4. SF 1st ARM Bal. w/Lifetime Caps
LifeCap-Coupon <=200bp
201bp<= Lfc;p-Cpn <=4011bp
400bP< LifeCap-Coupon
Subtotal, w/LifetimeCaps
Subtotal, w/LifetimeFloor
Subtotal, wlo LftmCaps
Subtotal, wlo LftmFloors
5. SF 1st ARM Bal.w/Periodic Caps
Subtotal, w/Periodic Caps
Subtotal, w/PeriodFloors
Subtotal,wlo PeriodicCaps
Subtotal,wlo PeriodFloors
6. MF+NRARMs w/LCap-Yd<300BP
and Floors
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
NA
o
NA
and Floors
o
o
o
o
o
(Contract Code)
2216
4002
9512
0
0
0
0
0
0
0
0
0
0
0
0
0
3
0
0
0
0
295,200
295,200
NA
32,800
NA
295,200
295,200
32,800
32,800
0
1285
2216
4002
9512
0
0
0
0
0
0
0
0
0
0
0
0
0
3
0
0
0
0
311,833
311,833
NA
34,648
NA
311,833
.311,833
34.,648
34,648
0
2216
4002
9512
0
0
0
0
0
0
0
0
0
0
0
0
0
3
0
0
0
0
319,681
319,681
NA
35,520
NA
319,681
319,681
35,520
35,520
0
2216
4002
9512
o
o
o
o
o
o
o
o
o
o
o
o
o
3
o
o
o
o
331,578
331,578
NA
36,842
NA
331,578
331,578
36,843
36,843
o
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND CONTRACT YIELDS OF SECTION CMR PORTFOLIO / Part 1 of 3 (t)
05:57 11/02/2010
United Western Bank
PAGE 30
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS:. NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
=-=-==.====-==-=-
__ ===_.=_.c_==._.
-_._=-====.-.. -.=
=---=====--=-=---
========--====-==
S&L Pet S&L Pet S&L Pet S&L Pet S&L Pet
==-_.- = _== ---=-- .-._-- =-=
=._ . - ===--= ===
YRMO, Period End .
201009 201006 201003 200912 200909
1. COMPOSITION OF SECTION CMR ASSETS:
(t Total Assets at End of Period)
SF 1st & MBS,
Fixed Rate:
2.49 32
30YrMtg
NA 11.79 NA 5.21 2.10. 4.70 28 2.13 4.87 29 2.09 4.83 28
15YrMtgLnS
NA 9.46 NA .48 2.49 17 .49 2.35 15 .49 2.59 19 .54 2.74 23
BallOOnMtaLns
NA .20 NA .06 .27 35 .05 .39 32 .05 .28 29 .04 .24 30
SF 1st tg LnS,
All Fix NA 19.63 NA 3.03 11.56 18 2.65 10.30 15 2.67 9.78 15 2.67 9.55 15
30YrSeeMtgConventional
NA .02 NA .75 .15 65 .67 .10 68 .75 .13 66 .78 .14 67
30YrSeeMtgFHA/VA
NA .00 NA .49 .00 81 2.67 .00 93 .22 .00 79 .00 .00 33
15YrSeeMtg
NA 4.60 NA .00 1..38 13 .00 1.26 13 .00 1.51 12 .00 1.34 13
BalloonSecMtg
NA .00 NA .00 .00 35 .00 .00 36 .00 .00 33 .00 .00 32
SF 1st Mtg Sec, All Fix NA
4.65 NA 1.24 2.78 33 3.33 3.01 52 .97 2.60 34 .78 2.67 33
SF 1st Fix, All Lns+See
NA 32.82 NA 4.27 14.27 12 5.98 13.37 18 3.63 12.96 10 3.45 13.39 11
30YrMtg:Lns+See
NA 12.35 NA 3.73 6.65 31 5.44 6.33 43 3.09 6.18 30 2.87 6.41 29
15YrMtg:lns+See
NA 14.18 NA .48 5.72 II .49 5.74 11 .49 5.97 14 .54 6.15 17
BalloonMtg:Lns+See
NA .36 NA .06 .67 25 .05 .71 25 .05 .69 20 .04 .72 21
SF 1st Mtges & MBS, Adj. Rate:
NA 6.91 NA 14.87 9.40 71 13.38 9.83 66 14.19 10.49 67
Total NonTeaser ARMS
14.17 10.74 65
NonTeaser ARMs,currIndx
NA 5.24 NA 12.32 8.40 67 ll.18 9.38 58 ll.94 10.18 61 ll.96 10.59 60
NonTeaser ARMs,LagIndx
NA .08 NA 2.55 .00 95 2.20 .01 95 2.25 .01 94 2.21 .01 96
Teas.ARM SUbj2Intro.Rates
NA .00 NA .00 .00 44 .00 .00 45 .00 .00 44 .00 .00 43
Teaser ARMs,CUrrIndx
NA .00 NA .00 .00 44 .00 .00 45 .00 .00 44 .00 .00 43
Teaser
NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
SF ARMS, Teaser+ onTeaser
NA 6.91 NA 14.87 9.40 71 13.38 9.83 66 14.19 10.49 67 14.17 10.87 65
Securitized ARMS
NA .13 NA 4.59 .43 83 4.13 .32 80 4.47 .25 79 4.48 .27 78
Non-Securitized ARMS
NA 5.85 NA 10.28 6.ll 66 9 . 25 6.50 61 9.72 6.38 64 9.69 6.25 61
SF 1st MtgLns+MBS: Fix+Adj
NA 47.85 NA 19.14 29.71 28 19.36 29.80 28 17.83 28.43 20 17.62 31.75 19
MultiFam+NReSLns&See:
NA .00 NA 6.77 .61 78 5.56
ARM Balloons
.93 73 5.29 .76. 75 4.47 .64 71
ARM 'PullyAmortizing
NA 3.76 NA 14.08 2.37 90 10.31 3.73 81 11.39 3.40 79 12.44 3.53 85
Fix.Rate Balloons
NA .16 NA 1.07 1.82 45 .54 2.11 40 .44 2.32 38 .35 1.89 39
FiX.Rate PullyAmortizing
NA .90 NA 6;07 1.79 86 7.02 1.90 86 5.53 1.74 84 5.44 1.73 83
Subtotal
NA 12.52 NA 27.99 16.15 78 23.44 16.55 71 22.65 16.63 70 22.70. 16.31 71
Const.&LandLns, Adj.Rate
NA .02 NA 8.29 1.11 93 8,.15 1.43 93 10.66 1.33 94 12.21 1.52 94
Const.&LandLns, Fix.Rate
NA .23 NA 1.45 :44 78 1.33, .51 72 2.16 .54 84 1.62 .40 80
2ndMtgLns, Adj. Rate
NA 1.46 NA .85 2.52 30 .74 2.64 28 .78 2.78 29 .75 2.73 29
2ndMtgLns, Fix.Rate
NA 1.13 NA .02 1.06 15 .01 1.12 13 .02 1.31 14 .02 1.47 14
Total Mt2 Lns, Adj.+Fixed
NA 61.63 NA 57.73 62.61 37 53.03 61.82 21 54.09 62.70 23 54.92 64.86 23
Total tg LnS, Adj. Rate
NA 24.05 NA 44.85 28.61 83 ,38.15 27.56 70 42.31 28.83 79 44.05 30.48 80
Total Mtg Lns, Fixed Rate
NA 39.69 NA 12.87 30.20 15 14.88 30.29 17 11.78 30.32 15 10.87 29.81 11
NonMtg Commerieal Lns, Adj.
NA .14 NA 5.90 1.79 82 4.81 1.93 81 5.20 1.64 82 5.30 1.56 83
NonMtg Commercial Lns,Fixed
NA .18 NA .96 1.15 45 .79 1.17 40 .83 1.10 42 .79 .99 44
NonMtg Consumer Lns,Adj.
NA .02 NA .28 .03 78 .24 .04 77 .26 .05 75 .23 .05 73
.NonMtg Consumer Lns,Fixed
NA .69 NA .15 .38 37 .14 .44 36 .14 .50 35 .05 .44 20
Total NonMtg Loans
NA 3.31 NA 7.28 6.88 53 5.97 7.07 45 6.43 7.24 44 6.38 7.89 47
Total Loans
NA 73.62 NA 65.01 74.80 25 59.00 75.54 16 60.52 78.35 16 61.30 79,20 15
Col laterized Mortgage
.00 NA 8.85 .00 91 5.86 .00 88 6.40 .00
Floating Rate
88 6.47 .00 88
Fixed Rate: Total
NA .00 NA 6.20 1.19 75 1.84 1.06 58 2.22 .91 66 2.38 .99 64
FIR: Remaining WAL <=5K
NA .00 NA 5.09 .75 75 '.93 .52 55 1.25 .60 57 2.09 .69 62
FIR: Remaining WAL 5-1 Y
NA .00 NA .05 .00 77 .91 .00 91 .97 .00, 91 .30 .00 83
FIR: Remaining WAL >10y
NA .00 NA 1.06 ,.00 97 .00 .00 46 .00 .00 46 .00 .00 46
Superfloaters .
NA .00 NA .00' .00 50 .00 .00 50 .00 .00 50 .00 .00 50
InverseFloaters+superPOs
NA .00 NA .00 .00 50 .00 .00 50 ;00 .00 50 .00 .00 50
Other
NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 ,00 50
Total CMOs
NA ' .11 NA 15.05 1.47 82 7'.70 1.36 70 8.62 1.16 71 8.85 1.29 73
CMO Residuals
NA .00 NA .00 .00 49 .00 .00 49 .00 .00 50 .00 .00 SO
Interest-Onlr MBS
NA .00 NA .00 .00 48 .00 .00 48 .00 .00 48 .00 .00 48
Y Str pped MBS
NA .00 NA .00 .00 50 .00 .00 SO ' .00 .00 SO .00 .00 SO
Tota Mtg Dar. Sec.
NA .11 NA 15.05 1.47 82 7.70 1.36 70 8.62 1.16 71 8.85 1.29 73
Low-Risk MtfDersee.
NA .00 NA 7.57 1.21 72 4.68 1.14 67 1.99 1.10 61 2.33 1.10 61
High-Risk M gDerSee.
NA .00 NA 7.48 .00 96 3.02 .00 95 6.63 .00 97 ,6.53 .00 96
1286
05: 57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-0UARTER UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND CONTRACT YIELDS OF SECTION CMR PORTFOLIO / Part 2 of 3 (%)
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF; 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Otr 3rd Prior Qtr
PAGE 31
================= ================= ======:==========
4th Prior Otr
=================
S&L Pct S&L Pct S&L Pct S&L Pct
S&L Pct
200909
=====: ====== === =====: ====== === ====== ===:== ===
YRMO, Period End .... 201009 201006 201003
200912
1. COMPOSITION OF SECTION CMR ASSETS-continued:
Cash, Deposits & Securities:
(% Total Assets at End of Period)
CSh,NnInDp,OrNightFF&RepO NA
Equity Secur ties NA
Zero-Coupon Securities NA
Gov't + Agency Securities NA

Other Securities NA
NA
Nonperforming Mtgs NA
Accrued Mtg Int.Receiv. NA
Advs. for Taxes and Insur NA
Unamortized Y1d Adj NA
Total Allowance NA
Unreal.Gains (Losses) NA
Total Other Mtg Assets NA
ITEMS RELATED TO NON-MTG LNS+SEC
1.23
.00
.00
.00
1.12
2.47
.18
7.83
1.26
.29
.01
.00
.51
.07
1.07
Nonperforming NonMtg Lns NA .01
Accrued NonMtgLn Int.Recei. NA .00
Unamortized Yld Adj NA .00
Total Allowance NA. 02
Unreal. Gains (Losses) NA .00
Total OthrNonMtgLnAsts NA .00
ITEMS RELATED TO INVESTMENT SECURITIES
Unrealized Gains (Losses) NA .00
Unamortized Yield Adj NA .00
Total Allowance NA. 00
Total OthrlnvSecAssets NA .00
Real Estate Investments NA .00

Office Premises and Equip. NA .98
Other Assets (b) NA 2.74
Total Consolidated Assets NA 100.00
(a)
(b)
Mtge MutualFunds MktVal
Other Equity Sec.MktVal
Equities; MrkVal-Book
Purch+Excess SrvngRghts
Wtg.Avg.Srvng Fee (BP)
NA
NA
NA
NA
NA
'.00
.00
.00
.00
25.00
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
(b) . :
ARMs, Lagg.Mrkt Indx NA .00 NA
FIR, Coup <8% NA 22.82 NA
FIR, 8<=Coup<:=8. 99 NA 41.08 Nil.
FIR, 9<=Coup<=9.99 NA 10.08 NA
F/R,10<=Coup<:=10.99 NA 3.01 NA
F/R, l1<=Coup NA. 55 NA
2. COMPOSITION OF SCHEDULE CMR LIABILITIES:
FixedRate, FixedMaturity Deposits;
Orig.Maturity<:=12Mos NA 14.88 NA
13<=Orig.Maturity<=36MoB NA 13.78 NA
37<=Orig.Maturity NA 4.06 NA
Subtotal, FIR F/M.Dep. NA 38.00 NA
Bal.Matur.in <=3Mos NA 8.68 NA
Bal.Matur.in 4-12 Mos NA 14.67 NA
Bal.Matur.in 13-36Mos NA 8.33 NA
Bal.Matur.in 37+ Mos. NA 2.33 NA
Transaction Accounts NA 8.50 NA
MMDAs NA 14.13 NA
passbook Accts NA 7 .59 NA
Non-Int Bearing DemandDep NA 3.28 NA
Total Deposits . NA 76.04 NA
Mos
PM FR Brw Matur.4-36 Mos NA 5.16 NA
FM FR Brw Matur.36+ Mos NA .71 NA
1
FM VR Brw Position 2 NA. 00 NA
FM VR FHLB Advances NA. 02 NA
Other FM VR Borrowings NA. 00 NA
Total Borrowings NA 10.61 NA
Escrows for Assets Held NA .16 NA
Escrows for Mtgs Serviced NA .00 NA
Other Escrows NA .00 NA
Unamrtzed Yld Adj On Dep. NA .00 NA
Unamrtzed Yld Ad) on Brw. NA aD NA
Other Liabilities NA 1.01 NA
Total Liabilities NA 89.62 NA
Minority Int.Consol.Subs NA .00 NA
Equity Capital NA 10.35 NA
Total Consol Liab.+Cap. NA 100.00 NA
.65
.00
.00
.01
11.25
1. 78
.00
13.69
3.38
.28
.01
1.52
1. 81
-.11
.22
.19
.03
.00
.23
.00
-.02
.00
- .16
.00
.16
.00
.75
.00
1.01
4.13
100.00
.00
.00
.00
.29
50.45
(%
.29
9.85
2.19
1.33
8.99
30.67
24.40
22.56
12.67
5.44
1.48
19.59
7.74
6.04
5.27
.54
23.50
29.12
.01
2.25
74.47
.58
.56
.00
.02
11.25
.00
.00
11.25
.00
11.84
.04
.35
5.34
.00
.00
.72
92.75
.00
7.24
100.00
1.09
.00
.00
.09
2.84
.35
.14
9.68
1.38
.27
.00
.00
.62
.13
1.19
.07
.04
.00
.14
.00
.00
.00
.00
.00
.00
.00
.21
.00
.98
4.09
100.00
23
27
42
40
87
62
15
63
76
57
65
98
83
3
13
75
40
75
60
49
41
1.56
.00
.00
.00
24.15
1.56
.00
27.27
3.06
.25
.01
1.22
1.51
-.08
.51
.17
.02
.00
.17
.00
.02
18 .00
1 -.14
50 .00
88 .14
44 .00
75 .93
32 .00
51 .87
51 3.56
50 100.00
1.11
.00
.00
.OB
2.45
.31
.09
9.65
1.45
.27
.00
.00
.61
.05
1.20
.08
.06
.00
.15
.00
.00
.00
.00
.00
.00
.00
.28
.00
1.01
4.16
100.00
.00 42 .00 .00
.00 30 .00 .00
.. 00 50 .00 .00
.01 82 .26 .01
26.02 96 50.52 25.58
Total Balance Serviced at
.01 82 .26 .01
.32 82 9.82 .36
.00 98 2.23 .00
15.60 12 1.07 14.18
46.22 12 8.98 45.48
18.36 87 30.84 19.26
2.73 82 24.34 2.94
.69 92 22.71 .68
11.65
11.65
3.80
31.50
7.62
13.18
6.29
1. 78
6.50
13.32
6.95
3.86
75.31
4.23
.69
1.04
.54
2.60
.00
.. 00
2.05
.00
10.38
.09
.00
.00
.00
.00
.80
89.59
.00
10.41
100.00
57 16.39
23 2 .. 14
26 1. 21
21 19.74
51 4.48
20 12.68
38 2.15
21 .44
93 24.00
86 31. 95
10 .02
33 2.11
46 77.82
20 .31
45 .29
16 .00
37 .02
82 9.58
35 .00
47 .00
86 9.58
42 .00
57 9.89
36 .05
88 .49
97 4.72
16 -.01
47 .00
38 .61
88 93.56
86 .00
11 6.44
50 100.00
1287
12.71
10.70
3.38
32.25
7.91
14.71
5.84
1.54
5.82
12.64
6.66
3.17
75.15
4.38
.50
1.86
.61
3.55
.00
.00
2.23
.00
10.78
.08
.00
.00
.00
.00
.76
89.88
.00
10.12
100.00
66
28
43
41
96
62
14
86
71
43
70
98
77
5
20
66
37
81
53
48
60
22
1
50
90
.43
78
31
36
46
50
23.43
.QO
.00
.00
.00'
1.66
.00
25.09
2.43
.25
.03
1.09
1.29
-.07
.26
.13
.02
.00
.16
.00
-.01
.00
- .15
.00
.15
.00
.75
.00
.91
3.71
100.00
1.30
.00
.00
.05
1.14
.27
.12
7.92
1.36
.28
.00
.00
.58
.05
1.24
.04
.05
.00
.13
.00
.00
.00
.00
.00
.00
.00
.18
.00
1.03
4.06
100.00
42 .00 .00
31 .00 .00
49 .00 .00
81 .29 .01
96 50.78 25.79
End of Period)
81 .29 .01
79 9.86 .34
98 2.27 .00
13 .88 13.43
13 8.83 45.09
87 30.97 20.18
82 24.53 2.99
94 22.66 .69
63 17.65
8 .75
22 .46
20 18.86
23 4.35
38 13.36
16 .70
21 .45
93 17.01
90 37.52
10 .01
33 2.22
62 75.63
16 .07
47 .05
13 .00
37 .02
76 10.33
35 .00
45 .00
78 10.33
42 .00
42 10.41
41 .04
90 .43
96 5.30
16 -.01
46 .00
32 .67
93 92.47
86 .00
7 7.53
50 100.00
13.89
10.52
3.27
32.36
8.04
14.87
6.08
1.32
5.36
12.08
7.68
3.39
75.04
5.52
" .77
1.92
.58
3.29
.00
.00
2.06
.00
11.29
.06
.00
.00
.00
.00
.84
90.03
.00
9.97
100.00
97 21.88
27 .00
43 .00
42 .00
16 .00
65 1. 67
13 .00
85 23.56
69 1. 77
43 .25
84 .03
98 .05
79 1. 01
5 -.11
17 .88
70 .03
38 .02
78 .00
53 .11
48 .00
37 - .05
24 .00
1 -.15
50 .00
91 .15
42 .00
75 .60
33 .00
41 .88
46 3.84
50 100.00
42 .00
30 .00
50 .00
80 .30
96 50.91
80 .30
80 9.81
98 2.25
16 .72
14 8.85
83 31. 09
83 24.62
94 22.66
67 13.51
6 .65
10 .47
20 14.63
20 4.00
42 9.58
7 .64
23 .41
89 14.10
92 41. 77
8 .02
29 4.62
53 75.14
14 .44
38 .42
13 .00
37 .02
78 10.95
35 .00
44 .00
80 10.95
41 .00
43 11. 39
39 .05
89 .61
96 3.43
12 - . 01
46 .00
38 .66
87 91..28
85 .00
12 8.72
SO 100.00
1.15
.00
.00
.04
1.25
.26
.11
7.64
1.35
.29
.00
.00
.56
.04
1.20
.04
.05
.00
.12
.00
.00
.00
.00
.00
.00
.00
.18
.00
1.02
3.76
100.00
.00
.00
.00
.01
25.53
.01
.33
.00
13.23
42.67
21.56
3.25
.69
14.87
10.25
3.31
33.82
8.58
15.46
5.12
1.09
5.04
11.04
6.78
3.28
73 .54
6.26
.80
3.30
.47
2.94
.00
.00
2.10
.00
13.86
.13
.00
.00
.00
.00
.90
90.24
.00
9.69
100.00
94
27
44
42
16
67
16
85
60
38
82
70
76
5
35
46
38
79
44
48
28
20
2
50
87
42
70
32
39
51
SO
42
30
50
80
96
80
80
98
16
14
80
83
94
41
6
8
8
15
24
7
20
89
92
8
57
60
14
42
12
37
79
35
44
82
41
44
38
89
96
12
48
32
71
85
28
50
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND CONTRACT YIELDS OF SECTION CMR PORTFOLIO / Part 3 of 3 (%)
05:57 11/02/2010
United Western Bank
PAGE 32
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
================= ================= =============:===
================= =================
Graul? 5 Groul? 5 Groul? 5
Graul? 5 Groul? 5
S&L Med1an Pct S&L Med1an Pct S&L Med1an Pct S&L Med1an Pct S&L Medl.an Pct
====== ====== === ====== ====== ===
====== ====== ===
====== ===
YRMO, Period End ... 201009 201006 201003 200912 200909
3. AVERAGE.CONTRACT YIELDS: (Average Contract Yield - or Index Plus Margin - at End of Period)
SF FIR 1st Mtgs, 30-Year NA 5.72 NA 6.49 5.7B B9 6.47 5.B7 B8 6.4B 5.89 86 6.46 5.91 B2
SF FIR 1st Mtgs, 15-Year NA 5.18 NA 5.83 5.53 68 5.82 5.55 66 5.75 5.56 62 5.81 5.59 66
SF FIR 1st Mtgs, Balloons NA 5.49 NA 6.54 6.00 81 6.47 6.07 77 6.46 6.02 73 6.46 6.19 68
SF F/R Convention'l 30Y MES NA 5.40 NA 5.47 5.31 59 5.46 5.39 55 5.45 5.46 49 5.48 5.50 46
SF NonTeas.ARMs:CurIndx NA 4.44 NA 4.20 4.64 27 4.34 4.75 27 4.54 4.83 33 4.74 5.02 33
SF NonTeas.ARMs:LagIndx NA 4.83 NA 3.89 4.89 19 3.98 5.02 19 4.04 5.29 17 4.39 5.46 21
SF Teaser ARMs: CurIndx NA 5.75 NA NA 5.02 NA NA 5.09 NA NA 4.30 NA NA 4.97 NA
SF Teaser ARMs: LagIndx NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
MultiFam&NonRss BalloonARMs 0.0000 83001.6000 83001.6400 83001.7100 83001.7200
MUltiFam&NonRes FulAmtzARMs 0.0000 83001.1400 83001.3700 83001.1300 83001.2000
MultiFam&NonRes F/R Balloon .00 .00 44 6.42 6.19 68 6.87 6.27 86 6.72 6.23 80 6.81 6.29 83
MultiFam&NonRes FIR FulAmtz .00 .00 43 6.34 6.39 42 5.30 6.39 18 6.40 6.38 54 6.40 6.40 48
Const.&LandLns, Fix.Rate NA 6.12 NA 5.11 6.01 16 5.14 5.98 19 4.85 6.00 9 5.46 6.09 18
Const.&LandLns, Adj.Rate 0.0000 83001.0100 83001.0900 83000.9400 83000.9200
2ndMtgLns, Fix. Rate NA 6.50 NA 6.78 6.82 46 6.81 6.84 47 7.21 6.92 63 7.23 6.8B 6S
2ndMtgLns, Adl.Rate
0.0000 83000.1600 83000.1600 83000.1400 83000.1100
NonMtgCommerc al Lns, Fix.R NA 5.87 NA 6.30 6.32 49 6.22 6.37 41 6.20 6.36 44 6.38 6.29 S3
NonMtgCommercial Lns, Adj.R 0.0000 83000.6200 83000.5800 83000.5600 83000.5100
Consumer Lns, Fixed Rate NA 6.19 NA 4.70 6.99 15 4.77 7.32 12 4.81 7.22 13 6.42 7.31 32
Consumer Lns, Adj:Rate 0.0000 83000.1700 83000.1500
83000.1500 83000.1700
zero-couEon Securities .00 .00 49 .00 .00 42 .00 .00 43 .00 .00 43 .00 .00 44
USGov't+ gency Securities .00 .00 46 .79 .99 45 .79 .96 46 .79 .95 46 .79 1.41 46
TermFF+Repos + rEdeposits .00 .00 45 .25 .23 68 .25 .23 68 .01 .16 19 .01 .20 18
Other IE Securities .00 .00 44 .00 2.99 15 .00 3.15 15 .00 3.19 14 .00 3.35 16
DP:F/M FIR Bal.Matur. 0-3mo NA 1.68 NA 1. 83 1. 71 58 1.20 1.79 15 1.31 2.04 16 1.46 2.52 10
DP:F/M FIR Bal.Matur.4-12mo NA 1. 70 NA 1. 74 1. 81 44 1.71 1.96 29 1.62 2.08 15 1. 74 2.26 19
DP:F!M FIR Bal.Matr.13-36mo NA 2.44 NA 1. 70 2.65 1 2.09 2.78 7 2.80 2.92 44 3.00 3.10 39
DP:F/M F!R Bal.Matur.37+ mo NA 3.04 NA 3.82 3.19 85 3.87 3.32 84 3.87 3.43 79 2.77 3.67 5
DP:Transaction Accounts NA .54 NA .14 .42 17 .13 .48 16 .14 .40 19 .15 .48 17
DP:MMDAs NA .83 NA .47 .B4 20 .40 .95 11 .39 .98 9 .63 1.02 19
DP:Passbook Accounts NA .56 NA .25 .50 23 .25 .52 21 .25 .55 18 .25 17
BW:F/M FIR Brwg Mat.0-3 Mos NA 3.24 NA 4.31 2.18 81 5.26 2.33 91 .01 2.44 2 3.94 2.50 75
BW:F/M FIR Brwg Mat.4-36 Mo NA 3.42 NA NA 3.53 NA NA 3.59 NA NA 3.64 NA NA 3.63 NA
BW:F/M FIR Brwg Mat.36+ Mos NA 3.72 NA 5.08 3.66 76 5.84 3.71 84 5.84 3.79 83 5.84 3.98 84
BW:F/M VIR Borrowings,Pos 1
.NA NA NA NA NA
BW:F/M ViR Borrowings,Pos 2
NA NA NA NA NA
BW:F/M VIR Borrowings,Pos 3 NA NA NA NA NA
BW:F/M VIR Borrowings , Other NA NA NA NA NA
4. SF 1st ARM Bal.w/Lifetime Caps and Floors
.00 .00 29 .00 LifeCap-Coupon <:200bp
NA .00 NA .00 28 .00 .00 26 .00 .00 26
201bp<: LfCp-Cpn <:400bp NA .01 NA .00 .03 16 .00 .03 13 .00 .03 14 .00 .05 12

NA 6.91 NA 13 .39 7.61 68 12.05 8.32 65 12.77 8.50 66 12.76 8.76 64
NA 6.91 NA 13.39 7.93 68 12.05 8.56 65 12.77 9.15 66 12.76 9.B9 64
Subtotal,w/LifetimeFloor NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Lag.I.ARMs,% w/LifeCaps NA 100.00 NA 90.00 100.00 23 90.00 100.00 25 90.00 100.00 24 90.00 100.00 23
CUrr.I.ARMs,% w/LifeCaps NA 100.00 NA 90.00 99.22 23 90.00 99.18 23 90.00 99.25 21 90.00 98.99 22
5. SF 1st ARM Bal.w/Periodic Caps and Floors
13 .39 7.76 72 Subtotal,w/ PeriodicCap
NA 6.87 NA 12.05 8.52 65 12.77 9.14 67 12.76 9.62 65
Subtotal,w! Period FIrs NA 6.87 NA 13.39 6.13 72 12.05 6.51 65 12.77 6.85 69 12.76 7.11 66
Lag.I.ARMs,% w/PeriodCap NA 88.58 NA 90.00 95.0B 41 90.00 98.80 35 90.00 96.75 40 90.00 9B.23 36
CUr.I.ARMs,% w/PeriodCap NA 99.13 NA 90.00 96.01 2B 90.00 96 .47 28 90.00 96.77 30 90.00 96.93 33
Av.PeriodicCap(BP),LagI NA 186.00 NA 105.34 181.50 10 105.46 183.do 7 105.55 183.50 8 125.81 184.00 26
Av.PeriodicCap(BP),CUrI NA 191. 76 NA 232.21 200.00 80 231.32 200.00 78 225.31 200.00 77 176.37 200.00 18
6. MF+NR ARMw/LCap-Yd<300BP NA .00 NA .00 .00 26 .00 .00 25 .00 .00 26 .00 .00 26
7. WtAv Months to Next Reset for Selected Adj.Rate Items
SF NonTeas.ARMs:CUrIndx NA 18.51 NA 12.65 17.99 31 12.99 17.76 32 13.27 19.15 25 13.90 19.71 27
SF NonTeas.ARMs:Laglndx NA 6.00 NA 11.98 7.00 86 11.98 6.88 85 11.98 7.00 82 11.9B 7.00 76
SF Teaser ARMs: CUrlndx NA 22.34. NA NA 15.00 NA NA 19.03 NA NA 15.00 NA NA 15.00 NA
SF Teaser ARMs: Laglndx NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
MF+NR BalloonARMs .00 .00 46 37.00 1. 00 81 37.00 1.00 82 37.00 1.00 79 37.00 1.00 82
MF+NR FulAmtzARMs .00 .00 44 6.00 12.00 39 7.00 12.00 40 7.00 12.00 41 7.00 12.00 42
8. WARM (months) for selected Fixed-Rate Items
SF F/R 1st Mtgs, 3D-Year NA 312.11 NA 253.70 316.16 6 256.19 315.44 6 257.90 317.10 6 263.60 318.19 6
SF FIR 1st Mtg+MES,15Yr
NA 152.19 NA 63.39 134.55 5 60.04 133.56 6 63.50 137.91 5 61.34 133.29 6
SF FIR IstMg+MBS,Balloon NA 69.11 NA 23.78 66.62 15 17.01 65.86 9 11.81 61.00 5 14.B2 62.40 7
SF FIR Convent'l 30Y MBS
NA 193.03 NA 304.97 302.73 55 307.19 301.52 53 312.92 311.97 52 317.30 314.18 59
MultiFam&NR FIR Balloon .00 .00 44 41.00 33.00 61 27.00 34.00 40 37.00 34.00 53 43.00 34.00 57
MultiFam&NR FIR FulAmrtz .00 .00 43 37.00 68.00 22 97.00 73.00 65 41.00 70.00 20 8.00 72.00 14
Zero-Coupon Securities .00 .00 49 .00 .00 42 .00 .00 43 .00 .00 43 .00 .00 44
USGov't+Agency Secur. .00 .00 46 160.00 8.00 98 163.00 5.00 96 166.00 5.00 98 174.00 5.00 98
TermFF+Repos .00 .00 45 1.00 1.00 53 1.00
3Ug
53 1. 00 1.00 53 1.00 1.00 52
Other IE .00 .00 44 .00 30.00 15 .00 14 .00 29.00 13 .00 30.00 16
DP:F/M FIR Matur.37+ mo .00 .00 44 45.00 50.00 20 47.00 50.00 25 50.00 50.00 46 37.00 50.00 6
BW:F/M FIR Matur.36+ Mos .00 .00 44 47.00 46.00 53 50.00 48.00 57 53.00 48.00 62 56.00 49.00 62
1288
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
INTEREST RATE RISK INFORMATION
From OTS Interest Rate Risk Model
05:57 11/02/2010
United Western Bank
PAGE 33
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
================= ================= ================= ================= =================
Graul? 5
S&L Med1an Pet
Graul? 5
S&L Med1an Pet
Graul? 5
S&L Med1an Pet S&L Pet S&L
Group 5
Med1an Pet
YRMO, Period End ....
201009 201006 201003 200912 200909
NPV AS % OF PV ASSETS AFTER:
Upward Shock 300bp
.00 .00 44 10.54 12.37 2B 9.75 11.30 23 11.30 11.30 50 11.05 11.35 44
ggward Shock 200bp
.00 .00 44 10.39 12.72 20 9.67 12.13 13 11.26 11.94 41 11.06 12.00 37
pward Shock 100bp
.00 .00 44 10.12 12.B2 11 9.61 12.60 11 10.96 12.39 26 10.69 12.45 29
No change
.00 .00 44 10.36 12.75 16 9.43 12.66 7 10.59 12.71 15 10.14 12.57 24
Dwnwrd Shock 100bp .00 .00 44 9.50 12.76 11 9.55 12.66 7 10.60 12.58 20 9.92 12.26 24
Dwnwrd Shock 200bp .00 .00 50 .00 ;00 50 .00 .00 50 .00 .00 so .00 .00 50
Dwnwrd Shock 300bp
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
BP CHANGE IN NPV AFTER:
53 .18 -.73 71 .32
Upward Shock 300bp
.00 .00 -1.58 80 .70 -1.42 88 .91 -1.10 88
Upward Shock 200bp
.00 .00 53 .03 - .14 58 .23 -.79 73 .66 -.72 85 .92 - .23 88
Upward Shock 100bp
.00 .00 51 - .24 .08 36 .18 -.29 71 .37 -.22 84 .55 - .05 85
No change
100bp
.00 .00 49 -.85 -.25 6 .12 .09 52 .01
Dwnwrd Shock
.02 48 -.22 - .18 41
Dwnwrd Shock 200bp .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Dwnwrd Shock 300bp
NA NA NA NA . NA NA NA NA NA NA NA NA NA NA NA
CHANGE IN NPV AS A % OF
BASE CASE NPV AFTER:
-22.25 NA .97 -10.36 72 2.99 -14.75
Upward Shock 300bp
NA 81 6.39 -14.72 89 9.15 -12.41 88
Upward Shock 200bp
NA -12.32 NA -.33 -4.05 60 2.21 -8.27 7B 6.24 -7.85 89 9.47 -5.91 89
Upward Shock 100bp
NA -3.94 NA -2.89 -.20 33 1. 78 -2.86 72 3.46 -2.65 88 5.66 -1.44 88
No change
100bp NA 2.06 NA -B.81 -1.53 5 1.61 1.66 48
Dwnwrd Shock
.47 .72 48 -2.10 -.83 37
Dwnwrd Shock 200bp NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Dwnwrd Shock 300bp NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
CHANGE IN NPV AS A % OF
BASE CASE PV ASSETS AFTER:
-2.82 NA .10 -1.15 72 .28 -1.89
Upward Shock 300bp
NA 80 .68 -1.88 88 .93 -1.45 88
Upward Shock 200bp
NA -1.56 NA - .03 - .41 60 .21 -1. 06 77 .66 -.97 87 .96 -.59 88
Upward Shock 100bp
NA - .50 NA - .30 -.02 40 .17 - .40 71 .37 -.33 87 .57 -.12 87
No change
NA .34 NA -.91 -.19 5 .15 .20 47
Dwnwrd Shock 100bp
.05 .08 48 - .21 -.10 41
Dwnwrd Shock 200bp
NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Dwnwrd Shock 300bp
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
IRR MEASURES:
.00 .00 44 10.36 12.75 16 9.43 12.66
Pre Shock NPV(%)
7 10.59 12.71 15 10.14 12.57 24
Post Shock NPV(%)
.00 .00 44 9.50 12.20 12 9.43 11.78 12 10.59 11.64 35 9.92 11.84 30
Sensitivity Meas:Decline NPV .00 .00 44 .85 .76 60 .00 .88 2 .00 .88 1 .22 .71 15
SELECTED MARKET RATES OF INTEREST
(b) :
U.S. Treasury Bills (c):
0.16 0.18 0.16 0.06
3 month
0.14
6 month
0.19 0.22 0.24 0.20 0.18
1 year
0.27 0.32 0.41 0.47 0.40
U.S. Trsry Notes&Bonds (d) :
0.42 0.61
2 year
1.02 1.14 0.95
3 year
0.64 1. 00 1. 60 1. 70 1.45
5 year
1.27 1. 79 2.55 2.69 2.31
7 year
1.91 2.42 3.28 3.39 2.93
10 year
2.53 2.97 3.B4 3.B5 3.31
30 year
3.69 3.91 4.72 4.63 4.03
Prime Rate
3.25 3.25 3.25 3.25 3.25
FHLMC Net
Ylds (e) :
Sing1e- amily
3.82 4.19 4.90 4.97 4.69
Multi-family (f)
4.BO 5.13 6.05 6.21 '5.62
11th District COFI
1.71 1. 79 1.61 2.09 1.41
Notes:
Interest Rate Risk
data is delayed by at least one day due to system constraints. Please refer to the
(a)
(b)
(c)
(d)
(e)
(f)
Interest Rate Risk
System for current data.
If the 3 month T-Bill rate is less than 3.00%, Downward Shock #3 is one-half the 3 month T-Bill rate. Otherwise,
Downward Shock #3 is 300 basis points.
All rates are as of the last business day of guarter for the period presented. Exception: COFI is a weighted
average of the cost of funds for savings inst1tutions in the 11th FHLB District and is for the last month of the
period presented. .
Quoted on discount basis and annual1zed using a 360 day year.
Yields on actively traded issues adjusted to constant maturities.
FHLMC Required Net Yields for 30 day commitments.
Under a propietary agreement with Fannie Mae, OTS cannot dislose these rates.
1289
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
EXAM RATIO INFORMATION
United western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
PAGE 34
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter 1st Prior Qtr 2nd prior Qtr 3rd Prior Qtr 4th Prior Qtr
Months in Period
YRMO, Period End ....
===============3=================3=================3=================3=================3===
201009 201006 201003 200912 200909
S&Ls in Peer Group ,
75 79 79 77 77
CAPITAL ADEQUACY - PCA REQUIREMENTS:
Total Risk-Based Capital
Tier 1 Risk-Based Capital
Tier 1 Leverage Cap (Core)
Tangible Equity Capital
EARNINGS:
Interest&Dividend Income


Fee lncome
CoreInc:Before Loss Prov
Provisions for Loss
CoreInc:After Loss Prov
Net Non-Core Income
Income Before Tax
Income Tax
IncTax Before extr Item
Extraordinary items
Netlnc(-)Atrbl To Inst/Nct
Netlnc(-)Atrbl To Noncntro
Netlnc(-)Atrbl To Sav Inst
116,706
143,845
143,845
143,845
20,797
4,290
16,507
16,164
100
687
930
19,346
-18,416
-1,640
-20,056
298
-20,354
o
-20,354
o
-20,354
135,039
164,036
164,036
164,036
22,208
5,209
16,999
18,468
107
661
-915
5,120
-6,035
-4,979
-11,014
131
-11,145
o
-11,145
o
-11,145
139,674
172,060
172,060
172,060
22,075
5,763
16,312
18,286
102
553
-1,523
14,545
-16,068
-6,011
-22,079
-1,063
-21,016
o
-21,016
o
-21,016
161,669
192,839
192,839
19.2,839
23,525
7,028
16,497
16,626
106
631
396
14,891
-14,495
-21,687
-36,182
-226
-35,956
o
-35,956
o
-35,956
205,788
228,228
228,228
228,228
24,516
7,242
17,274
17,349
150
658
433
12,166
-11,733
708
-11,025
-4,591
-6,434
o
-6,434
o
-6,434
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3"rd Prior Qtr 4th Prior Qtr

=================
S&L Pct S&L Pct S&L Pct S&L Pct
Group 5
S&L Med1an Pct
====== ====== ===
YRMO, Period End. . . . 201009
CAPITAL ADEQUACY - PCA REQUIREMENTS:
Total Risk-Based Capital 8.10 15.27 2
Tier 1 Risk-Based Cap'ital 6.84 14.15 3
9.02
7.75
7.42
Tier 1 Lever Capital (Core) 6.94 9.60 6
ASSET QUALITY:
pstOUe+NonacLns/OutLns&LeaS 9.18
Nonperf+Repo/Tier1Capl+Allo 53.67
30-89PastDue/Tier1Capl+Allo 26.59
3.45
19.00
5.86
EARNINGS: (as a % of Avg. Assets)
Interest & Dividend Income 3.92 4.39
Interest Expense .81 1.17
Net Interest Income 3.11 3.11
G&A Expense 3.05 2.59
Goodwill Amortization .02 .01
.Fee Income .13 .38
CoreInc:Before Loss Prov .18 1.06
Provisions for Loss 3.65.53
Corelnc:After Loss Prov -3.47 .31
Net Non-Core Income -.31 .17
Income Before Tax -3.78 .68
Income Tax .06 .19
IncTax Before Extra Item -3.84 .51
Extraordinary Items .00 .00
Netlnc(-)Atrbl To Inst/Nctl -3.84 .51
Netlnc(-)Atrbl To Noncntrol .00 .00
NetInc(-)Atrbl To Sav Inst. -3.84 .51
85
84
97
9.26
43.95
26.66
23 3.67
18 .86
50 2.81
65 3. 05
61 .02
:1.9 .11
13 - .15
92 .85
9 c1. 00
7 -.82
5 -1. 82
2B .02
5 -1. 84
50 .00
5 -1. 84
48 .00
5 -1. 84
201006
14.82 3
13.77 3
9.47 11
9.18
7.91
6.63
3.76
18.75
6.11
4.42
1.37
3.02
2.54
.01
.42
1.05
.49
.37
.14
.65
.17
.45
.00
.45
.00
.45
87
81
97
9.43
47.82
27.85
15 3.12
17 .82
35 2.31
67 2.59
63 .01
16 .OB
B - .22
71 2.06
21 -2.27
1 -.85
11 -3.12
28 - .15
7 -2.97
50 .00
7 -2.97
4B . 00
7 -2.97
201003
14.48 2
13.36 2
9.26 5
10.07
B.81
7.68
3.90
19.41
7.01
4.51
1.47
3.10
2.63
.01
.37
1.02
.51
.35
.12
.74
.22
.49
.00
.49
.00
.49
91
85
97
6.88
35.66
16.08
6 3.47
15 1. 04
15 2.43
47 2.45
62 .02
16 .09
11 .06
83 2.20
12 -2.14
2 -3.20
6 -5.34
13 -.03
3 -5.30
SO .00
3 -5.30
47 .00
3 -5.30
200912
14.11 2
12.88 3
9.11 16
11.07
9.82
8.77
3.43
17.28
6.20
4.67
1.51
3.12
2.54
.01
.44
1.09
.62
.31
.09
.51
.16
.38
.00
.38
.00
.38
77
73
83
7.03
23.91
23.36
7 3.94
15 1.16
17 2.78
44 2.79
64 .02
17 .11
10 .07
84 1. 96
15 -1.89
1 .11
3 -1. 77
32 - . 74
1 -1. 03
50 .00
1 -1. 03
49 . 00
1 -1. 03
200909
13.51 8
12.31 10
9.10 43
3.40
17.16
7.50
4.81
1. 76
3.04
2.49
.01
.40
1.07
.56
.36
.09
.52
.15
.40
.00
.40
.00
.40
85
66
96
14
16
33
62
69
16
8
80
14
56
15
10
15
50
15
50
15
Int BA/Int Brng Liablties 101.56 110.54
10 103.30 110.20 13 101.77 10B.72 11 103.76 109.21 11 109.20 109.49 44
LIQUIDITY/ASSET LIABILITY MANAGEMENT:
Pre-Shock NPV %PV of Asset .00 .00
post-Shock NPV Ratio .00 .00
Sensitivity Meas:Decline NPV .00 .00
OTHER ELEMENTS:
Net Int/Avg.Earning Assets 3.34
Total Nonint Exp./Avg.Assets 3.10
Net Income!Avg Total Equity -54.31
Net Losses!Avg.TotlLnS&LeaSe 5.66
Earn Coverage of Net Losses .88
ALLL/Total Loans & Leases 3.20
Nonperf Loans & Leases/ALLL 176.37
3.40
2.66
4.59
.B4
5.68
1.4.2
186.30
44
44
44
43
63
5
94
10
89
48
10.36
9.50
.85
3.06
3.07
-27.32
.05
56.29
3.02
181.24
12.75
12.20
.76
3.25
2.56
4.10
.72
5.61
1.32
182.09
16
12
60
9.43
9.43
.00
35 2.77
65 2.60
6 -47.36
7 4.08
94 1.14
89 2.59
48 211. 73
Displayed as NA if the institution has not filed section CMR.
1290
12.66
11.78
.88
3.42
2.69
4.11
.73
5.01
1.30
200.84
7 10.59
12 10.59
2 .00
26 2.77
46 2.48
3 -69.31
89 2.18
12 2.07
86 2.51
51 177.58
12.71
11.64
.88
3.39
2.63
3.78
.78
4.87
1.28
188.58
15 10.14
35 9.92
1 .22
19 2.95
44 2.82
1 -12.94
85 .91
27 3.21
90 1. 92
47 161.31
12.57
11.84
.71
3.27
2.57
3.46
.73
5.74
1.19
202.43
24
30
15
34
57
14
55
32
81
43
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
ASSET QUALITY - SUPPLEMENTAL DETAIL
United western Bank
DOCKET: 06679 TFR STATUS:
AS OF: 11/02/2010 CMR STATUS:
IN PROCESS
NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd prior Qtr
PAGE 35
4th Prior Qtr
_.==111_=== __ =----= ============-=--=
YRMO, Period End ..
201006
SINGLE-FAMILY LOAN DELlQUENCY LOAN CHARGE-OFF DETAIL
LOANS PAST DUE 30-89 DAYS AND STILL ACCRUING: ($000 at
PermMtg,1-4 Unit 11,986
End of Period)
11,725 .
Revolv Qpen End 0
First Liens 11,986
Junior Liens 0
LOANS PAST DUE 90+
PermMtg,1-4 unit
Revolv Qpen.End
First Liens
Junior Liens
NONACCRUING LOANS:
PermMtg,1-4 unit
Revolv Qpen End
First Liens
Junior Liens
DAYS AND
,
STILL ACCRUING: ($000
9,694
o
9,694
o
($000 at End of Period)
20,695
o
20,695
o
o
11,725
o
at End of Period)
8,464
o
8,464
o
13,265
o
13,265
o
NET GVA CHARGE-OFFS
PermMtg,1-4 Unit
Revolv Qpen End
First Liens
Junior Liens
& CHANGES IN SVA' S ($000
1,123
1,123
During Period)
323
o
323
o
o
o
201003 200912
11,733 14,365
0 0
11,733 14,365
0 0
9,715 7,986
0 0
9,715 7,986
0 0
12,501 13,723
0 0
12,501 13,723
0 0
678 495
0 0
678 495
0 0
CUrrent Quarter
1st Prior Qtr. 2nd Prior Qtr 3rd Prior Qtr
====c_.=_====_==_ ===== ==== = =-=.===---==-===== -=--=-=.--==-=-=-
Pet S&L Pet S&L Pet S&L Pet
====== -===-= ---
YRMO, period End.... 201009 201006
SINGLE-FAMILY LOAN DELIQUENCY LOAN CHARGE-OFF RATES
LOANS PAST DUE 30-89
permMtg,1-4 Unit
Revol v Qpen End
First Liens
DAYS AND STILL ACCRUING:
3.78 .91 91
.00 .46 12
4.02 .98 89
Junior Liens
.00 .61 11
LOANS PAsT DUE 90+
PermMtg,1-4 Unit
Revolv openEnd
First Liens
Junior Liens
DAYS AND NON ACCRUING:
9.59 1.91 93
RATES OF GVA CHARGE-OFFS AND
PermMtg,l-4 unit
Revolv Open End
First Liens
Junior Liens
.00 .59 11
10.20 2.07 93
.00 1. 05 15
CHANGES
.35
6.42
.00
.00
IN SVA'S:
.11 78
.06 98
.09 17
.00 30
3.53
.00
3.74
.00
6.54
.00
6.93
.00
.09
.00
.10
.00
(\ of Outstanding
.94 90 3.37
.42 12 .00
.95 89 3.57
.58 12 .00
2.00 89 6.39
.56 10 .00
2.30 87 6.77.
.91 13 .00
.07 57 .19
.05 26 .00
.04 64 .21
.00 31 .00
201003 200912
Gross Loans in Each Category)
1.16 93 4.10 1.00 94
.40 14 .00 .49 13
1.12 92 4.34 1.06 91
.60 13 .00 .70 12
1.91 87 6.19 1.76 90
.60 13 .00 .51 12
2.31 84 6.57 1.95 87
.66 15 .00 .51 15
.09 66 .14 .11 54
.00 30 .00 .01 28
.05 72 .15 .08 65
.01 26 .00 .00 31
200909
14,940
0
14,940
0
7,204
0
7,204
0
13,393
0
13,393
0
27
0
27
0
4th Prior Qtr
======------=._-=
S&L Pet
200909
4.14 1.15 94
.00 .49 12
4.38 1.07 93
.00 .47 12
5.70 1.66 92
.00 .44 13
6.04 2.00 85
.00 .51 16
.01 .05 21
.00 .00 28
.01 .04 32
.00 .00 31
CUrrent Quarter 1st Prior Qtr 2nd Prior Qtr 3rd Prior Qtr 4th Prior Qtr
YRMO, Period End.... =============;oioo;============;oio06============;oioo3============;00912=========-==200909
PAST DUE LOANS: GNMA BUY-BACKS,
30-89 DAYS PAST DUE:
GNMA BuyBekLNS
Held for Sale
USGuar Ex GNMA BB
All LnS 30-89 Days PD
90+ DAYS PAST DUE:
GNMA BuyBekLns
Held for Sale
USGuar Ex GNMA BB
All Lns 90+ Days PD
NONACCRUAL :
GNMA BuyBekLns
Held for Sale
'USGuar Ex GNMA BB
All NonAeerual LnS
US GUARANTEED,
2,672
11,700
2,492
49,351
6,603
9,194
2,346
9,694
0
10,827
887
62,904
AND HELD-FOR-SALE
2,396
14,634
3,044
54,701
6,243
8,464
1,867
8,464
0
10',024
106
65,093
1291
($000 End of Period)
2,808 2,276 2,524
11,365 13,532 14,385
2,790 4,050 3,552
58,038 36,812 60,134
6,960 5,804 5,254
9,524 9,267 7,010
2,214 1,917 1,778
14,732 9,867 7,328
,0
0 0
9,125 9,807 11,174
45 49 50
60,853 53,052 38,655
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
5-QUARTER UTPR REPORT FOR QUARTER ENDED 201009
ASSET QUALITY - SUPPLEMENTAL DETAIL
United Western Bank
DOCKET: 06679 TFR STATUS:
nATA AS OF: 11/02/2010 CMR STATUS:
IN PROCESS
NONRESPONDER
CUrrent Quarter 1st Prior Qtr 2nd Prior citr 3rd Prior
PAGE 36
Qtr 4th Prior Qtr
_.-.=--=---=.-.==
_ .===--=._.==-===
=_=.c c=_= __ =_= _ _= __ = __ c_= ___ ==_=
-=======-===-----
Group 5 Group 5 Group 5 Group 5 Group 5
S&L Median Pet S&L Median Pet S&L Median Pet S&L Median Pet S&L Median Pet
==._=_= _== __ e c=_ ._._== -==
--==.- =-- ==-=-- ======
. YRMO , Period End ..
201009 201006 201003 200912 200909
PAST DUE LOAN RATES:
GNMA BUY-BACK, US GUARANTBED, AND HELD-FDR-SALE It of Total Assets)
30-89 DAYS PAST DUE:
.13 .00 96 .11 .00 97 .11 .00 97
GNMA BuyBeksLns
.09 .00 97 .10 .00 97
Held for Sale
.57 .00 98 .66 .00 98 .44 .00 97 .54 .00 97 .55 .00 97
USGuar Ex GNMA BB
.12 .00 96 .14 .00 96 .11 .00 96 .16 .00 98 .14 .00 98
Tot All Loans 30-89
Days PD 2.38 .61 96 2.48 .64 95 2.24 .77 91 1.47 .65 80 2.31 .74 96
90+ nAYS PAST DUE:
.32 .00 97 .28 .00 97 .27 .00 97 .23
GNMA.BuyBcksLns
.00 97 .20 .00 97
Held for Sale
.44 .00 98 .38 .00 98 .37 .00 98 .37 .00 98 .27 .00 98
USGuar Ex GNNA BB
.11 .00 98 .08 .00 98 .09 .00 97 .08 .00 98 .07 .00 98
Tot All Loans 90+ Days
PD .47 .00 93 .38 .00 90 .57 .00 93 .39 .00 89 .28 .00 83
NONACCRUAL :
.00 .00 48 .00 ;00 49 .00 .00 50
GNMA BuyBeksLns
.00 .00 50 .00 .00 50
Held for Sale
.52 .00 98 .45 .00 97 .35 .00 97 .39 .00 97 .43 .00 97
USGuar Ex GNMA BB
.04 .00 92 .00 .00 83 .00 .00 81 .00 .00 80 .00 .00 83
Tot All NonAeerual LnS
3;04 1.59 71 2.95 1.51 73 2.35 1.52 66 2.12 1.49 65 1.49 1.46 51
ASSET QUALITY SUMMARY EXCLUDING US GUARANTEED
PORTION OF DELINQUENT LOANS AND GNMA BUY-BACK LOANS: It of Total Assets)
Total 30-89 Days PO 2.13 .60 93
2.23 .64 92 2.03 .70 88 1.22 .64 71
Total 90+ Days PO .04.00 65
.02 .00 61 .21 .00 82 .09 .00 76
Total Nonaecrual 3.00 1. 57 72
2.95 1.51 73 2.35 1.52 66 2.12 1.49 65
Total NP Loans . 3.26 1.61 72
3.09 1.65 73 2.70 1.53 67 2.26 1.57 65
GENERAL ALLOWANCE AND ALLL AS A PERCENT OF NONPERFORMING ASSETS
LESS US GUARANTEED
PORTION OF LOANS AND GNMA 40.51 41.62 48 49.56
GENERAL ALLOWANCE AND ALLL AS A PERCENT OF NONPERFORMING ASSETS
LESS LOANS HELD FOR
SALE IN NONPERFORMING 39.89 55 58.57 41.06 57 45.37 42.75 53
lEA/ICL SUMMARY ADDING BACK US GUARANTEED PORTION OF LOANS AND GNMA BUY-BACKS IN
NONACCRUAL STATUS OF THE NUMERATOR:
58.86
44.55 55
44.50 65
2.08 .73 92
.01 .00 58
1.49 1.46 51
1.54 l..48 52
54.58 43;01 60
69.32 43.01 67
lEA less LnSrvRghts/ICL
101.78 117.31 5 103.48 117.16
7 101.80 116.89 7 103.71 115.50 7 109.11 116.44 16
lEA+BOLI+I/O/ICL
103.54118.44 5 105.16 118.30 7 103.21 118.17 7 105.21 117.07 7 110.62 117.96 16
pURCHASED IMPAIRED LOANS HELD FOR INVESTMENT ACCOUNTED FOR UNDER SOP03 - 3 :
current Quarter 1st Prior.Qtr 2nd Prior Qtr . 3rd Prior Qtr 4th Prior Qtr
YRMO, Period End .....
=============;oioo;====--======20io06============;oioo;============;00912============;00909
1$000 End of Period)
OUtstanding Bal. contrl. 0
Reerd Invstmnt 54 DelLosAl 0
Loss Allowances 0
OUtstanding Bal. Contrl.
Reerd Invstmnt B4 DelLosAl
Loss Allowances .
S&L Median Pet
.00
.00
.00
.00 44
.00 44
.00 49
o 0 0 0
o 0 0 0
o 0 0 0
S&L Median Pet S&L Median Pet S&L Median Pet S&L Median Pet
-===e;
.00
.00
.00
.00 46
.00 46
.00 49
1292
.00
.00
.00
.00 46
.00 46
.00 49
.00
.00
.00
.00 46
.00 46
.00 49
.00
.00
.00
.00 46
.00 46
.00 49
TabC
Exhibit 44 G
(Memo Ex. 7)
1293 .
05.57 11/02/2010
section
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
, 3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
United Western Bank
DOCKET. 06679 TFR STATUS. IN PROCESS
DATA AS OF. 11/02/2010 CMR STATUS. NONRBSPONDER
Denver, CO
CHARTER. DIF-Ins Federal Stock
Table of Contents
Page
Nuiilber

A.Summary Statement ...................... ; ........... 1-2
B.Detailed Income Statement (SOOO) 3-4
Detailed Income Statement (%Avg.TA) .................... 5-6
C.Analysis of Net Interest Income. Composition of lEA & ICL .... 7
Analysis of Net Interest Income. yields and Spreads ........ 8
D.Detailed Balance Sheet (SOOO) 9-11 .
Detailed Balance Sheet ('TA) ............................... 12 -l4
E.Asset Quality ($000) ........................................ 15
Asset Quality (t) ................. ; . : .. 16
F . Allowances ($000 & %) 17-19
G.Capital Accounts and Requirements ($000 & %) ............... 20
Total Assets by Risk Weight Category ($000 & %) ......... ::21
H.Changes in Financial Condition ($000) ........................ 22
Changes in Financial Condition (II) . 23
I.Lending, Investment, Foreclosure, and Restructuring ($000) ... 24
Lending, Investment, Foreclosure, and Restructuring ("') ...... 25
J. Questions , Strategies, New Deposit Yields ............... 26
K.Composition and Off-Bal.Sheet Positions of CMR Portfolio ($000) .27-29
composition and Avg.Contract yields of CMR Portfolio (%) ...... 30-32
L.Interest Rate Risk Information ........................... 33
M. Exam Ratio Information .................................. 34
N.Asset Quality - supplemental DetaiL ................... ' ....... 35-36
Peer Group Definitions.
Group 1
Group 2
Group 3
. Group 4
GrOUp 5
Group 9
Group 6
Assets less than. $5Q million. .
Assets between 150 million and $100 million
Assets between 100 million and $300 million
Assets between 300 million and $1 billion
Assets between $1 billion and $5 billion

1294
0.5: 57 11/0.2/20.10.
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 20.10.0.9
SUMMARY STATEMENT, Part 1
united Western Bank
DOCKET:
0.6679 TFR STATUS: IN PROCESS
PAGE 1
11/0.2/20.10. CMR STATUS: NONRESPONDER
Current Quarter Prior
Prior Quarter Prior Year Year End Total
DATA AS OF:
t Change
from Beg. Bal. CUrrent Quarter

_==.=B=.====m __ =_ _=======_._.===== _ _ _.=_====
--=-==-=---------
S&L Median Pct S&L Median Pct S&L Median Pct 1 Qtr 1 Year
YRMO, Period End ..

1.1 Cash,Dep.+lnv.secur. 10..28
2.2 Mortgage Backed Secur. 20..77
2.6 Mortgage Loans:
Construction LnS 5.74
PermMtg,l-4 Dwel.Units 15.31
PermMtg,5+ Dwel.Units 2.10.
permMtg,Nonresidential 29.16
permMtg, Land 3 . 60.
Other:IR+AdvTI-contras -1.49
3.1
t g 1 :
5.1 EqlnvNtSbjctFASB Nol15 .46
5.5 Office Premises + Sq. 1.0.7
5.8 Other Assets 3.91
Total Assets 10.0..0.0.
7.0. Total Liabilities:
7.1 Deposits and Escrows

SUbtotal of 7.0.
79.78
12.75
.70.
93.23
8.0. Total
7 J2
unr1Gain/LoSSAvai14Sal -.18
Gains/LossCashFlwHedge .0.0.
Other .0.0.
Retained Earnings -1.0.3
Other components .0.0.
Subtotal 6 . 77
Noncntrnlnt cnsld Sub. . DO.
Total Equity Capital 6.77
Total Liabilities + Equity 10.0..0.0.
20.10.0.9
75
10..14
12.14
1:11
25.47
1.49
13.38
.86
-.39
53.18
7.10.
.19
.0.0.
.72
LCD
2.97
10.0..0.0.
77.26
9.33
.86
89.36
.0.0.
5.92
.0.5
.0.0.
.0.0.
4.55
.0.0.
10..64
.0.0.
10..64
10.0..0.0.
52 13.84
71 19.30.
93 7.14
19 15.0.8
56 2.0.4
94 26.88
78 3.96
9 -1.40.
51 53.70.
51 7.26
88 .75
43 .0.0.
27 .43
51 1.0.1
63 3.70.
50. 10.0..0.0.
68 80..20.
64 11.84
31 .72
92 92.75
48 .0.0.
69 7.49
10. -.19
51 .0.0.
65 .0.0.
13 - .0.5
60. .0.0.
7 7.24
88 .0.0.
7 7.25
50. 10.0..0.0.
20.10.0.6
79
9.70.
12.21
1.33
27.62
1.52
12.36
.92
-.37
53.85
6.83
.21
.0.0.
.79
.98
2.88
10.0..0.0.
76.96
9.66
.74
89.59
.0.0.
5.91
.0.5
.0.0.
.0.0.
4.53
.0.0.
10..41
.0.0.
10..41
10.0..0.0.
65 23.71
65 13.96
95 10..63
17 13.89
55 1.58
91 21.60.
80. 3.79
11 - .80.
48 50..69
53 6.32
75 .60.
44 .0.0.
26 .47
51 .88
61 3;36
50. 10.0.0.0.
65 79.23
60. 11.39
45 .66
88 91.28
46 .0.0.
65 6.22
11 -.0.8
53 .0.0.
64 .0.0.
18 2.58
60. .0.0.
ll, 8.72
86 .0.0.
11 8.72
50. 10.0..0.0.
._.===
20.0.90.9
77
7.64
11.82
1.87
29.86
1.49
12.80.
.89
-.30.
57.0.6
7.72
.18
.0.0.
.80.
1.0.2
2.64
10.0..0.0.
75.32
11.65
.87
90..31
.0.0.
5.0.7
.0.2
.0.0.
.0.0.
4.50.
.0.0.
9.69
.0.0.
9.69
10.0..0.0.
84 25.24
56 12.90.
94 9.99
16 14.0.1
51 1.47
84 21.98
79 3.69
15 -1.0.6
42 50..0.7
47 6.42
70. .75
42 .0.0.
25 .38
39 .91
65 3.33
50. 10.0..0.0.
65 81.39
48 10..41
33 .67
70. 92.47
47 .0.0.
57 6.46
20. - .18
52 .0.0.
66 .0.0.
29 1.24
58 .0.0.
29 7.53
85 .0.0.
29 7.53
50. 10.0..0.0.
Group 5
Current Quarter
Group 5 Group 5
Prior Quarter Curr Qtr Prior Yr
20.0.912
77
8.10.
11.31
1.82
29.62
1.47
12.81
.88
-.34
55.75
7.35
.18
.0.0.
.78
1.0.3
3.0.4
10.0..0.0.
76.75
10..72
.81
90..0.3
.0.0.
5.24
.0.1
.0.0.
.0.0.
4.58
.0.0.
9.97
.0.0.
9.97
10.0..0.0.
85
53
96
16
50.
83
78
14
39
46
75 .
42
20.
41
55
50.
75
48
39
87
46
60.
16
52
65
23
58
12
85
12
50.
20.10.0.9
-30..3
1.0.
-24.6
-4.7
-3.5
1.8
-14.7
-.5
-4.9
.5
62.5
NA
.7
-1.0.
-.8
-6.1
-6.6
1.1
-8.6
-5.7
NA
.1
-10..5
NA
NA
1966.6
NA
-12.4
.0.
-12.4
-6.1
20.10.0.9
-65.5
18.5
-57.0.
-12.2
6.1
7.5
-24.4
47.6
-14.5
-2.1
73.7
NA
-22.2
-4.1
-7.3
-20..4
-19.8
-10..9
-16.2
-18.7
NA
2.2
90..8
NA
NA
-131.9
NA
-38.2
.0.
-38.2
-20..4
==.-==-==-=--==-- ==========_._.-.=-
YRMO, period End ...

20.10.0.9
75
2,0.69,723
20.10.0.6
79
2,20.5,.348
20.0.90.9
77
2,599,251
20.0.912
77
2,50.2,727
20.0.812
72
2,240.,378
FIRRBA CAPITAL COMPLIANCE:
Core Capital(tAdj TangTA)
Risk Based capital (tRWTA)
6.94 9.60.
8.10. 15.27
6
2
7.42 9.47 11 8.77 9.10. 43 7.68 9.11 16 7.65 8.68 27
9.0.2 14.82 3 11.0.7 13.51 8 10..0.7 14.11 2 10..55 13.35 12
Core Capital (SDDo.)
Risk Based Capital ($CDD)
Core Cap Surplus ($0.0.0.)
RiskBasedCap.Surp1us ($0.0.0.)
FDICIA PCA CAPITAL RATIOS:
Total Risk-Based
Tier 1 (Core) Risk-Based
Tier 1 (Core) LeVerage
8.10.
6.84
6.94
143,845
116,70.6
-22,0.38
-56,20.5
15.27 2
14.15 3
9.60. 6
9.0.2
7.75
7.42
164,0.36
135,0.39
-12,732
-44,690.
14.82 3
13.77 3
9.47 11
11.0.7
9.82
8.77
228,228
20.5,788
124,158
57,0.94
13.51 8
12.31 10.
9.10. 43
10..0.7
8.81
7.68
192,839
161,669
92,439
33,289
14.11 2
12.88 3
9.11 16
10..55
9.68
7.65
174,0.34
189,536
82,985
45,817
13.35 12
12.52 12
8.68 27
INTEREST EARNING ASSETS:
lEA/ICL .
10.1.56 110..54 10. 10.3.30. 110..20. 13 10.9.20. 10.9.49 44 10.3.76 10.9.21 11 10.4.75 10.8.99 15
CONSOLIDATED ASSET QUALITY TREND:
Non-Performing Loans 3.51
Repossessed Assets, Gross 1.31

TDR Loans + Reposs'd TDR 2.44
CLASSIFICATION OF ASSETS:
Substandard 17.60.
Doubtful .28
Loss .0.0.
Total Classified 17.87
Total Classified/NPA 371.34
Sub+Doubt / CoreCap+GVA 199.29
Sub+Doubt/RBC+ExcessGVA 267.11
Special Mention Assets 2.91
1.62 72
.19 88
.19 88
2.23 78
.83 76
(t
3.34
.75
.75
4.0.9
1.29
of Total
1.65 76
.21 75
.21 75
2.0.3 73
.87 60.
Assets)
1. 77
.60.
.60.
2.37
1.0.3
4.49
.0.0.
.0.0.
4.51
196.19
42.93
43.0.2
1.10.
97 15.97
89 .29
49 .0.0.
96 16.26
83 397.55
96 174.74
97 230..53
78 2.97
4.35
.0.1
.0.0.
4.39
162.53
39.77
39.77
1.37
97 5.38
90. .13
49 .00.
97 5.51
87 232.56
96 55.61
98 69.55
80. 1.42
ALLOWANCES FOR LOAN & LEASE LOSSES:
Mtg Loan ALLL, t Mtg LnS 3.0.3 1.17
86
73
54
18
2.90.
2.96
45.0.0.
11.48
1.15
1.86
41.0.6
23.05
88
68
53
15
1.91
1.21
46.32
20..38

Tot.GenAllow+ALLL,t(Cl-Los} 11.30. 19.24
1.50.
.18
.18
1.89
.51
3.76
.0.1
.0.0
3.90.
164.70.
37.22
37.22
1.23
.98
1.58
43.0.1
22.80.
56 2.51
70 .75
70. .75
60. 3.26
66 1.20.
69 13.57
82 .21
49 .0.0
71 13.78
72 422.47
71 150..64
79 196.22
55 1.74
88 2.46
38 1.95
56 43.41
44 10..46
1.57
.18
.18
2.0.5
.64
4.20.
.0.0.
.0.0.
4.20.
179.58
38.56
38.57
1.23
1.0.4
1.89
44.23
21.30.
69 L16
75 .31
75 .31
69 1.47
62 .31
97 2.43
88 .0.6
50. .0.0.
97 2.48
89 169.15
97 29.0.9
97 29.36
62 .51
92 .97
53 1.0.7
47 50..42
14 31.0.7
.95
.09
.0.9
1.0.1
.22
1.60.
.00
.0.0.
1.69
141.0.8
17.0.0.
17.0.5
.75
.82
1.29
65.41
35.0.2
57
68
68
58
56
58
75
50.
60.
68
63
63
38
62
33
40.
38
EFFICIENCY RATIO:
t G&A/(NIM+Fees+FHLB Div)
94.0.1 71.72 86 10.4.58 69.0.6 91 96.75 69.18 92 83 . 64 70..62 79 60..95 67.84 33
1295
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEARUTPR REPORT FOR ENDED 201009
SUMMARY STATEMENT, Part 2
05:57 11/02/2010
United Western Bank
PAGE 2
DOCKET: 0667g TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter Prior Quarter, YTD Prior Year PreviousPriorYr
s_=== ___ ==_== ===a._=====._.==_ ==_=a=_===_.= __ ==
=====._=-= -====-==-========
SGeL Pct SGeL Pct
3
SGeL Pct S&L Pct
12
200912
S&L Pct
Months in Period
YRMO, Period End .
suMMARy INCOME STATEMENT:
1.1 Interest&Dividnd Income
2.1 Interest ExPense
3.1 Net Interest Margin
3.92
.81
3.11
3.62
. 3.2 Net Prov. for lEA Losses
3.3 Net Int.After lEA Loss
Provision: (3.1)-(3.2) -.51
4.0 Noninterest Income -.lB
5.1 Noninterest Expense 3.10
6.0 Income Before Income Taxes
(3.3)+(4.0)-(5.0) -3.78
7.1 Income Taxes .06
8:0 Net Inc.Before Extraord
Items: (6.0)-(7.0) -3.B4
8.1 EXtraordinary Items .00
9.1 ROAA: (8.0)+-(8.1) -3.84
Return on (ROE) -54.3i
Net Income ($000)
Avg Assets
Avg Equity
PROFITABILITY ANALYSIS:
lEA yield .
JCOF (with Cap. Int.)
Spread, lEA Yld-COF
Net Int. Marg. (NIM)
Fee Income
Goodwill Expense (GDW)
G&A ExPense
NIM/G&A EXpense (t)
Core Inc befor Prov
ROAA
Return on (ROE)
Net Income ($000)
MORTGAGE LOAN ACTIVITY:
Mtge Loans Originated
Mtge Loans Purchased
Mtge Loans Sold
Subtotal,Orig+Pur-Sales
Other Changes (by diff.)
Net Change in Mtg. Lns.
4.21
.8B
3.-33
3.11
.13
.02
3.05
102.12
.18
-3.84
-54.31
1.51
.08
.67
.92
-3.54
-2.62
CHANGES IN FINANCIAL COND.:
1.1 Cash,Dep.+Inv.Secur. -4.19
2.2 Mortgage Backed Secur. .19
2 . 6 Mortgage Loans -,2 . 62
3.1 Nonmortgage Loans .04
t g :

5 . 8 Other Assets - .,03
Total Assets -6.15
7.1
7.2
7.5
7.9
8.0
Deposits, NetofYld Adj

NonCtrl Int.Consl.Sub
Perpetual Pref.Stk
CommonStk +Paid-InCap.
UnrlGain/LossAvai14Sal
Retained Earnings
Other Components '
Total Liabilities + Equity
Chng Tot Liab.+ Eq. ($000)
-5.32
.13
-.06
.00
.00
.01
.02
- .92
.00
-6.15
MORTGAGE PRINCIPAL REPAYMENTS:
1. On Mortgage Backed Sec. -5.9B
2. On Mortgage Loans NA
OTHER RATIOS:
QTL Test: gi
Qtr. End
IRS Domestic BldgGeLoan Test
71.11
70.51
72.55
.00
== ==
3
201009 201006
9
201009
12
200812
4.39
1.17
3.11
.53
(t of Average Total Assets)
23 3.67 4.42 15 3.53
lB .B61.37 17 .83
SO 2.81 3.02 35 2.70
92 .B4 .48 73 2.10
2.36 7
. 7B 6
2.66 63
.68 5
.19 28
1.97
-.71
3.07
-1.82
.02
2.37 30
.60 1
2.56 65
.65 11
.17 2B
.60
-.58
2.90
-2.88
-.03
4.42 11
1.25 lB
3.17 25
.57 B2
2.42 10
.76 2
2.72 57
.79 6
.22. 11
4.08
1.13
2.95
1.54
1.41
-2.59
2.58
-3.76
-.92
4.85 II
1.81 14
3.02 41
.59 75
2.24 2B
.55 1
2.64 46
.41 3
.11 3
.51 5
.00 SO
.51 5
-1.B4 .45 7 -2.B5 .49 3 -2.83 .29 7
.00 .00 SO .00 .00 49 .00 .00 49
-1.84 , .45 7 -2.85 .49 3 -2.83 .30 7
(t
4.59 5
-20,354
Avg. Total Equity, Annualized w/o Compounding)
-27.32 4.10 6 -42.82 4.75 2 -37.85 2.90 5
-11,145 -52,515 . -69,359
2,122,338
149,906
4.83 21
1.52 13
3.2B 51
3.11 50
.38 19
.01 61
2.59 65
116.95 30
1.06 13
.51 5
4.59 5
-20,354
4.00
.96
3.04
2.81
.11
.02
3.05
92.05
-.15
-1.84
-27.32
2,423,089
163,206
4.89 16
1.63 15
3.10 43
3.02 35
.42 16
.01 63
2.54 67
120.46 21
LOS 8
.45 7
4.10 6
-11,145
3.97
.96
3.01
2.70
.10
.02
2.87
94.14
-.08
-2.85
-42.82
3.46
.00
.67,
2.44
-2.53
.. 00
(t Total Assets at Start of
23 1.95 3.11 28 4.95
76 .08 .00 72 .33
SO .46 .56 45 1.35
21 1.57 2.10 33 3.92
22 -3.17 -2.26 23 -8.99
10 -1.60 -.06 13 -5.07
.02
-.02
.00
.00
.00
.00
.0.0
.00
-.04
.58
5 -15.62
63 2.56
10 -1. 60
65 .19
94 -.29
51 .00
81 .00
40 -.01
53 -.04
5 -14.81
.57 3 -14.74
.19
.00
.00
.00
.12
.05
- .06 76
.05 23
.00 47
.00 SO
.00 76
.00 69

.58 5
-135,625
- .43
.00
-14. Bl
.24
-.01
-.06
2 -16.74
85 4.28
13 -5.07
.00
.00
.00,
.00
.00
65 .01
3 .33
54 .00
7B .01
-.01
.83
32 -.03
46 -.09
2 -17.30
1.03 2
-.03 83
.03 37
.00 48
.00 SO
.00 82
.05 SO
.07 11
.00 46
.83 2
-383,355
-15.41
.14
-.10
.00
.00
.14
.03
-2.10
.00
-17.30
2,457,917
163,535
4.90 14
1.59 14
3.22 36
3.17 25
.. 41 14
.01 59
2.66 59
ll8.75 25
1.12 6
.49 3
4.75 2
-52,515
4.42
1.29
3.13
2.95
.10
.02
2.55
115.72
.48
-2.83
-37.85
Period)
9.25
.00
2.1B
6.24
-6.92
-.11
25 14.23
69 .47
44 1.41
23 13.29
2B -19.14
10 -5.B4
2.02 2 24.79
.10 76 -8.2'3
-'.11 10 -5.84
.00 55 .57
.01 78 .52
.00 53 .00
.00 71 -.B8
-.01 39 .03
-.05 39 .74
3.ll 5 11. 71
3.95 3
-.31 69
.08 26
.00 48
.00 50
.00 69
.06 39
.32 3
.00 47
3.ll 5
-433,004
12.08
-2.15
.15
.00
.00
3.94
.79
-3.10
.00
11.71
2,447,683
1B3,267
5.27 II
2.29 11
3.05 56
3.02 41
.43 16
.01 61
2.46 51
120.87 43
.96 24
.30 7
2.90 5
-69,359
16.52 39
.05 69
3.52 ' 39
9.85 70
-10.81 11
-.04 17
1.74 97
.00 3
-.04 17
.00 69
.06 84
.00 53
.00 1
-.01 78
.50 74
2.31 76
5.60 7B
-2.00 43
.00 73
.00 94
.00 48
.08 92
.06 91
.25 6
.00 42
2.31 76
262,349
5.31
1.37
3.94
.63
3.32
.11
2.52
.91
.28
.63
.00
.63
9.411
5'.58
1.52
4.06
3.94
.13
.02
2.48
158.82
1.57
.63
9.48
31.59
.37
1.35
30.60
-19.63
,10.97
-1.32
-4.53
10.97
2.01
.09
.00
-.52
.40
.72
7.81
16.40
-8.45
-.31
.00
.00
.60
-.94
.51
.00
7.81
5.43 40
2.54 4
2.85 92
.46 57
2.27 92
.59 12
2.50 52
.65 66
.17 63
.45 67
.00 50
.45 67
3.7B 85
13,685
2,160,275
144,328
5.82 32
3.10 4
2.71 92
2.85 92
.43 16
.01 60
2.39 53
126.10 77
1.06 83
.45 67
3.78 85
13,685
19.08 71
.07 61
1. 85 46
16.04 85
-11. 24 19
4.33 '76
-.74 46
.73 2
4.33 76
.51 73
.05 56
.00 52
.05 1
.03 84
.26 63
8.69 46
6.87 78
1.29 5
-.01 16
.00 47
.00 .4B
.07 70
-.03 15
.18 70
.00 44
'8.69 46
162,374
(Non-Annualized t of Avg. Interest Earning Mtg. Backed Sec.)
-6.92 71 -5.93 -6.46 61 -19.96 -20.63 53 -34.26 -25.15 15 -17.82 -18.42 53
(Non-Annualized t of Avg. Interest Earning Mtg. Loans)

(Actual
80.70 17
80.71 14
Bl.42 26
.00 48
Thrift
71.02
71.59
71.69
.00
Investment
79.17 18
7.9.10 23
79.68 22
.00 48

70.51 80.71
72.55 Bl.42
.00 .00
17
14
26
48
70.08
69.90
69.55
.00
BO.20
80.89
79.09
.00
12 70.77
12 70.13
15 70.30
48 ,.00
81.02
81.28
81.54
.00
16
10
13
47
Total Lns / Dep'osits
Total Lns+MBS 7 Deposits
77.95 86.47 38 76.00 B7.61 31 77.95 86.47' 38
103.99 106.76 42 100.07 106.11 35 103.99 106.76 42
69.40 93.00
85.25 llO.49
21 86.73 101.B6
19 115.44 121.70
31
41
1296
05:57 11/02/2010
Months in Period
YRMO, Period End ....
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
DETAILED INCOME STATEMENT
($000)
United Western Bank
DOCKET: 06679 TFR STATUS:
DATA AS OF: 11/02/2010 CMR STATUS:
Current Quarter Prior Quarter
IN PROCESS
NONRESPONDER
YTD Prior Year
PAGE 3
PreviousPriorYr
================= ================= ================= =================
3 3
201009 201006
9 12 12
201009 200912 200812
DETAILED INCOME STATEMENT
1.1 Interest and Dividend Income:
379
4,126
14,116
11
1,997
o
115
o
2,112
64
o
20,797
572
4,343
15,089
21
2,013
o
128
o
2,14l
63
1,742
12,498
44,380
53
5,899
o
371
o
6,270
190
o
65,080
1,693
22,026
68,083
103
7,465
o
352
o
7,817
340
o
99,959
2,613
29,850
71,929
244
8,797
o
359
Deposits Invrnt.Secur.
Mtge Backed Sec.
Mtge Loans
Mtg Loan Servo Fees
NonMtg
Commercial Loan Fees
NonMtg
Consumer Loan Fees

Other Dividends
Subtotal, of 1.1
2.1 Interest Expense:
Deposits
Interest on Escrows
Advances from FHLBank
Subordinated Debentures

Less: capitalized Int.
Subtotal of 2.1
3.1 Net Int.Before lEA Loss
Provision: (1.1)-(2.1)
3.2 Net Provision for lEA
Losses
3.3 Net Int.After lEA Loss
Provision: (3.1)-(3.2)
4.0 Nonintereet Income;

Other Fees and Charges
Net Income (LosS) From:
Sales:Assets Held4Sale

Sales:OthrAssetsHld4Sal
OTT ImpairmntChgOnDebt
REO Operations&Sales
LOCOM Adj.Held4Sale
Sale: SecurHeld2Mat
Sale: LoansHeld4Inv
Sale: OthAssets4Inv
GainonTradingAssets
Oth.Nonlnter.lncome
Subtotal of 4.0
5.1 Noninterest Expense:
All Personnel Exp.
Legal Expense
Office Occupancy&Equip.
Marketing &Oth.ProfServ
Loan Servicing Fees
Oth,NonInterest Expense
Subtotal, G&A Expense
Less Godwll&IntglbeExps
NetProv,NonlEALosses
Subtotal of 5.1
6.0 Income Before Inc Taxes
7.1 Income Taxes:
Federal
State, Local, and Other
Subtotal of 7.1
8.0 Net Inc.Before Extraord
Income: '(6.0) - (7.1)
8.1 Extraord.lncome
Netlnc(-)Atrbl To Inst/Nctl
Netlnc(-)Atrbl To Noncntrol
Netlnc(c)Atrbl To Sav Inst.
ANALYSIS OF CORE INCOME:
Net Int.BeflEA LossProv
Mtg Loan Servicing
Serv Amort.&Va1ue Ad]
Other Fees and Charges

Core Inc. Bef Provisns
LossProv
Core Inc. Aft Provisns
Sale of Avai14Sale Secrties
Core+ProfitAH4S
2,328
4
934
o
1,024
o
4,290
16,507
19,188
-2,681
792
-416
311
1
1,001
o
-1,989
-376
-687
o
o
o
o
410
-953
4,093
773
834
408
478
9,578
16,164
100
158
16,422
-20,056
298
298
-20,354
o
-20,354
o
-20,354
16,507
792
-416
311
16,164
100
930
19,346
-18,416
1
-18,415

22,208
3,308
4
921
o
o
976
a
5,209
16,999
5,068
11,931
846
-545
360
o
1,544
o
-5,308
-1,089
-485 .
o
o
o
o
359
-4,318
4,906
342
984
560
513
11,163
18,468
107
52
18,627
-11,014
131

131
-11,145
o
-11,145
o
-11,145
16,999
846
-545
360
18,468
107
-915
5,120
-6,035
o
-6,035
1297
9,446
13
2,908
o
o
2,895
o
15,262
49,818
38,784
11,034
2,432
-1.,526
995
1.
3,141
o
-11,574
-3,897
-1.,424
o
o
o

1,123
-10,729
13,855
1,460
2,651
1,844
1,490
31,618
52,918
309
227
53,454
-53,149
-634
o
-634
-52,515
o
-20,354
o
-52,515
49,818
2,432
-1,526
995
52,918
309
-1,508
39,011
-40,519
1
-40,518
14,617
22
9,339
o
o
3,666

27,644
72,315
37,814
34,501
3,327
-2,485
1,553
-46,932
2,201
o
-21,033
-2,143
274
o
o
o
o
1,954
-63,284
20,099
1,686
3,202
1,714
2,078
33,712
62,491
424
290
63,205
-91,988
-22,629
o
-22,629
-69,359
o
-35,956
o
-69,359
72,315
3,327
-2,485
1,553
62,491
424
11,795
38,104
-26,309
-46,932
-73,241

9,156
1,134

114,682
12,737
44
13,769
o

2,975
o
29,525
85,157
13.,529
71,628
3,738
-2,610
1,686
763
o
o
NA
-534
-1,887

o
-2
o
1,329
2,483
19,952
1,108
2,500
1,331
2,301
26,427
53,619
334
456
54,409
19,702
6,017
o
6,017
13,685
o
NA
NA
13,685
85,157
3,738
-2,610
1,686
53,619
334
34,018
13,985
20,033
763
20,796
Codes:
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SuPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
NOTES TO DETAILED INCOME STATEMENT
($000)
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter Prior Quarter YTD Prior Year
--=========.====; ===============-; ================; _.=a_._.=_.=a==i;
Months in Period"
YRMO, Period End ..
201009 201006 201009 200912
Memo: LARGEST COMPONENTS
Other NonInterest Income
Amount
OF OTHER NONINTEREST INCOME AND OTHER NONINTEREsT EXPENSE
Items:
Code (S0489)
Amount
Code (S0495)
Amount
Code (S0497)
Other NonInterest Expense Items:
Amount
Code (S0581)
Amount
Code (S0583)
Amount
Code (S0585)
SERVICING DATA:
Loans Serviced for Others
Loan Servo Fee Income
Serv. by Others Expense
MUTUAL FUND ".. ANNUITY SALES:

ANALYSIS OF PERSONNEL EXPENSE:
End of Period FTEs-Actual #
Average # FTEs
Personnel Expense
ACCOUNTING CLASSIFICATIONS:

Assets Held-4-Sale
Avg.TradingAccountAssets
Avg.Avai14SaleSecurities
Avg.AssetsHeld4Sale
234
15
14
99
150
99
5,806
99
851
99
1,563
1
142,803
792
478
o
o
161
162
4,093
o
190,653
262,246
o
181,436
274,570
234
15
47
99
62
99
6,029
99
1,246
" 99
2,053
1
126,550
846
513
($000 During Period)
0
0
163
176
4,906
0
172,218
286,893
0
132,135
287,065
702
15
135
99
252
99
lB,869
99
2,673
99
5,412
1
142,803
2,432
1,490
0
0
161
175
13,855
0
190,653
262,246
0
125,387
279,911
948
15
776
99
213
99
21,742
99
2,813
99.
4,742
1
117,210
3,327
2,078
o
o
185
180
20,099
o
33,133
268,961
o
44,697
286,735
01 - No longer used
income taX refunds
PAGE 4
PreviousPriorYr
======-==-==-==.-
12
200812
954
15
40
99
335
99
19,804
99
1,901
99
1,026
1
87,045
3,738
2,301
o
o
191
179
19,952'
o
59,577
297,198
o
76,785
321,745
03 - No longer used ""
04 - Net income (lOSSi from leasing or subleasing space in the association's quarters,future quarters and parking
05 - Net income (loss from real estate held for .
06 - Net income (loss from in unconsolidated subordinate,organizations and pass-through investments.
accounted for us ng the equ1ty method, after the elimination of 1ntercompany profits
lots
07 - Net income llossl from leased property .
08 - Net income loss allocable to minority shareholders
09 - Net income from data processing equipment leased or services provided to others
10 - No longer used
: acquired through foreclosure or deed in lieu of foreclosure on VA or FHA loans
pending conveyance to the insuring agency
13 - No longer used
14 - Income from interest-only strip receivables and certain other instruments reported on SC655
15 - Income from Corporation-owned Life Insurance
19 - Realized and unrealized gains on derivatives, where such gains are not included in interest income or expense
99 - Other "
S0581, S0583 and S0585:
: premiums
03 - Interest income on income taxes
04 - Interest expense on Treasury tax and loan accounts administered under the note option
05 - Forfeited commitment fees on FHLBank advances not taken down by the association
06 SUpervisory examination fees
07 - Office supplies, printing postage
08 - Telephone, including data l1nes
09 - Noncapitalized loan origination expenses, including appraisal reports, credit reports, etc.
10 - ATM expenses
11 - Adjustments to prior periods ,
12 - Acquisition and organization costs, inClud1ng mergers and branch office acquisitions
13 - Miscellaneous taxes other than income taxes and real estate taxes
14 - Losses from fraud
15 - Foreclosure expenses
16 - Web site expenses
: shareho+ders
19 - Realized and unrealized gains on derivat1ves, where such losses are not included in interest income or expense
99 - Other
1298
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
DETAILED INCOME STATEMENT
(% of Average Total Assets of S&L, Annualized w/o Compounding)
05:57 11/02/2010
United Western Bank
PAGE 5
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter Prior Quarter YTD
Prior Year PreviousPriorYr
================= ================= =================
=================
=================
S&L Pct S&L Pct
Groul? 5
Groul? 5 Groul? 5
S&L Med1an Pct S&L Med1an Pet S&L Med1an Pet
Months in Period 3 3 9 12 12
YRMO, Period End ... 201009 201006 201009
200912 200812
DETAILED INCOME STATEMENT:
1.1 Interest and Dividend Income:
.09 .08 56 .09 Deposits & Invmt.Secur. .07 .09 44 .08 56 .07 .08 43 .12 .16 39
Mtge Backed See. .78 .41 68 .72 .50 66 .66 .51 63 .90 .56 69 1.38 .47 77
Mtge Loans 2.66 2.78 43 2.49 2.81 35 2.41 2.82 30 2.78 3.03 37 3.33 3.51 46
Mtg Loan Servo Fees .00 .01 21 .00 .01 26 .00 .01 22 .00 .01 29 .01 .01 46
NonMtg Commr.Ln&Lease .38 .22 60 .33 .20 56 .32 .22 56 .30 .20 61 .41 .20 61
Commercial Loan Fees .00 .00 21 .00 .00 20 .00 .00 16 .00 .00 16 .00 .00 17
NonMtg Consm.Ln&Lease .02 .05 42 .02 .04 42 .02 .06 38 .01 .06 32 .02 .08 33
Consumer Loan Fees .00 .00 17 .00 .00 H .00 .00 15 .00 .00 14 .00 .00 14

.40 .44 47 .35 .44 45 .34 .47 40 .32 .49 44 .42 .55 43
.01 .00 68 .01 .00 65 .01 .00 67 .01 .00 66 .05 .03 73
Other Dividends .00 .00 46 .00 .00 47 .00 .00 44 .00 .00 44 .00 .00 44
Subtotal of 1.1 3.92 4.39 23 3.67 4.42 15 3.53 4.42 11 . 4.08
4.85 11 5.31 5.43 40
2.1 Interest Expense:
15 .51

.44 .88 13 .55 1.00 .92 13 .60 1.35 6 .59 1.B7 1
on Escrows .00 .00 92 .00 .00 91 .00 .00 92 .00 .00 91 .00 .00 94
Advances from FHLBank .18 .21 44 .15 .22 41 .16 .20 42 .38 .32 55 .64 .49 66
Subordinated Debentures .00 .00 48 .00 .00 47 .00 .00 48 .00 .00 46 .00 .00 47

.00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
.19 .01 84 .16 .02 78 .16 .01 80 .15 .03 76 .14 .03 74
Less: Capitalized Int. .00 .00 4B .00 .00 48 .00 .00 48 .00 .00 48 .00 .00 47
Subtotal of 2.1 .81 1.17 18 .86 1.37 17 .83 1.25 16 1.13 1.81 14 1.37 2.54 4
3.1 Net Int.Before lEA Loss
Provision; (1.1)-(2.1) 3.11 3.11 50 2.81 3.02 35 2.70 3.17 25 2.95 3.02 41 3.94 2.85 92
3.2 Net Provision for lEA
92 .84 .48 73 2.10 Losses 3.62 .53 .57 82 1.54 .59 75 .63 .46 57
3.3 Net Int.After lEA Loss
Provision: (3.1) - (3 .2) -.51 2.36 7 1. 97 2.37 30 .60 2.42 10 1.41 2.24 "26 3.32 2.27 92
4.0 Noninterest Income:
Mtg Loan Servo Fees .15 .01 85 .14 .01 83 .13 .01 85 .14 .01 83 .17 .01 87
Serv Amort.&Value Adj -.OB .00 21 -.09 .00 13 -.08 .00 18 -.10 .00 14 - .12 .00 12
Other Fees and Charges .06 .40 10 .06 .40 12 .05 .41 10 .06 .40 10 .08 .41 12
Net Income (Loss) From:
.00 59 .00 .00 30 .00 Sales:Assets Held4Sale .00 .00 39 -1.92 .06 1 .04 .03 52
Sales:Lns&LeasHeld4Sale .19 .03 61 .25 .02 82 .17 .03 72 .09 .02 66 .00 .00 50
Sales:OthrAssetsHld4Sal .00 .00 49 .00 .00 49 .00 .00 49 .00 .00 48 .00 .00 50
OTT ImpairmntChgOnDebt -.37 .00 5 -.88 .00 1 -.63 .00 1 -.86 .00 5 NA NA NA
REO Operations&Sales -.07 -.02 31 -.18 -.01 16 - .21 -.02 13 -.09 -.01 25 -.02 .00 30
LOCOM Adj.Held4Sale -.13 .00 5 -.08 .00 7 -.08 .00 9 .01 .00 98 -.09 .00 4
Sale: SecurHe1d2Mat .00 .00 50 .00 .00 51 .00 .00 51 .00 .00 49 .00 .00 49
Sale: LoansHeld4Inv .00 .00 48 .00 .00 48 .00 .00 48 .00 .00 47 .00 .00 45
Sale: OthAssets4Inv .00 .00 48 .00 .00 50 .00 .00 48 .00 .00 50 .00 .00 9
GainonTradingAssets .00 .00 45 .00 .00 49 .00 .00 48 .00 .00 49 .00 .00 51
Oth.Nonlnter.lncome .OB .OB 47 .06 .05 51 .06 .08 40 .08 .07 61 .06 .06 46
Subtotal of 4.0 -.18 .78 6 -.71 .60 1 -.58 .76 2 -2.59 .55 1 .11 .59 12
5.1
15 .81 18 .75 .77 1.32 1.27 1.32 17 .82 1.24 19 .92 1.31 28
Expense .15 .02 89 .06 .02 75 .08 .02 85 .07 .03 B7 .05 .03 88
Of ice .16 .46 11 .16 .43 12 .14 .45 10 .13 .44 8 .12 .44 7
Marketing &Oth. ro Serv .06 .14 23 .09 .13 27 .10 .14 32 .07 .12 20 .06 .14 12
Loan Servicing Fees .09 .00 94 .08 .00 93 .08 .00 94 .OB .00 94 .11 .00 95
Oth.Nonlnterest Expense 1. 81 .48 92 1.84 .44 92 1.72 .47 92 1.38 .50 89 1.22 .36 87
Subtotal, G&A Expense 3.05 2.59 65 3.05 2.54 67 2.87 2.66 59 2.55 2.46 51 2.48 2.39 53
Less Godwll&IntglbeExps .02 .01 61 .02 .01 63 .02 .01 59 .02 .01 61 .02 .01 60
NetProv,NonlEALosses .03 .00 82 .01 .00 71 .01 .00 72 .01 .00 69 .02 .00 B4
Subtotal of 5.1 3.10 2.66 63 3.07 2.56 65 2.90 2.72 57 2.58 2.64 46 2.52 2.50 52
6.0 Income Before Inc Taxes -3.78 .68 5 -1.82 .65 11 -2.88 .79 6 -3.76 .41 3 .91 .65 66
7.1 Income Taxes;
28 .16 31 -.03 Federal .06 .18 .02 .19 11 -.92 .08 3 .28 .16 67
State, Local, and Other .00 .01 30 .00 .01 25 .00 .02 25 .00 .01 31 .00 .01 30
Subtotal of 7.1 .06 .19 28 .02 .17 28 -.03 .22 11 -.92 .11 3 .28 .17 63
8.0 Net Inc.Before Extraord
Income: (6.0)-(7.1) -3.84 .51 5 -1.84 .45 7 -2.B5 .49 3 -2.83 .29 7 .63 .45 67
8.1 Extraord.lncome .00 .00 50 .00 .00 50 .00 .00 49 .00 .00 49 .00 .00 50
Netlnc(-)Atrbl To Inst/Nctl -3.84 .51 5 -1. 84 .45 7 -1.10 .17 5 -1.47 .11 1 NA NA NA
Netlne(-)Atrbl To Noncntrol .00 .00 48 .00 .00 48 .00 .00 48 .00 .00 49 NA NA NA
Netlnc(-)Atrbl To Sav .lnst. -3.84 .51 5 -1. 84 .45 7 -2.85 .49 3 -2.83 .30 7 .63 .45 67
ANALYSIS OF CORE INCOME:
Net Int.BeflEA LossProv 3.n 3.11 50 2.81 3.02 35 2.70 3.17 25 2.95 3.02 .41 3.94 2.85 92
Mtg Loan Servicing .15 .01 85 .14 .01 83 .13 .01 85 .14 .01 83 .17 .01 87
Serv Amort.&Value Ad) -.08 .00 21 -.09 .00 13 -.08 .00 18 -.10 .00 14 -.12 .00 12
Other Fees and Chargee .06 .40 10 .06 .40 12 .05 .41 10 .06 .40 10 .OB .41 12
Less G & A Expense 3.05 2.59 65 3.05 2.54 67 2.87 2.66 59 2.55 2.46 51 2.48 2.39 53
Less Goodwill Expense .02 .01 61 .02 .01 63 .02 .01 59 .02 .01 61 .02 .01 60
Core Inc. Bef Provisns .18 1.06 13 -.15 1.05 8 -.08 1.12 6 .48 .96 24 1.57 1.06 83
LossProv 3.65 .53 92 .85 .49 71 2.12 .58 78 1.56 .61 74 .65 .48 57
Core Inc. Aft Provisns -3.47 .31 9 -1.00 .37 21 -2.20 .45 l3 -1. 07 .19 23 .93 .43 67
Profit:AssetsHeld4Sale .00 .00 59 .00 .00 30 .00 .00 39 -1.92 .06 1 .04 .03 52
Sale of Avai14Sale Secrties -3.47 .36 9 -1. 00 .38 20 -2.20 .46 13 -2.99 .32 6 .96 .50 71
Avg Assets 2,122,338 2,423,089 2,457,917
2,447,683 2,160,275
1299
05:57
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED
NOTES TO DETAILED INCOME' STATEMENT
united Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: CMR STATUS: NONRESPONDER
CUrrent Quarter
CUrrent Quarter Prior Quarter Prior Year Year
PAGE 6
Prior Previous Prior
End Total Year End Total
=.-.--===-=------
____ a=== __ ==._._= ===_a __ a== _____ ._
__=_=_=a _________
===-=====-======-
S&:L Pct
S&L pct S&L Pct S&L Pct S&L
.-._-- ==-=== === --===- -===-= =--
==--== --==== ===
---===
YRMO, Period End .
201006 200909 .
Memo:
LARGEST COMPONENTS OF OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE
Other
NonInterest Income Items: .
Annualized w/o Compounding)
(t Of Average Total Assets of S&L,
Amount
.04 .04 56 .04 .04 52 .04 .03 61 .04 .03 56 .04
Code (S0489)
15 15 . 15 15
Amount
.00 .00 43 .01 .00 55 .00 41 .03 .01 78 .00
Code (S0495)
99 99 99 99
Amount
.03 .00 89 .00 83 .01 .00 78 .
.00 79 .02
Code (S0497)
99 99 99 99
Other NonInterest Expense Items:
Amount
1.09 .13 94 1.00 .12 93 1.04 .13 94 .89 .16 93 .92
Code (S0581)
99 99 99 99
Amount
.16 .07 85 .21 .08 92 .15 .07 84 .11 .09 64 .09
Code (S0583)
99 99 99. 99
Amount
.29 .06 92 .34 .06 93 .16 .06 80 .07 83 .05
Code (S0585)
1 1 1 1
SERVICING DATA:
3.15 61 5.74 3.61 58 4.26
Lns Serv for Others/Assets
6.90
4.23 51 4.68 4.36 51 3.89
Loan Servo Fee Income
.15 85 .01 83 .13 .01 82 .14 83
Fees t Avg. Servicing
2.35 .25 98 2.72 .25 94 3.23 .25 98 3 .. 34 .24 98 5.21
Servo by Others Expense
.09 .00 94 .08 .00 93 .08 .00 93 .08 .00 94 .11
MDTtlAL FUND & ANNUITY SALES:
(t Total Assets, Beginning of Period)

.00 .00 47 .00 ,00 47 .00 .00 46 .00 .00 46 .00
.00 .00 50 .00 .00 SO .00 .00 SO .00 .00 26 .00
ANALYSIS OF. PERSONNEL EXPENSE:
Labor intensity
.76
101. 06
1. 79
77.02
(Avg. Full-Time Employees/$10 Million of Avg. Assets)
13 .73 1. 78 .71 1.83 15.74 1.80 15 .83
78
(Avgl 1,.P5eOrso7nn5.e4l9 Expense per Employee, $OOO/Full-Time Employee)
11 116.11 74.05 88 111.51 76.14 88 111.62
salary & benefits level
ACCOUNTING CLASSIFICATIONS:
Trading Account Assets
Avail-4-Sale Seaurities
Assets
.00
9.21
12.67
.00

.19
( ;) Av. TradingAccontAssets .00 .00
TradingAssets Gain/LOSS NA 2.53
Av.Avail4salesecurity B. 55 40
(*) Av.AssetHld4Sale 12.94 .13
Profit+LOCOM on Hld4S -.25 .00
See page 4 for Codes.
48
43
92
48
N:A
44
93
15
(t of Total Assets)
.00 .00 47 .00
7.81 41 1.34
13.01 .07 93 10.72
.00 46
10.20 20
.OB 93
.00
1.32
10.75
.00 46
10.77 20
.OB 93
.00 .00 46 .00 .00 46 .00 .00 44
NA
23 20 1.83
(t of Avg. Trading Assets, not
NA .51 NA NA 4.86
(t of Total Assets)
5.45 33 1.47 10.38
Annualized)
NA NA 16.06
(t of Total Assets)
11.85 .08 93 11.32 93 11.71 .28 93

1300
for Sale, not Annualized)
1.07 7 -16.27 7
.00
2.66
13.27
.00
NA
3.55
14.89
-.35
200812
.03
.01
.00
.09
.06
.05
2.47

.25
.00
.00
.00
1.90
70.46
.00

.04
.00
-3.85
9.61
.07
15.13
Pct
59
15
39
99
78
99
94
99
77
99
SO
1
52
87
98
95
47
25
16
87
45
30
94
45
NA
30
95
19
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
ANALYSIS OF NET INTEREST INCOME BEFORE PROVISION FOR lEA LOSSES: Composition of lEA &. ICL
05:57 11/02/2010
YRMO, Period End ....
1. INTEREST EARNING ASSETS:
Net caSh. ,Dep., &'Inv. Sec 'jAl!
cash &. Non-IE Deposits A2
Accrued Int.Rec. A3)
SUbtot:(A=Al-A2-A3+A4)
Net MBS (
Bl
1
Accrued Int.Receiv. (B2
Total Allowances (B3
Subtot: (B) = (BI-B2+B3
Net Mtg Lns (Cl
Accrued Int.Receiv. (C2!
Non-Accruing Mtg LnS (C3
Total Allowances,MTGLns( C41
Subtot: (C)=(CI-C2-C3+C4
Net NonMtg Lns. (Dl
Accrued Int.Receiv. ID21
Non-Accruing NonMtg LoS D3

Eqtylnv NotSbjctFASB115 (EI
Servicing Rights (F
Total lEA: (G)=lA+B+C+D+E+F
United Western Bank
DOClCET: 06679 TFR STATUS:
DATA AS OF: 11/02/2010 CMR STATUS:
current
CUrrent Quarter
212,855
14,697
239
197,919
429,921
1,542
NA
428,379
1,126,352
4,080
58,428
35,453
1,099,297
160,923
580
4,476
5,709
161,576
9,577
6,012
1,902,760
Prior .Quarter. Prior
($000 at End of Period)
305,309
13,983
279
291,047
425,628
1,581
NA
424,047
1,184,196
4,637
61,272
35,668
1,153,955
160,137
569
3,821
4,918
160,665
9,513
6,289
2,045,516
IN PROCESS
NONRESPONDER
Quarter . Prior
Year End. Total Year
616,165
22,609
287
593,269
362,871
1,571
0
361,300
1,317,585
4,936
38,090
26,498
1,301,057
164,342
565
565
2,008
165,220
12,311
7,791
2,440,948
200912
631,701
34,344
311
597,046
322,902
. 1,484
o
321,418
1,253,212
4,851
49,926
32,228
1,230,663
160,670
537
3,126
3,204
160,211
9,388
7,344
2,326,070
2. INTEREST COSTING LIABILITIES:
Deposits-Nonlnt.DemandD (H)
Advances from FHLBank (J!
Subordinated Debentures (K
Collaterized Secur. IL!
1,609,572
1.69,754
o
o
94,185
1,873,511
41,744
($000 atEnd of Period)
1,719,127 1,939,180 1,981,373
180,607
o
o
79,855
2,241,835
55,657

. Memo: Nonlnt. Demand Dep
3. NET lEA, lEA-ICL: (E-N)
4. lEA &. ICL BALANCES:
Total lEA
Total ICL
4.3 NON - ICL BALANCES:
Total Equitr Ca
1
ital

4.6 NON - lEA BALANCES:
lEA Adjs. (Al+ ... +DI-E)
Net Repos'd Assets
Net REI
Other (by diff.)
169,1'84
0
216,636
0
0 0
91,848 79,440
1,980,159 2,235,256
49,611 120,078
29,249 65,357 205,692 84,235
_ a __ = ____ = _____ =_
==_======_======= c==a===_== __ ==_== _=_==== __ ======= _
S&L Pct
91.93
90.52
92.71
83.56
S&L Pct S&'L Pct S&'L Pct

42 92.75 93'.21 46 93.91 93.56 53 92.94 92.22 53
96 89:79 84.61 93 86.00 83.75 60 89.58 84.55 88
6.77
2.71
9.48
1.32
1.31
.00
5.44.
8.07
10.64
4.17
16.44
1.16
.19
.00
5.48
7.29
7
28
3
51
88
43
48
57
7.25
2.97
10.21
1.35
.75
.00
5.14
7.25
10.41
4.69
15.39
1.06
.21
.00
5.27
6.79
11
30
6
58
75
44
41
53
8.72
5.28
14.00
.77
.60
.00
4.72
6.09
9.69
4.67
16.25
.92
.18
.00
4.96
6.44
29
55
39
43
70
42
44
46
7.53
2.90
10.42
1.69
.75
.00
4.62
7.06
9.97
4.14
15.45
1.35
.18
.00
5.52
7.78
12
32
11
56
75
42
38
46
PAGE 7
Previous Prior
Year End Totalr
200812
76,277
22,285
458
53,534
507,176
2,226
o
504,950
1,384,127
5,804
18,837
14,994
1,374,480
147,915
562
529
1,596
148,420
29,046
9,496
2,119,926
1,715,051
226,721
o
0
82,004'
2,023,776
51,336
96,.150
=---=.-===-=-===-
S&.L Pct
94.62 93.78 65
90.33 1i5.85 86
6.77
2.89
9.67
-.20
.31
.00
5.26
5.38
9.28
4.09
14.15
.67
.09
.00
5.08
6.22
13
31
13
12
68
41
54
34
Total Non-lEA (TA-E)

CUrrent Quarter
Months in Period -=-=====;;=.=-=;====
YRMO, Period End.... 201009
5. AVERAGE INTEREST EARNING ASSETS:
Dep&Inv.sec:(a11=lavg of AI 244,483
Mtg Bckd Sec(bl = avg of B 426,213
Mtg Lns: (cl = avg of C
MBS&ML (bc)=(avg of BC! 1,621,578
NonMtg Lns: (dl) = (avg of D 161,121
Eqtylnv Not SbjctFASB No115 9,545
Lns ser (F) 6,151
Total lEA: (gl)=(avg of E) 1,974,138
6. AVERAGE INTEREST COSTING LIABILITIES:
Deposits: (h11=(avg of H) 1,664,350
FHLBank Adv: lil =(avg of J) 169,469
Subord.Debn: Kl =(avg of K) 0
MtgCltrzdSec 11 =!avg of LI 0
OtllBorrwing: (ml = avg of M 93,017
Total ICL: (nl)= avg of N 1,926,835
7. AVG.NET lEA: (gl-01) 47,303
_=_==c=_=._====_
8. AVG.lEA &. ICL BALANCES:
Average Total lEA
Average Total ICL
Average Net lEA
S&.L Pct
93.02
90.79
2.23
93.02
84.40
9.06
SO
94
11
Prior QUarter YTD prior Y.ear
=c=== __ =_=== ____ = ==_= __ ==_== __ ==== ========== ___ ===_
($000
($000
3 9 12
201006 201009 200912
Average Balance
480,064 .
390,962
1,174,732
1,614,173
157,711
9,482
6,529
2,219,478
Average Balance
1,907,429
168,904
o
o
89,654
2,165',986
1301
during Period)
452,537
385,607
1,171,481
1,621,578
158,772
9,482
6,151
2,184,457
during Period)
1,870,110
170,996
o
o
88,776
2,129,882
342,033
413,841.
1,321,831
1,568,901
155.,798
18,226
7,568
2,260,012
1,842,951
213,415
o
o
79,926
2,136,291
123,721
======-====-=-=--
5
S&'L Medl.an Pct
==-=== ===-=-
Period)
92.33 92.76 44
87.28 84.42 71
5.05 8.25 26
PreviousPriorYr
12
200812
67,306
554,397
1,253,114
1,871,892
137,706
33,099
9,873
2,056,354
1,490,238
378,238
o
o
80,131
1,948,607
107,747
._.======---=-=--
S&L Pct
95.19 94.35 61
90.20 84.93 90
.4.99 8.40 14

ANALYSIS OF NET INTEREST INCOME BEFORE PROVISION FOR lEA LOSSES: Yields and Spreads
05: 57 11/02/2010
united western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02(2010 CMR STATUS: NONRESPONDER
current Quarter Pr40r Quarter YTD Prior Year
PAGE B
PreviousPriorYr
=====_.===== =; -==.=-=====-=-=-; ._.=====_ _._--; ============-==== ===-=.=
Months in Period
YRMO, Period End ...
201009 201006 201009
12
200912
12
200812
9. INTEREST & DIVIDEND INCOME
Deposits '& Invmt.Secur. !a21
Mtge Backed Sec. b2
MtgeLoans C2!
...
Eqtylnv NotSbjctFASB115(e2
Total lEA: (g2)=(f2)
10. INTEREST EXPENSE ON:
'Deposits' !h21
Escrows i2
Advances from FHLBank (i2\
SUbordinated DebentureS!k2
Mtg Collaterized Secur. 12
Other Borrowed Money m2)
Subtotal,(n2)=(h2++m2 1
capitalized Interest (02
Total ICL,(r2=n2-02)
FROM:
379
4,126
14,116
2,112
20,733
64
20,797
,2,328
4
934
o
o
1,024
4,290
o
4,290
11. IMPACT OF lEA/ICL IMBALANCES:

Spread*AvglEA*Months/12
16,507
= (s2) = (g3-r3) * (gl) 16,402
Adj. if lEA<>lCL: (by aiff. 105
-=--==-=.-.=--=-=
S&L Pct _.____ s _____
12 . YIELDS ON AVERAGE lEA COMPONENTS:
Dep .. &Invmt.Secur: (a3=a2/'al) .62 1.1B
Mtge Backed Sec !b3=b2Zbl\ 3.87 3.47
Mtge Loans: c3=c2/cl 5.01 5.60
NonMtg Loans: !d3=d2/dl 5.24 5.81
Equity Invest: e3-e2.el) 2.68 .65
Subtotal: (f3)" (f2/fl1
4.20 4.B2
lEA yield
(g3=g2/g1 4.21 4.B3
13. YIELDS ON AVERAGE ICL COMPONENTS:
Deposits: (h3=h2/hl! .55 1.28
FHLBank Adv: !j3=j2Zil 2.19 3.21
Subord.Deben: k3=k2Zkl NA 5.14
Mtg Cltrzd Sec.: (13-l2/l1! NA NA
Other Borrowing: (m3=m2/ml 4.37 1.88
26
67
20
30
71
21
'21
10
25
NA
NA
8'l
($000 During Period)
572
4,343
15,089
2,141
22,145
63
22,208
($000 During Period)
3,308
4
921
o
-0
976
5,209
o
5,209
16,999
($000 During Period)
16,870
129
1,742
12,49B
44,3BO
6,270
64,890
190
65,OBO
9,446
13
2,908
o
o
2,895
15,262
o
15,262
49,81B
49,426
392
_==_= __ =_________ _.=_a __ a __ ._.= __ _
1,693
22,026
68,OB3
7,B17
99,619
340
99,959
14,61,7
22
9,339
o
0,
3,666
27,644,
o
27,644
72,:U5
70,715
1,600
----=--=---------
2,613
29,850
71,929
9,156
113,54B
1,134
114,6B2
12,737
44
13,769
o
o
2,975
29,525
o
29,525
B5,157
83,507
1,650
S&L Pct S&L Pct S&L Pct S&L Pct
=----- ------ --- ------ ------ --- =---=- ------
(% various Assets, Annualized w/o Compounding)
.4B 1.24 25 .51 1.29 25 .49 1.B2 17 3.BB
4.44 3.72 74 4.32 3.63 73 5;32 4.58 86 5.38
5.14 5.55 20 5.05 5.58 17 5.15 5.70 18 5.74
5.43 5.B6 35 5.27 5.B9 30 5.02 5.94 21 6.65
2.66 .43 69 2.67 .44 71 1.B7 1.05 63 3.43
(% Average Total lEA, Annualized w/o Compounding)
3.99 4.85 16 3.96 4.B7 14 4.41 5.27 11 5.52
4.00 4.B9 16 3.97 4.90 14 4.42 5.27 11 5.58
(% of Various Liabilities, Annualized w/o co
l
mp. 9und5ing) .B5
.70 1.36 12 .6B, 1.37 11 .79 .S
2.19 3.69 14 2.27 3.4B lB 4.3B 3.70 Bl 3.64
NA 5.05 NA NA 5.04 NA NA 4.74 NA NA
NA NA NA NA NA NA NA NA NA NA
3.BB
4.96
6.14
6.63
3.8B
5.75
5.B2
2.94
4.01
3.08
NA
3.40
50
83
13
52
30
32
32
1
31
NA
NA
53
Subtotal: (n3) = (n2/nl 1
4.37 3.33 7B 4.36 1.94 B4 4.59 2.68 85 3.71
(%.Average Total ICL, Annualized wlo Compounding)
.88 1.52 13 .96 1.63 15 .96 1.59 14 1.29 2.29 11 1.52 3.10
.00 .00 48 .00 .00 48 .00 .00 48 .00 .00 48 .00 .00
4
47
Capitalized Int. (03=02/nl
COF w/o Cap. Int. (r3=r2/nl)
COF w/Cap. Int. : (r4=r3+03)
Note: COF+capInt-Escrowlnt
14. lEA-ICL YIELD SPREADS:
Annualized: (u3)=(g3-r4)
.88 1.52 13 .96 1.63 15 .96 1.59 14 1.29 2.29 11
.88 1.52 13 .96 1.63 15 .96 1.59 14 1.29 2.29 11

3.33 3.28 51
3.01 3.22 36 3.13 3.05 56
15.
IMPACT OF lEA/ICL IMBALANCES:
(% Average Total Assets, Annualized w/o
Netlnt.Bef.lEALossprov(NIM)
3.11 3.11 50 2.81 ' 3.02 35 2.70 3.17 25 2.95 .02 4

3.10 2.98 59 2.78 2.91 41 2.68 2.97 32, 2.B9 2.88 52
A j.if I <>ICL: by d f .)
.01 .12 13 .02 .14 11 .02 . 14 9 . 07 .18 14
16. COMPOSITION OF AVG. lEA:
(% of Average lEA)
Dep and Inv Sec
12.38 8.10 65 21.63 9.35 81 20.72 8.32 80 15.13 6.25 74
Mtg Backed Sec
21.59 14.42 68 17.62 13.23 61 17.65 14.20 56 18.31 12.95 64
Mtg Loans
57.07 57.09 48 52.93 57.71 40 53.63 56.87 42 58.49 60.97 46
Non Mtg Loans
8.16 8.16 50 7.11 7.24 48 7.27 7.74 47 6;89 8.57 44
Eqtylnv Not SbjctFASB Nol15
.48 .83 28 .43 .86 22 .43 .83 23 .81 .92 41
Lns ser (F)
.31 .01 85 .29 .01 82 .28 .01 '84 .33 .01 80
17. COMPOSITION OF AVG.
lCL:
(% of Average ICL)

86.38 88.63 42 88;06 87.69 51 87.BO 87.39 51 86.27 83.85 56
8.80 8.40 52 7.80 8.10 46 8.03 8.43 46 9.99 11.47 47
Subord. Deben.
.00 .00 47 .00 .00 46 .00 .00 47 .00 .00 45

.00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
4.83 1.30 73 4.14 1.10 66 4.17 1.44 68 3.74 2.21 60
1302
1.52 3.10
1.52 3.10
to 11th Dist.
NA NA
4.06 2.71
3.94 2.B5
3.87 2.54
.08 .26
3.27 5.22
26.96 10.12
60.94 63.54
6.70 8.89
1.61 .96
.48 .01
76.48 B2.06
19.41 13.70
.00 .00
.00 .00
4.11 .87
4
4
COF)
NA
92
92
92
9
33
73
46
45
88
87
36
67
47
50
71
05: 57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
- 3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: ASSETS, Part 1 of 2
($000 Balance at End of Period)
United
DOCKET: 06679
DATA AS OF: 11/02/2010
Western Bank
TFR STATUS:
CMR STATUS:
IN PROCESS
NONRESPONDER
Current Quarter Prior Quarter
Current
Prior
Quarter Prior
Year Year End Total
=================
YRMO, Period End ....
DETAILED BALANCE SHEET ASSETS:

USGov&Agency Securities
Sec. Subject to FASB 115
Int.-EarningDep.inFHLBs
Other Int.-EarningDep.
Fed Funds Sold&Repos *
State &Muni Obligations
Securties Bkd NonMort Lns
Other Invest.Securities
Subtotal,IEDep&MiscSec.
Accrued Int.Receivable
Subtotal of 1.1
2.2 Mortgage Bckd.Secur.
Pass Through:
Guaranteed By USGov/Ag.
Oth PassThruSecurities

by FNMA/FHLMC/GNMA
Col laterized by MBS
Other
Subtotal Other MBS
Accrued Int. Receivable
General Allowances
Subtotal of 2.2
Loans:
1-4 Dwelling Units
5+ Dwelling Units
Subtotal, Res.Property
Non-Res.Property Constr.
Subtot., Gross Constr.Lne
Residential Permanent Mortgages:
1-4 Dwelling Units:
Revolving,Open-EndLns
All Other
Secured by First Liens
Secured by Junior Liens:
Subtotal,l-4 units
5+ Dwelling Units
Subtotal, Res.Property
Non-Res. (Except Land)
Land Perm. Mort.
Subtotal, permanent Mtg.
Gross Subtotal of Mtg Lns
Accrued Inter.Receivable
Advances for
ALLL
Subtotal of 2.6
3.1 Nonmortgage Loans
Commercial Loans:
Secured, Oth.than Mtgs
Unsecured
Credit Card Loans - BUS
Financing Leases
Subtotal,Commercial Lns -
Consumer Lns: Closed-End
Loans on Deposits
Home Improvement Loans
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other, Including Leases
Consumer Loans: Subtotal
Subtotal, NonMtg Loans
Accrued Int.Receivable
ALLL
Subtotal of 3.1
201009
14,697
41,649
o
87
156,158
o
o
o
25
156,270
239
212,855
23,583
73,760
97,343
168,682
o
162,354
331,036
1,542
NA
429,921
64,550
23,630
88,180
30,560
118,740
17,450
297,986
1,536
316,972
43,456
360,428
603,445
.74,485
1,038,358
1,157,098
4,080
627
35,453
1,126,352
146,666
9,858
o
631
157,155
3,146
o
o
591
83
o
5,077
8,897
166,052
580
5,709
160,923
201006
13,983
42,842
o
84
248,093
o
o
o
28
248,205
279
305,309
9,874
80,274
90,148
158,108
o
175,791
333,899
1,581
NA
425,628
73,135
28,478
101,613
55,895
157,508
17; 530
313,394
1,544
332,468
45,018
377 ,486
592,797
87,308
1,057,591
1,215,099
4,637
128
35,668
1,184,196
145,665
8,724
o
674
155,063
3,174
o
o
674
86
o
5,489
9,423
164,486
569
4,918
160,137
1303
=================
200909
22,609
47,305
o
4,621
541,307
o
o
o
36
545,964
287
616,165
12,660
121,765
134,425
o
o
226,875
226,875
1,571
o
362,871
111,966
46,572
158,538
117,877
276,415
18,392
341,102
1,587
361,081
40,948
402,029
561,506
98,465
1,062,000
1,338,415
4,936
732
26,498
1,317,585
146,006
11,586
NA
827
158,419
874
o
o
808
91
o
5,593
7,366
165,785
565
2,008
164,342

200912
34,344
45,295
o
52
551,668
o
o
o
31
551,751
311
631,701
12,214
104,517
116,731
o
o
204,687
204,687
1,484
o
322,902
97,410
43,671
141,081
108,923
250,004
18,325
330,658
1,598
350,581
36,773
387,354
550,209
92,230
1,029,793
1,279,797
4,851
792
32,228
1,253,212
144,292
8,279
NA
766
153,337
3,519
o
o
781
89
o
5,611
10,000
163,337
537
3,204
160,670
PAGE 9
Previous Prior
Year End Total
=================
200812
22,285
53,276
a
213
-0
o
o
o
45
258
458
76,277
15,628
182,762
198,390
a
o
306,560
306,560
2,226
o
507,176
113,190
62,049
175,239
100,197
275,436
20,066
361,968
1,714
383,748
49,623
433,371
560,655
123,182
1,117,208
1,392,644
5,804
673
14,994
1,384,127
128,162
17,703
NA
1,300
147,165
462
o
o
148
64
o
1,110
1,784
148,949
562
1,596
147,915
05.57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR llTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: ASSETS, Part 2 of 2
($000 Balance at End of Period)
united Western Bank
DOCKET. 06679 TFR STATOS.
DATA AS OF: 11/02/2010 CMR STATOS.
Current
Current Quarter Prior Quarter Prior
IN PROCESS
NONRESPONDER
Quarter Prior
Year Year End Total
PAGE 10
Previous .Prior
Year End Total
===0============= =======_=_=_===== =======_:II===_===-= ===_==:== =======.=====_===
YRMO, Period End. . 201009 201006 200909 200912 200812
DETAILED BALANCE SHEET ASSETS.
4.0 Net Repossessions
Repossessed Assets.
3,927 3,090 6,897
Construction
8,643 354
1-4 Dwelling units
2,095 2,129 2,957 2,280 1,983

0 0 0 1,360 0
6,347 4,838 i,241 1,009 103
Guar or Ins REO
11,487 4,163 2,230 3,058 1,977
3,169 2,415 2,236 2,360 2,608
Subtotal, REO
27,025 16,635 15.,561 18,710 7,025
Other Repossessions
0 0 0 0 0

27,025 16,635 15,561 18,710 7,025
0 0 0 0 0
Net Repossessed Assets
27,025 16,635 15,561 18,710 7,025
Real Est. Held4Investmt
0 0 0 0 0
Net Repos'ns & REI
27,025 16,635 15,561 18,710 7,025
5 .1 ct.FASB
No1l5
9,577 9,513 12,311 9,388 29,046
FHLBink Stoc
9,577 9,513 12,311 9,388 29,046
Premises and Eq.
0 0 0 0 0
22,053 22,285 22,992 22,774 22,000
5.8 Other Assets
81,017 81,645 87,424 83,370 66,812
Bank owned Life Insurance:
KeK Person Life Insurance
0 0 0 .0 0
Ot er
26,883 26,649 25,942 26,182 25,233
Intangible Assets
Servicing Assets On:
5,844 6,157 7,699

7,215 9,444
168 132 92 129 52
Goodwill and Oth. Intang.
517 609 844 760 889
10 Strip Rec.&Oth Instrum
0 0 0 0 0
Other Assets
48,226 48,678 53,509 49,734 31,894
General Allowance
621 580 662 650 700
TOTAL ASSETS
2,069,723 2,205,348 2,599,251 2,502,727. 2,240,378
Memo: Loans in Process on:
7,611 8,083 42,782
Mortg. Construction LOans
23,605 151,195
Other Mortg. Loans
22 63 783 204 462
Total Loans
7,633 8,146 43,565 23,809 151,657
Nonmortgage oans
734 1,019 123 63 243
Memo: Detail of Other
Assets:
(Largest Components of Other Assets)
Amount
26,343 24,711 21,998 19,864 8,446
Code (SC691)
3 3 3 3 9
Amount
5,291 5,731

5,551 1,335
Code (SC693)
9 9 9 14
Amount

11,442 12,307 16,441 20,841
Code (SC697)
4 4 4 4
COMMITMENTS OUTSTANDING:
($000 at End of Period)
To originate:
0 0 0 0
1-4 Mortgages
158
5+ Mortgages
0 0 0 0 0
All Other RE
42,542 32,964 30,682 29,637 106,395
Non-Mortgage Loans
8,444 11,145 3,491 4,441 4,710
To Purchase:
0 0 0
Loans
0 0
MBS
0 0 0 0 0
Inv. Securities
0 0 0 0 0
To Sell:
0 0 0
Loans
0 0
MBS
0 0 0 0 0
Inv. Securities
0 0 0 Q 0
1304
05:57 11/02/2010
Deposits>
Escrows*'
Subtotal of 7.1
7.15 Unamortized Yld Adj
7 . 2 Borrowings:
Advances from FHLBank
Reverse REPOs+FFunds Pur>
Subordinated Debentures

All Other Borrow1ngs
Subtotal of 7.2
7.5 Other Liabilities:
Accrued Int.Payable:Depos
Accrued Int.Payable:Other
Accrued Taxes
Deferred Income Taxes
AccntsPay.,Oth.L.&Def.Inc
Subtotal of 7.5
TOTAL LIABILITIES
8.0 Total Equity Capital:
Perpetual Preferred Stock
Cumul. Perp. Prefstk

Paid in Excess of Par
Retained Earnings
Accum Oth. Camp. Income
Unreal Gain/Loss Avai14Sal
Gains/Loss Cash Flow Hdg
Other
Other Components
Subtotal
NonCtrl Int.Consl.Sub
Total Equity Capital
TOTAL LIABIL.+ EQUITY CAP.
Memo: Equity - Goodwill
SUPPLEMENTAL DEPOSIT DATA:
Accntsw/Bal belw InsLimt
Accnts w/Bal abve InSLimt
AvgBal DepAct belw
AvgBal DepAct abve InsL1m1t
AvgBal: All Deposit Accta
BrokrOrigDep, FullInsurd<100
BrokrORigDep, FullInsrdl-25K
Other BrokerOrig.Deposits
Total Broker Orig.Deposits
IntExp Fuillnsrd BrokerOep
IntExp on Oth BrokerDepos1t
Uninsured Deposits
Insured Deposits
Preferred Deposits
Time Deposits > 250K
Non-Interest Demand Dep.
AvgDailyDep FulllnsrdBrkrOe
AvgDailyOep Other Broker De
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: LIABILITIES & CAPITAL
($000 Balance at End of Period)
United
DOCKET: 06679
DATA AS OF: 11/02/2010
Western Bank
TFR STATUS:
CMR STATUS:
IN PROCESS
NONRESPONDER
Prior Quarter
Current
Prior
Quarter Prior
Year Year End Total
=============== ====.============= =================
201006 200909 200912
1,529,079
122,250
1,651,329
-13
169,754
85,781
o
o
8,404
263,939
774
390
347
o
12,926
14,437
1,929,692
o
o
o
113
165,116
-21,389
-3,814
-3,814
o
o
o
140,026
5
140,031
2; 069,723
139,514
(Average
1,004,890
647,213
117,257
4,689,949
189,722
10,176
41,730
o
51,906
482
o
26,830
1,624,486
o
16,071
41,744
89,373
o
1,642,307
126,468
1,768,775
-37
169,184
79,565
o
o
12,283
261,032
1,600
409
184
o
13,604
15,797
2,045,567
o
o
o
113
164,961
-1,035
-4,263
-4,263
o
o
o
159,776
5
159,781
2,205,348
159,172
Deposits in Real
1,051,508
718,867
114,046
3,282,498
187,560
65,720
100,468
o
166,188
997
o
49,625
1,719,113
o
26,921
49,611
242,630
o
1,953,157
106,377
2,059,534
-276
216,636
78,513
o
o
927
296,076
748
1,057
412
o
15,018
17,235
2,372,569
o
o
o
113
161,482
67,081
-1,999
-1,999
o
o
o
226,677
5
226,682
2,599,251
225,838
Dollars)
821,514
1,238,768
91,841
3,450,607
221,440
264,075
NA
o
264,075
NA
NA
324,,825
1,734,433
o
NA
120,078
NA
NA
1,892,827
144,469
2,037,296
-266
180,607
78,635
o
o
1,220
260,462
1,004
915
456
o
14,504
16,879
2,314,371
o
o
o
113
161,660
31,125
-4,547
-4,547
o
o
o
188,351
5
188,356
2,502,727
187,596
1,121,040
917,260
127,725
1,887,366
220,048
575,648
NA
o
575,648
NA
NA
399,613
1,637,417
o
NA'
55,657
NA
NA
Memo: Detail of Other Liabilities: (Largest
3,376
Components of Other
3,517
Liabilities)
Amount
Code (SC791)
Amount
Code (SC794)
Amount
Code (SC797)
CONTINGENT LIABILITIES:
Unused Lines of Credit:
Open-End Consumer Lines
Commercial Lines
Letters of Credit:
Commercial
Obligations & Direct
Sub.
Recourse Obligations
Amt whr
Amt whr
Other Contingent Liab.
Contingent Assets
5
798
16
1,532
22
1,452
38,379
o
6,070
Credit Substitutes:
232,639
228,065
4,574
3,983
592,
o
o
* Excludes deposits from FDIC-insured subsidiaries
5
846
16
1,824
22
1,430
46,293
o
6,070
254,442
249,579
4,863
4,219
644
o
o
1305
3,939
5
992
16
850
22
2,546
44,815
o
8,783
7,129
o
7,129
5,909
1,220
o
o
3,798
5
906
16
1,296
22
2,380
42,650
o
8,471
228,639
222,570
6,069
4,246
1,074
o
o
PAGE 11
Previous Prior
Year End Total
=================
200812
1,621,751
144,702
1,766,453
-66
226,721
81,265
o
o
739
308,725
384
1,111
409
o
11,581
13,485
2,088,597
o
o
o
113
73,436
100,485
-22,256
-22,256
o
o
o
151,778
3
151,778
2,240,378
150,889
635,482
1,131,355
15,434
578,698
40,965
66,522
NA
o
66,522
NA
NA
231,699
1,534,688
a
NA
51,336
NA
NA
4,361
5
1,196
16
522
99
3,574
60,409
a
12,077
6,555
o
6,555
NA
NA
o
o
05: 57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: ASSETS, Part 1 of 2
(t of Total Assets at End of Period)
United Western Bank
06679 TFR STATUS:
11/02/2010 CMR STATUS:
Current
DOCKET:
DATA AS OF:
Current Quarter Prior Quarter Prior
. IN PROCESS
NONRESPONDER
Quarter Prior
Year Year End Total
PAGE 12
Previous Prior
Year End Total
==========="====== ================== ================= ================= =================
S&L Pct S&L Pct S&L Pct S&L Pct S&L Pct
YRMO, Period End ...
DETAILED BALANCE SHEET ASSETS:
1.1 Cash, Dep. &Inv. Secur .. :
Cash &Non-Int.EarningDep.
.71
USGov&Agency Securities
Sec. Subject to FASB 115
Int.-EarningDep.inFHLES
Other Int.-EarningDep.
Fed Funds Sold&Repos *
State &Muni Obligations
Securties Bkd NonMort Lns
Other Invest.Securities
Subtotal,IEDep&MiscSec.
Accrued Int.Receivable
Subtotal of 1.1
2.2 Mortgage Bckd.Secur.
USGov/Ag.
Oth PassThru Securities

by FNMA/FHLMC/GNMA
Collaterized by MBS
Other
Subtotal Other MBS
Accrued Int. Receivable
General Allowances
Subtotal of 2.2

1-4 Dwelling units
5+ Dwelling units
Subtotal, Res.Property.
Non-Res.Property Constr.
Subtot., Gross Constr.Lns
2.01
.00
.00
7.54
.00
.00
.00
.00
7.55
.01
10.2B
1.14
3.56
4.70
B.15
.00
7. B4
15.99
.07
NA
20.77
Loans:
3.12
1.14
4.26
1.48
5.74
Residential permanent Mortgages:
1-4 Dwelling Units:
Revolving,Open-EndLns
All other
Secured by First Liens
Secured by Junior,Liens:
Subtotal,l-4 Un1ts
5+ Dwelling units
Subtotal. Res.Property
Non-Res. (EXcept Land)
Land Perm. Mort.
Subtotal, Permanent Mtg.
Gross Subtotal of Mtg Lns
Accrued Inter.Receivable
Advances for'Taxes&Insur.
ALLL
Subtotal of 2.6
3.1 Nonmortgage Loans
Commercial Loans:
Secured, Oth.than Mtgs
Unsecured
Credit Card Loans - Bus
Financing Leases
Subtotal,Commercial Lns
Consumer Lns: Closed-End
Loans on Deposits
Home Improvement Loans
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other, Including Leases
Consumer Loans: Subtotal
Subtotal, NonMtg Loans
Accrued Int.Receivable
ALLL
Subtotal of 3.1
.84
14.40
.07
15.31
2.10
17.41
29.16
3.60
50.17
55.91
.20
.03
1.71
54.42
7.09
.4B
.00
.03
7.59
.15
.00
.00
.03
.00
.00
.25
.43
B.02
.03
.28
7.7B
201009
.84
1.09
.00
.04
1.96
.00
.08
.00
.11
4.99
.02
10.14
5.06
.00
5.06
.01
.00
.00
2.71
.05
NA
12.14
.40
.09
.6B
.32
1.11
2.61
20.84
1.05
25.47
1.49
36.36
13.36
.86
52.05
53.34
.19
.00
.59
53.1B
2.55
.26
.00
.00
4.49
.04
.00
.00
.05
.00
.00
.19
.58
7.27
.03
.15
7.10
3B
61
26
30
73
38
17
45
40
61
39
52
23
97
46
80
33
90
B5
65
NA
71
93
94
97
B6
93
28
35
15
19
56
19
94
78
47
52
56
80
89
51
BO
65
43
B6
68
82
40
41
43
73
36
53
42
51
46
68
51
.63
1.94
.00
.00
11.25
.00
.00
.00
.00
11.25
.01
13 .B4
.45
3.64
4.09
7.17
.00
7.97
15.14
.07
NA
19.30
3.32
1.29
4.61
2.53
7.14
.79
14.21
.07
15.08
2.04
17.12
26.6B
3.96
47.96
55.10
.21
.01
1.62
53.70
6.61
.40
.00
.03
7.03
.14
.00
.00
.03
.00
.00
.25
.43
7.46
.03
.22
7.26
201006
.B5
1.08
.00
.05
2.19
.00
.03
.00
.01
5.44
.01
9.70
4.35
.00
4.65
.02
.00
.00
1.89
.05
NA
12.21
.37
.09
.67
.44
1. 33
2.51
21.14
1.06
27.62
1.52
37.64
12.36
.92
53.13
54.39
.20
.00
.60
53.85
2.15
.20
.00
.00
4.05
.04
.00
.00
.04
.00
.00
.17
.59
6.87
.03
.13
6.83
35
58
26
23
86
35
21
44
42
75
48
65
25
97
45
81
36
B8
Bl
65
NA
65
95
95
96
91
95
28
30
15
17
55
17
91
80
3B
51
55
65
87
48
76
61
43
B8
67
85
40
42
4B
77
37
52
47
53
45
62
53
200909
.B7
1.82
.00
.18
20.B3
.00
.00
.00
.00
21.00
.01
23.71
.49
4.6B
5.17
.00
.00
8.73
8.73
.06
.00
13 .96
4.31
1. 79
6.10
4.54
10.63
.71
13.12
.06
13.89
1.58
15.47
21.60
3.79
40.B6
51.49
.19
.03
1.02
50.69
5.62
.45
NA
.03
6.09
.03
.00
.00
.03
.00
.00
.22
.2B
6.3B
.02
.08
6.32
.85
.62
.00
.02
.69
.00
.02
.00
.01
4.03
.01
7.64
4.73
.00
4.95
.00
.00
.00
1.47
.04
.00
11.82
.68
.OB
.98
.72
1.B7
2.44
22.21
1. 33
29.B6
1.49
3B.67
12. BO
.B9
53.29
57.02
.21
.00
.55
57.06
1.B6
.22
NA
.00
3.56
.04
.00
.00
.04
.00
.00
.13
.77
7.79
.03
.11
7.72
1306
51
66
25
71
96
33
23
44
44
91
47
B4
20
97
52
27
37
88
71
61
50
56
93
96
96
94
94
28
30
11
16
51
15
84
79
25
42
43
82
B3
42
71
61
NA
88
64
46
41
40
46
75
35
53
39
47
44
37
47
1.37
1.81
.00
.00
22.04
.00
.00
.00
.00
22.05
.01
25.24
.49
4.1B
4.66
.00
.00
B.18
8.1B
.06
.00
12.90
3.89
1.74
5.64
4.35
9.99
.73
13.21
.06
14.01
1.47
15.48
21.98
3.69
41.15
51.14
.19
.03
1.29
50.07
5.77
.33
NA
.03
6.13
.14
.00
.00
.03
.00
.00
.22
.40
6.53
.02
.13
6.42
200912
1.05
.69
.00
.04
.66
.00
.02
.00
.02
3.89
.01
8.10
5.02
.00
5.02
.00
.00
.00
1.51
.04
.00
11.31
.60
.OB
.82
.61
1.B2
2.53
21.B6
1.24
29.62
1.47
37.93
12.81
.88
53.54
56.06
.20
.00
.56
55.75
2.32
.26
NA
.00
3.66
.04
.00
.00
.04
.00
.00
.13
.72
7.41
.03
.13
7.35
64
60
26
24
96
32
23
44
41
93
47
85
20
97
46
26
37
B7
69
57
50
53
93
96
96
96
96
2B
32
12
16
50
15
83
78
25
39
46
84
97
39
71
53
NA
85
64
B4
39
41
48
75
35
52
44
46
42
48
46
.99
2.38
.00
.01
.00
.00
. 00
.00
.00
.01
.02
3.40
.70
8.16
B.86
.00
.00
13.68
13.6B
.10
.00
22.64
5.05
2.77
7. B2
4.47
12.29
.90
16.16
.OB
17.13
2.21
19.34
25.03
5.50
49. B7
62.16
.26
.03
.67
61.7B
5.72
.79
NA
.06
6.57
.02
.00
.00
.01
.00
. 00
.05
.OB
6.65
.03
.07
6.60
200812
.94
.41
.00
.04
.04
.00
.02
.00
.03
2.38
.02
5.03
5.40
.00
5.56
.00
.00
.00
1.39
.05
.00
11.07
.99
.03
1.41
.64
2.16
2.38
22.44
1.53
29.49
1.50
40.84
11.59
.91
53.62
59.17
.22
.00
.46
5B.55
1.89
.21
NA
.00
3.23
.03
.00
.00
.05
,00
.00
.10
.84
8.52
.04
.10
8.50
57
78
26
36
1B
30
22
45
41
2
56
31
23
97
61
2B
38
94
B6
71
50
72
B9
97
94
91
94
32
36
15
26
57
20
90
83
42
54
64
87
76
54
73
76
NA
89
64
41
3B
41
36
72
32
35
21
45
43
43
46
05:57 11/02/2010
OFFICE OF ,THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: ASSETS. Part 2 of 2
(t of Total Assets at End of Period)
united Western Bank
DOCKET: 06679 TFR STATUS:
AS OF: 11/02/2010 CMR STATUS:
CUrrent
CUrrent Quarter Prior Quarter Prior
IN PROCESS
NONRESPONDER
Quarter Prior '
Year Year End Total
PAGE 13
Previous Prior
Year End Total
===._.=== __ == __ == =._.=._===== _._ _.=== __ = ___ ===___ ==.D ____ ==._ _ ======_=_._====._
S
GMrOUedPan5 Pct S'L GMrOUedPan5 Pct S.T GMrOeUdPan5 Pct S Grou
d
P
5 Group 5
K KU Me Pet S&L Med1an Pet
YRMO. Period End .
'DETAILED BALANCE SHEET ASSETS:
4 '. 0 Net Repossessions &REI:
Repossessed Assets:
Construction
1-4 Dwelling units

Land
USGov Guar or Ins REO
Subtotal. REO
Other Repossessions

Net Repossessed Assets
Real Est. Held4Investmt
Net Repos'ns & REI
5.1 EqInvNtSbictFASB No115
FHLBilnk StOCK
Other
5.5 Office Premises and Eq.
5.8 Other Assets
Bank Owned Life Insurance:
Life Insurance
Intangible Assets
Servicing Assets on:
Mortgage Loans
Non-Mortgage Loans
Goodwill and Oth.Intang.
10 Strip Rec.&Oth Instrum
Other Assets
General Allowance
.19
.10
.00
.31
.56
.15
1.31
.00
1.31
.00
1.31
.00
1.31'
.46
.46
.00
1.07
3.91
.00
1.30
.28
.01
.02
.00
2.33
.03
201009
.00
.07
.00
.03
.02
.00
.19
.00
.19
.00
.19
.00'
.24
'.72
.68
.00
1.00
2.97
.00
.00
.00
.00
.09
.00
1.22
.00
86
55
36
85
89
93
88
33
88
48
88
'43
88
27
28
31
51
63
38
71
84
98
39
48
80
98
.14
.10
.00
.22
.19
.11
.75
.00
.75
.00
.75
.00
.75
.43
.43
.00
1.01
3.70
.00
1.21
.28
.01
.03
.00
2.21
.03
201006
.00
.08
.00
.02
.02
.00
.20
.00
.21
.00
.21
.00
.21
.79
.77
.00
.98
2.88
.00
.00
.01
.00
.09
.00
1.20
.00
86
56
35
87
77
95
75
35
75
48
75
44
73
26
28
32,
51
61
38
70
82
98
42
48
80
97
.27
.11
.00
.05
.09
.09
.60
.00
.60
.00
.60
.00
.60
.47
.47
.00
.88
3.36
.00
1.00
.30
.00
.03
.00
2.06
.03
200909
.00
.05
.00
.00
.00
.00
.18
.00
.18
.00
.18
.00
.18
.80
.79
.00
1.02
2.64
.00
.00
.01
.00
.07
.00
.81
.00
92
66
39
69
73
98
70
33
70
48
70
42
69
25
28
32
39
65
37
67
80
98
46
48
82
98
.35
.09
.05
.04
.12
.09
.75
.00
.75
.00
.75
.00
.75
.38
.38
.00
.91
3.33
.00
1.05
.29
.01
.03
.00
1.99
.03
200912
.00
.04
.00
.01
.01
.00
.18
.00
.18
.00
.18
.00
.18
.78
.78
.00
1.03
3.04
.00
.00
.01
.00
.09
.00
,1.26
.00
94
61
85
56
73
98
75
33
75
48
75
42
'74
20
20
32
41
55
37
67
80
98
43
48
76
98
.02
.09
.00
.00
.09
.12
.31
.00
.31
.00
.31
.00
.31
1'.30
1.30
.00
.98
2.98
.00
1.13
.42
.00
.04
.00
1.'42
.03
200812
.00
.02
.00
.00
.00
.00
.09
.00
.09
.00
.09
.00
.09
.89
.79
.00
.98
2.71
.00
.00
.01
.00
.05
.00
.86
.00
76
63
42
71
76
98
71
32,
68
46
68
41
65
80
82
35
49
53
39
71
89
97
47
49
75
98
TOTAL ASSETS
100.00 100.00 SO 100.00 100.00 50 100.00 100.00 50 100.00 100.00 SO 100.00 100.00 50
Memo: Loans in Process on:
Mortg. Construction Loans
Other Mortg. Loans

.37
.00
.37
.04
.36 52
.00 47
.48 46
.00 67
.37
.00
.37
.05
.34 51
.00 50
.51 45
.00 67
1.65
.03
1.68
.00
Memo: Detail of Other Assets: (Largest
1\mount ,1.27 .37

of other Assets)
.44 83 .85
(SC691) .26 .29
Code (SC693)
1\mount
Code (SC697)
COMMITMENTS OUTSTANDING:
To Originate:
1-4 Mortgages
5+ Mortgages
All Other RE
Non-Mortgage Loans
Net Pureh(Sale) commit.
.45
.00
.00
2.06
.41
.00
.17
.60
.00
.13
.00
-.04
3 3
40 .26 .29 41 .41
9 9
88 .52 .17 83 .47
4
6
36
98
80
71
4
it Total Assets.
.00 .52 5
.00 .00 33,
1.49 .21 ' 93
.51 .00 78
.00 -.04 70
1307
End of
.00
.00
1.18
.13
.00
.68 79
.02 51
.79 73
.00 62
.39' 76
3
.13 80
14
.07 85
4
Period)
.39 5
.00 30
.12 87
.01 62
-;01 67
.94
.01
.95
.00
.79
.22
.66
.00
.00
1.18
.18
.00
.51 65
.01 50
.76 56
.00 62
.47
.31
.15
.37
.00
,.16
.00
-.01
78
3
41
9
88
4
5
32
BB
71
68
6.75
.02
6.77
.01
.3B
.06
.93
.01
.00
4.75
.21
.00
.91 97
.02 50
1.20 97
.00 61
.40
.14
.06
.37
.00
.33
.05
.00
45
9
24
14
91
4
16
35
97
72
63
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
. 3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
DETAILED BALANCE SHEET: LIABILITIES I< CAPITAL
It of Total Liabil. I< Cap. at End of Period)
05:57 11/02/2010
united Western Bank
PAGE 14
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Prior Quarter
CUrrent Quarter Prior Previous Prior
current Quarter
Prior Year Year End Total Year End Total
===c=.= =-=-
_.====== =====- ========-==-===.- -======-==.=._._. =====.-.=======:=
S&L Pct
S&L Pct S&L Pct
S&L Pct S&L Pct
===:== --=-== === ===
YRMO, .Period End .
201009 201006 200909 200912 200812
DETAILED BALANCE SHEET LIABILiTIES I< CAPITAL:
7.1 Deposits and Escrows:
Deposits
73.88 76.94 38 74.47 76.41 42 75.14 74.44 55 75.63 75.63 50 72.39 72.44 49
Escrows
5.91 .24 96 5.73 .23 98 4.09 .25 97 5.77 .23 97 6.46 .21 97
Subtotal of 7.1
79.79 77.26 67 80.20 76.95 65 79.24 74.99 65 81.40 76.76 75 78.85 73.05 69
7.15 Unamortized Yld Adj
.00 .00 18 .00 .00 16 -.01 .00 12 -.01 .00 14 .00 .00 19
7.2 Borrowings: .
8.20 6.31 60 7.67 7.42 53 8.33 8.03 51
Advances from FHLBank
7.22 8.02 46 10.12 10.95 45
Reverse REPOs+FFunds Pur
4.14 .33 77 3.61 .00 75 3.02 .00 73 3.14 .00 75 3.63 .00 78
Subordinated Debentures
.00 .00 47 .00 .00 46 .00 .00 46 .00 .00 46 .00 .00 47

.00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Al Other Borrow1ngs
.41 .00 75 .56 .00 77 .04 .02 53 .05 .01 56 .03 .00 57
Subtotal of 7.2
12.75 9.33 64 11.84 9.66 60 11.39 11.65 48 10.41 10.72 48 13.78 13.67 50
7.3 Other Liabilities:
.02 72 .07 .02 73 .03
Accrued Int.payable:DeKos
.04
.04 47 .04 .03 60 .02 .04 31
Accrued Int.Payable:Ot er
.02 .02 52 .02 .02 42 .04 .03 57 .04 .03 55 .05 .03 60
Accrued Taxes
.02 .03 38 .01 '03 33 .02 .04 35 .02 .04 42 .02 .02 46
Deferred Income Taxes
.00 .00 36 .00 .00 37 .00 .00 37 .00 .00 39 .00 .00 43
AccntsPay.,Oth.L.&Def.Inc
.62 .65 46 .62 .58 60 .58 .60 47 .58 .60 48 .52 .50 54
Subtotal of 7.3
.70 .86 31 .72 .74 45 , .66 .87 33 .67 .81 39 .60 .78 28
TOTAL LIABILITIES
93.23 89.36 92 92.75 89.59 88 91.28 90.31 70 92.47 90.03 87 93.23 90.65 87
8.0 Total Capital:
.00 .00 48 .00 .00 46 .00 .00 47 .00 .00
Perpetual Pre erred Stock
46 .00 .00 48
CUmul. Perp. Prefstk
.00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50

.00 .00 48 .00 .00 46 .00 .00 47 .00 .00 46 .00 .00 48
.01 .00 71 .01 .00 68 .00 .00 67 .00 .00 67 .01 .00 64
Paid in Excess of Par
7.98 5.92 69 7.48 5.67 65 6.21 5.07 57 6.46 5.11 60 3.28 4.41 41
Retained Earnings
-1.03 4.55 13 -.05 4.53 18 2.58 4.50 29 1.24 4.58 23 4.49 4.52 49
Accum Oth. Compo Income
-.18 .03 14 -.19 .02 15 -.08 .01 32 -.18 .00 23 -.99 -.05 10
unrealGain/LosS Avai14Sal
-.18 .05 10 -.19 .05 11 -.08 .02 20 -.18 .01 16 -.99 -.02 10
Gains/LoSS Cash Flow Hdg
.00 .00 51 .00 .00 53 .00 .00 52 .00 .00 52 .00 .00 52
Other '
.00 .00 65 .00 .00 64 .00 .00 66 .00 .00 65 .00 .00 64
.Other components
.00 .00 60 .00 .00 60 .00 .00 58 .00 .00 58 .00 .00 56
Subtotal
6.77 10.64 7 7.24 10.41 11 8.72 9.69 29 7.53 9.97 12 6.77 9.28 13
NonCtrl Int.Consl.Sub
.00 .00 88 .00 .00 86 .00 .00 85 .00 .00 85 .00 .00 84
Total Equity Capital .
6.77 10.64 7 7.25 10.41 11 8.72 9.69 29 7.53 9.97 12 6.77 9.28 13
TOTAL LIABIL. + EQUITY CAP.
100.00 10'0.00 SO 100.00 100.00 50 100.00 100.00 50 100.00 100.00 SO 100.00 100.00 50

6.74 9.81 7 7.22 9.68 11 B.69 9.12 41 7.50 9.33 14 6.73 8.36 15
Accnts w/Balbelw InsLimt 4B.55
59.62

60.75 7 44.79 5B.B6 ,14 28.36 47.67 8
Accnts w/Bal abve InsLimt 31.27
14.62 88 32:60 12.52 88 47.66 11.64 93 36.65 12.35 B8 50.50 22.27 91
AvgBal DepAct belw InsLimit117.26
13.03 98 114.05 12.93 98 91.84 12.16 9B 127.72 12.83 98 15.43 9.98 76
AvgBal abve InsLimit4689.95
625.32 96 3282.50 598.90 96 3450.61 628.59 96 1887.37 639.56 91 578.70 223.25 89
AvgBal: A 1 Deposit Accts 189.72
16.46 97 187.56 16.73 97 221.44 15.62 97 220.05 16.38 97 40.97 15.36 87
BrokrOrigDep,FUllInsurd<100 .49
.05 65 2.98 .06 72 10.16 .71 78 23.00 .75 88 2.97 .79 63
2.02
.01 76 4.56 .00 86 NA NA NA NA NA NA NA NA NA
Other ro erOrig.Deposits .00
.00 38 .00 .00 38 .00 .00 41 .00 .00 41 .00 .00 39
Total Broker 2.51
.59 63 7.54 .89 76 10.16 .71 78 23.00 .75 88 2.97 .79 60
IntExp FUllInsrd Bro .02
.00 71 .04 .00 83 NA NA NA NA NA NA NA NA NA
IntExp on Oth BrokerDepos t .00
.00 40 .00 .00 40 . NA NA NA NA NA NA NA NA NA
uninsured Deposits 1.30
6.72 6 2.25 .6.75 13 12.50 7.59 65 15.97 8.51 73 10.34 12.29 41
Insured DeEosits 78.49
68.19 82 77 .95 67.87 82 66.73 64.75 55 65.43 63.39 52 6B.50 56.18 80
Preferred eposits .00
.00 27 .00 .00 2B .00 .00 28 .00 .00 28 .00 .00 29
Time Deposits> 2S0K .78
2.54 15 1.22 2.24 27 NA NA NA NA NA NA NA NA NA
Non-Interest Demand Dep. 2.02
3.11 32 2.25 2.85 36 4 .. 62 3.09 65 2.22 3.04 39 2.29 ,3.07 38
AvgDailyDep FUllInsrdBrkrDe 4.32
.19 73 11.00 .99 85 NA NA NA NA NA NA NA NA NA
AvgDailyDep Other Broker De .00
.00 42 .00' .00 42 NA NA NA NA NA NA NA NA NA
Detail of Other
Liabilities:

Amount
.16
.15 .15 50 .19 .16 52
Code ISC791)
5 5 5 5 5
Amount
.04 .06 40 .04 .04 42 .04 .04 43 .04 .04 46 .05 .03, 57
Code (SC794)
16 16 16 16 16
Amount
.07 .02 77 .08 .02 B3 .03 .02 66 .05 .01 76 .02 .02 67
Code (SC797)
22 22 22 22 99
CONTINGENT LIABILITIES:
Unused Lines of Credit:
2.86 9 .06 3.14 10 .10
Open-End Consumer Lines
.07
'3.49 8 .10 3.42 7 .16 3'.86 12
Commercial Lines
1.85 .86 65 2.10 .B2 68 1.72 1.00 56 1.70 1.12 57 2.70 .92 72
Letters of Credit.
.00 40 .00 .00 41 .00
Commercial
.00
.00 41 .00 .00 41 .00 .00 41
Standby
.29 .02 77 .28 .05 72 .34 .07 74 .34 .07 73 .54 .03 84
OBS Recourse Obligations
I< Direct Credit Substitutes:
Sub.
11.24 .00 86 11.54 .00 87 .27 .00 70 9.14 .00 B5 .,29 .00 76
11.02 .00 98 11.32 .00 98 .00 .00 44 8.89 .00 98 .00 .00 47
, Recourse Obligations
.22 .00 86 .22 .00 86 .27 .00 B4 .24 .00 84 .29 .00 86
Amt whr Recourse<=120Days
.19 .00 94 .19 .00 93 .23 .00 92 .17 .00 93 NA NA NA
Amt whr Recourse<=120Days
.03 .00 85 .03 .00 85 .05 .00 B4 .04 .00 84 NA NA NA
Other Contingent Liab.
.00 .00 46 .00 .00 46 .00 .00 46 .00 .00 46 .00 .00 46
Contingent Assets .00 .00 48 .00
.00 48 .00 .00 48 .00 .00 48 .00 .00 48
Excludes deposits from FDIC-insured subsidiaries
1308
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
ASSET QUALITY ($000)
05:57 li/02/2010
United western Bank
DOCKET: 06679 TFR STATUS:
DATA AS OF: 11/02/2010 CMR STATUS:
CUrrent
CUrrent Quarter prior Quarter Prior
YRMO, period End ...
1. LOANS PAST DUE 30-89 DAYS AND STILL ACCRUING:
Construction Loans 3, 000
($000 at End of Period)
6,063
permMtg,1-4 unit 11,986
permMtg,5+Unit 2,329
permMtg,NOnResBldg 15,506
PermMtg, Land . 14,210
Total Mtg. Loans 47,031
NonMtg Commercial Loans 2,320
Loans on Deposits g
0
Auto Loans 0
Mobile Home Loans 0
Credit Cards 0
Other g
49,351
Guaranteed by USGev Agncy 5,683
Subtot PD30-B9 less GOvGuar 43,668
2. LOANS PAST DUE 90+ DAYS AND STILL ACCRUING:
Construction Loans 0
PermMtg, 1-'4 Unit 9,694
permMtg,5+Unit 0
PermMtg, NonResBldg 0
0
PermMtg,Land
Total Mtg. Loans 9,694
NonMtg Commercial Loans 0
0
Loans on Deposits 0
0
Auto Loans 0
Mobile Home Loans 0
Credit cards 0
Other g
Loans 9,694
9,
3. NONACCRUING LOANS:
Construction Loans
PermMtg,1-4 Unit
permMtg,5+Unit
PermMtg, NonResBldg
Loans
NonMtg Commercial Loans
Loans on Deposits
Home Il!IProv. Loans
Education Loans,
Auto Loans
Mobile Home Loans
Credit Cards
Other
Loans
Guaranteed by USGev Agncy
Subtot NonAcrl less GovGuar
4. NONPERPORMING LOANS: (a)
Sum of Subtotals 2 and 3
Guaranteed by USGev AgnCY
Sum Subtot 2+3 less GOVGuar
5. NONPERPORMING ASSETS:
NonPerformLns(Subtot 4) (a)
REO: Construction
REO:1-4 Dwelling Units
REO:5 or More Dwelling U.
REO:Nonresidential Bldgs
REO: Land
USGev Guar ot Ins REO
Subtotal, Gross REO

PD90+NonAc+Repos'd(b)
Guaranteed USGev,Agncy

7. CLASSIFICATION OF ASSETS:
Classified Substandard
Classified Doubtful
Classified Loss
Total Classified Assets
Special Mention Assets
LoansInProcs of Foreclosure
Construction Loans
1-4 unit SecrdBy Open-End
1-4 Unit SecrdBy 1st Lien
1-4 unit SectdBy JrLiens
MultiFamily
NonResidential Property
Land Loans
Total Loans
10,824
20,695
2,079
15,870
8,960
58,428
3,996
o
o
o
o
o
o
480
480
62,904
897
62,007
72,598
13,260
62,507
72,598
3,927
2,095
o
6,347
11,487
3,169
27,025
o
27,025
99,623
13,260
86,363
50,53'2
364,212
5,733
o
369,945
60,263
6,755
o
13,402
o
o
5,117
o
25,274
11,725
4,150
30,399
o
52,337
1,877
o
o
o
o
o
o
487
487
54,701
5,746
48,955
o

o
o
o
8,464
o
o
o
o
o
o
o
o
o
8;464
8,463
1
20,114
13,265
o
17,681
10,212
61,272
3,821
o
o
o
o
o
o
o
o
65,093
120
64,973
73,557
10,998
64,974
73,557
3,090
2,129
o
4,838
4,163
2,415
16,635
o
16,635
90,192
10,998
79,194
28,373
352,23,5
6,326
o
358,561
65,568
10,145
o
11,733
o
o
4,486
5,649
32,013
1309
IN PROCESS
-NONRESPONDER
Quarter Prior
Year Year End Total
5,130
14,940
2,131
20,106
16,425
58,732
1,402
o
o
o
o
o
o
o
o
60,134
6,583
53,551
o
7,204
o
o
o
7,204
124
o
o
o
o
o
o
o
o
7,328
7,204
124
14,557
13,393
1,511
7,339
1,290
38,090
565
o
o
o
o
o
o
o
o
38,655
66
38,589
45,983
9,506
38,713
45,983
6,897
2,957
o
1,241
2,230
2,320
15,561
o
15,561
61,544
9,506
52,038
26,773
139,715
3,411
o
143,126
36,887
2,369
o
12,183
o
1,511
5,466
346
21,875
3,690
14,365
703
8,369
7,390
34,517
2,294
o
o
o
o
o
o
1
1
36,812
6,982
29,830
412
7,986
1,469
o
o
9,867
o
o
o
o
o
o
o
o
o
9,867
7,986
1,881
19,244
13,723
o
15,148
1,811
49,926
3,126
o
o
o
o
o
o
o
o
53,052
.65
52,987
62,919
10,411
54,868
62,919
8,643
2,280
1,360
1,009
3,058
2;360
18,710
o
18,710
81,629
10,411
71,218
30,040
339,676
5,180
o
344,856
43,457
3,947
o
8,117
870
o
4,657
944
18,535
PAGE 15
Previous Prior
Year End Total
.. ==-.-..
200812
2,695
14,891
o
6,596
789
24,971
939
o
o
o
o
o
o
o
o
25,,910
12,003
13,907
o
5,888
o
o
o
5,888
625
o
o
o
o
o
o
o
o
6,513
6,484
29
1,403
9,469
6,173
1,792
o
18,837
529
o
o
o
o
o
o
o
o
19,366
1,850
17,516
25,879
10,942
17,545
25,879
354
1,983
o
103
1,977
2,236
7,025
o
7,025
32,904
10,942
21,962
7,025
54,388
1,268
o
55,656
11,355
NA
NA
NA
NA
NA
NA
NA
NA
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY
UTPR REPORT FOR QUARTER ENDED 201009
ASSET QUALITY (%)
REGION
05:57 11/02/2010
Uni ted Western Bank '
PAGE 16
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter Prior Previous Prior
CUrrent Quarter Prior Quarter Prior Year Year End Total Year End Total
================= ================= =================
================= =================
S&L Pct
Groug 5
Pct
Pct Pct
S&L Me ian Pct
====== === ======.====== === ====== ====== ===
====== ====== === ====== ===
YRMO, Period End .... 201009 201006 200909 200912 200812
1. DELINQUENCY LOAN RATES BY LOAN CATEGORY - LOANS PAST DUE 30-89 DAYS AND STILL
ACCRUING
(% of OUtstanding Gross Loans in Each Category)
construction Loans 2.53 .00 86 3.85 .00 81 1.86 .31 66
1.48 .00 72 .98 .07 61
PermMTG, 1-4 Unit 3.78 .91 91 3.53 .94 90 4.14 1.15 94 4.10 1.00 94 3.88 1.06 95
permMTG, 5+ Unit 5.36 .00 95 9.22 .00 94 5.20 .00 86 1.91 .00 78 .00 .00 29
PermMTG,NonResBldg 2.57 .86 BO 5.13 .54 93 3.58 .35 90 1.52 .43 BO 1.1B .59 70
PermMTG, Land 19.08 .33 98 .00 .11 24 16.6B .32 96 8.01 .02 95 .64 .23 5B
Total Mtg. Loans 4.06 1.01 90 4.31 1. 06 96 4.39 1.01 94 2.70 .97 82 1.79 .89 71
NonMtg Loans 1.48 .44 75 1.21 .24 74 .88 .41 66 1.50 .39 72 .64 .63 52
Loans on .00 .00 35 .00 .00 35 .00 .00 33 .00 .00 33 .00 .00 39
Home Improv. Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Education Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Auto Loans .00 .74 12 .00 .4B 14 .00 .72 16 .00 .95 13 .00 .80 13
Mobile Home Loans .00 .00 34 .00 .00 36 .00 .00 29 .00 .00 26 .00 .14 26
Credit Cards NA 1.05 NA NA 1.10 NA NA 1.46 NA NA 1.50 NA NA 1.63 NA
Other .00 .85 7 B.B7 .61 94 .00 .81 12 .02 .79 17 . 00 .89 10

.00 .B3 7 5.17 .85 89 .00 1.14 8 .01 1.21 12 .00 1.15 8
3.83 .99 94 4.07 LOB 97 4.06 1.01 96 2.60 .96 81 1.69 .99 70
Guaranteed by USGev Agncy .44 .00 91 .43 .00 93 .44 .00 97 .49 .00 97 .78 .00 98
Subtot PD30-89 less GovGuar 3.39 .88 90 3.64 1.01 94 3.61 1.00 92 2.11 .96 77 .91 .99 45
2. DELINQUENCY LOAN RATES BY LOAN CATEGORY - LOANS PAST DUE 90+ DAYS AND NONACCRUAL
('Ii of Outstanding Gross Loans in Each Category)
Construc'tion Loans 9.12 3.99 63 12.77 6.30 64 5.27 5.74 48 7.86 5.57 59 .51 1.80 37
PermMtg,1-4 Unit 9.59 1.91 93 6.54 2.00 89 5.70 1.66 92 6.19 1. 76 90 4.00 .94 91
permMtg,5+Unit 4.78 1.11 67 .00 .88 18 3.69 .37 B3 3.99 .42 79 12.44 .08 96
PermMtg,NonRes.Bldg. 2.63 2.22 57 2.98 2.24 61 1.31 2.10 38 2.75 2.13 59 .32 .67 37
PermMtg, Land 12.03 7.23 56 11.70 4.59 69 1.31 5.78 34 1.96 4.85 36 .00 2.17 20
Total Mtg. Loans 5.89 2.B8 76 5.74 2.7B 76 3.38 2.36 61 4.67 2.71 73 1. 78 1.44 60
NonMtg Commercial Loans 2.54 1.23 70 2.46 1.23 67 .43 1.02 38 2.04 .77 65 .78 .54 60
Loans on Deposits .00 .00 47 .00 .00 47 .00 .00 42 .00 .00 46 .00 .00 45
Home Improv. Loana NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Education Loans NA .00 NA NA .00 NA NA .00 NA NA .00 NA NA .00 NA
Auto Loans .00 .02 23 .00 .02 22 .00 .06 18 .00 .03 21 .00 .04 22
Mobile Home Loans .00 .00 36 .00 .00 32 .00 .00 29 .00 .00 30 .00 .00 32
Credit Cards NA .59 NA NA .8B NA NA .38 NA NA .57 NA NA .36 NA
Other 9.45 .20 92 .00 .22 17 .00 .18 19 .00 .06 22 .00 .23 20

5.40 .32 91 .00 .22 12 .00 .25 12 .00 .19 16 .00 .23 13
5.64 2.46 79 5.47 2.43 79 3.10 2.22 65 4.45 2.27 73 1.69 1.42 61
Guaranteed by USGov Agncy 1.03 .00 90 .82 .00 92 .64 .00 97 .74 .00 97 .71 .00 97
Subtot PD90+ less GovGuar 4.86 2.33 78 4.83 2.40 76 2.61 2.10 57 3.B8 2.27 69 1.15 1.35 44
3. NON-PERFORMING ASSET RATES (Non-Performing Loans and Repossessed Assets by Category)
construction Lns, Net LIP 12.03 7.78 60 14.45 9.Bl 61 7.57 7.00 52 10.94 7.68 57 .64 2.2B 35
PermMtg,1-4 Unit 10.18 2.78 93 7.13 2.66 85 6.47 1.95 90 6.80 2,04 90 4.50 1.24 89
permMtg,5+Unit 4.7B 1.63 66 .00 1.09 17 3.69 .58 79 7.42 .96 81 12.44 .30 96
permMtg,NonRes.Bldg. 3.64 3.18 55 3.77 2.78 59 1.52 2.36 38 2.93 2.52 52 .34 .91 32
Loans
23.78 15.06 61 15.72 11.61 61 3.50 10.84 34 5.11 10.57 31 1.58 3.75 39
7.95 3.75 79 6.91 3.57 79 4.38 3.16 65 5.95 3.42 76 2.09. LBO 59
Non-Mortgage Loans 2.70 .94 75 2.32 .90 71 .42 .90 44 1.91 .56 68 .77 .48 63
Subtotal, PD90+NnAc+Repos'd 7.38 3.08 81 6.46 3.08 80 4.05 2.68 69 5.58 2.80 78 2.12 1.69 61
Guaranteed by USGov Agncy 1. 01 .00 90 .81 .00 92 .63 .00 97 .73 .00 97 .71 .00 97
Subtot' NonAcrl less GovGuar 4.72 2.23 79 4.77 2.29 79 2.58 1. 98 59 3.70 2.21 68 1.14 1.16 48
4. ASSET QUALITY SUMMARY: (% of Total Assets)
3.34 76 NonPerformLns(Subtot 4) 3.51 1.62 72 1. 65 1. 77 1. 50 56 2.51 1.57 69 1.16 .95 57
REO: Construction .19 .00 86 .14 .00 86 .27 .00 92 .35 . 00 94 .02 .00 76
REO:1-4 Dwelling Units .10 .07 55 .10 .08 56 .11 .05 66 .09 .04 61 .09 .02 63

.00 .00 36 .00 .00 35 .00 .00 39 .05 .00 85 .00 .00 42
.31 .03 85 .22 .02 87 .05 .00 69 .04 .01 56 .00 .00 71
REO:Land .56 .02 B9 .19 .02 77 .09 . 00 73 .12 .01 73 .09 .00 76
USGov Guar or Ins REO .15 .00 93 .11 .00 95 .09 .00 97 .09 .00 98 .09 .00 9B
Subtotal, Gross REO 1. 31 .19 88 .75 .20 75 .60 .18 70 .75 .18 75 .31 .09 71
Othr Assets,Gross .00 .00 33 .00 .00 35 .00 .00 33 .00 .00 33 .00 .00 32
Reposs' Assets,Net of SVAs 1.31 .19 88 .75 .21 75 .60 .18 70 .75 .18 75 .31 .09 68
NPA: PD90+NonAc+Repos'd 4.81 2.23 78 4.09 2.03 73 2.37 1.89 60 3.26 2.05 69 1.47 1.01 58
Classified Substandard 17.60 4.49 97 15.97 4.35 97 5.38 3.76 69 13.57 4.20 97 2.43 1.60 58
Classified Doubtful .28 .00 89 .29 .01 90 .13 .01 82 .21 .00 88 .06 .00 75
Classified Loss .00 .00 49 .00 .00 49 .00 .00 49 .00 .00 50 .00 .00 50
Total Classified Assets 17.87 4.51 96 16.26 4.39 97 5.51 3.90 71 13.7B 4.20 97 2.48 1.69 60
Special Mention Assets 2.91 1.10 78 2.97 1.37 80 1.42 1.23 55 1.74 1.23 62 .51 .75 38
SUb+Doubt / CoreCap+GVA 199.29 42.93 96 174.74 39.77 96 55.61 37.22 71 150.64 38.56 97 29.09 17.00 63
5. CONSOLIDATED ASSET QUALITY TREND: (% of Total Assets)
Non-Performing Loans 3.51 1.62 72 3.34 1.65 76 1.77 1.50 56 2.51 1.57 69 1.16 .95 57
Repossessed Assets, Gross 1.31 .19 88 .75 .21 75 .60 .18 70 .75 .18 75 .31 .09 68
Repossessed Assets,Net SVA 1.31 .19 88 .75 .21 75 .60 .18. 70 .75 .18 75 .31 .09 68
Total NonPerform. Assets 4.81 2.23 78 4.09 2.03 73 2.37 1.89 60 3.26 2.05 69 1.47 1.01 58
TDR Loans + TDR 2.44 .83
76 1.29 .87 60 1.03 .51 66 1.20 .64 62 .31 .22 56
LoansInProcs 0 Foreclosure
.27 72 6.44 .39 75 .86 Construction Loans 5.69 .32 57 1.5B .50 60 NA NA NA
1-4 Unit SecrdBy Open-End .00 .00 26 .00 .12 23 .00 .00 27 .00 .03 23 NA NA NA
1-4 Unit SecrdBy 1st Lien 4.50 1.18 91 3.74 1.18 85 3.57 .89 89 2.45 1.05 7B NA NA NA
1-4 Unit SecrdBy Jr Liens .00 .00 26 .00 .00 26 .00 .00 27 54.44 .00 98 NA NA NA
MultiFamily .00 .00 32 .00 .00 33 3.69 .00 92 .00 .00 36 NA NA NA
NonResidential Property .85 .29 55 .76 .15 62 .97 .31 68 .85 .23 64 NA NA NA
Land Loans .00 .00 25 6.47 .08 81 .35 .22 53 1.02 .03 57 NA NA 53
Total Loans 2.18 1. 03 71 2.63 1. 08 74 1. 63 .82 74 1.45 .96 68 NA NA NA
1310
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR OTPR REPORT FOR QUARTER ENDED 201009
ALLOWANCES
05:57 11/02/2010
PAGE 17
united Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
current Quarter Prior Quarter YTD Prior Year PreviousPriorYr
Months in period
YRMO, Period End ..
===c==cec=======; =======-========; ========-=._;
12
200912
12
200812 201009 201006 201009
1. TOTAL ALLOWANCES:
Balance
Net provision for Loss
Add Recoveries on:
Recoveries
Acquisitions
Deduct, Charge-offs+Sales
Ending Balance
46,721
19,346
99
o
;(7,371
48,795
la. TOTAL GENERAL ALLOWANCES:
41,165
Balance
Net Provision for Loss
Transfers
Recoveries
Acquisitions
Deduct: Charge-offs+Sales
Ending Balance
16,019
-1,050
99
o
14,447
41,786
lb. TOTAL SPECIFIC ALLOWANCES:
Balance 5,556
Net Provision for Loss 3,327
Transfers 1,050
Acquisitions, 0
Deduct: Charge-offs+Salss 2,924
Ending Balance. 7',009
2. ALLOCATION 'OF ENDING ALLOWANCE BALANCE:
Cash, Deposits, & Inv.Sec.:
Loans:
35,453
Nonmortgage Loans:
ALLL ,
5,709

Mortgage Backed Securities:
General Allowance
Other:
o
NA
621
General Allowance
All Assets:
General Allowance+ALLL

41,786
7,009
48,795
==============-==
S&L Pct
===-== =-==_::
3. GEN. ALLOWANCE+ALLL ALLOCATED TO:
Mortgage Loans + LIP 3.03 1.17
Nonmortgage Loans + LIP 3.41 1.91
Assets .
Other Assets NA NA
All Assets (Net of LIP) 2.03 .91
GA+ALLL4Lns+REO,tLns+REO 3.05 1.40
GA+ALLL4Lns+REO,t(NPA-SVA) 41.32 39.21
Tot.GA+ALLL, (tClsfd-Loss) 11.30 19.24
86
73
48
NA
NA
88
89
54
18
($000 at Start of Period)
44,860
($000 Duriny Period)
5, 20
168
0
($000 at
3,427
Period) End of
46,721
($000
36,347
During' Period)
5,155
510
168
0
1,015
41,165
8,513
($000 During Period)
-35
-510
0
2,412
5,556
35,668
4,918
0
NA
580
41,165
5,556
46,721
37,727
39,011
341
0
28,284
48,795
36,081
28,836
-540
341
,0
22,932
41,786
1,646
10,175
540
0
5,352
7,009
35,453
5,709
0
NA
621
41,786
,7,009
48,795
20,166
38,104
377
0,
20,920
37,727
17,291
30,965
242
377
o
12,794
36,081
2,875
7,139
-242
o
8,126
1,646
32,228
3,204
o
o
650
36,081
1,646
37,727
11,5'36
13,985
328
18
5,701
20,166
11,,183
11,064
o
328
o
5,284
17,291
353
2,921
o
18
417
2,875
14,994
1,596
o
'0
700
17,291
2,875
20,166
======.'========== ==-========-=--=.-=========-=--=====
S&L pct
Group '5 Group 5 Group 5
S&L Med1an Pct S&L Median Pct S&L Median
==--==
(t of
2.90
2.96
-===== -==
Net Assets
1.15 88
1. 86 68
.00 47


2.46 1.04 ,92 .97 .82
1.95 1.89 53 1.07 1.29
62
33
45
50
NA
54
55
40
38
.00
NA
NA
1.88
2.91
45.00
11.48
NA NA
NA NA
.87 85
1.29 89
41.06 53
23.05 15
1311
3.41 1.91 73
.00 .00 48
NA NA NA
NA NA NA
2.03 .91 88
3.05 1.40 89
41.32 39.21 54
11.30 19.24 18
.00, .00 48 .00 .00
.00 .00 50 .00 .00
NA NA NA NA NA
1.45 .87 78 .79 .68
2.42 1.26 89 1.07 1.03
43.41 44.23 47 50.42
10.46 21.30 14 31.07 35.02
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SuPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
GVA CHARGE-OFFS AND CHANGE IN SVAs
($000)
United Western Bank
DOCKET:
DATA AS OF:
CUrrent Quarter
06679 TFR STATUS;
IN PROCESS
11/02/2010 CMR STATUS:
NONRESPONDER
Prior Quarter TO Prior Year
Months in period
YRMO, Period End ....
=================
3
201009
================= =================
=================
3
4. NET GVA CHARGE-OFFS AND CHANGES IN SVAs
Deposits & Inv. Sec. o
o MPS
Mortgage Loans:
Construction:
1-4 Dwell Unit
5+ Dwell Unit
NonResidential
Total Constr.
Permanent:
1-4 Closed End
1-4 Open End
Total 1-4 Perm.
5+ Dwell. Unit
Nonresidential
Land
Total Perm. Mtg.
Total Mortgage Loans
N g g ~ : ~ ~ ~ ~ : ! e Loans:
Consumer:
Loans on Deposits
HILs
Education Loans
Auto Loans
Mobile Harne Loans
Credit Cards
Other
Total Consumer Loans
Total Non-Mortgage Loans
Repossessed Assets:
Real Estate:
Construction
1-4 Dwell. Unit
5+ Dwell. Unit
Nonresidential
Land
Total Repos'ed RE
Other Repos'ed Assets
Total Repossessions
RE Held for Investment
Inv. in Subordinate Firms
Other Assets
Total Assets
991
1,974
2,676
5,641
o
1,123
1,123
2,071
3,317
6,377
12,888
18,529
77
o
o
o
o
a
2
o
2
79
o
o
o
o
o
o
o
o
o
o
117
18,725
9 12
201006 201009
200912
($000 During Period)
0
0 0
0
0 1,958
-133 1,479
2,091
169 2,498 2,018
-691 10,553
4,020
-655 14,530 8,129
323 1,001
664
0 1,123
0
323 2,124
664
0 2,071
343
459 7,377
3,492
-21 6,335 3,300
761 17,907
7,799
106 32,437
15,928
74
605 1,074
0
0 a
0
0 0
0
0 0
0 0
a
0 0
0
0
2 0
0 5
11
0 7
11
74 612 1,085
0
a 0
0
0 0
0
0 0
0
0 0
0
0
0
0
0 a
0
a a
a
0 0
0
0 0
0
a 0
121
257 343
301 33,306
19,314
1312
PAGE 18
PreviousPriorYr
=================
12
200812
0
4,110
0
1,497
0
1,497
768
a
768
586
78
a
1,432
2,929
330
0
0
0
0
a
0
2
2
332
0
0
0
a
0
0
a
a
506
7,877
05:57 11/02/2010
Months in period
YRMO, Period End ....
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
GVA CHARGE-OFFS AND CHANGE IN SVAs
(% of Category)
United Western Bank
DOCKET: 06679 TFR STATUS:
DATA AS OF: 11/02/2010 CMR STATUS:
Current Quarter Prior QUarter
IN PROCESS
NONRESPONDER
YTD Prior Year
================= =================
3 3 9 12
201009 201006 201009 200912
5. RATES OF GVA CHARGE-OFFS AND Changes in SVAs (% of Category)
Deposits & Inv. Sec. .00 .00 so
MPS
Mortgage Loans:
Construction:
1-4 Dwell Unit
5+ Dwell Unit
NonResidential
Total Constr.
Permanent:
1-4 Closed End
1-4 Open End
Total 1-4 Perm.
5+ Dwell. Unit
Nonresidential
Land
Total Perm. Mtg.
Total Mortgage Loans
Loans:
Consumer:
Loans on Deposits
HILs
Education Loans
Auto Loans
Mobile Home Loans
Credit Cards
Other
Total Consumer Loans
Total Non-Mortgage Loans
Repossessed Assets:
Real Estate:
Construction
1-4 Dwell. Unit
5+ Dwell. Unit
Nonresidential
Repos'ed RE
Other Repos'ed Assets
Total Repossessions
RE Held for Investment
EqtyInv Not SbjctFASB115
Other Assets
Total Assets
.00
1.44
7.58
6.19
4.08
.00
6.42
.35
4.68
.55
7.88
1.23
1.64
.05
.00
NA
NA
.00
.00
NA
.00
.02
.05
.00
.00
NA
.00
.00
.00
NA
.00
NA
.00
NA
.88
.00 50
.00 82
.00 91
.00 94
.00 92
.10 15
.06 98
.11 78
.00 95
.04 79
.00 90
.17 94
.18 94
.12 42
.00 45
.00 NA
.00 NA
.01 32
.00 51
.52 NA
.12 27
.13 32
.20 34
.00 39
.00 37
.00 NA
.00 41
.00 39
.00 34
.00 NA
.00 34
.00 NA
.00 49
NA NA
.12 92
.00 .00 50 .00
.00
-.17
.55
-1.10
-.38
.10
.00
.09
.00
.08
-.02
.07
.01
.05
.00
NA
NA
.00
.00
NA
.00
.00
.05
.00
.00
.00
.00
.00
.00
NA
.00
NA
.00
NA
.01
.00 50 .00
.00 7 2.15
.00 89 9.59
.00 3 24.41
.00 2 10.52
.05 61 .33
.05 26 6.42
.07 57 .65
.00 42 4.68
.03 58 1.23
.00 4 7.83
.11 42 1.71
.13 10 2.77
.06 45 .39
.00 48 .00
.00 NA NA
.00 NA NA
. 00 46 .00
.00 53 .00
.81 NA NA
.31 18 .09
.15 22 .08
.16 29 .39
.00 42
.00 33
.00 46
.00 44
.00 36
.00 32
.00 NA
.00 32
.00 NA
.00 50
NA NA
.12 12
1313
.00
.00
NA
.00
.00
.00
NA
.00
NA
.00
NA
1.56
.00 50
.00 50
.33 66
.00 87
.00 94
.80 93
.25 58
.28 95
.31 69
.00 93
.27 76
.46 82
.47 80
.57 86
.71 40
.00 46
.00 NA
.00 NA
.08 28
.00 51
1.84 NA
.70 28
.56 25
.71 41
.00 32
.00 30
.00 NA
.00 34
.00 32
.00 28
.00 NA
.00 29
.00 NA
.00 50
NA NA
.37 81
.00
.47
2.00
4.47
3.54
3.09
.20
.00
.19
.88
.63
3.46
.75
1.20
.69
.00
NA
NA
.00
.00
NA
.20
.13
.70
.00
.00
.00
.00
.00
.00
NA
.00
NA
.00
NA
.76
.00
.00
.27
.00
.00
.99
.26
.31
.31
.00
.31
.88
.44
.64
.75
.00
.00
.00
.42
.00
2.79
2.42
1.19
1.14
48
98
60
78
86
66
45
21
38
85
69
65
58
70
47
46
NA
NA
17
46
NA
19
20
36
.00 32
.00 33
.00 39
.00 37
3.47 23
.00 28
.00 NA
.00 29
.00 NA
.00 49
NA NA
.46 62
PAGE 19
PreviousPriorYr
.00
.74
.00
2.66
.00
.58
.21
.00
.20
1.17
.01
.00
.13
.23
.23
.00
NA
NA
.00
.00
NA
.17
.11
.24
.00
.00
NA
.00
.00
.00
NA
.00
NA
.00
NA
.35
12
200812
.00
.00
.00
.00
.00
.23
.09
.00
.11
.00
.00
.00
.14
.23
.27
.00
.00
.00
.24
.00
1.60
1.71
.78
.73
50
89
25
89
39
74
70
31
63
93
57
27
47
50
48
47
NA
NA
22
46
NA
26
22
26
.00 32
.00 34
.00 NA
.00 37
.00 37
.00 34
.00 NA
.00 34
.00 NA
.00 50
NA NA
.31 53
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION-- MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
CAPITAL _ REQUIREMENTS AS CALCULATED BY S&L
United-Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
NONRESPONDER AS OF: 11/02/2010 CMR STATUS:
CUrrent
CUrrent Quarter Prior Quarter Prior
Quarter Prior
_.=== --==----=
YRMO, Period End.... 201009
1. TIER 1 (CORE) CAPITAL:
- capital
Inv&Adv to Noninclud. (k)
Goodwill and Oth.lntang.
Disallowed Service Assets
Other
Add:
AcCLoss/Gns:Sec/CF Hedg-tax
Qualifying Intangble Depsts
MinorityInt.inlnclud.Subs.
Other -
Tier 1 (Core) Capital (b)


Adjusted Risk-Based Cap. (c)
2. ADJUSTED TOTAL ASSETS:
Total Assets
Deduct:
(1)
NoninclSub.Assets
Goodwill &Oth.Intangibles
Disallwd.Ser.Assts/ ther
Other
Add:
Accum Loss/Gns:sec{CF Hedge
Qualfyng Intngib e Assets
Other
Adjusted Total Assets(e)
3. CORE CAPITAL REQUIREMENTS:
Core Cap.Req: (g)=(e)*(j)
4. RISK-BASED CAPITAL REQUIREMENT:
TOTAL UNWEIGHTED ASSETS
Total R-W ASsets
Excess ALLL
Total R-W Assets - Ex. ALLL
R-B Cap Req before (1)or(2)
(2) Low level Recourse Ded.
Risk-based capital Req.
140,031
0
0
0
0
3,814
0
0
0
143,845
18,143
0
45,282
116,706
2,069,723
0
0
0
0
3,814
0
0
2,073,537
165,883
2,306,583
1,462,716
21,791
1,440,925
172,911
0
17-2,911
= = =-=._.
201006
($000 at End of Period)
159,781
0
0
8
0
4,263
0
0
0
164,036
18,979
0
47,976
135,039
2,205,348
0
0
8
0
4,263
0
0
2,209,603
176,768
2,458,371
1,518,243
20,500
1,497,743
179,729
0-
179,729
Year Year End Total
200909
226,682
0
0
453
0
1,999
0
0
0
228,228
23,2-33
0
45,673
205,788
2,599,251
-0
0
453
0
2,963
0
0
2,601,761
104,070
3,080,462
1,858,677
0
1,858,677
148,694
0
148,694
200912
188,356
o
o
64
o
4,547
o
o
o
192,839
20,236
o
51,406
161,669
2,502,727
o
o
64
o
7,326
o
o
2,509,989
100,400
2,734,529
1,618,834
14,078
1,604,756
128,380
o
128,380
PAGE 20
Previous Prior
Year End Total
200812
151,778
o
o
o
o
22,256
o
o
o
174,034
15,562
o
60
189,536
2,240,378
o
o
o
o
35,857
o
o
2,276,235
91,049
2,473,590
1,796,483
_ 0
1,796,483
143,719
- 0
143,719
=_=.c._===_== ___ = ==--=-====.-._-== -=.-=-==_._------
==_D=_====a_==_=_ _ ___ ==_a _______ =_
S&L Pet S&L Pet Pet S&L Pet S&L Pet
5. FIRREA CAPITAL COMPLIANCE:
Core capital 11; 6.94
Core Cap. Req: J) 8.00
Core cap.Surplus: (b)-]) -1.06
Core Cap.Surp($OOO):(b)-(g)
Adjusted Risk-Based Cap. (c) 8.10
Risk-based capital Req. th) 12.00'
RiskBasedCap.Surpls:(c)- h) -3.90
R-B Cap Surp($OOO): (c)-(h)
9.60 6
4.00 98
5.61 2
-22,038
15.27 2
8.00 98
7.27 1
-56,205
at End
7.42 9.47 11 8.77 9.10 43 7.68 9.11 16
8.00 4.00 98 4.00 4.00 53 4.00 4.00 53
-.58 5.47 1 4.77 5.10 43 3.68 5.11 15
-12,732 124,158 92,439
7.65
4.00
3.65
(t of
9.02
12.00
-2.98
Total Risk-Weighted Assets at End of Period)
14.82 3 11.07 13.51 8 10.07 14.11 2 10.55
8.00 98 8.00 8.00 SO 8.00 8.00 50 8.00
6.82 1 3.07 5.51 8 2.07 6.11 2 2.55
-44,690 57,094 33,289
(t of Total Assets at End of Period)
8.68 27
4.00 55
4.69 27
82,985
13.35 12
8.00 49
5.27 13
45,817
6. ASSET BALANCES:
Adjusted Total Assets(e) 100.18 99.46
-Total R-W ASsets - Ex.ALLL 69.62 65.72
Total Unweighted Assets - 111.44 102.35
89 100.19 99.61 88 100.10 99.60 84 100.29 99.69 88 101.60 99.86
57 67.91 66.32 56 71.51 68.97 57 64.12 67.40 35 80.19 68.58
85 111.47 102.66 87 118.51 102.90 94 109.26 102.76 82 110.41 103.04
89
78
93
7. FDICIA PCA CAPITAL RATIOS:
Total Risk-Based 8.10
Tier 1 (Core) Risk-Based 6.84
Tier 1 (Core) Leverage 6.94
15.27
14.15
9.60
2
3
6
9.02
7.75
7.42
14.82
13.77
9.47
3- 11.07
3 9.82
11 8.77
1314
13.51
12.31
9.10
8
10
43
10.07
8.81
7.68
14.11
12.88
9.11
2
3
16
10.55
9.68
7.65
13.35
12.52
8.68
12
12
27
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3.-YEAR UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION OF RISK-WEIGHTED ASSET CATEGORIES
($000 Balance at End of Period) .
05:57 11/02/2010
united Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter Prior Quarter Year
= ___ =_.a ____ ._. ================= ______ = _____ __ ._=_.=_._._. __ _
'YllMO, Period End .. 201009 201006 200909 200912
1. ASSETS IN O'lr R-W CATEGORY,
Cash

Notes&Obligations FDIC
Other
Subtotal, O'lr R-W categ.
2. ASSETS IN 20'lr R-W CATEGORY,

State/Local Gen.Oblig.
Claims on DomestDepInst
Other
Subtotal,20' R-W Categ.
3. 'ASSETS IN 50'lr R-W CATEGORY,
Qualif.l-family ResMtg
Qualif.MultFam,ResNtg
Other MBS BackBy QualMtg
State/Local Rev. Bonds
Other
Subtotal,50'lr R-W Categ,
UNWEIGHTED:
1,432
286,714
52
169,314
457,512
UNWEIGHTED:
39,659
9,664
o
109
60,446
109,878
UNWEIGHTED:
277,473
2,957
316,476
o
o
596,906
4. ASSETS IN loot R-W CATEGORY,
Notes/Obligtns FDIC RW
All Other ASsets
Subtotal,100' R-W Categ.
UNWEIGHTED :
10,262
1,132,025
1,142,287
5 ALL R-W CATEGORIES, UNWEIGHTED:
'Subtotal (1+ +4) 2,306,583
Other Adj. (by diff.) -236,860
Total Consol.Assets 2,069,723
LowLevel Recourse Ded. 0
Current Quarter
----===-----=----
S&L Pet
YRMO, Period End.... 201009
1. ASSETS IN 0'1; R-W CATEGORY, UNWEIGHTED:
Cash . .07 .38 18
U.S.Gov.Securities 13.85 1.15 93
Notes&Obligations FDIC .00 .00 88
Other 8.18 1. 30 84
Subtotal, O'lr R-W Categ. 22.10 6.52 93
2. ASSETS IN 20'lr R-W CATEGORY, UNWEIGHTED:
High Quality MBS 1. 92 7.43 30
Claims on FHLBs .47 1.20 15
State/Local Gen.Oblig. .00 . 01 23
Claims on DomestDepInst. .01 .41 10
Other 2.92 2.41 60
Subtotal,20'lr R-W Categ. 5.31 16.89 13
3. ASSETS IN sot R-W CATEGORY, UNWEIGHTED:
Qualif.l-family ResNtg 13.41 20.97 30
Qualif.MultFam ResMtg .14 .00 60
Other MBS BackBy QualMtg 15.29 .00 98
State/Local Rev. Bonds .00 .00 34
Other .00 .00 35
Subtotal,50' R-W Categ. 28.84 25.13 63
4. ASSETS IN loot R-W CATEGORY, UNWEIGHTED:
Notes/Obligtns FDIC RW .50 .00 72
All Other Assets 54.69 46.08 68
Subtotal,100t R-W Categ. 55.19 48.49 67
5. ALL R-W CATEGORIES, UNWEIGHTED:
($000 at End of
1,481
266,159
62
260,466
528,168
Period)
45,352
9,597
o
129
56,797
111,875
294,009
3,062
344,991
o
2,859
644,921
. 10,832
1,162,575
1,173,407
2,458,371
-253,023
2,205,348
o
1,386.
122,245
o
523,331
646,962
73,748
12,326
o
43,804
35,215
165,093
323,610
o
561,888
o
o
885,498
137,511
1,245,398
1,382,909
.3,080,462
-481,211
2,599,251
o
Prior Quarter
Current Quarter
Prior Year
----=--=---------
S&L Pet S&L pct
(t of
.07
12.07
.00
11.81
23.95
2.06
.44
.00
.01
2.58
5.07
13.33
.14
15.64
.00
.13
29.24
.49
52.72
53.21
201006
Total Assets)
.33 23 .05
1.06 96 4.70
.00 92 .00
1.37 91 20.13
5.60 95 24.89
7.26 31 2.84
1.21 13 .47
.00 25 .00
.64 8 1.69
2.28 53 1.35
16.72 11 6.35
21 .. 60
.00
.00
.00
.00
27.07
.00
46.95
49.76
28 12.45
60 .00
98 21.62
35 .00
81 .00
56 34.07
70 5.29
63 47.91
63 53.20
200909
.31
.48
.00
.41
2.82
7.53
1.23
.00
.62
1.61
16.33
22.34
.00
.00
.00
.00
25.86
.00
47.91
49.53
20
88
48
97
97
33.
14
27
70
43
14
26
27
98
35
37
65
96
50
56
1,525
122,138
54
537,637
661,354
66,302
9,440
O.
46,850
37,737
160,329
313,696
2,731
325,680
o
10,049
652,156
20,470
1,240,220
1,260,690
2,734,529
-231,802
2,502,727
o
Prior
Year End Total
----=.=._---=----
S&L Pct
200912
.06
4.88
.00
21.48
26.43
2.65
.38
.00
1.87
1.51
6.41
12.53
.11
13.01
.00
.40
26.06
.82
49.55
50.37
.36
.58
.00
.65
3.63
6.37
1.40
.00
.62
1.61
16.13
21
87
88
96
96
33
10
27
78
46
16
22.09 28
.00 60
.00 98
.00' 35
.00 87
25.60 52
.00 78
49.06 51
49.62 52
PAGE 21
Previous Prior
Year End Total
----===-=--------
200812
1,208
141,477
o
20,537
163,222
315,180
29,259.
o
540
31,950
376,929
348,717
o
75,967
o
o
424,684
o
1,508,755
1,508,755
2,473,590
-233,212
2,240,378
o
Previous Prior
Year End Total
-------=----._---
S&L Pct
.05
6.31
.00
.92
7.29
14.07
1.31
.00
.02
1.43
16.82
15.57
.00
3.39
.00
.00
18.96
.00
67.34
67.34
200812
.39
.08
.00
.17
1.33
9.39
1.33
.00
.74
1.28
18.08
23.79
.00
.00
.00
.00
26.42
.00
44.37
46.13
24
93
50
72
87
60
49
28
13
54
46
36
30
97
38
33
35
37
78
76
Subtotal (1+ +4) 111.44 102.35
Other Adj. (by diff.) -11.44 -2.35
Total Consol.Assets 100.00 100.00
LowLevel Recourse Oed. .00 .00
85 111.47 102.66
14 -11.47 -2.66
50 100.00 100.00
46 .00 .00
87 118.51 102.90
12 -18.51 -2.90
50 100.00 100.00
45 .00 .00
94 109.26 102.76
5 -9.26 -2.76
50 100.00 100.00
46 ;00 .00
82 11p.41 103.04
17 -10.41 -3.04
50 100.00 100.00
45 '.00 .00
93
6
50
48
1315
05:57 11/02/2010
Months in Period
YRMO, Period End ....
CHANGES IN ASSETS:
1.1
2.2
2.6
3.1
4.0
4.1
5.1
5.5
5.8
CASH,DEP. &INV. SECOR.
MORTGAGE BACKED SECOR.
MORTGAGE LOANS:
Const.Lns,1-4 Unit Res
Const.Lns,5+ Unit Res
Const.Lns,Nonreaid.
Subtotal, Const.
Perm.Mtgs,1-4 Unit Res
Perm.Mtgs,5+ Unit Res
Perm.Mtgs,Land
Perm.Mtgs,NonResid.
Subtotal,Perm.Mtgs
Other (by diff.)
Subtotal, MtgLns
NONMORTGAGE LOANS:
Repossessed Assets
Real Estate Invest.
Subtotal ReEo.Ast .... REI

Other Assets:
Goodwill
Aste
TOTAL ASSETS
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
CHANGES IN FINANCIAL CONDITION ($000)
United Western Bank
DOCKET: 06679 TFR STATUS:
DATA AS OF: 11/02/2010 CMR STATUS:
CUrrent Quarter Prior Quarter
IN PROCESS
NONRESPONDER'
PAGE 22
TID Prior Year
================= ================= ================= ================= =================
3 3 9 12 12
PreviousPriorYr
201009 201006 201009 200912 200812
-92,454
4,293
-8,585
-4,848
-25,335
-38,768
-15,496
-1,562
-12,823
10,648
-19,233
157
-57,844
786
10,390
o
10,390
64
-232
-92
-277
-259
-135,625
-404,253
66,218
"9,218
-4,830
-13,778
-27,826
-15,227
6,098
-2,317
2,240
-9,206
-4,482
-41,514
4,901
-7,441
o
-7,441
63
-283
-53
-480
-513
-383,355
-418,846
107,019
-32,860
-20,041
-78,363
-131,264
-33,609
6,683
-17,745
53,236
8,565
-4,161
-126,860
253
8,315
o
8,315
189
-721
-243
-1,332
-778
-433,004
555,424
-184,274
-15,780
-18,378
8,726
-25,432
-33,167
-12,850
-30,952
-10,446
-87,415
-18,068
-130,915
12,755
11,685
a
11,685
-19,658
774
-129
-2,152
18,839
-27,440
-94,093
56,019
29,145
28,217
113,381
-61,849
997
12,399
170,254
121,801
-7,224
227,958
41,808
1,882

1,882
-10,867
8,251
-218
-2,475
17,568
CHANGES IN LIABILITIES + CAPITAL:
262,349
162,374
7.1
7.5
LIABILITIES:
DEPOSITS AND ESCROWS:
NetNewDepositsRecvd
IntCreditedDeposits
Subtotal
Other Changes
Net Change
DepActs Belw InsLmts
DepActs Abve InsLmts
BORROWINGS:
Net Change
FHLBank Advances
Reverse REPOs
Subord.Debentures
MtgColl.Sec.lssued
All Other Brwg
Other Liabilities
Total Liabilities
NonCntrol IntConsldtd subsr
8.0 EQUITY CAPITAL:
Perpetual Pref.Stk
CUmu1. Perp. Prefstk
NonCUm.Perp. Prefstk
CommonStk &Paid-InCap.
UnrlGain/LossAvai14Sal
Gains/LosscashFlwHedge
Other
Retained Earnings
Other components
Subtotal
Total Equity Capital
TOTAL LIABILITIES & EQUITY
CHANGES TO EQUITY CAPITAL:
Net Income
Less:Caeh Divan Pref
Less:Cash Divan ComStk
Subtotal
Stock Issued
Stock Retired
New Basis Acctg Adj
Oth Adjustments (by diff)
Net Change in Equity Cap
NA
3,154
NA
NA
-116,943
-46,618
-71,654
2,907
570
6,216
a
o
-3,879
-1,360
-115,875


o

155
449
o
o
-20,354
o
-19,750
-19,750
-135,625
-20,354
o

-20,354
o
o
o
604
-19,750
NA
3,037
NA
NA
-383,930
-190,241
-191,112
4,949
561
-398
o
o
4,786
62
-376,506
o
o
o
o
3,129
1,167

o
-11,145
o
-6,849
-6,849
-383,355
-11,145
o
o
-11,145
o

o
4,296
-6,849
1316
NA
9,678
NA
NA
-388,959
-116,150
-270,047
3,477
-10,853
7,146
o
o
7,184
-2,442
-384,679

o
o
3,456
733
o
o
-52,514
o
-48,325
-19,750
-433,004
-52,515
o
o
-52,515
o
o
o
4,190
-48,325
NA
13,995
NA
NA
267,67.4
485,558
-214,095
-48,263
-46,114
-2,630
o
o
481
3,394
225,774
2
o
o
o
88,224
17,709
o
o
-69,360
o
36,573
-38,326
262,349
-69,359
o
o
-69,359
o
o
o
105,937
36,573
NA
12,033
NA
NA
338,467
97,316
243,939
-175,498
-179,408
4,837
o

-927
-6,433
158,889
a
o
o
o
12,444
-19,588
o
o
10,629
o
3,485
NA
162,374
13,685
o
2,830
10,855

o
o
-7,370
3,485
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
CHANGES IN FINANCIAL CONDITION (% TA at start of period)
05:57 11/02/2010
United Western Bank
PAGE 23
DOCKET: 06679 TFR STATUS:
DATA AS OF: 11/02/2010 CMR STATUS:
IN PROCESS
NONRESPONDER
CUrrent Quarter Prior Quarter
?TD Prior Year
PreviousPriorYr
Months in Period
YRMO, Period End ....
3
201009
3
201006
9
201009
12
200912
CHANGES IN ASSETS: (% of Total Assets at Start of Period, not Annualized)
1.1 CASH,DEP.&INV.SECUR. -4.19
2.2 MORTGAGE BACKED SECUR. .19
.02
-.02
5 -15.62
63 2.56
.24
-.01
2 -16.74
85 4.28
2.02 2
.10 76
24.79
-8.23
2.6
3.1
.4.0
4.5
5.1
5.5
5.8
MORTGAGE LOANS:
Const.Lns,1-4 Unit Res
Const.Lns,S+ Unit Res
Const.Lns,Nonresid.
Subtotal, Const.
Perm.Mtgs,1-4 Unit Res
Perm.Mtgs,S+ Unit Res
Perm.Mtgs,Land
Perm.Mtgs,NonResid.
Subtotal,Perm.Mtgs
Other (by diff.)
Subtotal, Mtg Lns
NONMORTGAGE LOANS:
Repossessed Assets
Real Estate Invest.
Subtotal ReEo.Ast.+REI

Other Assets:
Goodwill
Asts
-.39
-.22
-1.15
-1. 76
-.70
-.07
-.58
.48
-.87
.01
-2.62
.04
.47
.00
.47
.00
-.01
.00
-.01
-.01
.00
.00
.00
-.03
-.07
.00
-.01
.00
.00
-.01
.00
.00
.00
.00
.00
.00
.00
.00
.00
-.02
5
9
2
1
18
19
9
84
25
65
10
65
94
51
94
81
40
28
10
53
- .36
- .19
-.53
-1.07
- .59
.24
- .09
.09
-.36
-.17
-1.60
.19
-.29
.00
-.29
.00
-.01
.00
-.02
-.02
-.02
.00
.00
-.08
-.02
.00
-.01
.00
.00
-.01
-.06
.00
.00
.00
.00
.00
.00
.00
.00
-.01
12
8
5
1
20
78
32
65
30
11
13
65
3
54
3
78
32
41
8
48
-1.31
- .80
-3.13
-5.24
-1.34
.27
-.71
2.13
.34
- .17
-5.07
.01
.33
.00
.33
.01
-.03
-.01
-.05
-.03
-.07
.00
-.02
-.24
-.23
.00
-.02
.00
.00
-.02
- .11
.00
.01
.00
.01
.00
-.01
.00
.00
-.04
3
6
1
1
22
67
15
88
59
18
10
55
78
53
80
71
39
30
5
51
-.70
-.82
.39
-1.14
-1.48
-.57
-1.38
-.47
-3.90
-.81
-5.84
.57
.52
.00
.52
-.88
.03
-.01
-.10
.84
TOTAL ASSETS -6.15 .58 5 -14.81 .83 2 -17.30 3.11 5 11.71
CHANGES IN LIABILITIES + CAPITAL:
7.0
7.1
7.2
7.5
8.0
LIABILITIES:
DEPOSITS AND ESCROWS:
NetNewDepositsRecvd
IntCreditedDeposits
Subtotal
Other Changes
Net Change
Dep.Accts <$100K+Esc
Dep.Accts
BORROWINGS:
Net Change
FHLBank Advances
Reverse REPOs
Subord.Debentures

Other Liabilities
Total Liabilities
NA
.14
NA
NA
-5.30
-2.11
-3.25
.13
.03
.28
.00
.00
-.18
-.06
-5.25
NA
.20
NA
NA
.62
-.10
.82
-.06
-.01
.00
.00
.00
.00
.05
;36
NA NA
23 .12
NA NA
NA NA
3 -14.83
14 -7.35
3 -7.38
76 .19
81 .02
89 -.02
49 .00
50 .00
3 .18
23 .00
5 -14.54
NA
.22
NA
NA
.86
.11
.42
-.03
-.02
.00
.00
.00
.00
.03
.72
NA NA
17 .39
NA NA
NA NA
2 -15.54
2 -4.64
1 -10.79
83 .14
85 -.43
15 .29
49 .00
50 .00
96 .29
37 -.10
2 -15.37
NA
.65
NA
NA
3.39
1.41
1. 70
- .31
-.15
.00
.00
.00
.00
.08
3.05
NA
21
NA
NA
3
11
2
69
47
81
49
50
94
26
5
NA
.62
NA
NA
11.95
21.67
-9.56
-2.15
-2.06
-.12
.00
.00
.02
.15
10.08
.00 .00 50 .00 .00 50 .00 .00 50 .00
CUmul. Perp. Prefstk .00 .00 50
NonCUm.Perp. Prefstk .00 .00 50
CommonStk &Paid-InCap. .01 .00 76
UnrlGain/LossAvail4Sal .02 .00 69
Gains/LossCashFlwHedge .00 .00 51
Other .00 .00 51
Retained Earnings -.92 .10 5
Other components .00 .00 43
Subtotal - .90 .13 3
NonCntrolIntCnsldtdsSu .00 .00 47
Total Equity Capital -19750.00 2034.00
.00 .00 50
.00 .00 50
.12 .00 82
.05 .05 50
.00 .00 52
.00 .00 47
-.43 .07 11
.00 .00 46
-.26 .20 15
.00 .00 48
2 -6849.002722.00
.00 .00 50 .00
.00 .00 50 .00
.14 .00 69 3.94
.03 .06 39 .79
.00 .00 51 .00
.00 .00 50 .00
-2.10 .32 3 -3.10
.00 .00 47 .00
-1.93 .51 2 1.63
.00 .00 48 .00
11 -19750.00 2034. 00
.58 5 -14.81 .83 2 -17.30 3.11 5 11. 71
1. 74
.00
-.15
.00
-.03
-.42
-.50
.02
-.01
.19
.33
- .11
-. 04
.00
.06
.00
.06
.00
-.01
.00
.00
.51
97
3
30
3
87
28
43
5
10
15
21
3
17
69
84
53
84
1
78
43
2
80
2.31 76
NA
1.22
NA
NA
5.03
14.70
-8.00
-2.00
-1.36
.00
.00
.00
.00
.00
2.00
NA
14
NA
NA
79
78
41
43
43
19
49
50
75
73
78
-1.32
-4.53
2.70
1.40
1.36
5.46
-2.98
.05
.60
8.19
5.86
-.35
10.97
2.01
.09
. 00
.09
-.52
.40
-.01
-.12
.85
7.81
NA
.58
NA
NA
16.29
4.68
11.74
-8.45
-8.63
.23
.00
.00
- .04
-.31
7.65
.00 48 .00
.00 50 .00
.00 48 .00
.08 92 .60
.06 91 -.94
.00 48 .00
.00 46 .00
.25 6 .51
.00 42 .00
.76 69 .17
.00 94 .00
2 -38326.00 2136.00
2.31 76 7.81
TOTAL LIABILITIES & EQUITY -6.15
CHANGES TO EQUITY CAPITAL:
Net Income
Less:Cash Div on Pref
Less:Cash Div on ComStk
-12.74
.00
.00
1.16
.00
.00
.98
.00
.00
.00
.08
('Ii
5
48
.42
of Beginning
-6.69 1.03
.00 .00

48 .00 .00 48
6
46
35
9.23
.00
1. 91
7.32
.00
.00
.00
Subtotal
Stock Issued
Stock Retired
New Basis Acctg Adj
Oth Changes (by dif!)
Net Change Equity Cap
-12.74
.00
.00
.00
.38
-12.36 1.16
5
48
49
50
68
2
.00 .00
-6.69 .'71
.00 .00
.00 .00
.00 .00
2.58 .52
-4.11 1.76
41 .00 .00 38 .00 .00
7 -32.87 2.60 2 -30.60 1.15
48 .00 .00 48 .00 .00
48 .00 .00 49 .00 .00
50 .00 .00 50 .00 .00
75 2.62 2.24 55 46.73 5.35
10 -30.24 4.58 2 16.13 5.78
1317
7
47
48
50
91
70
-4.97
2.35
12
200812
-.74
.73
-.07
.00
.00
.00
2.12
.12
.00
1.22
4.40
-.08
4.33
.51
.05
.00
.05
.05
.03
.00
.00
.33
46
2
95
95
91
94
9
46
85
87
61
19
76
73
56
52
57
1
84
29
7
67
8.69 46
NA
1. 90
NA
NA
5.47
3.07
2.47
1.29
.05
.00
.00
.00
.00
-.01
8.29
.00
.00
.00
.07
-.03
.00
.00
.18
.00
.35
.00
2
NA
7
NA
NA
81
59
85
5
5
74
48
50
12
16
46
48
50
48
70
15
51
61
70
44
43
47
NA
8.69 46
3.77
.00
.00
2.55
.00
.00
.00
.62
3.14
83
45
67
90
45
49
48
12
46
NA NA
'05:5711/02/2010
OFFICE OF THRIFT SuPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
LENDING, INVESTMEIIT, FORECLOSURE, AND RESTRUCTURING ACTIVITY ($000)
United Western Bank
DOCKET: 06679 TFR STATDS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATDS: NONRESPONDER
CUrrent Quarter Prior Quarter YTD . Prior Year
================; ================; .c . ==_._._._.==; m._. __ ac=======i;
Months in Period
YRMO, Period End
201009 201006 201009 200912
1.1 CASH, DEPOSITS, & INVESTMEIIT 'SECURITIES:
Net BS ChngInCsh,Dep,&InVSC -92,454
2.2 MORTGAGE BACKED SECURITIES:
Pass-Through:
Purchases
Sales. .
Other Balance Changes
Net Subtotal (Pass Through) .
Other Mortgage Backed Securities:
Purchases
Sales
Other Balance Changes
Net Subtotal (Other MeS)
Net Subtotal (Total MeS)
Net Other Chngs (by diff.)
Net BS Chng in MtgBckdSec
2 . 6 MORTGAGE LOANS:
Constr. Lns. Closed:1-4 Res
COnstr. Lns. Closed,5+ Res.
Constr. Lns. Closed:Nonres.
Perm. Mtgs. Closed:1-4 Res.
Perm. Mtgs. Closed:5+ Res.
Perm. Mtgs. Closed:Nonres.
Perm. Mtgs. Closed:Land
Total New originations
Refinancing Loans(b)
Mtg Purchases: 1-4 Dwelling
Mtg Purchases, 5+ Dwelling
Mtg Purchases: Nonres.
Total Mtg Purchases
Noncash Trans,excl.Frcl+NCO
TotalDebits:orig+Prch+NnCsh
Total'Mtgs Sold
Mtgs Sold:1-4 Dwell
Mtgs Sold:5+ Dwell
Mtgs sold:Nonres

Net Charge-offs (NCO)
Additions to Allowances
Total Credits:Sales+Misc.
Net Subtotal
Net OtherChngs (by diff.)
Net BS Chng in Mtge Loans
3.1 NONMORTGAGE LOANS:
Commer.Lns Closed or Purch.
Consmr Lns Closed or Purch.
Net Subtotal
Net Other Chngs (by diff.)
Net BS Chng in NonRtge Lns
4.0 REPOSSESSED ASSETS:
Foreclosures
ChgOffs on Repos'd (VA60)
Chg in VA (Chg in SC440)
Oth:BS Chg+COs+ChgAll.
Net BS Chng Repo'd Assets
5.8 OTHER ASSET CHANGES:
Net BS Chng in Total Assets
DEBT RESTRUCTDRING ACTIVITY:
TOR During period
Amt incld ScdSC in Cmplince
MORTGAGE LOAN FORECLOSURE ACTIVITY:
Construction
Permanent Loans:
1-4 Family

Land
Total
29,825
o
-12,057
17,768
o
o
-13,437
-13,437
4,331
-38
4,293
1,378
615
4,763
6,551
o
19,547
516
33,370
o
1,737
o
o
1,737
NA
NA
14,817
157
o
14,660
NA
12,822
14,247
14,032
55,9lB
NA
NA
-57,844
24,273
342
24,615
-23,829
786
12,822
o
o
-2,432
10,390
-796
-135,625
31,048
39,993
837
1,989
o
2,480
7,516
12,822


-10,913
78,428.
o
o
-12,256
-12,256
66,172
46
66,218
3,714
156
2,505
4,874
o
35,881
3,445
50,575
o
1,896
o
169
2,065
NA
NA
11,990
o
o
11,990
NA
3,458
816
4,868
21,132
NA
NA
-41,514
25,249
882
26,131
-21,230.
4,901
3,458
o
o
-10,899
-7,441
-1,266
-383,355
3,458
28,373
1,012
1,316
o
o
1,130
3,458
1318
-4lB,846
183,914
. 0
-34,620
149,294
o
o
-42,333
-42,333
106,961
58
107,019
10,501
831
10,245
14,513
o
83,386
4,310
123,786
o
8,077
o
169
8,246
NA
NA
33,896
157
o
33,739
. NA
24,618
22,030
25,255
105,799
NA
NA
-126,860
68,193
1,714
69,907
-69,654
253
24,618
o
o
-16,303
8,315
-2,885
-433,004
46,347
39,993
3,983
4,864
o
7,125
8,646
24,61.8
555,424
5,595
.47,347
-39,907
-81,659
o
o
-101,872
-101,872
-183,531
-743
-184,274
58,520
12,492
64,330
49,319
7,098
112,132
14,839
318,730
o
10,589
o
o
10 .. 589
NA
NA
31,532
3,780
o
27,752
NA
22,497
9,349
26,583
89,961
NA
NA
-130,915
101,026
9,516
110,542
-97,787
12,755
22,497
o
o
-10,812
11,685
-2,326
262,349
45,217
30,040
8,644
9,572
1,360
1,202
1,719
22,497
PAGE 24
PreviousPriorYr

12
200812
-27,440
4,973
o
-41,116
-36,143
o
o
-57,653
-57,653
-93,796
-297
-94,093
107,287
58,055
89,431
43,019
4,270
299,976
54,346
656,384
o
7,621
o
o
7,621
NA
NA
28,039
3,270
3,215
21,554
NA
10,931
619
6,784
46,373
NA
NA
227,958
200,586
3,288
203,874
-162,066
41,808
10,931
o
o
-9,049
1,882
12,259
162,374
13,044
7,025
o
10,931
o
o
o
10,931
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY aEGION
, 3-YEAR UTPR REPORT FOR QUlIRTER ENDED 201009
LENDING, INVESTMENT, FORECLOSURE, AND RESTRUCTURING ACTIVITY (t)
united Western Bank'
DOCKET: 06679 TFR STATUS:
DATA AS OF: 11/02/2010 CMR STATUS:
Current Quarter Prior Quarter
IN PROCESS
NONRESPONDER
YTD Prior Year
!?AGE 25,
PreviousPriorYr
= _-_ ===---
----=--==._.==-==
--===-==-=-=--=--
===-====-==._._.-
S&L Pct S&L Pct S&L Pct S&L Pct
Months in Period
YRMO" Period End .
.=._-= ==- -F=--- --_._= =--
3 3
201009 201006
9
201009
12
2,00912
1.1 CASH, DEPOSITS, & INVESTMENT SECURITIES:
(t of Total Assets at Start of Period, not Arinualized)
Net BS ChnglnCsh,Dep,&InvSc -4.19 .02 5
-15.62 .24 2 -16.74 2.02 2 24.79 1.74 97 -1.32
2.2 MORTGAGE BACKED SECURITIES:
pass-Through:

Other Balance Changes -.55
Net Subtotal (Pass Through) .81
Other Mortgage Backed Securities:
Purchases .00
Sales .00
Other Balance ChangeS -.61
Net Subtotal (Other MBS) -.61
Net Subtotal (Total MBS) .20,
Net Other ChI.tgs (by diff.) . 00
Net BS Chng in MtgBckdSec .19
2.6 MORTGAGE LOANS:
Constr. Lns. Closed:1-4 Res
Constr. Lns. Closed:5+ Res.
Constr. Los. Closed:Nonres.
Perm. Mtgs. Closed:1-4 Res.
Perm. Mtgs. Closed:5+ Res.
Perm. Mtgs. Closed:Nonres.
Perm. Mtgs. Closed:Land
Total New originations
Refinancing Loans(b)
Mtg purchases: 1-4 Dwelling
Mtg Purchases: 5+ Dwelling
Mtg purchases: Nonres.
Total Mtg Purchases
Noncash Trans,excl.Frcl+NCO
TotalDebits:Orig+prch+NnCsh
Total Mtgs Sold
Mtgs Sold:1-4 Dwell
Mtgs Sold:5+ Dwell
Mtgs Sold:Nonres
Cash Repayment of Principal
Foreclosures (Frcl) )
Net Charge-offs (NCO
Additions to Allowances
Total Credits:Sales+Misc.
(by diff.)
Net BS Chng in Mtge Loans
3.1 NONMORTGAGE. LOANS:
Commer.Lns Closed or Purch.
consmr Los Closed or Purch.
Net Subtotal
Net OtherChngs (by diff.)
Net BS Chng in NonMtge Lns
4.0 REPOSSESSED ASSETS:
Foreclosures
ChgOffs on Repos'd (VA60)
CIl<'! in VA (Chg in SC440)
Otn:BS Chg+COs+ChgAll.
Net BS Chng Repo'd Assets
5.8 OTHER ASSET CHANGES:
.06
.03
.22
.30
.00
.89
.02
1.51
.00
.08
.00
.00
.08
NA
NA
.67
.01
.00
.66
NA
.58
.65
.64
2.54
NA
NA
c2.62
1,.10
.02
1.12
-1.08
.04
.58
.90
.00
- .11
.47
-.04
Net BS Chng in Total Assets -6.15
DEBT RESTRUCTURING ACTIVITY:
TDR During period , 1.41
Amt incld ScdSC in Cmplince 1.81
MORTGAGE LOAN FORECLOSURE ACTIVITY:
Construction .04
Permanent Loans:
1-4 Family

Land
Total
.09
.00
.11
.34
.58
.00
.00
-.51
-.04
.00
.00
-.12
.00
-.02
.00
-.02
.07
.00
.00
1.98
.00
.25
.00
3.46
1.40
.00
.00
.00
.00
72
37
46
82
30
40
25
13
63
44
63
48
85
88
19
24
86
71
23
13
80
46
44
76
NA NA
NA NA
.67 50
.61 28
.00 45
.00 97
NA NA
.. 04 89
.04 93
.05 90
1.30 63
NA NA
NA NA
.00 10
.39
.08
1.19
-1.46
.00
.04
.00
.00
-.06
.00
60
25
47
53
65
89
42
50
36
94
53
3.45
.00
-.42
3;03
.00
.00
- .47
-.47
2.56
.00
2.56
.14
.01
'.10
.19
.00
1.39
.13
1.95
.00
.07
.00
.01
.DB
NA
NA
.46
.00
.00
A6
NA
.13
.03
.19
.B2
NA
NA
-1.60
.9B
.03
1.01
-.B2
.19
.13
.00
.00
-.42
-.29
-.05 -.06
.58 5 -14.B1
.16
.62
.00
.02
.00
.00
.00
.04
92 .13
81 1.10
88 .04
72 .05
44 .00
86 .00
97 .04
89 .13
.08 91
.00 40
-.30 42
-.01 95
.00 31
.00 40
- .10 26
.00 17
-.01 83
.00 65
-.01 85
.07
.00
.00
1.83
.02
.27
.00
3.11
.86
.00
.00
.00
.00
62
70
78
17
21
93
82
2B
15
76
46
93
72
NA NA
NA NA
.56 45
.50 16
.00 46
.00 93
NA NA
.07 60
.03 53
.05 75
1.14 43
NA NA
NA NA
-.06 13
.48
.07
1.24
-1.12
.00
.07
.00
.00
-.05
.00
61
38
48
53
65
60
42
48
12
3
47
7.35
.00
-1.38
5.97
.00
.00
-1.69
-1.69
4.27
.00
4.28
.42
.03
.41
.5B
.00
3 . 33
.17
4.95
.00
.32
.00
.01
.33
NA
NA
1.35
.01
;00
1.35
NA
.9B
.88
1.01,
4.23
NA
NA
-5.07
2.72
.07
2.79
-2.78
.01
.98
.00
.00
-.65
.33
-.12 -.01
.83 2 -17.30
.19
.60
.00
.03
.00
.00
.00
.07
37 1.85
66 1.60
83 .16
60 .19
42 .00
33 .28
80 .35
60 .98
1319
1.05 B1
.00 2B
-1.25 4B
- .09 92
.11 25
.00 36
- .29 25
.00 9
.10 76
.00 63
.10 76
.22
.00
.03
5.57
.'07
1.15
.03
9.25
2.93
.00
.00
.00
.00
61
69
B1
15
15
90
69
25
13
77
45
B4
69
NA NA
NA NA
2.18 44
1.59 26
.00 44
.00 94
NA NA
.23 80
.14 B2
.15 B6
3.B1 53
NA NA
NA NA
-.11 10
1.24
.25
3.98
-3.71
.00
.23
.00
.00
-.14
.01
59
26
42
55
55
80
38
50
17
78
46
.25
2.11
-1.78
-3.64
.00
.00
-4.55
-4.55
-B.19
-.03
-B.23
2.61
.56
2.B7
2.20
.32
5.01
.66
14.23
.00
.47
.00
.00
.47
NA
NA
1.41
.17
.00
1.24
NA
1.00
.42
1.19
4.02
NA
NA
-5.84
4.51
.42
4.93
-4.36
.57
1.00
.00
.00
-.48
.52
-.10 -.OB
3.11 5 11. 71
.67
.63
.00
.09
.00
.01
.00
.23
78 2.02
73 1.34
85 .39
64 .43
3B .06
84 .05
90 .08
80 1.00
1.49 34
.00 74
-1.67 47
- .13 21
.00 25
.00 35
-.24 10
.00 2
.00 3
.00 25
.00 3
.31
.00
.16
10.92
.13
1.77
.04
16.52
4.92
.00
.00
.00
.05
85
92
94
16
60
80
84
39
15
78
42
39
69
NA NA
NA NA
3.52 39
2.72 29
.00 47
.00 94
NA NA
.27 B7
.13 74
.2B B7
4.96 48
NA NA
NA NA
-.04 17
2.48
.47
4.93
-4.80
.00
.27
.00
.00
-.13
.06
.46
65
47
50
52
69
87
38
52
19
B4
14
2.31 76
.87 75
.46 71
.00 93
.08 85
.00 88
.01 65
.00 69
.27 B7
.24
.00
-1.98
-1.74
.00
.00
-2.77
-2.77
-4.51
- .01
-4.53
5.16
2.79
4.30
2.07
.21
14.44 .
2.62
31.59
.00
.37
.00
.00
.37
NA
NA
1.35
.16
.15
1.04
NA
.53
.03
.33
2.23
NA
NA
10.97
9.65
.16
9.81
-7.80
2.01
.53
.00
.00
-.44
.09
.'59
7.81
.63
.34
.00
.53
.00
.00
.00
.53
12
200812
-.74
1.92
.00
-.75
.23
.00
.00
-.23
.00
.51
.00
.73
.81
.00
.34
10.92
.37
2.72
.18
19.08
3.45
.00
.00
.00
.07
46
32
36
36
5
26
42
15
B
2
19
2
85.
95
92
12
39
92
87
71
14
70
42
40
61
NA NA
NA NA
1.85 46
1.03 38
.00 91
.00 90
NA NA
.12 71
.04 45
.13 67
3.61 45
NA NA
NA NA
4.33 76
3.10
.73
8.44
-4.86
.51
.12
.00
.00
-.05
.05
.55
76
32
54
42
73
71
40
49
21
56
52
8.69 46
.31 66
.25 57
.00 36
.04, 85
.00 40
.00 32
.00 33
.12 71
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR. UTPR REPORT FOR QUARTER ENDED 2{)1009
QUESTIONS, BUSINESS STRATEGIES, AND NEW DEPOSIT YIELDS FOR UNCONSOLIDATED S&L
united Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
PAGE 26
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter Prior Quarter YTD Prior Year PreviousPriorYr
Months in Period
YRMO, Period End ..
=====.==========; =-=-====-===-==-; ----=---=-=_=i;
201009 201006 201009 200912 200812
SUPPLEMENTARY QUARTERLY QUESTIONS:
(O=No, l=Yes in One Qtr. of Period, 2.Yes in Two Qtrs. of Period, Etc.)
Did reporting association acquire any asseNtAs through merger?
NA NA NA
As a result of a branch or bulk deposit purchase, were assetNAs or liab.includedNAin reporting assoNAciation's
sheet for the first time? NA,
Has there been a change in control of assoiiation?
NA NA
Has there been a merger accounted for undeiAthe purchase
NA NA
balance
NA
NA
NA
NA
(O=Not restated, Other-Restatement Date Formated as MMDDYY)
If reporting association's bal.sheet is reHsAtated for firNAst time using pushN-dAown accounting, NAenter the date} of
the reorganization (MMDDYY) NA
Reporting association's fiscal year-end 12'
Code representing nature of work ,to be performed by independent public
for the current fiscal rear . 10 10
Did the reporting assoc ation change independent public accountant
quarter? . 0 0
12
accountants
10
during the
o
12
10
o
Did the reporting association or its subsidiaries
o
have outstandingofutures or options
positions at quarter-end? 0
Does the reporting association have a Subchapter S election in effect for Federal income tax purposes
for the current tax year? 0 0 0 0
EXTENSIONS GFS&L CREDIT TO ITS DIRECTORS, AND RELATED INTERESTS:
o 0 0 5,000
Aggregate amount ($000)
No.w/Large Borrowings
o 0 0 1
1320
12
10
1
o
o
5,000
1
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND OFF-BAL.SHEET POSITIONS OF SECTION CMR PORTFOLIO / Part 1 of 3 ($000)
05:57 11/02/2010
United Western Bank
06679 TFR STATUS:
11/02/2010 CMR STATUS:
current
Prior Quarter Prior
DOCKET:
DATA AS OF:
CUrrent Quarter
IN PROCESS
NONRESPONDER
Quarter Prior
Year Year End Total
PAGE 27
Previqus Prior
Year End Total

======---=--- =======-==-_.=-=- =====--_._ . c=._._.=
YRMO, Period End ...
-1. COMPOSITION OF SECTION CMR ASSETS:
SF 1st Mtges & MBS, Fixed Rate:
30YrMtgLnS
15YrMtglns
BalloollMtgLns
SF 1st Mtg Lns, All Fix
30YrSecMtgConventiona1- -
30YrSecMtgFHA/VA
15YrSecMtg
BalloonSecMtg
SF 1st Mtg Sec, All Fix
SF
SF 1st Fix, All Lns+Sec
-3 OYrMtg: Lns+Sec
l5YrMtg:Lns+Sec
BalloonMtg:Lns+Sec
Rate:
NonTeaser ARMs,CUrrIndx
NonTeaser ARMs,LagIndx
Teaser ARMs
Teaser ARMs,currIndx
Teaser ARMs,LagIndx
SF ARMS, Teaser+NonTeaser
Securitized ARMS
Non-Securitized ARMS
SF 1st MtgLns+MBS: Fix+Adj
MultiFam+NResLns&Sec:
ARM Balloons
ARM FullyAmOrtizing
Fix.Rate Balloons
Fix.Rate FullyAmortizing
Subtotal
Const.&LandLns, Adj.Rate
Const.&LandLns, Fix.Rate
2ndMtgLns, Adj.Rate
2ndMtgLns, FiX.Rate
Total Mtg Lns, Adj.+Fixed
Total Mtg Lns,_Adj.Rate
Total Mtg Lns, Fixed Rate
NonMtg Commerical Lns,Adj.
NonMtg Commercial LnS,FiXed
NonMtg Consumer LnS,Adj.
NonMtg Consumer Lns,Fixed
Total NonMtg Loans
Total Loans
Collaterized Mortgage Obligations:

s:iKy
FIR: Remaining Wal>lOy
Superfloaters
InverseFloaters+superPOs
Other-
Total CMOs
CMO Residuals
Stripped MBS
Principal-Only MBS
Total. Mtg Der. Sec.
LoW-Risk MtgDerSec.
High-Risk MtgDerSec.
0
0
0
0
0
0
0
0
0
0
-0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
201006 200909 200912
($000 at End of Period)
54,866 54,374 53,280

13,986 12,335
1,156 1,151
66,718 69,516 66,766
16,620 20,169 18,720
10,776 0 5,437
0 0 0
0 0 0
27,396 20,169 24,157
94,114 89,685 90,923
82,262 74,543 77,437
10,620 13,986 12,335
1,232 1,156 1,151
328,000 368,421 355,201
271,681 310,994 298,941
56,319 57,427 56,260
0 0 0
0 0- 0
0 0 0
328,000 368,421 355,201
101,257 116,533 111,961
226,743 251,888 243,240
422,114 458,106 446,124
149,240 116,277 132,333
310,461 323,361 285,100
23,588 9,147 10,999
133,964 141,283 138,347
617,253 590,068 566,779
182,755 317,334 266,856
31,873 42,097 54,177
18,693 19,553 19,501
371 408 408
1,273,059 1,427,566 1,353,845
989,149 1,144,946 1,058,991
283,910 282,620 294,854
130,093 137,815 130,116
21,100 20,541 20,795
6,070 6,035 6,438
3,350 1,327 3,562
160,613 165,718 160,911
1,433,672 1,593,284 1-,514,756
195,192 168,160 160,168
136,699 61,955 55,606
112,333 54,251 31,255
- 1,040 7,704 24,351
23,326 0 0
- 0
0 0
0 0 0
0 0 0
331,891 230,115 215,774
0 0 0
0 0 0
0 0 0
331,891 230,115 215,774
166,857 60,481 49,919
165,034 169,634 165,855
1321
200812
61,671_
18,365
o
80,036
23,020
o
o
o
23,020
103,056
84,691
18,365
o
479,127
415,794
63,333
o
o
o
479,127
211,240
267,887
582,183
100,836
336,328
4,997
154,400-
596,561
357,438
40,671
21,450
326
1,598,629
1,295,179
303,450
122,711
23,247
1,286
502
147,746
1,746,375
219,886
90,969
90,969
o
o
o
o
o
310,855
o
o
o
310,855
240,158
70,697
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
05:57 11/02/2010
COMPOSITION AND OFF-BAL. SHEET POSITIONS OF SECTION CMR PORTFOLIO / Part 2 of 3 ($000)
United
DOCKET: 06679
DATA AS OF: 11/02/2010
Western Bank
TFR STATUS:
CMR STATUS:
CUrrent Quarter Prior Quarter
CUrrent
Prior
IN PROCESS
NONRESPONDER
Quarter Prior
Year End Total Year
YRMO, Period End ...
===========201009 ===========201006 ===========;00909
200912
=================
1. COMPOSITION OF SECTION CMR ASSETS-continued: ($000 at End of Period)
Cash, Deosits & Securities:
0 14,263 56B,808 CshcNn nDp,OyNtghtFF&Repo 586,324
Equ1ty Secur1t1es (a)
0 0 0 0
Zero-Coupon Securities 0 0
0 0
Gov't + Agency Securtties
0 117
124 121
TermFF&Repo+IE
0 248,177
15 52
Structured Secur1t1es
0 39,260 43,373 41,519
Other Securities
0 0
0 0
Total Cash, Dep.& Sec. 0 301,817 612,321 628,016
ITEMS RELATED TO MTG LNS+SEC
0 74,520
Nonperformin
I
Mtgs 45,976 60,825
Accrued Mtg nt.Receiv.
0 6,218
6,507 6,335
Advs. for Taxes and Insur
0 128 732 792
Unamortized Yld Adj
0 33,498 1,299 27,400
Total Allowance
0 39,966 26,179 32,230
Unreal.Gains (LOSSes)
0 -2,528 -2,962 -1,826
Total Other Mtg Assets
0 4,874 22,775 6,496
ITEMS RELATED TO NON-MTG LNS+SEC
0 4,111
Nonperforming NonMtg Lns . 883 3,332
Accrued NonMtgLn Int.Rece1.
0 569
565 537
Unamortized Yld Adj
0 42
8 83
Total Allowance
0 5,114 2,816 4,027
Unreal.Gains (Losses) 0 0
0 0
Total Other NonMtgLn Assets 0 -476 -1,376 -241
ITEMS RELATED TO INVESTMENT SECURITIES
Unamortized Yld Adj
0 -3,493 -3,846 -3,687
Total Allowance
0 0
0 0
Unreal.Gains (Losses) 0 -1 -1 -1
Total Other Inv.Sec.Assets
0 3,492
3,845 3,686
Real Estate Investments
0 0
0 0
Repossessed Assets
0 16,635 15,561 18,709
Unconsol.Subs.Inv.
0 0 0 0
Office Premises and Equip.
0 22,285 22,992 22,774
Other Assets (b).
0 91,158
99,735 92,757
Total Consolidated Assets
0 2,205,348 2,599,251 2,502,727
(a) MutualFunds Mktval

0 0 0
Ot er Equity Sec.MktVal
0 0 0 0
Equities: MrkVal-Book
0 0 0 0
(b) Purch+Excess SrvngRghts

6,289 7,791 7,344
Total Bal of Mtgs Srvcd

562,848 641,018 611,928
ARMs, CUrr.Mrkt IndX
0 55,435 62,897 60,307
ARMs, Lagg.Mrkt IndX

12,328 14,392 13,896
FiR, Coup <8%

7,513 4,615 5,378
FIR, 8<=Coup<=8.99
0 50,607 56,760 54,056
FIR, 9<=Coup<=9.99
0 172,625
199,278 189,506
F!R,10<=Coup<=10.99
0 137,338 157,824 150,125
F/R,ll<=CoUp
0 127,002 145,252. 138,660
2. COMPOSITION OF SCHEDULE CMR LIABILITIES:
FixedRate, FixedMaturity Deposits:
0 279,381 351,211 Orig.Maturity<=12MOS 441,650
13<=Orig.Maturity<=36Mos
0 120,044 17,009 18,874

0 32,585 12,094 11,572
Subtotal, F/R /M Dep.
0 432,010 380,314 472,096
Bal.Matur.in <= 3 Mas
0 170,693 104,008 108,973
Bal.Matur.in 4-12 MoS
0 133,191 249,009 334,282
Bal.Matur.in 13-36Mos
0 116,273 16,541 17,618
Bal.Matur.in 37+ Mos.
0 11,853 10,756 11,223
Other Deposits:
0 518,318 366,551 Transaction Accounts 425,659
MMDAs

642,123 1,085,812 939,056
Passbook Accta
0 245 403 360
Non-Int Bearing DemandDep
0 49,611 120,078 55,657
Total
0 1,642,307 1,953,158 1,892,828
F/M F/R rwgs: Total
0 12,830
11,563 1,827
FM FR Brw Matur.0-3 Mos
0 12,283 10,927 1,220
FM FR Brw Matur.4-36 Mos 0 0 0 0
FM FR Brw Matur.36+ MOB
0 547
636 607
F/M ViR Brwgs: Total

248,202 284,513 258,635
FM VR Brw position 1 0 0

0
FM VR Brw Position 2

0 0 0


248,202 284,513 258,635

0 0 0
Total Borrowings
0 261,032 296,076 260,462
Escrows for Assets Held
0 957 1,246
960
Escrows for Mtgs Serviced
0 7,797 15,980 10,795
Other Escrows
0 117,714 89,151 132,714
Unamrtzd Yld Adj On
0 -37 -276 -266
Unamrtzd Yld Ad) On Br .
0 0 0 0
Other Liabilities
0 15,797 17,235
16,874
Total Liabilities
0 2,045,567 2,372,570 2,314,367
Minority Int.Consol.Subs
0 5 5 5

0 159,776 226,677 188,351
0 2,205,348 2,599,253 2,502,723
1322
PAGE 28
Previous Prior
Year End Total
200812
22,743
o

182
213
48,926
o
72,064
27,224
8,030
673
1,547
16,707
-35,854
-18,181
1;154
562
-457
2,004

169
-4,215
o
-3
4,212
a
7,025
. 0
22,000
95,854
2,240,373
o
a
o
9,496
739,347
71,436
15,929
4,798
63,473
233,747
181,712
168,252
129,482
3,958
8,033
141,473
28,439
104,034
3,213
5,787
463,296
965,347
299
51,336
1,621,751
21,460
10,739
10,000
721
287,265
o
o
287,265
o
308,725
720
15,363
128,619
-66
o
13,485
2,088,597
3
151,777
2,240,377
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND OFF-BAL.SHEET .POSITIONS OF SECTION CMR PORTFOLIO / Part 3 of 3 ($000)
PAGE 29
05:57 11/02/2010
United Western Bank
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter
YRMO, Period End ..
=======-===;Oi009
3. Off-Balance Sheet positions
Off-Bal.Sheet Position 1
Off-Bal.Sheet position 2
Off-Bal.Sheet position 3
Off-Bal.Sheet position 4
Off-Bal.Sheet position 5
Off-Bal.Sheet position 6
Off-Bal.Sheet position 7
Off-Bal.Sheet position 8
Off-Bal.Sheet position 9
Off-Bal.Sheet Position 10
Off-Bal.Sheet position 11
Off-Bal.Sheet position 12
Off-Bal.Sheet position 13
Off-Bal.Sheet position 14
Off-Bal.Sheet position 15
Off-Bal.Sheet position 16
No.positions Listed Above

4. SF 1st ARM Bal.w/Lifetime caps
LifeCap-Coupon <=200bp
201bp<= Lfgp-Cpn <-400bp

Subtotal, w/LifetimeFloor
and Floors
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
NA
Subtotill, w/oLftmCaps 0
Subtotal, wlo LftmFloors NA
5. SF 1st ARM Bal.w/periodic Caps and Floors
Subtotal, w/Periodic Caps .0
Subtotal, w/periodFloors 0
Subtotal,wlo PeriodicCaps 0
subtotal,w/o PeriodFloors 0
6. MF+NR ARMS w/LCap-Yd<300BP 0
Prior Quarter
CUrrent Quarter
Prior Year
==_=c_=== ====
__ ._._.=a.= ___ =._
201006 200909
(Contract Code)
2216 2216
4002 4002
9512 9512
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
3 3
0 0
0 0
0 0
0 0
295,200 331,578
295,200 331,578
NA NA
32,800 36,842
NA NA
295,200 331,578
295,200 331,578
32,800 36,843
32,800 36,843
0 0
1323
Prior
Year End Total
=._c_.== __
200912
2216
4002
9512
0
0
0
0
0
0
0
0
0
0
0
0
0
3
0
0
0
0
319,681
319,681
NA
35,520
NA
319,681
319,681
35,520
35,520
0
Previous Prior
Year End Total
200812
2216
4002
9512
o
o
o
o
o
o
o
o
o
o
o
o
o
3.
o
o
o
o
431,214
431,214
, NA
47,912
NA
431,213
431,213
47,914
47,914
o
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND CONTRACT YIELDS OF SECTION CMR PORTFOLIO /
Part of 3 (%)
05:57 11/02/2010
United Western Bank
PAGE 30
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter Prior Previous Prier
CUrrent Quarter Prior Quarter Prior Year Year End Total Year End Total
================= ================= ===============:= ================= =================
Groul? 5 Groul? 5
Pet
Graul? 5 Groul? 5 Graul? 5
S&'L Pet sa Med1an S&'L Med1an Pet S&'L Med1an Pet S&.L Med1an Pet
====== ====== ====== ====== === ====== ===
YRMO, Period End . 201009 201006 200909 200912 200812
1. COMPOSITION OF SECTION CMR ASSETS: (% Total Assets at End of Period)
SF 1st Mtges &. MES, Fixed Rate:
30YrMtgLns NA 11.79 NA 2.49 5.21 32 2.09 4.83 28 2.13 4.87 29 2.75 3.76 39
15YrMtgLns NA 9.46 NA .48 2.49 17 .54 2.74 23 .49 2.59 19 .82 2.20 32
BalloonMtgLns NA .20 NA .06 .27 35 .04 .24 30 .05 .28 29 .00 .30 12
SF 1st Mtg Lns, All Fix NA 19.63 NA 3.03 ll.56 18 2.67 9.55 15 2.67 9.78 15 3.57 9.66 20
30YrSecMtgConventional NA :02 NA .75 .15 65 .78 .14 67 .75 .13 66 1.03 .04 75
30YrSecMtgFHA/VA NA .00 NA .49 .00 81 .00 .00 33 .22 .00 79 .00 .00 35
15YrSecMtg NA 4.60 NA .00 1.38 13 .00 1.34 13 .00 1.51 12 .00 .64 15
BalloonSecMtg NA .00 NA .00 .00 35 .00 .00 32 .00 .00 33 .00 .00 33
SF 1st Mtg Sec, All Fix NA 4.65 NA 1.24 2.78 33 .78 2.67 33 .97 2.60 34 1.03 2.45 42
SF 1st Fix, All Lns+See NA 32.82 NA 4.27 14.27 12 3.45 13.39 11 3.63 12.96 10 4.60 14.00 16
30YrMtg:Lns+Sec NA 12.35 NA 3.73 6.65 31 2.87 6.41 29 3.09 6.18 30 3.78 5.11 42
15YrMtg:lns+See NA 14.18 NA .48 5.72 11 .54 6.15 17 .49 5.97 14 .82 5.62 20
BalloonMtg:Lns+Sec NA .36 NA .06 .67 25 .04 .72 21 .05 .69 20 .00 .94 9
SF 1st Mtges &. MES, Adj. Rate:
Total NonTeaser ARMS NA 6.91 NA 14.87 9.40 71 14.17 10.74 65 14.19 10.49 67 21.39 9.75 80
NonTeaser ARMs,CUrrIndx NA 5.24 NA 12.32 8.40 67 11.96 10.59 60 11.94 10.18 61 18.56 B.88 72
NonTeaser ARMs,LagIndx NA .08 NA 2.55 .00 95 2.21 .01 96 2.25 .01 94 2.83 .01 95
Teas.ARM Subj2Intro.Rates NA .00 NA .00 .00 44 .00 .00 43 .00 .00 44 .00 .00 43
Teaser ARMs,CUrrlndx NA .00 NA .00 .00 44 .00 .00 43 .00 .00 44 .00 .00 43
Teaser ARMs,LagIndx NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
SF ARMS, Teaser+NonTeaser NA 6.91 NA 14.87 9.40 71 14.17 10.87 65 14.19 10.49 67 21.39 9.75 79
Securitized ARMS NA .13 NA 4.59 .43 83 4.48 .27 78 4.47 .25 79 9.43 .16 87
Non-Securitized ARMS NA 5.85 NA 10.28 6.11 66 9.69 6.25 61 9.72 6.38 64 11.96 5.76 65
SF 1st MtgLns+MES: Fix+Adj NA 47.85 NA 19.14 29.71 28 17.62 31. 75 19 17.83 28.43 20 25.99 34.53 34
MultiFam+NResLns&.Sec:
.00 6.77 78 4.47 ARM Balloons NA NA .61 .64 71 5.29 .76 75 4.50 .31 72
ARM FullyAmortizing NA 3.76 NA 14.08 2.37 90 12.44 3.53 85 11.39 3.40 79 15.01 2.71 91
Fix.Rate Balloons NA .16 NA 1.07 1.82 45 .35 1.89 39 .44 2.32 38 .22 1.42 36
Fix.Rate FullyAmortizing NA .90 NA 6.07 1.79 86 5.44 1.73 83 5.53 1. 74 84 6,89 1.71 89
Subtotal NA 12.52 NA 27.99 16.'15 78 22.70 16.31 71 22.65 16.63 70 26.63 14.63 78
Const:&LandLns, Adj.Rate NA .02 NA 8.29 1.11 93 12.21 1.52 94 10.66 1.33 94 15.95 1.57 95
Const.&LandLns, Fix.Rate NA .23 NA 1.45 .44 78 1.62 .40 80 2.16 .54 84 1.82 .39 73
2ndMtgLns, Adj.Rate NA 1.46 NA .85 2.52 30 .75 2.73 29 .78 2.78 29 .96 2.56 32 '
2ndMtgLns, Fix.Rate NA 1.13 NA .02 1.06 15 .02 1.47 14 .02 1.31 14 .01 1.63 12
Total Mtg Lns, Adj.+Fixed NA 61.63 NA 57.73 62.61 37 54.92 64.86 23 54.09 62.70 23 71.36 67.25 61
Total Mtg Lns, Adj. Rate NA 24.05 NA 44.85 28.61 83 44.05 30.48 80 42.31 28.83 79 57.81 31.43 89
Total Mtg Lns, Fixed Rate NA 39.69 NA 12.87 30.20 15 10.87 29.81 11 11.78 30.32 15 13.54 29.12 16
NonMtg Commerical Lns,'Adj. NA .14 NA 5.90 1. 79 82 5.30 1.56 83 5.20 1.64 82 5.48 1.69 78
NonMtg Commercial Lns,Fixed NA .18 NA .96 1.15 45 .79 .99 44 .83 1.10 42 1.04 .92 53
NonMtg Consumer Lns,Adj. NA .02 NA .28 .03 78 .23 .05 73 .26 .05 75 .06 .04 56
NonMtg Consumer Lns,Fixed NA .69 NA .15 .38 37 .05 .44 20 .14 .50 35 .02 .58 20
Total NonMtg Loans NA 3.31 NA 7.28 6.88 53 6.38 7.89 47 6.43 7.24 ' 44
6.59 8.46 45
Total Loan,s NA 73.62 NA 65.01 74.80 25 61.30 79.20 15 60.52 78.35 16 77.95 82.80 38
Col1aterized Mortgage
.00 NA 8.85 .00 91 6.47 .00 88 Floating Rate 6.40 .00 88 9.81 .00 93
Fixed Rate: Total NA .00 NA 6.20 1.19 75 2.38 .99 64 2.22 .91 66 4.06 .76 76
FIR: Remaining WAL <=5y NA .00 NA 5.09 .75 75 2.09 .69 62 1.25 .60 57 4.06 .35 76
FIR: Remaining WAL 5-10y NA .00 NA .05 .00 77 .30 .00 83 .97 .00 91 .00 .00 36
FIR: Remaining WAL >10y NA .00 NA 1.06 .00 97 .00 .00 46 .00 .00 46 .00 .00 48
Superfloaters NA .00 NA .00 . 00 50 .00 .00 50 .00 .00 50 .00 .00 49
InverseFloaters+SuperPOs NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Other NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 49
Total CMOs NA .11 NA 15.05 1.47 82 8.85 1.29 73 8.62 1.16 71 13.88 1.27 84
CMO Residuals NA .00 NA .00 .00 49 .00 .00 50 .00 .00 50 .00 .00 50
Interest-Only Stril?ped MES NA .00 NA .00 .00 48 .00 .00 4B .00 .00 4B .00 .00 48
y Str1pped MES NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Tota Mtg Der. Sec. NA .11 NA 15.05 1.47 82 8.85 1.29 73 8.62 1.16 71 13.88 1.27 84
Low-Risk MtgDerSec. NA .00 NA 7.57 1.21 72 2.33 1.10 61 1.99 1.10 61 10.72 1.14 84
High-Risk MtgDerSee. NA .00 NA 7.48 .00 96 6.53 .00 96 6.63 .00 97 3.16 .00 91
1324
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND CONTRACT YIELDS OF. SECTION CMR PORTFOLIO / Part
2 of 3 (%)
05:57 11/02/2010
United Western Bank
PAGE 31
DOCKET: 06679 TFR STATUS; IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter Prior Previous Prior
Current Quarter prior Quarter Prior Year Year End Total Year End Total

===d============= ================= ================= =================
- Groul? 5 Groul? 5
Pct
Graul? 5 Groul? 5
S&L
S&L Med1an Pct S&L Med1an S&L Med1an Pct S&L Med1an Pct Pct
====== ====== === ====== ====== === ====== ====== ===
YRMO, Period End .... 201009 201006 200909
200912 200812
1. COMPOSITION OF SECTION CMR ASSETS-continued: (t Total Assets at End of Period)
Cash, Deposits & Securities:
NA 1.23 NA .65 1.09 23 21.88 1.15 94 Csh,NnInDp,OyNt9htFF&Repo 23.43 1.30 97 1.02 1.17 39
Equity Secur1t1es NA .00 NA .00 .00 27 .00 .00 27 .00 .00 27 .00 .00 29
Zero-Coupon Securiti,s .. NA .00 NA .00 .00 42 .00 .00 44 .00 .00 43 .00 .00 43
Gov't + Agency Secur1t1es NA .00 NA .01 .09 40 .00 .04 42 .00 .05 42 .01 .01 47
TermF&Repo, Int.earn.dep. NA 1.12 NA 11.25 2.84 87 .00 1.25 16 .00 1.14 16 .01 .27 26
Structured Securities NA 2.47 NA 1. 78 .35 62 1.67 .26 67 1.66 .27 65 2.18 .17 75
Other Securities NA .18 NA .00 .14 15 .00 .11 16 .00 .12 13 .00 .16 15

NA 7.83 NA 13.69 9.68 63 23.56 7.64 85 25.09 7.92 85 3.22 5.16 24
Nonperformin
NA 1.26 NA 3.38 1.38 76 1.77 1.35 60 2.43 1.36 69 1.22 .73 69
Accrued Mtg nt. eceiv. NA .29 NA .28 .27 57 .25 .29 38 .25 .28 43 .36 .31 68
Advs. for Taxes and Insur NA .01 NA .01 .00 65 .03 .00 82 .03 .00 84 .03 .00 87
Unamortized Yld Adj NA .00 NA 1.52 .00 98 .05 .0.0 70 1. 09 .00 98 .07 .00 72
Total Allowance NA .51 NA 1.81 .62 83 1.01 .56 76 1.29 .58 79 .75 .48 76
Unreal.Gains (Losses) NA .07 NA - .11 .13 3 - .. 11 .04 5 -.07 .05 5 -1.60 .00 4

1.07 NA .22 1.19 13 .88 1.20 35 .26 1.24 17 -.81 .58 5
Nonperforming NonMtg Lns . NA .01 NA .19 .07 75 .03 .04 46 .13 .04 70 .05 .03 63
Accrued NonMtgLn Int.Rece1. NA .00 NA .03 .04 40 .02 .05 38 .02 .05 38 .03 .06 39
Unamortized Yld Adj NA .00 NA .00 .00 75 .00 .00 79 .00 .00 78 -.02 .00 21
Total Allowance NA .02 NA .23 .14 60 .11 .12 44 .16 .13 53 .09 .11 45
Unreal.Gains (Losses) NA .00 NA .00 .00 49 .00 .00 48 .00 .00 48 .00 .00 51
TotalOthrNonMtgLnAsts NA .00 NA -.02 .00 41 -.05 .00 28 -.01 .00 37 .0.1 .00 58
ITEMS RELATED TO INVESTMENT SECURITIES
NA .00 .00 18 .00 Unrealized Gains (Losses) NA .00 .00 20 .00 .00 24 .00 .00 34
Unamortized Yield Adj NA .00 NA -.16 .00 1 -.15 .00 2 -.15 .00 1 -.19 .00 2
Total Allowance NA. 00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 49
Total OthrInvSecAssets NA .00 NA .16 .00 88 .15 .00 87 .15 .00 91 .19 .00 93
Real Estate Investments NA .00 NA .00 .00 44 .00 .00 42 .00 .00 42 .00 .00 41
Repossessed Ass.ets NA .10 NA .75 .21 75 .60 .18 70 .75 .18 75 .31 .09 68
Unconsol. Subs. Inv. NA. 00 NA .00 ;00 32 .00 .00 32 .00 .00 33 .00 .00 35
Office Premises and Equip. NA .98 NA 1.01 .98 51 .88 1. 02 39 .91 1.03 41 .98 .98 49
Other Assets (b) NA 2.74 NA 4.13 4.09 51 3.84 3.76 51 3.71 4.06 46 4.28 3.63 61
Total Consolidated Assets NA 100.00 NA 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50
(a) MutualFunds MktVal NA .00 NA .00 .00 42 .00 .00 42 .00 .00 42 .00 .00 43
Ot er Equity Sec.MktVal NA .00 NA .00 .00 30 .00 .00 30 .00 .00 30 .00 .00 32
Equities: MrkVal-Book NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 49
(b) Purch+Excess srvngR
1
hts NA .00 NA .29 .01 82 .30 .01 80 .29 .01 80 .42 .01 89
Wtg.Avg.Srvng Fee BP) NA 25.00 NA 50.45 26.02 96 50.91 25.53 96 50.78 25.79 96 51.01 25.48 98
(t Total Balance Serviced at End of Period)
(b) Purch+Excess .00 .00 46 .29 .01 82 .30 .01 80 .29 .01 80 .42 .01 89
ARMs, Curr.Mrkt In NA .01 NA 9.85 .32 82 9.Bl .33 80 9.86 .34 80 9.66 .57 76
ARMs, Lagg.Mrkt Indx NA .00 NA 2.19 .00 98 2.25 .00 98 2.27 .00 98 2.15 .00 98
FIR, Coup <8t NA 22.82 NA 1.33 15.60 12 .72 13 .23 16 .88 13.43 16 .65 3.53 36
FIR, 8<=Coup<=8.99 NA 41.08 NA 8.99 46.22 12 8.85 42.67 14 8.83 45.09 14 8.59 39.33 17
FIR, 9<=Coup<=9.99 NA 10.08 NA 30.67 18.36 87 31.09 21.56 80 30.97 20.18 83 31.62 33.07 48
F/R,10<=Coup<=10.99 NA 3.01 NA 24.40 2.73 82 24.62 3.25 83 24.53 2.99 83 24.58 4.95 84
F!R,11<=Coup NA .55 NA 22.56 .69 92 22.66 .69 94 22.66 .69 94 22.76 .64 92
2. COMPOSITION OF SCHEDULE CMR LIABILITIES:
FixedRate, FixedMaturity Deposits:
14.88 NA 12.67 11.65 57 13.51 14.87 Orig.Maturity<=12MoS NA 41 17.65 13.89 67 5.78 18.34 13
13<=Orig.Maturity<=36Mos NA 13.78 NA 5.44 11.65 23 .65 10.25 6 .75 10.52 6 .18 9.34 8
37<=orig.Maturitf NA
4.06 NA 1.48 3.80 26 .47 3.31 8 .46 3.27 10 .36 2.51 12
Subtotal, FIR /M Dep. NA 38.00 NA 19.59 31.50 21 14.63 33.82 8 18.86 32.36 20 6.31 36.01 10
Bal.Matur.in <=3Mos NA 8.68 NA 7.74 7.62 51 4.00 8.58 15 4.35 8.04 20 1.27 9.35 8
Bal.Matur.in 4-12 Mas NA 14.67 NA 6.04 13.18 20 9.58 15.46 24 13 .36 14.87 42 4.64 15.65 13
Bal.Matur.in 13-36MOS NA 8.33 NA 5.27 6.29 38 .64 5.12 7 .70 6.08 7 .14 4.76 9
Bal.Matur.in 37+ Mos; NA 2.33 NA .54 1. 78 21 .41 1.09 20 .45 1.32 23 .26 1.09 17
Transaction Accounts NA 8.50 NA 23.50 6.50 93 14.10 5.04 89 17.01 5.36 89 20.68 5.24 95
MMDAs NA 14.13 NA 29.12 13.32 86 41. 77 11. 04 92 37.52 12.08 92 43.09 9.90 90
Passbook Accts NA 7.59 NA .01 6.95 10 .02 6.78 8 .01 7.68 8 .01 6.73 9
Non-Int Bearing DemandDep NA 3.28 NA 2.25 3.86 33 4.62 3.28 57 2.22 3.39 29 2.29 2.89 39
Total Deposits NA 76.04 NA 74.47 75.31 46 75.14 73.54 60 75.63 75.04 53 72.39 71.40 53
F/M F/R Brwgs: Total NA 6.31 NA .58 4.23 20 .44 6.26 14 .07 5.52 14 .96 7.52 16
FM FR Brw Matur.0-3 Mos NA .71 NA .56 .69 45 .42 .80 42 .05 .77 38 .48. 1.17 42
FM FR Brw Matur.4-36 Mos NA 5.16 NA .00 1. 04 16 .00 3.30 12 .00 1.92 13 .45 3.14 31
FM FR Brw Matur.36+ Mas NA .71 NA .02 .54 37 .02 .47 37 .02 .58 37 .03 .33 39
F/M ViR Brwgs:
NA 2.36 NA 11.25 2.60 82 10.95 2.94 79 10.33 3.29 78 12.82 2.86 80
FM VR BrwPos1t10n 1 NA .00 NA .00 .00 35 .00 .00 35 .00 .00 35 .00 .00 35
FM VR Brw position 2 NA .00 NA .00 .00 47 .00 .00 44 .00 .00 44 .00 .00 45
FM VR FHLB Advances NA .02 NA 11.25 2.05 86 10.95 2.10 82 10.33 2.06 80 12.82 2.35 83
Other FM VR Borrowings NA .00 NA .00 .00 42 .00 .00 41 .00 .00 41 .00 .00 41
Total aorrowings NA 10.61 NA 11.84 10.38 57 11.39 13.86 44 10.41 11.29 43 13.78 15.21 47
Escrows for Assets Held NA .16 NA .04 .09 36 .05 .13 38 .04 .06 39 .03 .07 34
Escrows for Mtgs Serviced NA .00 NA .35 .00 88 .61 .00 89 .43 .00 89 .69 .00 91
Other Escrows NA .00 NA 5.34 .00 97 3.43 .00 96 5.30 .00 96 5.74 .00 9S
Unamrtzed Yld Adj On Dep. NA .00 NA .00 .00 16 -.01 .00 12 -.01 .00 12 .00 .00 19
Unamrtzed Yld Ad] on Brw. NA .00 NA .00 .00 47 .00 .00 48 .00 .00 46 .00 .00 47
Other Liabilities NA 1.01 NA .72 .80 38 .66 .90 32 .67 .84 38 .60 .82 26
Total Liabilities NA 89;62 NA 92.75 89.59 88 91.28 90.24 71 92.47 90.03 87. 93.23 90.65 87
Minority Int.Consol.Subs NA .00 NA .00 .00 86 .00 .00 85 .00 .00 85 .00 .00 84

NA 10.35 NA 7.24 10.41 11 8.72 9.69 28 7.53 9.97 12 6.77 9.28 13
NA 100.00 NA 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50 100.00 100.00 50
1325
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
COMPOSITION AND CONTRACT YIELDS OF SECTION CMR PORTFOLIO / Part
3 of 3 (t)
05:57 11/02/2010
United Western Bank
PAGE 32
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
CUrrent Quarter Prior Previous Prior
CUrrent Quarter Prior Quarter Prior Year Year End Total Year End Total
================= ========:=====:==
====:===:======:=
Groul? 5
Pct
Groul? 5
Pct
Groul? 5
Groul? 5 GrOllI? 5
S&L Medl.an S&L Medl.an S&L Medl.an Pct
S&L Medl.an Pct S&L Medl.an Pct
=====: ====== =:= ====== ===
====== ====== ===
====== ===
YRMO, Period End .... 201009 201006 200909
200912 200812
3. AVERAGE CONTRACT YIELDS: (Average Contract Yield - or Index Plus Margin - at End of Period)
SF FIR lat Mtga, 30-Year NA 5.72 NA 6.49 5.78 89 6.46 5.91 82 6.48 5.89 86 6.39 6.14 76
SF FIR 1st Mtga, IS-Year NA 5.18 NA 5.83 5.53 68 5.81 5.59 66 5.75 5.56 62 5.Bl 5.Bl 50
SF FIR 1st Mtgs, Balloons NA 5.49 NA 6.54 6.00 Bl 6.46 6.19 68 6.46 6.02 73 NA 6.30 NA
SF F/R Convention'l 30Y MES NA 5.40 NA 5.47 5.31 59 5.48 5.50 46 5.45 5.46 49 5.50 5.57 45
SF NonTeas.ARMa:CUrIndx NA 4.44 NA 4.20 4.64 27 4.74 5.02 33 4.54 4.83 33 4.89 5.41 8
SF NonTeas.ARMa:LagIndx NA 4.83 NA 3.89 4.89 19 4.39 5.46 21 4.04 5.29 17 4.96 5.87 20
SF Teaser ARMs: CUrIndx NA 5.75 NA NA 5.02 NA NA 4.97 NA NA 4.30 NA NA 5.46 NA
SF Teaser ARMs: LagIndx NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
MultiFam&NonRes BalloonARMs 0.0000 83001.6000 83001.7200
83001.7100 83001.9900
Mu1tiFam&NonRes FuLAmtzARMs 0.0000 83001.1400 83001.2000
83001.1300 83001.0300
MultiFam&NonRes FIR Balloon .00 .00 44 6.42 6.19 68 6.81 6.29 83 6.72 6.23 80 7.36 6.34 91
MultiFam&NonRes FIR FuIAmtz .00 .00 43 6.34 6.39 42 6.40 6.40 48 6.40 6.3B 54 6.36 6.51 36
Const.&LandLns, Fix.Rate NA 6.12 NA 5.11 6.01 16 5.46 6.09 18 4.85 6.00 9 5.84 6.50 20
Const.&LandLns, Adj.Rate 0.0000 83001.0100 83000.9200
83000.9400 83000.6700
2ndMtgLns, Fix.Rate NA 6.50 NA 6.78 6.82 46 7.23 6.88 65 7.21 6.92 63 7.63 7.02 77
2ndMtgLns, Adj.Rate . 0.0000 83000.1600 8.3000.1100
83000.1400 83000.0400
NonMtgCommerc1al Lns, Fl.x.R NA 5.87 NA 6.30 6.32 49 6.38 6.29 53 6.20 6.36 44 6.83 6.71 60
NonMtgCommercial Lns, Adj.R 0.0000 83000.6200 83000.5100
83000.5600 83000.5700
Consumer Lns, Fixed Rate NA 6.19 NA 4.70 6.99 15 6.42 7.31 32 4.81 7.22 13 7.03 7.46 37
Consumer Lns, Adj.Rate 0.0000 83000.1700 83000.1700
83000.1500 83000.4300
Zero-Coupon .00 .00 49 .00 .00 42 .00 .00 44 .00 .00 43 .00 .00 43
USGov't+Agency .00 .00 46 .79 .99 45 .79 1.41 46 .79 .95 46 2.11 2.08 50
TermFF+Repos + IEdeposl.ts .00 .00 45 .25 .23 68 .01 .20 18 .01 .16 19 .47 .30 56
Other IE Securities .00 .00 44 .00 2.99 15 .00 3.35 16 .00 3.19 14 .00 3.63 IS
DP:F/M FIR Bal.Matur. 0-3mo NA 1.68 NA 1. 83 1.71 58 1.46 2.52 10 1.31 2.04 16 2.45 3.30 10
DP:F/M FIR Bal.Matur.4-12mo NA 1. 70 NA 1.74 1.81 44 1.74 2.26 19 1.62 2.08 15 3.78 3.44 84
DP:F/M FIR Bal.Matr.13-36mo NA 2.44 NA 1. 70 2.65 1 3.00 3.10 39 2.80 2.92 44 3.59 3.84 15
DP:F/M FIR Bal.Matur.37+ mo NA 3.04 NA 3.82 3.19 85 2.77 3.67 5 3.87 3.43 79 4.03 4.32 22
DP:Transaction Accounts NA .54 NA .14 .42 17 .15 .48 17 .14 .40 19 .25 .62 26
DP:MMDAs NA .83 NA .47 .84 20 .63 1.02 19 .39 .98 9 .79 1.58 15
DP:Passbook Accounts NA .56 NA .25 .50 23 .25 .65 17 .25 .55 18 .25 .94 9
BW:F/M FIR Brwg Mat.0-3 Mos NA 3.24 NA 4.31 2.18 81 3.94 2.50 75 .01 2.44 2 2.52 1.36 67
BW:F/M FIR Brwg Mat.4-36 Mo NA 3.42 NA NA 3.53 NA NA 3.63 NA NA 3.64 NA 4.30 4.03 65
BW:F/M FIR Brwg Mat.36+ Mos NA 3.72 NA 5.08 3.66 76 5.84 3.98 84 5.84 3.79 83 5.84 4.46 82
BW:F/M ViR Borrowings,Pos 1 NA NA NA
NA NA
BW:F/M VIR Borrowings,Pos 2 NA NA NA
NA NA
BW:F/M ViR Borrowings,Pos 3 NA NA NA
NA NA
BW:F/M ViR Borrowings,Other NA NA
NA NA
NA
4. SF 1st ARM Bal.w/Lifetime Caps and Floors
LifeCap-Coupon <=200bg NA .00 NA .00 .00 29 .00 .00 26 .00 .00 26 .00 .00 28
201bp<= LfCp-Cpn <=40 bp NA .01 NA .00 .03 16 .00 .05 12 .00 .03 14 .00 .13 8

NA 6.91 NA 13.39 7.61 68 12.76 8.76 64 12.77 8.50 66 19.25 7.16 76
NA 6.91 NA 13 .39 7.93 68 12.76 9.89 64 12.77 9.15 66 19.25 8.52 76
Subtotal,w/LifetimeFloor NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Lag.I.ARMs,% w/LifeCaps NA 100.00 NA 90.00 100.00 23 90.00 100.00 23 90.00 100.00 24 90.00 99.93 27
Curr.I.ARMs,% w/LifeCaps NA 100.00 NA 90.00 99.22 23 90.00 9B.99 22 90.00 99.25 21 90.00 99.63 22
5. SF 1st ARM Bal.w/Periodic Caps and Floors
Subtotal,wl PeriodicCap NA 6.87 NA 13 .39 7.76 72 12.76 9.62 65 12.77 9.14 67 19.25 B.41 78
Subtotal,wl Period FIrs NA 6.B7 NA 13 .39 6.13 72 12.76 7.11 66 12.77 6.85 69 19.25 7.37 78
Lag.I.ARMs,% w/PeriodCap NA 88.58 NA 90.00 95.08 41 90.00 98.23 36 90.00 96.75 40 90.00 98.72 33
Cur.I.ARMs,% w/PeriodCap NA 99.13 NA 90.00 96.01 28 90.00 96.93 33 90.00 96.77 30 90.00 97.17 32
AV.PeriodicCap(BP),LagI NA 186.00 NA 105.34 181.50 10 125.81 184.00 26 105.55 183.50 8 125.83 197.46 18
Av.PeriodicCap(BP) ,Curl NA 191.76 NA 232.21 200.00 80 176.37 200.00 18 225.31 200.00 77 176.67 200.00 14
6. MF+NR ARMw/LCap-Yd<300BP NA .00 NA .00 .00 26 .00 .00 26 .00 .00 26 .00 .00 26
7. WtAv Months to Next Reset for Selected Adj.Rate Items
SF NonTeas.ARMs:CUrIndx NA 18.51 NA 12.65 17.99 31 13.90 19.71 27 13.27 19.15 25 15.87 20.93 31
SF NonTeas.ARMs:LagIndx NA 6.00 NA 11.98 7.00 86 11.98 7.00 76 11.98 7.00 82 11.99 8.00 74
SF Teaser ARMs: CUrIndx NA 22.34 NA NA 15.00 NA NA 15.00 NA NA 15.00 NA NA 15.00 NA
SF Teaser ARMs: LagIndx NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
MF+NR BalloonARMs .00 .00 46 37.00 1.00 81 37.00 1.00 82 37.00 1.00 79 37.00 1.00 80
MF+NR FulAmtzARMs .00 .00 44 6.00 12.00 39 7.00 12.00 42 7.00 12.00 41 6.00 12.00 42
8. WARM (months) for selected Fixed-Rate Items
SF F/R 1st Mtgs, 3D-Year NA 312.11 NA 253.70 316.16 6 263.60 318.19 6 257.90 317.10 6 273.20 318.93 11
SF FIR 1st Mtg+MES,lSYr NA 152.19 NA 63.39 134.55 5 61.34 133.29 6 63.50 137.91 5 66.14 126.73 8
SF FIR lstMg+MBS,Balloon NA 69.11 NA 23.78 66.62 15 14.82 62.40 7 11.81 61.00 5 NA 61.00 NA
SF FIR Convent'l 30Y MBS NA 193.03 NA 304.97 302.73 55 317.30 314.18 59 312.92 311.97 52 324.76 305.87 75
MultiFam&NR FIR Balloon .00 .00 44 41.00 33.00 61 43.00 34.00 57 37.00 34.00 53 58.00 38.00 72
MultiFam&NR FIR FUlAmrtz .00 .00 43 37.00 68.00 22 8.00 72. 00 14 41. 00 70.00 20 47.00 70.50 28
Zero-Coupon Securities .00 .00 49 .00 .00 42 .00 .00 44 .00 .00 43 .00 .00 43
USGov't+Agency Secur .. .00 .00 46 160.00 B.OO 98 174.00 5.00 98 166.00 5.00 98 175.00 3.00 97
TermFF+Repos +IEdeposl.ts .00 .00 45 1. 00 1.00 53 1.00 1.00 52 1.00 1.00 53 1.00 1.00 51
Other IE Securities .00 .00 44 .00 30.00 15 .00 30.00 16 .00 29.00 13 .00 34.50 15
DP:F/M FIR Matur.37+ mo .00 .00 44 45.00 50.00 20 37.00 50.00 6 50.00 50.00 46 54.00 50.00 82
BW:F/M FIR Matur.36+ Mos .00 .00 44 47.00 46.00 53 56.00 49.00 62 53.00 48.00 62 65.00 50.00 64
1326
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY
REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
INTEREST RATE RISK INFORMATION
From OTS Interest Rate Risk Model
05:57 11/02/2010
United Western Bank
PAGE 33
DOCKET: 06679 TFR STATUS: IN PROCESS
DATA AS OF: 11/02/2010 CMR STATUS: NONRESPONDER
Current Quarter
Prior
Previous Prior
Current Quarter Prior Quarter Prior Year Year End Total
Year End Total
================= ================= =================
=================
=================
Groul? 5
Pet S&L Pet
GrOUI? 5
Groul? 5
S&L
S&L S&L Pet S&L Pct
Pct
YRMO, Period End .... 201009 201006 200909
200912
200812
NPV AS t OF PV ASSETS AFTER:
Upward Shock 300bp .00 .00 44 10.54 12.37 28 11.05 11.35 44 11.30 11.30 50 9.18 9.59 41
upward Shock 200bp .00 .00 44 10.39 12.72 20 11.06 12.00 37 11.26 11.94 41 9.29 10.17 38
Upward Shock 100bp .00 .00 44 10.12 12.82 11 10.69 12.45 29 10.96 12.39 26 9.04 10.39 32
No change .00 .00 44 10.36 12.75 16 10.14 12.57 24 10.59 12.71 15 8.72 10.18 27
Dwnwrd Shock 100bp .00 .00 44 9.50 12.76 11 9.92 12.26 24 10.60 12.58 20 B .14 10.15 23
Dwnwrd Shock 200bp .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Dwnwrd Shock 300bp NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
BP CHANGE IN NPV AFTER:
.00 53 .18 -.73 71 .91 -1.10 Upward Shock 300bp .00
88 .70 -1.42 88 .46 -1.05 75
Upward Shock 200bp .00 .00 53 .03 -.14 58 .92 -.23 88 .66 -.72 85 .57 -.42 75
Upward Shock 100bp .00 .00 51 -.24 .08 36 .55 ".05 85 .37 -.22 84 .32 -.10 73
No change
100bp .00 .00 49 - .85 -.25 6 -.22 -.lB 41 .01
Dwnwrd Shock
.02 4B -.58 - .23 23
Dwnwrd Shock 200bp .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Dwnwrd Shock 300bp NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
CHANGE IN NPV AS A % OF
BASE CASE NPV AFTER:
-22.25 NA .97 -10.36 72 9.15 -12.41 Upward Shock 300bp NA
B8 6.39 -14.72 89 4.90 -13.90 76
Upward Shock 200bp NA -12.32 NA -.33 -4.05 60 9.47 -5.91 89 6.24 -7.85 89 6.48 -5.67 76
Upward Shock 100bp NA -3.94 NA -2.89 -.20 33 5.66 -1.44 88 3.46 -2.65 88 3.70 -1.42 76
No change
NA 2.06 NA -8.81 -1.53 5 -2.10 -.83 37 .47
Dwnwrd Shock 100bp
.72 48 -6.75 -1.46 16
Dwnwrd Shock 200bp NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Dwnwrd Shock 300bp NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
CHANGE IN NPV AS A % OF
BASE CASE PV ASSETS AFTER:
NA -2.82 NA .10. -1.15 72 .93 -1.45 88 Upward Shock 300bp
.68 -1. 88 88 .43 -1.30 76
Upward Shock 200bp NA -1. 56 NA -.03 - .41 60 .96 - .59 88 .66 -.97 87 .56 -.54 75
Upward Shock 100bp NA -.50 NA - .30 -.02 40 .57 -.12 87 .37 -.33 87 .32 -.17 75
100bp NA .34 NA -.91 -.19 5 -.21 -.10 41 .05 .08 48 -.59 -.18 21
Dwnwrd Shock 200bp NA .00 NA .00 .00 50 .00 .00 50 .00 .00 50 .00 .00 50
Dwnwrd Shock 300bp NA NA NA NA .NA NA NA NA NA NA NA NA NA NA NA
IRR MEASURES:
.00 .00 44 10.36 12.75 16 10.14 12.57 24 Pre Shock NPV(%)
10.59 12.71 15 8.72 10.18 27
Post Shock NPV(%) .00 .00 44 9.50 12.20 12 9.92 11.84 30 10.59 11.64 35 8.14 9.54 34
Sensitivity Meas:Decline NPV .00 .00 44 .85 .76 60 .22 .71 15 .00 .B8 1 .58 .81 31
SELECTED MARKET RATES OF INTEREST (b) :
U.S. Treasury Bills (c):
0.16 0.18 0.14 3 month
0.06
0.11
6 month 0.19 0.22 0.18
0.20
0.27
1 year 0.27 0.32 0.40
0.47
0.37
U.S. Trsry Notes&Bonds (d) ;
2 year 0.42 0.61 0.95
1.14
0.76
3 year 0.64 1.00 1.45
1. 70
1.00
5 year 1.27 1. 79 2.31
2.69
1. 55
7 year 1.91 2.42 2.93
3.39 1. 87
10 year 2.53 2.97
3.31
3.85 2.25
30 year 3.69 3.91 4.03
4.63
2.69
prime Rate 3.25 3.25 3.25
3.25
3.25
FHLMC Net Ylds (e) :
Single- amily 3.82 4.19 4.69
4.97
4.49
Multi-family (f) 4.80 5.13 5.62
6.21
6.01
11th District COFI 1. 71 1. 79 1.41
2.09
3.13
Notes:
Interest Rate Risk data is delayed by at least one day due to system constraints. Please refer to the
Interest Rate Risk System for current data.
(a) If the 3 month T-Bill rate is less than 3.00%, Downward Shock #3 is one-half the 3 month T-Bill rate Otherwise
Downward Shock #3 is 300 basis p,?ints. . . . ,
(b) All rates are as of the last day of guarter for the per10d presented. Exception COFI is a weighted
average of the cost of funds for savings inst1tutions in the 11th FHLB District and is the last month of the
period presented. ..
(c) Quoted on discount basis a 360 day ..
(d) y-ields on actively traded 1ssues adJusted to constant matur1t1es.
(e) FHLMC Required Net Yields for day c,?mmitments. .
(f) Under a propietary agreement w1th Fann1e Mae, OTS cannot d1slose these rates.
1327
05.57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
EXAM RATIO INFORMATION
United'Western Bank
DOCKET. 06679 TFR STATUS. IN PROCESS
PAGE 34
DATA AS OF. 11/02/2010 CMR STATUS. NONRESPONDER
current Quarter Prior Quarter YTD Prior Year PreviousPriorYr
Months in Period
YRMO, Period End ..
S&Ls in peer Group
================; ==-==-===.====-=;
CAPITAL ADEQUACY - PCA REQUIREMENTS.
Total Risk-Based Capital
Tier 1 Risk-Based capital
Tier 1 Leverage Cap(Core)
Tangible Equity Capital
EARNINGS.
Interest&Dividend Income
Interest Expense
Net Interest Income
Less G&A Expense
Less Goodwill AmOrtization
Fee Income
Corelnc.Before LQss Prov
Provisions for Loss
CoreInc.After Loss prov
Net Non-Core Income
Income Before Tax
Income Tax
IncTax Before extr Item
Extraordinary items
Netlncl-IAtrbl To Inst/Nct
Net Inc - Atrbl To Noncntro
NetInc(- Atrbl To Sav Inst
201009 201006 201009
H 79 77
116,706
143,845
143,845
143,845
20,797
4,290
16,507
16,164
100
687
930
19,346
-18,416
-1,640
-20,056
298
-20,354
o
-20,354
o
-20,354
135,039
164,036
164,036
164,036
22,208
5,209
16,999
18,468
107
661
-915
5,120
-6,035
-4,979
-11,014
131
-11,145
o
-11,145
o
-11,145
116,706
143,845
143,845
143,845
65,080
15,262
49,818
52,918
309
1,901
-1,508
39,011
-40,519
-12,630
-53,149
-634
-52,515
o
-20,354
o
-52,515
Current Qarter Prior Quarter YTD
12
200912
77
161,66.9
192,839
192,839
192,839
99,959
27,644
72,.315
62,491
424
2,395
11,795
38,104
-26,309
-65,679
-91,9B8
-22,629
-69,359
o
-35,956
o
-69,359
Prior Year
.=._= __ e= ____ =. __ _
12
200812
72
189,536
174,034
174,034
174,034
114,682
29,525
85,157
53,619
334
2,814
34,018
13,985
20,033
'-331
19,702
6,017
13,685
o
NA
NA
13,685
Pre. Prior Year
=--====-==--=-==
---===-----=-----
_ -==---====-
----====--=---=-=
Group 5
S&L Medan Pct S&L
Group 5
Median Pct
Group 5
S&L Median Pct
Group 5
S&L Median Pct S&L
YRMO, Period End.... ====-= ;Oi009===
CAPITAL ADEQUACY - PCA REQUIREMENTS.
Total Risk-Based Capital 8.10 15.27 2
Tier 1 Risk-Based capital 6.84 14.15 3
Tier 1 Lever Capital(Core) 6.94 9.60 6
9.18
Nonperf+Repo/Tier1capl+Allo 53.67
30-B9PastDue!Tier1Capl+Allo 26.59
EARNINGS. (as a % of.Avg. Assets)
Interest & Dividend Income 3.92
Interest Expense .81
Net Interest Income 3 .1.1
G&A Expense 3.05
Goodwill Amortization .02
.Fee Income . 13
Corelnc.Before Loss Prov' .18
Provisions for Loss 3.65
Corelnc.After LosS Prov -3.47
Net Non-Core Income -.31
Income Before Tax -3.78
Income Tax .06
IncTax Before Extra Item -3.84
Extraordinary Items .00
NetIncl-)Atrbl To Inst/Nctl -3.84
NetInc -)Atrbl To Noncntrol .00
Net Income -3. B4
3.45
19.00
5.86
85
84
97
4.39 23
1.17 18
3.11 50
2.59 65
.01 61
.38 19
1.06 13
.53 92
.31 9
.17 7
.68 5
.19 28
.51 5
.00' 50
.51 5
.00 48
.51 5
9.02
7.75
7.42
9.26
43.95
26.66
3.67
.86
2.81
3.05
.02
.11
-.15
.85
-1.00
-.82
-1.82
.02
-1.B4
.00
-1.84
.00
-1.B4
201006
14.82
13.77
9.47
3.76
18.75
6.11
4.42
1.37
3.02
2.54
.01
.42
1.05
.49
.37
.14
.65
.17
.45
.00
.45
.00
.45
3
3
11
201009
8.10 15.27
6.B4 14.15
6.94 9.60
2
3
6
B7
81
97
9.18
53.67
26.59
15 3.53
17 .83
35 2.70
67 2.B7
63 .02
16 .10
B - .08
71 2.12
21 -2.20
1 -.69
11 -2.88
28 - .03
7 -2.B5
50 .00
7 -1.10
48 .00
7 -2.85
3.45
19.00
5.86
85
84
97
4.42 11
1.25 18
3.17 25
2.66 59
.01 59
.41 14
1.12 6
.58 78
.45 13
.18 3
.79 6
.22 11
.49 3
.00 49
.17 5
,00 48
.49 3
10.07
8.81
7.68
6.88
35.66
16.08
4.08
1.13
2.95
2.55
.02
.10
.48
1.56
-1.07
-2.68
-3.76
- .92
-2.83
.00
-1.47
.00
-2.B3
200912
14.11
12.88
9.11
3.43
17.28
. 6.20
2
3
16
77
73
83
4.85 11
1.81 14
3.02 41
2 .. 46 51
.01 61
.43 16
.96 24
.61 74
.19 23
.16 2
.41 3
.11 3
.29 7
.00 49
.11 1
.00 49
.30 7
10.55
9.68
7.65
3.34
17.20
13.54
5.31
1.37
3.94
2.48
.02
.. 13
1.57
.65
.93
-.02
.91
.28
.63
.00
NA
NA
.63
200812
13.35
12.52
8.68
2.86
10.84
6.31
12
12
27
60
65
76
5.43 40
2.54 4
2.85 92
2.39 53
.01 60
.43 16
1.06 83
.48 57
.43. 67
.10 19
.65 66
.17 63
.45 67
.00 50
NA NA
NA NA
.45 67
Int BA/lnt Brng Liablties 101.56 110.54
10 103.30 110.20 13 101.56 110.54 10 103.76 109,21 11 104.75 108.99 15
LIQUIDITY/ASSET LIABILITY MANAGEMENT
Pre-Shock NPV' PV of Asset .00 .00
.. Post-Shock NPV Ratio .00 .00
Sensitivity Meas.Decline NPV .00 .00
OTHER ELEMENTS.
Net Int/Avg.Earniqg Assets 3.34
Total' Nonint Exp./Avg.Assets 3.10
Net Income/Avg Total Equity -54.31
Net Losses!Avg.TotlLns&Lease 5;66
Earn Coverage of Net Losses .88
ALLL/Total Loans & Leases 3.20
3.40
2.66
4.59
.84
5.68 .
1.42
186.30
44
44
44
10.36
9.50
.85
43 3.06
63 3.07
5 -27.32
94 .05
10 56.29
89 3.02
48 181.24
12.75
12.20
.76
3.25
2.56
4.10
.72
5.61
1.32
182.09
16
12
60
.00
.00
.00
35 3.04
65 2.90
6 -42.B2
7 3.24
94 1.50
89 3.20
48 176.37
Nonperf Loans & Leases/ALLL 176.37
Displayed as NA if the institution has not filed section CMR.
1328
.00
.00
.00
3.46
2.72
4.75
.85
4.74
1.42
186.30
44 10.59
44 10.59
44 .00
27 3.20
57 2;5B
2 -37.B5
83 1.14
20 3.74
89 2.51
48 177.58
12.71
11.64
.88
3.24
2.64
2.90
.76
5.71
1.28
188.58
15
35
1
8.72
8.14
.58
47 4.14
46 2.52
5 9.48
64 .23
40 10'.81
90 1.08
47 155.99
10.18
9.54
.81
3.08
2.50
3.78
.37
6.45
1.05
135.89
27
34
31
91
52
85
34
64
55
55
05:57 11/02/2010
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
ASSET QUALITY - SUPPLEMENTAL DETAIL
United
DOCKET: 06679
DATA AS OF: 11/02/2010
Western Bank
TFR STATUS:
CMR STATUS:
current Quarter Prior Quarter
CUrrent
Prior
=================
IN PROCESS
NONRESPONDER
Quarter Prior
Year Year End Total
=================
YRMO, Period End.... 201009
201006 200909 200912
SINGLE-FAMILY LOAN DELIQUENCY LOAN CHARGE-OFF DETAIL
LOANS PAST DUE 30-89
PermMtg,1-4 unit
Revolv Open End
First Liens
Junior Liens
DAYS
AND STILL ACCRUING: ($000 at
11,986
o
11,986
o
End of Period)
11,725
o
11,725
o
LOANS PAST DUE 90+
permMtg,1-4 Unit
Revolv Open End
First Liens
Junior Liens
DAYS AND STILL
ACCRUING: ($000
9,694
at End of period)
8,464
NONACCRUING LOANS:
PermMtg,1-4 Unit
Revolv Open End
First Liens
Junior Liens
NET GVA CHARGE-OFFS
PerrnMtg,1-4 Unit
Revolv Open End
First Liens
Junior Liens
($000 at End of
o
9,694
o
Period)
20,695
o
20,695
o
o
8,464
o
13,265
o
13,265
o
Prior Quarter
During Period)
323
o
323
o
14,940 14,365
0 0
14,940 14,365
0 0
7,204 7,986
0 0
7,204 7,986
0 0
13,393 13,723
\.3,39g
0
13;723
0 0
YTD Prior Year
2,124 . 664
1,123 0
1,001 664
o 0
CUrrent Quarter Prior Quarter
CUrrent Quarter
Prior Year
Prior
Year End Total
PAGE 35
Previous Prior
Year End Total
200812
14,891
o
14,891
o
5,888
o
5,888
o
9,469
o
9,469
o
PreviousPrioryr
768
o
768
o
Previous Prior
Year End Total

YRMO, Period End.... ====== ====201009 ====== ====201006 ====== ====200909 ====== ====200912 ====== ====200812
SINGLE-FAMILY LOAN DELIQUENCY LOAN CHARGE-OFF RATES (% of outstanding Gross Loans in Each Category)
LOANS PAST DUE 30-89
DAYS
AND STILL ACCRUING:
perrnMtg,1-4 unit
3.78 .91 91 3.53 .94 90 4.14 1.15 94
Revol v Open End
.00 .46 12 .00 .42 12 .00 .49 12
First Liens
4.02 .98 89 3.74 .95 89 4.38 1.07 93
Junior Liens
.00 .61 11 .00 .58 12 .00 .47 12
LOANS PAST DUE 90+
DAYS AND
NON ACCRUING:
PerrnMtg,1-4 unit
9.59 L91 93 6.54 2.00 89 5.70 1.66 92
Revolv Open End
.00 .59 11 .00 .56 10 .00 .44 13
First Liens
10.20 2.07 93 6.93 2.30 87 6.04 2.00 85
Junior Liens
.00 1.05 15 .00 .91 13 .00 .51 16
CUrrent Quarter Prior Quarter YTD
================= ================= =================
RATES OF GVA CHARGE-OFFS AND CHANGES IN SVA'S:
.65
PerrnMtg,1-4 unit
.35 .11 78
Revolv open End
6.42 .06 98
First Liens
.00 .09 17
Junior Liens
.00 .00 30
Current Quarter
.09 .. 07 57
.00 .05 26
.10 .04 64
.00 .00 31
Prio;r Quarter
.31 69
6.42 .28 95
.33 .25 57
.00 .16 19
CUrrent Quarter
Prior Year
================= =================
4.10 1.00 94
.00 .49 13
4.34 1.06 91
.00 .70 12
6.19 1.76 90
.00 .51 12
6.57 1. 95 87
.00 .51 15
Prior Year
=================
.19 .31 .
.00 .31
.20 .22
.00 .19
Prior
Year End Total
38
21
46
19
3.88 1.06 95
.00 .48 12
4.11 1.07 92
.00 .51 15
4.00 .94 91
.00 .24 17
4.24 .98 84
.00 .07 23
PreviousPriorYr
=================
.20 .11
.00 .00
.21 .06
.00 .00
Previous Prior
Year End Total
63
31
72
26
YRMO, Period End ....
201009 201006 200909 200912 200812
PAST DUE LOANS: GNMA BUY-BACKS, US GUARANTEED, AND HELD-FOR-SALE ($000 End of Period)
30-89 DAYS PAST DUE:
2,672 2,396 2,524
GNMA BuyBckLNS
2,276 901
Held for Sale
11,700 14,634 14,385 13,532 10,909
USGuar Ex GNMA BB
2,492 3,044 3,552 4,050 3,951
All Lns 30-89 Days
PD
49,351 54,701 60,134 209,344 101,082
90+ DAYS PAST DUE:
6,603 6,243 5,254
GNMA BuyBckLns
5,804 4,236
Held for Sale
9,194 8,464 7,010 9,267 5,878
USGuar Ex GNMA BB
2,346 1,867 1,778 1,917 2,177
All Lns 90+ Days PO
9,694 8,464 7,328 9,867 6,513
NONACCRUAL :
0 0
GNMA BuyBckLnS
0 0 53
Held for Sale
10,827 10,024 11,174 9,807 12,631
USGuar Ex GNMA
BB
887 106 50 49 915
All NonAccrual Lns
62,904 65,093 38,655 53,052 19,366
1329
05:57 11/02/2010
YRMO, Period End .
OFFICE OF THRIFT SUPERVISION - MIDWEST SUPERVISORY REGION
3-YEAR UTPR REPORT FOR QUARTER ENDED 201009
ASSET QUALITY - SUPPLEMENTAL DETAIL
United Western Bank
DOCKET: 06679 TFR STATUS:
DATA AS OF: 11/02/2010 CMR STATUS:
IN PROCESS
NONRESPONDER
Prior Quarter
CUrrent Quarter
CUrrent Quarter
Prior Year, Year
Prior
End Total
-=====-====-= =-======-=----=-= -=======._-=_
=-=-==-==._.=----
Group 5 Group 5 Group 5 Group 5
S&L Median ,Pet S&L Median Pet S&L Median Pet S&L Median Pet
---_.= = -.- -==
===-== -===== ==- s==::= === ====== ===-==
201009 201006 201003 200912
PAST DUE LOAN RATES:
GNMA BUY-BACK, US GUARANTEED, AND HELD-FOR-SALE (% of Total Assets)
30-89 DAYS PAST DUE:
.13 .00 96 .11 .00 '97 .10 .00
GNMA BuyBeksLns
97 .09 .00 97
Held for Sale
.57 .00 98 .66 .00 98 .55 .00 97 .54 .00 97
USGuar Ex GNMA BB
.12 .00 96 .14 .00 96 .14 .00 98 .16 00 98 .
Tot All LOans 30-89
Days PD 2.38 .61 96 2.48 .64 95 2.31 .74 96 8.36 2.79 91
90+ DAYS PAST DUE:
. 32 .00 97 .28 .00 97 .20 .00 . 97
GNMA BuyBeksLns
.23 .00 97
Held for Sale
.44 .00 98 .38 .00 98 .27 .00 98 .37 .00 .98
USGuar Ex GNMA BB
.11 .00 98 .08 .00 98 .07 .00 98 .08 .00 98
Tot All Loans 90+ Days
PD .47 .00 93 .38 .00 90 .28 .00 83 .39 .00 89
NONACCRUAL :
.00 .00 48 .00 .00 49 .00 .00 50
GNMA BuyBeksLns
.00 .00 50
Held for Sale
.52 .00 98 .45 .00 97 .43 .00 97 .39 .00 97
USGuar Ex GNMA BB
.04 .00 92 .00 .00 83 .00 .00 83 .00 .00 80
Tot All NonAeerual Lns
3.04 1.59 71 2.95 1.51 73 1.49 1.46 51' 2.12 1.49 65
PAGE 36
Previous Prior
Year End Total
-=--==-=======-=-
S&L
Group 5
Median Pet
200909
.04 .00 97
.49 .00 98
.18 .00 98
4.51 2.11 80
.19 .00 97
.26 .00 98
.10 .00 98
.29 .00 89
.00 .00 98
.56 .00 98
.04 .00 97
.86 .85 52
ASSET QUALITY SUMMARY EXCLUDING US
GUARANTEED PORTION OF DELINQUENT LOANS AND GNMA BUY-BACK LOANS: 1%
.60 93 2.23 .64 ,92 2.08 .73 92 8.11 2.79 89
of Total Assets)
Total 30-89 Days PD 2.13
4.30 2.11 77
Total 9,0+ Days PO .04
.00 65 .02 .00 61 .01 .00 58 .09 .00 76 .00 .00 57
Total Nonaeerual 3.00
1.57 72 2.95 1.51 73 1.,49 1.46 51 2.12 1.49 65 .82 .83 47
Total NP Loans 3 .26
1.61 72 3.09 1.65 73 1.54 1.48 52 2.26 1.57 65 .94 .94 49
LESS US GtlARANTEEP
54.58 43.01 60 49.56 44.55 55 72.40 67.56 52
LESS LOANS HELD FOR
GENERAL ALLOWANCE AND ALLL AS A PERCENT OF NONPERFORMING ASSETS
SALE IN NONPERPORMING STATUS
S3
.
85
39.89 55 58.57 41.06 57 69.32, 43.01 67 58.86 44.50 65 140.75 67.56 72
IEA/ICL SUMMARY ADDING BACK US GUARANTEED PORTION OF LOANS AND GNMA BUY-BACKS IN'
NONACCRUAL STATUS OF THE STATUS OF THE NUMERATOR:
lEA less LnSrvRghts/ICL
101.78 117.31 5 103.48 117.16 7 109.11 116.44 16 26.85 29.20 21 26.80 29.53 14
IEA+BOLI+I/O/ICL
103.54 118.44 5 105.16 118.30 7 110.62 117.96 16 27.24 29.47 20 27.24 29.85 15
PURCHASED IMPAIRED LOANS HELD FOR INVESTMENT ACCOUNTED FOR UNDER SOP03 - 3 :
CUrrent Quarter Prior Previous Prior
CUrrent Quarter Prior Quarter Prior Year Year End Total Year End Total
YRMO, Period End ...
=============;oioo;============;oio06============;0090;============;00912============;00812
1$000 End of Period)

0 0 0 0 0
0 0 0 0 0
Loss Allowances
0 0 0 0 0
S&L Median Pet S&L Median Pet S&L Median Pet S&L ,Median Pet S&L Median Pet
=-==== ======.
1% of Total Assets)
OUtstanding Bal. Contrl.
.00 .00 44 .00 .00 46 .00 .00 46 .00 .00 46 .00 .00 46
Reerd Invstmnt B4 DelLosAl
.00 .00 44 .00 .00 46 .00 .00 46 .00 .00 46 .00 .00 46
LosS Allowances
.00 .00 49 .00 .00 49 .00 .00 49 .00 .00 49 .00 .00 48
1330
TabC
Exhibit 44 H
(Memo Ex. 8)
1331
. Date: October 25,2010
OFFICE OF THRIFT SUPERVISION
EXCEPTION SHEET
(Number 01)
Management response required by: Close of business October 27, 2010
Institution: United Western Bank
City, State: Denver, CO
Docket No.: 06679
Exam Date: 9/27/2010
Workpaper Reference: 540_00 Subject: OTTI Modeling Process
Regulation or Regulatory Guidance Reference: CEO 329 and 320
Background
Prior to our January 2010 field visit, the Bank used the Forge "loan level" methodology
and applied a five-year time cut off to the limited number of credit value reports received
. Forge. We determined that the "loan level" methodology was not adequate in
reflecting the credit risk in the bank's non-agency securities, as the methodology ignored
the growing delinquencies and the resulting lag between delinquency and default --
especially given the current market conditions in which disposition times have
dramatically increased due to various modification and other intervention programs.
During the field visit, the bank's staff conducted an additional analysis of UWB's non-
agency MBS portfolio for OTT!. This review included certain additional assumptions
that more accurately reflected current market conditions and potential further
deterioration in the bank's portfolio. We required that UWB obtain the credit valuation
reports. for a much larger sample of the portfolio, using coverage ratios as the primary
metric, and re-evaluate the credit impairment based on this larger sample.
Our self-calculated credit impairment estimates for December 31, 20'09, totaled
approximately $21.7 million for UWB, or an additional $18.9 million to the $2.8.million
charge the Bank had previously reported. This credit. impairment estimate was derived
by utilizing the credit value reports from Forge under the method without Ii
time truncation to the cash flows, but with a I 0 percent materiality test included, and also
taking into consideration all securities with a Bloomberg coverage ratio less than Ix. We
believed that given the imprecision of the various methods under the Forge model arid the
limited time frame in which to ascertain impairment for 2009, this approach
provided a reasonable stopgap until the Bank could employ a better model with
appropriate and supportable assumptions for future quarters.
1332
Management indicated that they preferred to adopt an interim approach for the December
2009 quarter that was divergent from other Forge models. In particular, management
used the "Security Credit Value" approach provided by Forge in the Credit Valuation
Report with a time cut-off of three years and a materiality test of 10 percent ..
Management-indicated that this approach was consistent with the approach used by their
direct competitors and was also an approach that was plausible with their external
auditors. Due to time constraints, we did not review this particular approach, nor had we
concluded that we would be willing or able to accept this particular methodology going
forward? and we did advise management that the time frame cut-off was not appropriate
under any circumstance. However, the resulting OnI from this approach was a total
Bank-level credit impairment of $21.0 million or an incremental increase of $18.2
million, which approximated to the $21.7 million total Bank and $18.9 million
incremental levels. we observed using the narrowing of the "collateral" approach
mentioned above. Therefore, we accepted this valuation method as a stopgap for the
December 2009 quarter only. We informed management that the process and model must
be revised and vetted for first quarter 2010 and the Bank would not be able to use either
of the above mentioned methodologies going forward. .
During this exam, we noted that management has formally adopted the Forge Security
Fair Value methodology with a 36 month cut-off and a materiality test, despite our
concerns that hild been discussed with senior management during the prior field visit.
During the prior field visit, we also expressed concerns regarding the monitoring process .
. In particular, we noted that management still heeded to rank order the entire portfolio and
modify the criteria for obtaining credit valuations to broaden the universe of bonds tested
to e ~ e that all bonds with any potential credit impairment are analyzed. Furthermore,
management needed to adopt clear, coherent and consistent written procedures that
outline these practices. During this exam, we reviewed the revised Investment Policy,
and found that it did not reflect clear and consistent procedures. In addition, we found
that the current process includes filtering criteria that inappropriately limited the universe
of securities to be tested.
During this exam, we requested an additional 22 Forge Credit Value reports on all
securities without prior impairment under a 1.0x Bloomberg Credit Coverage ratio and all
non-senior securities under a 1.5x Bloomberg Credit Coverage ratio, as of June 30, 2010.
The results using the Bank-adopted Security Fair Value scenario, without any arbitrary .
. time cut-off, indicate an additional impairment of $17.4 million. Using a ten percent
margin of error, the resulting additional impairment would be $15.1 million. This
1333
impairment is in addition to the $5.3 million impairment reported for the June 30, 2010
quarter, or total impairment of approximately $20.4 million.
Exception No.1: '. .
The revised process outlined in the Investment Policy for selecting securities for
impairment testing does not appropriately recognize problematic securities. The Bank
only ordered six credit value reports during the second quarter 2010. We identified an
additional 22 securities that should have been tested. After reviewing the additional 22
credit value reports, we determined that the Bank's monitoring was excluding
impaired securities.
Exception No.2:
For Q1 2010, the Bank's Investment Policy formally adopted the Forge "Security Fair
Value" model in determining potential impairment along with a materiality threshold and
time cut-off. . We conclude that it is inappropriate to use a time cut-off to mitigate
perceived imperfections in the modeling process. SiInilar concerns were discussed with
.senior management during the January 2010 field visit.
Exception No.3:
Given the exceptions noted above, we determined that the Bank does not have an
accurate, robust, and well-documented credit risk management framework. Additional
iinpairment should have been recognized in the June 2010 quarter based upon the
additional 22 reports ordered. We determined that the Bank omitted at least $15.1 million
in impairment charges for 14 of the 22 additional securities identified during this exam.
Corrective Actions Required
Corrective Action No.1:
The Bank must reassess the criteria for sampling the securities portfolio for impairment
to broaden the sample of problematic securities. The Bank must either test all non-
securities in the portfolio for impairment or, at a Ininimum, all securities that meet
any of the criteria outlined on page 25 of the Investment Policy, subsection IA, without
the omissions outlined in subsection m on the same page. Furthermore, no securities
should be excluded based on any time frames cut-offs or limitations.
Corrective Action No.2:
The Bank must refine the model and methodology used for impairment analysis. Any .
factors deemed unrealistic by management must be addressed in the underlying
assumption inputs into the model used rather than subsequently disregarding selective
portions of the model output. Therefore, we are not permitting truncation of the model
output or application of a time cut-off. If the Bank uses a third party vendor,
1334
management must work with the vendor in obtaining the best estimate of future cash
flows without excluding the results once the cash flows are obtained. Time truncation
because of model imperfections. is not acceptable.
Corrective Action No.3:
The Bank must revise the June 30, 2010, TFR reporting to recognize an additional
impairment of$15.1 million.
Examiners:
Walter Santos, Examiner-in-Charge
Judy Chen, Capital Markets Examiner
Kurt Kirch, Capital Markets Manager
Date: October 25, 2010
1335
L.
TabC
Exhibit 44 I
(Memo Ex. 9)
1336

..
) .. J... .. U .. .N .... .1 ... T.E ... D ....
WESTERN
BANIC
October 27,2010
Mr. Walter Santos, Examiner-in-Charge
Office of Thrift Supervision
Pacific Plaza
2001 Junipero Sierra Boulevard, Suite 650
Daly City, California 94014-1976
James R. Peoples
Chairman, President & CEO
tel: 720-956-6576
fax 720-946-1186
jpeoples@uwbank.com
RE: Office of Thrift Supervision Exception Sheet dated October 25, 2010 (the "Exception Sheet")
Dear Mr. Santos:
Management of the Bank received the Exception Sheet on Monday afternoon October 25,2010 with the request that
we submit a response by the close of business on October 27, 2010. We have carefully reviewed the Exception
Sheet, the three exceptions The Office of Thrift Supervision ("OTS") noted and the three corrective actions that OTS
has identified. Our response to the particulars of the Exception Sheet are set forth below.
In advance of stating our specific responses to OTS' s Exception Sheet, we believe it is necessary to point out that the
OTS is applying inconsistent treatment to United Western Bank (the "Bank") as regards to the OTS position on our
other-than-temporary-impairment ("OTTI") methodology under generally accepted accounting principles ("GAAP").
We are confident that our methodology is sound and acceptable under GAAP and that at least two other banks are
employing the same, exact methodology for determining OTTI under GAAP.
Further, the fact that other banks are employing identical policies and procedures to ours has been acknowledged by
the OTS and the Federal Deposit Insurance Corporation ("FDIC") field examiners (see our discussion within), yet the
Bank has been advised by these field examiners that at least one other bank is permitted to use an identical OTTI
methodology under GAAP because such institution has fewer securities subject to the methodology and are more
well capitalized than is our bank. We fmd this inconsistent treatment to be highly disturbing and believe that the
disparate treatment the Bank is receiving is highly inappropriate.
The Bank and the Company's Methodology for Determination of OTTI
OTS has requested that the Bank revise. its methodology to calculate OTT! by amending its best estimate of the
present value of cash flows expected to be collected from the debt security. We firmly believe our current
methodology is in accordance with GAAP and that OTS should fmd our methodology acceptable.
The basis for our conclusion is well founded in GAAP at ASC 320-10-35. For ease of referencing, however, in our
documentation of the GAAP provisions we are relying upon, we will cite the applicable paragraphs included in F AS
115-2 in support of our methodology. The most applicable paragraphs are 22 through 26 excluding paragraph 24,
which deals with securities that are covered under ElTF 99-20, which is not applicable to the Bank or the Company.
The paragraphs that we believe are applicable and support our methodology are as follows:
F AS 115-2 paragraph 22, which states, "If the entity does not expect to recover the entire amortized cost
basis of the secnrity, the entity would be unable to assert that it will recover its amortized cost basis
even if it does not intend to sell the security. Therefore, in those situations, and an other-than
temporary impairment shall be considered to have occurred. In assessing whether the entire amortized
cost basis of the security will be recovered, an. entity shall compare the present value of cash flows expected
to be collected from the security with the amortized cost basis of the security. If present value of cash flows
United Western Financial Center
700 Seventeenth Street, Suite 2100
Denver, Colorado 80202

Mr. Walter Santos, Examiner In-Charge
Office of Thrift Supervision
October 27,2010
Page20f7
expected to be eoDected is less than the amortized cost basis of the security, the entire amortized cost
basis of the security will not be recovered (that is, a credit loss exists), and an other-than-temporary
impairment shall be considered to have occurred."
FAS 115-2 paragraph 23 which states, "In determining whether a credit loss exists, ali entity shall use its best
estimate of the present value of cash flows expected to be collected from the debt security. One way of
estimating that amount would be to consider the methodology described in paragraphs 12-16 of FASB
Statement No. 114, Accounting by Creditors for Impairment of a Loan, for measuring an impairment on the
basis of the present value of expected future cash. flows. Paragraph 1,4 of Statement 114 provides guidance on
. this calculation. Briefly, the entity . would discount the expected cash flows at the effective interest rate
implicit in the security at the date of acquisition."
FAS 115-2 paragraph 25 which states, "There are numerous factors to be considered when estimating
whether a credit loss exists and the period over which the debt .security is expected to recover. The following .
are a few examples of the factors that shall be considered. This list is not meant to be all-inclusive.
a. The length of time and the extent to which the fair value has been less than the amortized cost basis
b. Adverse conditions specifically related to the security, an industry, or a geographic area (for example,
changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt
security, in the financial condition of the underlying loan obligors, including changes in technology or the
discontinuance of a segment of the business that may affect the future earnings potential of the issuer or
underlying loan obligors of the security or changes in the quality of the credit enhancement)
c. The historical and implied volatility of the fair value of the security
d. The payment structure of the debt security (for example, nontraditional loan terms as described in FSP
SOP 94-6-1, Terms of Loan Products That May Give Rise to a Concentration 'of Credit Risk) and the
likelihood of the issuer being able to make payments that increase in the future
e. Failure of the issuer of the security to make scheduled interest or principal payments
f. Any changes to the rating of the security by a rating agency
g. Recoveries or additional declines in fair value subsequent to the balance sheet date."
FAS 115-2 Paragraph 26 which states, "In making its other-than-temporary impairment assessment, an entity
shall consider all available information relevant to the collectability of the security, including information
about past events, current conditions, and reasonable and supportable forecasts, when developing the
estimate of cash flows expected to be collected; That information generally should include the remaining
payment terms of the security, prepayment speeds, the financial condition of the issuer(s), expected defaults,
and the value of any underlYing collateral. To achieve that objective, the entity should consider, for example,
industry analyst reports and forecasts, sector credit ratings, and other market data that are relevant to the
collectability of the security. An entity also should consider how other credit enhancements affect the
expected performance of the security, including consideration of the current financial condition of the
guarantor of a security (if the guarantee is not a separate cOlitract as discUssed in paragraph 8 of FSP F AS
115-1 and FAS 124-1) andlorwhether any subordinated interests are capable of absorbing estimated losses
on the loans underlying the security. The remaining payment terms of the secUrity could be significantly
different from the payment tenns in prior periods (such as for some securities backed by nontraditional
loans); Thus, an entity should consider whether a security backed by currently performing loans will
continue to perform when required payments increase in the future (including "balloon" payments). An
entity also should consider how the value of any collateral would affect the expected performance of the
security. If the fair value of the collateral has declined, an entity needs to assess the effect of that decline on
the ability of the entity to collect the balloon payment."
The analysis of OTTI is complex, and, accordingly, this accounting policy receives significant attention from .the
Company's independent public accountants, management, the audit committee and the board of directors as a critical
accounting policy of the Bank and its holding company. As stated above in our GAAP references, an entity is
1338
Mr. Walter Santos, Examiner In-Charge
Office ofThrlft Supervision
October 27,2010
Page 3 of7
required to consider all available information relevant to the collectability of a security. In addition, GAAP
addresses the point of whether the entity expects to recover the entire amortized cost basis of the security the most
significant determinant in whether OTTI exists.
The analysis the Bank to between OTTI independently prepared
estimates of the cash flows over the remammg term of the secunty pnnclpally denved usmg:
(1) the prior three months of voluntary repayments;
(2) an estimate for loss severity based on historical and forecasted loss severity; and
(3) an estimate for future level of defaults. .
As stated above, GAAP indicates an entity shall use its best estimate of the present value of cash flows expected to
be collected from the debt security. Also as stated above, GAAP indicates that one way to calculate the OTTI is to
use the guidance contained in F AS 114 for calculating an impairment on a loan. We believe this is an appropriate ,
methodology to use for a security with a fmal maturity not greater than three to five years because forecasting events
beyond the next 60 months becomes highly speculative, a concept our accountants concur with. By analogy, most
term loans in which the cash flows would be discounted to measure impairment have a maturity of five years or less.
In the case of non-agency mortgage backed securities with final maturities that are up to 40 years in the future, the
data available to any observer with which to predict such distant events is limited. While we employ very reasonable
and near at hand observations with regard to predicting cash flows through our employment of FORGE's models,
there are necessary and real impediments to the predictive power of such observations requiring us, in the exercise of
reasonable judgment in accordance with the GAAP principles we have cited, to impose a truncation in our analysis of
cash flow impairments in measuring temporary impairments versus OTTI. Our outside accountants, a well respected
super regional firm, Crowe Horwath, has concluded that our methodology is appropriate and acceptable within
GAAP and that we have, as a result; a defensible position under GAAP. '
These reasons are consistent with the thought process and methodology used by other banks and the reasons that
our methodology is in conformance with GAAP and thus should be considered acceptable by OTS and the FDIC. In
the Exception Sheet of October 25,2010, OTS indicates, "Time truncation because of model imperfections is not
acceptable.'" The fact that no model can adequately predict the future is the exact reason that time truncation should
be acceptable, because of the significant model imperfections especially in instruments with long final maturities and
cash flows that are discounted back to the presenfdate that are up to 30 or more years in the future.
FORGE and Other Institutions use of FORGE to Model Cash Flows
FORGE is an investment management firm that manages a $1.5 billion securities portfolio and provides security
valuations to other financial institutions on a national basis. We have previously and can again provide OTS and the
FDIC with the bona fides of FORGE's experience and the fact that over 120 other banks and thrifts rely on FORGE
for analysis similar to that employed by us. ,. FORGE analyzes the cash flows of securities using assumptions
described above that management believes are reasonable in relation to what other market participants, specifically
banks and thrifts, may use in pricing non-agency mortgage backed securities. FORGE has clients that are supervised
by the OTS, FDIC, the Office of the Comptroller of the Currency and Federal Reserve System. FORGE's
methodology has been approved by the big public accounting firms including - Ernst & Young, Deloitte & Touche,
PWC, J(lMG, Baird Kurtz & Dobson, Crowe Horwath (our auditors), as well as McGladrey. The FORGE work'
product cannot be viewed as . being unreasonable given the acceptance and reliance on the FORGE work product by
so many other institutions without any apparent objection by federal banking regulators.
I As discussed below, a nationally recognized, independent third party, FIRV A Capital Management, LLC ("FORGE") prepares the estimates
of cash flows from our securities.
1339
Mr. Walter Santos, Examiner In-Charge
Office of Thrift Supervision
October 27,2010
Page 4 of7
We have reported to OTS that we have knowledge of a bank headquartered in Denver, for which the FDIC is primary
federal regulator, that is a client of FORGE, uses the same exact methodology and same time truncation period as the
Bank and the Company. In our examination kickoff meeting held on September 28,2010, among the OTS, FDIC
and Bank management attended by Guy Gibson on behalf of our holding company, Ben Hirsh, Lana Juhl and me on
behalf of the Bank, Ms. Cindy Spenner and Mr. Kevin Lowery from the FDIC, and Mr. Walt Santos and Mr. Jose
Zarate from the OTS, the discussion came up about the use of the FORGE analysis and the methodology of using a
time period to distinguish between a temporary impairment and OTT!.
During that meeting, Mr. Lowery mentioned that the use of the FORGE analysis was deemed a "stopgap measure."
Mr. Gibson asked some questions as to what was meant by "stopgap" and Mr. Lowery replied and that the Bank was
to either commence modeling of securities in house or to select a different vendor. No one in the meeting from the
Bank was aware that this was an expectation of the OTS or DFIC, nor was this request previously included in the
letter we received dated March 5, 2010 (see copy attached). One of the Bank's representatives specifically raised the
fact that another bank in the Denver metropolitan area employs the exact same method of calculating OTT! using the
FORGE data without objection by the FDIC. Mr. Lowery indicated that this other institution has fewer non-agency
securities than the Bank and more capital than the Bank (implying that the agencies did not object to the use of the
OTT! methodology used by the bank generally and, therefore, that the methodology is reasonable, is acceptable
under GAAP, and complies with regulatory requirements).
Mr. Lowry's conclusion ignores the keystone principle that GAAP should be the same between entities. It would
seem reasonable that the methodology used to determine whether OTT! exists that is found to be acceptable at one
institution would be deemed to be acceptable at another institution. However, Mr. Lowry, on behalf of the FDIC,
affmnatively acknowledges that it is appropriate for the Denver-based institution to use the methodology he
explicitly criticizes the Bank for using. Such results-oriented finding is inappropriate and inconsistent with GAAP
and cannot be rightfully condoned or permitted. Based on our discussions with the chief investment officer of this
institution,in connection with a charter consolidation, the Federal Reserve System has reviewed the OTTI
methodology used by this institution and has not taken exception to that entity's OTT! methodology as being
acceptable under GAAP.
In the afternoon of September 28,2010, Mr. Gibson continued the earlier discussion with Mr. Lowery who reiterated
the position taken during the earlier conversation.
Further, we were informed by FORGE of a thrift, headquartered in Dallas, Texas, that uses the FORGE cash flow
analysis with the identical OTTI methodology used by the Bank and the Company. This thrift chose not to be
identified for its own reasons.
Inconsistencies between OTS Letter of March 5, 2010 and OTS Exception Sheet of October 25, 2010
In the first paragraph of the second page of the Exception Sheet, it states in part, "and we did advise management that
the time frame cut-off was not appropriate under any circumstances." In the second paragraph of the first page of the
OTS letter of March 5, 2010 it states, "Management and the examiners are in agreement about the amount of
additional other-than-temporary impairment that must be recognized as a result of this process ... " Clearly, the
current OTS position is at odds with the position the agency accepted effective December 31, 2009. There has been
no change to GAAP to our knowledge that would explain this disparity.
1340
Mr. Walter Santos, Examiner In-Charge
Office of Thrift Supervision
October 27, 2010
Page 5 of7
Exception No.1:
The revised process outlined in the Investment Policy for selecting securities for impainnent testing does not
appropriately recognize problematic securities. The Bank only ordered six credit value reports during the second
quarter 2010. We identified an additional 22 securities that should have been tested. After reviewing the additional
22 credit value reports, we determined that the Bank's monitoring process was excluding impaired securities.
Response to Exception No.1: .
Our process for the selection of securities for evaluation of temporary vs. OTTI appropriately addresses securities
that have decline in value, been downgraded by the ratings agencies or which have a Bloomberg credit coverage ratio
of 1.5 or below. As of September 30, 2010, we excluded securities from the population described in the foregoing
sentence that were fully analyzed for OTTI at either ofthe two most recent prior quarter ends and for which the cash
flow breaks were not expected to occur within the next 150 months or cash flow breaks were not expected to occur
anytime in the next 90 months and the Bloomberg credit coverage ratio is greater than 1.0. We did this because it was
inherently reasonable to assume that none of these securities would within such a short time frame show any cash
flow breaks within our truncation period and we thought it the better wisdom to conserve the institution's resources
by not paying for the analysis OTS suggests.
What we did find and learn from this process is that there was a security with a fairly unique payment waterfall
structure, which indicated a modeled cash flow break of 274 months at June 2010 quarter end and four months at
September quarter end. Due to the procedures we followed, a credit value report was not ordered and OTTI was not
taken on this security .. This security is under $1 million in principal and the credit value price was 88.28% and thus
the indicated OTTI was $107,876. Consequently, the Bank has taken steps to enhance its methodology for the
ordering of FORGE reports prospectively, as described in Response Corrective Action No.1, in order to capture the
possibility of OTTI on such securities.
Excepting this one security, the other 21 securities for which we did not secure the testing you suggest was
necessary, reflects no OTTI or temporary impainnent in accordance with GAAP based on the Bank's and the
Company's methodology of determining OTT!. This validates our process of appropriately conserving the Bank's
resources.
Exception No.2:
For Ql 2010, the Bank's Investment Policy formally adopted the FORGE 'Security Fair Value' model in
determining potential impainnent along with a materiality threshold and time cut-off. We conclude that it is
inappropriate to use a time cut-off to mitigate perceived imperfections in the modeling process. Similar concerns
were discussed with senior management during the January 2010 field visit.
Response Exception No.2: .
The adoption by the Bank of the FORGE fair value model effective year end 2009 incoIporated significantly more
conservative assumptions to the determination of expected cash flows than the FORGE modeling used in earlier
quarters of 2009. The Bank made this change in assumptions in large part based on the guidance provided by the
OTS and the FDIC during the field visit. The OTS's current position is inconsistent with its prior position as
memorialized in the March 5, 2010 letter. The statement that similar concerns were discussed with senior
management during the field visit is also incorrect. The March 5, 2010 letter states management and the examiners
were in agreement about the amount of additional OTTI that must be recognized. The use of first period write-down
is not just a way to show that the FORGE cash flow model has not accurately forecasted a loss in a security. It is also
a . measure of the impact of the unknowns in a forecast such as the reality that there will be new programs for
mortgage origination, modifications and the like. These programs will invariably impact prepayments and defaults in
the future. The truncation of time for the measurement ofOTTI in the Bank's methodology is designed to assist us in
judging whether, on balance, the weight of all the available evidence does or does not indicate that an impairment is
1341
Mr. Walter Santos, Examiner In-Charge
Office of Thrift Supervision
October 27, 2010
Page 6 of7
other-than-temporary versus temporary due to the fact that it is inherently impossible to adequately predict cash
flows that are beyond three years in the future.
Exception No.3:
Given the exceptions noted above, we determined that the Bank does not have an accurate, robust, and well-
documented credit risk management framework. Additional impai.n:nent should have been recognized in the June
2010 quarter based upon the additional 22 reports ordered. We determined that the Bank omitted at least $15.1
million in impairment charges for 14 of the 22 additional securities identified during this exath.
Response Exception No.3:
The Bank believes that its credit risk management framework is accurate, robust and well-documented. The Bank
has prepared updated reports used by Bank management and the board of directors to review 'securities and ensure an
appropriate process to determine temporary vs. OTT! under GAAP and to reflect changing n:iarket conditions as well
as further deterioration in the nonagency securities portfolio. There are numerous reports prefented to ALCO and the
board that were developed in response to the OTS letter of March 5, 2010. We strongly disagree that any additional
OTTI should have been recognized in June 2010, excepting the $107,876 in the second quarter ended June 2010. We
further strongly disagree that the Bank omitted an approximate $15 million impairment charge.
Corrective Action No.1: .
The Bank must reassess the criteria for sampling the securities portfolio for impairment td broaden the sample of
problematic securities. The Bank must either test all nonagency securities in the impairment, or at a
minimum, all securities that meet any of the criteria outlined on page 25 of the Investmen:t Policy, subsection lA,
without the omissions outlined in subsection IB on the same page. Furthermore, no securities should be excluded
based on any time frames cut-offs or limitations.
Response Corrective Action No.1:
The Bank is in agreement that it is appropriate to reassess the criteria for selecting nonagency securities for
temporary vs. OTT! review. The Bank will engage FORGE to test all nonagency securities in the portfolio that meet
any of the criteria outlined on page 25 of the Investment Policy, subsection lA, without the omissions outlined in
subsection lB. The Investment Policy will be updated during the month of November to incorporate this change.
Corrective Action No.2:
The Bank must refme the model and methodology used forimpairment analysis. Any factors deemed unrealistic by
management must be addressed in the underlying assumption inputs into the model used rather than subsequently
disregarding selective portions of the model output. Therefore, we are not permitting truncation of the model output
or application of a time cut-off. If the Bank uses a third party vendor, management must work with the vendor in
obtaining the best estimate of future cash flows without excluding the results once the cash flows are obtained. Time
truncation because of model imperfections is not acceptable.
Response Corrective Action No.2:
With all due respect, the Bank does not find the OTS' s conclusion as to the use of truncation or a time cut-off to be
consistent with GAAP or practices used by other regulated fmancial institutions. For the reasons stated in Response
Exception No.2, the Bank believes that cash flow estimates that are up to 30 years or more into the future based on
three months of repayments, and recent loss severity and default estimates require the application of professional
judgment and that GAAP requires the use of professional judgment in the ultimate decision on whether temporary vs.
OTT! exists for a particular security. In the information we provided with respect to the additional 22 securities that
the Bank obtained additional credit value reports from FORGE, there were three of these securities in which the first
period forecasted write down increased between seven and 22 months. This variability of. when an expected cash
flow loss is expected to occur significantly impacts the overall c<?nclusion as to temporary vs: OTT!. For the reasons
stated above, we respectfully disagree with OTS' s conclusion with respect to time truncation.
1342
Mr. Walter Santos, Examiner In-Charge
Office of Thrift Supervision
October 27, 2010
Page 7 00
Corrective Action No.3:
The Bank must revise the June 30, 2010, TFR reporting to recognize an additional impairment of$15.1 million.
Response Corrective Action No.3:
We believe our TFR for June 30, 2010 was fairly stated in all material respects. We respectfully believe there was
not any additional material OTTI that should be recognize as of any prior period.
If you disagree with our conclusions, we respectfully request a meeting with the appropriate OTS and FDIC staff.
Management of the Bank would be happy to discuss any questions or comments that you have with respect to our
response.

UNITED WESTERN BANK
r ,t. A-rt----
James R. Peoples
Chairman of the Board
cc: Mr. Philip Gerbick,OTS
Ms. Cindy Spenner, FDIC
Mr. Nicholas Dyer, OTS
Mr. Kevin Swanson, OTS
Mr. Guy A. Gibson, Chairman of the Board United Western Bancorp, Inc.
Attachment
1343
March 5, 2010
Office of Thrift Supervision
Department of the Treasury
Pacific Plaza, 2001 Junipero Serra Boulevard. Suite 650. Daly City. CA 94014-1976
P.O. Box 7165. San Francisco. CA 94120-7165 Telephone: (650) 746-7000 Fax: (650) 746-7001
. .
Board of Directors .,
Attn: Mr. Scot D. Wetzel, Chairman
United WestemBank
. 700 17
th
Street, Suite 100
Denver, CO 80202
RE: Refiling the December 31, 2009 Thrift Financial Report
Dear Members of the Board:
Western Region
On February 25, 2010, our examiners concluded the on--site portion of the field visit that began
on Janwuy 11,2010. The field visit included a review of United Western Bank's process for
reviewing mortgage-backed securities for other.,.than-temporary impairment. During the visit,
the Bank's staff conducted an additional analysis of the Bank's mortgage-backed. Securities
portfolio for other-than-temporary impairment. This additional analysis included certain
additional assumptions that more accurately reflect current market conditions and potential
further deterioration in the Bank's portfolio.
Toward the end of the field visit, we reviewed the of this additional analysis and
discussed the results with Vice-Chairman William Snyder and CFO Chuck Caswell. The results
indicate that a significant additional amount of other-than-temporary impairment must be
recognized in the Bank's December 31, 2009 financial statements and reflected in a revised
Thrift Financial Report. Management and the examiners are in agreement about the amount of
additional impairment that must be recognized as a result of this process,
but we understand that the total additional expense recognized for the period may also be
affected by an additional valuation allowance associated with. the deferred tax asset. This
additional valuation allowance may be required because of the additional other-than--temporary
impairment .expense recognized. Based on our discussions with Mr. Snyder and Mr. Caswell, it
is our understanding that the December 31, 2009 financial statements will be completed and
issued no later than March 16, 2010. It is also our understanding that these financial statements
...... . ..
expense associated with the deferred tax asset. We expect that a revised December 31, 2009
Thrift Financial Report will also be filed by this date.
1344 .
Board of Directors
United Western Bank
Page 2
March 5, 2010
Going forward, we expect the Bank to continue to refIne its securities review process to ensure
that the process fully reflects changing market conditions as'well as any further deterioration in
the Bank's mortgage-backed securities portfolio.
Should you have any questions about this matter, please contact me at (650) 746-7025, or Field
Manager Kevin Swanson at (650) 746-7066.
Sincerely,
Nicholas J. Dyer
Assistant Director
......................... , .......................................................... " .. , ....... ~ ..................................................................................................................................................................................... . ........................................... , ........... , ................ ~ ................... ~ ... , .. , ........... .
.. ~ .... ~ ... -... -... --.- ..... ; ... --.. ~ '. ;, ...... __ .-
1345
TabC
Exhibit 44J
(Memo Ex. 10)
1346
. Crosley, Susan L
From:
Sent:
To:
Cc:

Gary,
Crosley, Susan L
Tuesday, November 02.20104:30 PM
Scott. Gary A
Santos. Walter; Chen. Judy S; Kirch. Kurt J
United Western
This afternoon Walt, Judy, and I had a conference call with Crowe partners Sydney Garmong, Ray Calvey and
SME Chris Moore. We had a good dialogue and afterwards Crowe said they wanted to have further
discussions with UW management.
Later this afternoon I spoke with Sydney. UW management of course would prefer to stay with their
technique, but Crowe counseled them to use a different model that allows them to use their best estimate of
cash flows rather than using a model where they feel the results need to be adjusted via the use of a time
truncation. UW management has not made a final decision (they wanted to "sleep on it" so to speak) but
Crowe feels it is likely they will go with their advice. Sydney and I will be in touch and I will let you know as
soon as I hear something.
Susan Crosley
Western Regional Accountant
Office: 206-829-2609
. Be: 425-518-1173
1
1347
TabC
Exhibit 44 K
(Memo Ex. 11)
1348
To:
From:
Date:
Subject:
I J J
UNITED
WESTERN
B A N ~
Confidential Treatment Requested! .
Communication Puisullllt to FRE Number 408
Walter Santos, OTS - Examiner-in-Charge
Cindy Spenner, FDIC
Judy Chen, OTS
Benjamin Hirsh
November 10, 2010
Additional information re selection of FORGE model
This memo is provided as additional information related to our discussion this morning on the Bank's
"Outline of Proposed Remediation Plans to address OTTI Concerns" (the "Outline"). We note that
although the Bank received written correspondence from the Office of Thrift Supervision ("OTS") dated
March 5, 2010 and April 28, 2010, and entered into a cease and desist order with the OTS on June 25,
2010 that addressed various open issUes, none of these regulatory communications provided the board of
directors or management of the Bank with any reason to question or re-eValuate the position we thought
we had adopted with the regulators' concurrence effective as of year-end. Nonetheless, we believe that
the Outline demonstrates a reasonable remediation plan to address concerns raised by the Bank's
regulators.
In the Outline, we suggested that an incremental charge of$10.5 million be incurred by the Bank as of
September 30, 2010, on three securities, BAFC 2006-C 2A2, GSR 2005 AR4 1B1, and CWHL 2005
HYB8 4A2. During the course of our conversation, we discussed the rationale for the selection of the '
FORGE minus 2/3rds base curve cash flow estimate for certain securities and agreed to provide you With
additional information in support of this selection.
We discussed that the selection of different assumptions within various financial instruments is often the
case such as in the determination of the fair value of loans and deposits. We also discussed that when we
adopted FAS 115-2 in 2009, we moved from a methodology that incorporated the use of many qualitative
factors that were significant to our overall estimate of whether other-than-temporary impairment .
("OTTI") eXisted on a particular security to a methodology that was purely quantitative. The approach
1 This letter contains confidential information concerning United Western Bancorp, Inc. ("UWBK") and United
Western Bank (the "Bank'') and is not in the public domain. This information is being provided to the Office of
Thrift Supervision and Federal Deposit Insurance Corporation, the agencies responsible for the regulation and
supervision of the UWBK and the Bank as materials related to the examination and operations ofUWBK and the
Bank as well as under Federal Rule of Evidence 408. Any public disclosure of confidential information could result
in substantial harm to UWBK and the Bank. Accordingly, confidential treatment of this letter, pursuant to 5 U.S.C.
552(b)(4) and (8), is requested.
1349
that we adopted with the existing accoUnting guidance was to take OTT! based on these quantitative .
factors when OTTI was evident in accordance with our policy and to defer OTT! when these quantitative
factors were not met. During the course of this examination, you have questioned the Bank's
methodology that we apply to determine OTT! and we have carefully considered your guidance in the
arrival of our proposal.
With respect to the selection of the FORGE minus 2/3rds base curve cash flow estimate for certain
securities, we are taking into account that we cannot estimate the expected future cash flows of every
. security in our portfolio in the same manner. As an example, securities with long lives and longer
principal windows inherently have a more imprecise cash flow projection as the assumptions used to
genemte the expected cash flows are applied over a substantially longer term than a security with a short
weighted avemge life and a security with a short principal window. We believe the FORGE minus 213
base curve cash flow estimate provides a better estimate of expected future cash flows based on the
extended principal repayment period and provides a more accumte representation of the expected cash
flows and resulting fair values and credit values of such securities.
What we have learned and have taken from your questions to our methodology is that we should not view
all securities the same. Thus, after looking at certain securities, particularly the BAFC security and the
GSR security, we believe it is appropriate after consideration of all factors having a significant bearing on
ultimate cash flow estimates, that we take a more conservative view as to OTT! and that we should apply
the FORGE FV and CV values in determining OTTI on these securities.
But also, that is why, after we performed further analysis and looked at the expected cash flows to be
received of certain securities, namely the CWHL and CW AL T securities documented in the Outline, we
believe it is appropriate to select an expectation of cash flows from effectively the same model, taking
into account an adjustment to the assumptions related to defaults. Since .these securities have a long life
and long piincipal window, we believe that it is appropriate to adjust the default assumption downward.
We believe these securities, in which the average life is longer and the principal window is longer, will be
more significantly impacted by macro and micro economic factors as compared to securities that have
shorter avemge lives and principal windows and thus the overall conclusion on the expected cash flows is
different from other securities. That is, the minus 2/3rds model in the FORGE reporting allows us to
reflect the greater uncertainty of the effects of macro and micro economic events inherent in modeling
projected cash flows for securities with longer weighted avemge lives. We believe this is consistent with
the guidance set forth in FAS 115-2 paragraph 26, which we cited in our response to the October 25, 2010
Exception Sheet, and thus will not repeat in this memo.
We firmly believe that adopting the plan set forth in our Outline appropriately resolves the issue for the
quarter ended September 30,2010 in a safe and sound manner. Moreover, we will work directly with
you-to ensure there is complete agreement on the methodology that the Bank will employ for the fourth
quarter of 20 1 0 and prospectively that is consistent with the Exception Sheet items, our responses and
principles of safety and soundness.
CONFIDENTIAL TREATMENT REQUESTED
SUBMITTED UNDER FRE 408
1350
2
TabC
Exhibit 44 L
(Memo Ex. 12)
1351
.. . WESTERN
~ .
J
.
. J... UN.... I.T. ED ...
. BANIC
Confidential Treatment Requested
l
Communication PursUtmt to FRE Number 408
Outline of Proposed Remediation Plans to address OrrI Concerns
United Western Bank(the "Bank") has been operating on the basis that the mvestment Policy Changes adopted after the Joint
Off-Cycle visit in January and February 2010 were in conformance with the spirit of and the actual guidance we received from
the Examiners before they left the Bank.
Although the Bank received written correspondence from the Office of Thrift Supervision ("OTS'') dated March 5, 2010 and
April 28, 2010, these letters did not provide the board of directors or management of the Bank with reason to question or re-
. evaluate the position we thought we had adopted with the regulators' concurrence effective as of year-end.
Accordingly, for financial statements and regulatory reports of December 31, 2009, March 31, 2010 and June 30, 2010 the
Bank's application ofGAAP asset forth in the Investment Policy was consistently applied. '
. Based on the information contained in the Exception Sheet (Number 01) dated October 25,2010, the Bank recognizes that there
appears to be an apparent and significant disconnect between t ~ e Bank/Company and regulatory examiners on the expectations
for the determination of orr!.
Due to the fact that the Bank's holding company, United Western Bancorp, Inc. (the "Company'') is under a hard date time
constraints with regard to filing its quarterly report on SEC Form 100Q and proceeding with the Management Presentations
necessary to raise the additional $97 million in capital required under the October 28, 2010 Investment Agreement, the Company
and Bank would propose the following two step remediation process to reach conformity with the expectations expressed in the
Exception Sheet:
1) For the quarter ended September 30,2010 the Company/Bank would recognize additional 01TI charges in the amount
of $10,45 1,048 associated with the attached list of Non-Agency Residential Mortgage Back Securities. Please note that
while under the Bank's existing policy there would be no additional charge at Septcmlber 30, 2010, based on our re-
evaluation of certain factors impacting fair value and estimated cash flows for these particular securities and in the spirit
of cooperation between the Bank/Company and the regulatory agencies we believe that prudence dictates that we
recognize these charges due to both the likelihood and potential magnitude of a cash flow breaks.
There are four securities for which we are proposing additional OTTI effective September 30, 2010:
a. GSR 2005-AR4 lBl CUSIP 362341Ffl- This security represents one of two mezzanine securities owned by
the Bank, with the other being an AAA rated security with substantial continuing credit support. As a
mezzanine security, even though this security has a long principal window, with years of estimated cash flows
to be received once the first principal break is forecasted, due to the mezzanine nature and the modest level of
credit support and low Bloomberg Credit Coverage Ratio we believe an OTII charge of the amounts
determined using the FORGE FV and CV reports is appropriate. Accordingly, we propose a charge of
$6,528,649 on this security.
I lis letter contains confidential information concerning United Western Bancorp, Inc. ("UWBK'') and United Western Bank
(the "Bank'') and is not in the public domain. This information is being provided to the Office of Thrift Supervision and Federal
Deposit Insurance Corporation, the agencies responsible for the regulation and supervision of the UWBK and the Bank as
materials related to the examination and operations ofUWBK and the Bank as well as under Federal Rule of Evidence 408.
Any public disclosure of confidential information could result in substantial harm to UWBK and the Bank. Accordingly,
confidential treatment of this letter, pursuant to 5 U.S.C. 552(bX4) and (8), is requested.
CONFIDENTIAL TREATMENT REQUESTED
SUBMITfED UNDER FRE 408
1352
b. BAFC 2006-C 2A2 CUSIP 058930AE8 - This security cash flow estimate indicates a short principal window,
(once the security incurs a break in principal the security will be eroded fairly quickly as modeled under the
FORGE FV assumptions.) Although this security has increased its credit support from 4.25% to 5.37% since
inception, we nevertheless believe an OTTI charge of the amounts determined using the FORGE FV and CV
reports is appropriate. Accordingly, we propose a charge of $1,825,283 on this security.
c. CWHL 2005-HYB8 4A2 CUSIP 126694QK7 - This security has a weighted average life of 4.27 years as
estimated by the FORGE FV. This security has a long principal window once the initial forecasted principal
loss occurs. FORGE has indicated to management that they have other clients that when a security indicates a
long principal window, which is consistent with a longer weighted average life, that the selection ofthe minus
2/3 cash flow estimate is appropriate in such cases to reflect the potential for that over the life of the
instrument various macro as well as micro factors could adjust that may materially affect the estimate of cash
flows. Based on our view ofthe metrics of this bond we believe the selection of the minus 2/3 cash flow
estimate for FV and CV is appropriate. Accordingly, we propose a charge of$2,097,115 for this security.
d. CWALT 2005-Jl3 lA3 CUSIP 12668AB95 - This security has a weighted average life of8.41 years as
estimated by the FORGE FV. Like the security above, this security has a long principal window once the
initial principal break occurs. For the factors set forth above in c. the Bank believes it is appropriate to select
the minus 2/3 cash flow estimate as the best estimate of cash flows for this security. As the CV value under
this methodology was greater than 90% of book value there was no resulting OTTI charge.
For the balance ofthe securities, the Bank proposes no OTTI at September 30,2010. The remaining securities all have
longer weighted average lives, all but three have weighted average lives of over 4 years to 15 years, and the three that are
under are well over 3 years. This means there is sufficient time for micro and macro economic factors to significantly affect
the ultimate cash flows to be realized from these instruments.
In total the Bank is proposing an additional charge of $10.5 million, which is in addition to the $2 million charge for the
third quarter of2010 already recorded. Had we applied the FORGE FV and CV modeled estimates without consideration of
. when a principal break was forecasted to occur the loss was estimated at $16.3 million. The Bank believes that this
remediation to satisfy examiner expectations is a very conservative estimate of potential OTTI. We propose to reflect this
charge in .our financial statements and in an amended Thrift Financial Report to be filed as soon as practical after acceptance
of this proposal.
2) Finally, during the fourth quarter of 2010 the Bank will substantially revise its Investment Policy with regard to the
estimation of OTTI. This policy will address implement the expectations of the regulatory agencies as formally
expressed in the above referenced Exception Sheet.
CONFIDENTIAL TREATMENT REQUESTED
SUBMITTED UNDER FRE 408
1353
2
TabC
Exhibit 44 M
(Memo Ex. 13)
1354
December 3, 2010
OTS Docket No. 06679
Board of Directors
Attn: Mr. James R. Chairman
United Western Bank
700 . 17
th
Street, Suite 100
Denver, CO 80202
Re: Directive to Reflect Additional OTTI Charges
Dear Board Members:
VL4 SECURE E-MAIL
AND UPS NEXT DAY AIR
We began a comprehensive examination of United Western Bank (the Bank) on September 27,
2010. On October 25, 2010, we provided management with an Exception Sheet that detailed our
findings on the Bank's modeling and recognition of Other-Than-Temporary-Impairment (OTTI)
in its portfolio of mortgage-backed securities.
One of the corrective actionso'Qtlined in the Exception Sheet was for the Bank to recognize an
additional $15.1 million in OTTI charges as of June 30, 201.0. The Bank did not report the $15.1
million of additional OTTI in the June 30, 2010 Thrift Financial Report (TFR) or in public
financial statement filings. We subsequently advised Bank management that we had updated our
review using September 30,2010 information, and identified the additional OTTI charges to be
$16.3 million above what had been reported in the September 30, 2010 TFR
Bank management provided us with a written response to the Exception Sheet on October 27,
2010. The response concluded that there was no "material OTTI that should be recogruzed for
any prior period." On November 10,2010, management submitted a Remediation Plan to us that
proposed the recognition of an incremental charge of $10.5 million as of September 30, 2010.
The Remediation Plan and a letter from Benjamin Hirsh, Interim Chief Financial Officer of
United Western Bancorp, Inc., described the technical modeling basis for that proposed amount.
We have carefully reviewed the Bank's commUnications of October 27 and November 10. The
results of our reviews are enclosed. We find that the Bank's modeling approach and assumptions
do not conform to regulatory reporting requirements, and reiterate our determination that an
additiona1$16.3 million in OTTI charges is necessary as of September 30,2010. The Bank is
1355
Board of Directors
United Western Bank:
Page 2
December 3,2010
directed to re-file its September 30,2010 TFR--the earliest TFR available for amendment--to
reflect the additional OTTI charges. We direct the Bank to file the amended TFR electronically
with the Office of Thrift Supervision (OTS) no later than 5:00 p.m. Mountain Time on Monday,
December 6, 2010.
Further, the Bank:, in consultation with its external auditors, securities counsel, and the Securities
and Exchange Commission (SEC), if necessary, should consider whether earlier period SEC
reports should be restated to reflect these OTTI charges.
The Bank may appeal this directive pursuant to OTS Thrift Bulletin 68b.
If you have questions, please contact Assistant Director Nicholas Dyer at (650) 746-7025 or
Field Manager Kevin Swanson at (650) 746-7066.
Sincerely,
Phillip A. Gerbick
Regional Director
Enclosures (2)
cc: Ms. Kristie K. Elmquist, Acting Regional Director, FDIC-Dallas
Mr. Joseph A. Meade, Assistant Regional Director, FDIC-Dallas
Mr. Lawrence Kaplan, Paul, Hastings, Janofsky & Walker LLP
1356
Board of Directors
United Western Bank
Page 3
December 3, 2010
bcc/epdf: S. Auchterlonie
C.Coon
S. Crosley
A. Dayao
N.Dyer
C; Sterbenz
K. Swanson
M. Sweeney
K. Walter
1357
TabC
Exhibit 44 N
. (Memo Ex. 14)
1358
OTS Review of United Western Bank's Outline of Proposed Remediation Plans to address
om Concerns and memo with sublect line Additional information re selection of FORGE
model from Chief Accounting Officer Hirsh. dated November 10.2010
The Bank agrees to continue the use of the Security Fair Value forecast in writing down CUSIPs
362341FTl and 058930AE8. However, the Bank uses a weighted average life argument in an
attempt to refute impairment on the remaining securities by arguing for a different scenario,
the "Minus 2/3rds" approach. As we understand it,the "Minus 2/3rds" scenario reduces
default rate expectations by two thirds of the base case. For example, a bond utilizing a 5.0
percent default rate in the base case would use a 1.65 percentdefault rate in the "Minus
2/3rds" scenario.
We reiterate our position that adjustments should be made in the assumptions used as inputs
into the model and consistency should be applied to the model used. We understand and
expect that assumptions such as default, severity, and voluntary pre-payment will vary based
on each security's specific past and future performance expectations. For example, if the Bank
chose to use a 3-month rolling average for default rates, we would expect that particular aspect
of the methodology to remain constant across all securities; understanding that that number
would vary from security to security based on past performance of the specific underlying
collateral. However, choosing to alter the scenario on some securities based on weighted
average life, after the fact, continues to show an inconsistency in the methodology for
ascertaining the assumptions in the fjrst place. It also appears to revert to the notion that there
is a time cut-off aspect to the model results that should have been taken care of in the
assumptions or the present valuing aspect of the model runs. Thus, we do not consider the
weighted average life of the securities as a rationale for altering scenarios to be prudent.
Further, although using the "Minus 2/3rds" scenario does alter the CDR (constant default rate)
assumption based on management's stated expectations for secu'rities with longer dated
principal cash flows, we find the assertion that CDRs will immediately decline by 66 percent to
be unreasonable and unsupportable.
We reviewed the "Minus 2/3rds" scenario, particularly as it relates to the other two securities
listed in the letter by CUSIP and name. We note that since the Bank is using Forge proprietary
models, we cannot see all aspects of the model and assumptions. Thus, the examiner used
cumulative lifetime defaults as a proxy "reasonableness test" to determine the feasibility of the
"Minus 2/3rds" scenario. As a starting point, the examiner added the current cumulative
defaults with those that were 60 days or more delinquent to ascertain the outlook presented by
each scenario. For CUSIP 126694QK7, the proxy reasonableness test would indicate that the
, cumulative defaults should be at least 29.4%. Note that while this does assume all current 60-
day delinquents default, it does not assume any additional roll from the current or 30 day
,delinquent buckets. Therefore, it is very reasonable as a proxy, given that some portion of
current loans and 30 days past due loans will roll to default status.
As shown below, the Security Value and Base Case scenarios are at least taking the actual
default performance and all of the current severely delinquent pipeline into account. The
1359
"Minus case would require that 49.4 percent of the 60 days or more delinquent loans
cure with no additional default for that scenario's cumulative default to be valid for the life of
the deal. While there are, of course, a number of other inputs to consider, this is one way for
us to compare the scenarios. From this input alone, we believe that the "Minus 2/3rds"
scenario holds an overly optimistic view of how these loans will perform, especially since
unemployment is still at record high levels, the overall economy is still far from a full recovery,
. and in particular, the housing market remains weak, and collateral values continue to decline in
many markets. For CUSIP 1266SAB95, the scenario results are similar and show that the
"Minus 2/3rds" scenario would require 5S.2 percent of the current 60 days or more delinquent
pipeline to cure without additional defaults for the cumulative default estimates to hold. Again,
while there are a number of other factors to consider, defaults are a key assumption in
modeling these non-agency securities and this scenario would appear to ignore the very real
future delinquency potential within these securities. Thus, the use of the "Minus 2/3rds"
scenario would not be acceptable for any of the securities.
CUSIP
FV CV Cum Default
126694QK7 Price Price estimates
Security
Value 52.44 55.9 29.95
Minus
213rds 70.06 77.15 22.58
Base Case 39.94 36.89
Actual Performance as of 8/2010
60 day +
DeUq 13.81
Cum
defaults 15.59
If all current 60 day deliq default, then estimated cum defaults should at least be
FV
CV
12668AB95
Price
Price
Security
Value
76,9
88.34
Minus
2/3rds
81.36
94.5
Base Case
75.04
85.56
Actual Performance as of 812010
60 day +
deliq 9.11
Cum
. defaults 10.3
Cum Default
estimates
23.45
14.11
27.38
If all 60 day deliq default, then estimated cum defaults should at least be
29.4
19.41
For the balance of the ten securities, no scenario was suggested and we have noted above that
the "Minus 2/3rds" scenario is not acceptable. Therefore the Bank should revert to the Security
FairValue scenario originally chosen by management. We do riot believe that this remediation
plan fully addresses the concerns noted in the October 25, 2010 Exception Sheet and the
examiner recommends that OTS direct the Bank to recognize the entire estimated impairment
1360
of $16.3 million, which the Bank agreed was the estimate following the Bank's original chosen
scenario without a time truncation.
Regard'ing the follow-up memo dated November 10, 2010) from CFO Hirsh, while we again
agree that we would expect to see security specific assumptions because each would perform
differently based on unique collateral and capital structure, we would expect any variations to
. be in the specific assumptions and not a modification of the model output based on overlv
optimistic scenarios. In addition, while we also hope and expect that micro and macro
economic factors will improve in the long run, economic forecasts exist showing we may not be
out of this economic downturn. With that in mind, we would expect that the starting point of
these assumptions at least reflect the current actual performance.
As noted above, in reviewing the "Minus 2/3
rdH
scenario, ~ e performed the verification of
reasonableness test described above and determined this scenario to be an overly optimist
view of the cure rate and future default likelihood of these securities resulting in an imprudent
underreporting of OTTI. We, therefore, find unacceptable the Outline of Proposed Remediation
Plans to address OTTI Concerns and also the November 10, 2010 dated memo with subject line
Additional information re selection of FORGE model from Chief Accounting Officer Hirsh .. We do
not believe that this remediation plan fully addresses the concerns noted in the October 25,
2010 Exception Sheet. The examiner reiterates our recommendation that OTS direct the Bank
to recognize the entire estimated impairment of $16.3 million, which the Bank had
independently calculated and agreed was the estimated impairment using management's
original chosen scenario without a time truncation factor. Furthermore, for all future quarters,
management must follow their original chosen scenario without any time truncation.
lsI Judy Chen, Capital Markets
Reviewed by:
lsI Kurt Kirch, Capital Markets
lsI Walter Santos, EIC
lsI Susan Crosley, Regional Accountant
11/16/2010
11/16/2010
11/18/2010
11/18/2010
1361
TabC
Exhibit 440
(Memo Ex. 15)
1362
EXAMINER REVIEW
Docket # 06679
Exception Sheet # 01, dated October 25, 2010
Subject: OTT! Modeling
Management's Response, dated October 27,2010
The Bank and the Company's Methodology for Determination of OTTI:
OTS disagrees with the statement in the Barile's response that OTS is requiring the Bank to
"revise its methodology to calculate OTT! by amending its best estimate of the present value of
cash flows expected to be collected from the debt security." In our view, we are requiring the
Bank to record OTT! based upon their best estimate of cash flows applied consistently. We
agree that the evaluation of OTT! on complex securities is complex and requires that all
available information relevant to the collectability of the book value of the security be considered
which is why we are requiring a larger OTTI charge. As explained in more detail below, the
factors that GAAP requires an entity to consider in its evaluation Of OTTI (e.g., the length and
severity of the impairment, adverse conditions affecting the financial condition of the underlying
loan obligors, adverse conditions affecting the value of the underlying conateral, other credit
enhancements, the tenns of the underlying loans, volatility, etc.) are exactly the factors we
considered in making this determination.
In our view, the Bank has used the Forge model to derive the best estimate of cash'flows but then
ignored the results resulting in a materially incorrect OTT! charge. FAS 115-2 allowed entities
to differentiate between the credit and non-credit portion of the decline from book value to fair
value. Prior to FAS 115-2, the entire decline from book value to fair value on OTTI securities
would have been recognized in income. The view was that the fair value based on an "exit
price" led to a more severe OTTI charge than would one based on the present value of the cash
flows discounted at the original effective yield of the security. However, that does not mean that
it allowed an entity to ignore the results of this calculation. By using the "time truncation" filter
the Bank is ignoring the results of its chosen model for a mezzanine security whose fair value is
less than half of its book value (severely impaired) and the 60-day delinquent bucket in the
underlying pool exceeds the credit enhancement under the bank-owned tranche by one and a half
times. We cannot agree that this is a reasonable adjustment to the model results.
Regarding Forge as a vendor:
We reiterate that we are not contending that the array of results provided by Forge is
unreasonable, rather we consider management's use of the information Forge provides as
unreasonable because management continues to exclude model results based on a time frame
cut-off. For example, CUSlP 362341FTI. using the bank chosen scenario (Security Fair Value),
the credit value cash flow lUn shows an expected principal write-down of 70.2 percent as of June
30,2010, with 100 percent probability. The expected first period write-down begins in month
47. So under the bank's current criteria. there was no impairment recognized. The Forge
indication of credit value was 57.34, but again because of the bank's current iinpaitment criteria,
1363
the bank's book value of this security remained atlOO.31. Thus, the bank's 36 month time
truncation criteria excluded what would otherwise have been an estimated $6.2 million write-
down of the $14.2 million outstanding principal balance for this security. While the exact
amount of credit impairment may be subjective and based upon subtleties in the model
assumptions. it seems unreasonable in this particular example to assume that this security will
not incur any credit related losses. Especially since it is a mezzanine position and the current 60
day delinquent bucket in the underlying pool exceeds the credit enhancement under the bank -
owned tranche by over 1.5 times.
Regarding the'bank's perceived inconsistencies between the OTS Letter dated March 5.2010
and Exception Sheet #01 dated October 25.2010: " . .
We noted that management indicated that we accepted the amount of the additional credit
impairment recognized. for December 31, 2009; however, we absolutely did not indicate we
agreed with the methodology employed by the bank during that time period. In fact, in a letter
from OTS to the Board of Directors dated ApX'il 28. 2010, we reiterated that "we also found
management's review of securities for impairment to be inadequate." Furthermore, two of the
corrective actions resulting from our January 2010 field visit that were relayed in this April letter
relate directly to the concerns noted regarding the process and model. A copy of the April 28,
2010 letter is attached. we do not believe the correspondence &hows any
inconsistency in our position .

Regarding management's response to Exception #1:
Management has agreed to remove the front-end filters that will result in a larger population of
the securities being subjected to cash flow testing. Management's discovery that there are
securities where tlle waterfall and performance can move expected losses from month 274
forward 22.5 years to month four, is exactly why we are concerned with all the filters in the first
place. Especially considering approximately 40 percent of the book value of the bank's
remaining private-label securities are support tranches and these support securities have
exhibited volatile behavior due to their leveraged nature. We accept management's front-end
filter change per the Response to Corrective Action No.1.
Regarding management's response to Exception #2:
We did not agree with the method. but rather accepted the amount of OTTI as a stopgap estimate
for the fourth quarter 2009 barring a better way to calculate the impairment at the time. As
detailed in the ExceptionSheet, the Forge scenario chosen by the bank during the field visit
("Loan Level") was inappropriate because scenario excluded the large and often growing
delinquency pipelines of each.of the securities in the analysis and this was ful'thercomplicated
by the fact that the foreclosure timelines have lengthened over the past few years. As the April
28.2010, letter indicated we did have corrective actions related directly to securities, which
reiterated our concerns over the OTTI process and modeling.
While it is difficult to precisely modellong;.datedassets, we have not seen other thrifts with this
size and complexity in their securities portfolios use time truncation of model results as a method
, 1364
for dealillg with these uncertainties. Regardless of management's opinions regarding the
complexities of valuing and properly accounting for these assets, as assets on the bank's balance
sheet, management must prudently manage, monitor and properly account for them.
Regarding management's response to Exception #3:
We re-estimated impairment for the third quarter 2010 using the bank-chosen Forge scenario
("Security Value"), without the time cut-off and found that for the third quarter, the bank-only
additional impaitment would be $16.3 million on 14 securities. This is in addition to the $1.9
million previously reported by the institution.
Regarding management's response to Corrective Action #1:
As stated above, we accept management's action to revise the policy so that a gt'eater portion of
the portfolio will be subjected to a full cash flow analysis. .
Regarding management's response to Corrective Action #2:
As part of the field visit. the regional Capital Markets personnel surveyed OTS staff
knowledgeable of OTS institutions with portfolios of a similar size and cqmplexity and found no
instances of a truncation 'process being implemented. Also, we found no examples of any thrifts
using a similar time truncation process. During this exam, we again surveyed relevant OTS staff
and found the same result. While we appreciate the inherent complexities in modeling long-
dated assets, we have advised management that if they disagree with the lack of assumption
vectoring inherent in the Forge modeling approach, then changes should be made in the input .
assumptions or an altogether new modeling approach should be implemented that provides the
best estimate of future cash flows. Furthermore, the fact that the results are present valued
inherently weighs events in the near future more heavily than those in the far distance ..
Therefore, we do not accept management's assessment and still require all of the changes stated
in Corrective Action #2.
Regarding management's response to Corrective Action #3:
As stated above, we reviewed the information for the third quarter 2010. Due to timing
constraints, we revised our calculations using the same methodology we used for the second
quarter 2010 calculations and will be requiring an amended TFR report for the September quarter
that reports the additional $16.3 million impairment.
Signature: lsi Walter Santos, EIC
lsi Judy Chen, Capital Markets
. lsi Susan Crosley, Regional Accountant
lsi Kurt Kirch, Capital Markets
'Date: 11/1512010
Date: 1111012010
Date: 11/1012010
Date: 11/1012010
1365
TabC
Ex'hibit 44 P
(Memo Ex. 16)
1366
FSP FAS US-2and FAS 124-2
. .'
FASB STAFF POSITION
No. FAS 11S-2 and FAS 124-2
Title: Recognition and Presentation of Other-Than-Temporary Impairments
Date Posted: April 9, 2009
Objective
1. The objective of an other-than-temporary impairment analysis under existing U.S.
generally accepted accounting principles (GAAP) is to determine whether the holder of an
investment in a debt or equity security for which changes in fair value are not regularly
recognized in earnings (such as securities classified as held-to-maturity or available-for-sale)
should recognize a loss in earnings when the investment is impaired. An investment is impaired
if the fair value of the investment is less than its amortized cost basis.
2. This F ASB Staff Position (FSP) amends the other-than-temporary iinpairment guidance
in U.S. GAAP for debt securities to make the guidance more operational and to improve the
presentation and disclosure of other-than-temporary impairments on debt and equity securities
in the financial statements. This FSP does not amend existing recognition and measurement
guidance related to other-than-temporary impairments of equity securities.
Background
3. If the fair value of a debt security is less than its amortized cost basis at the
measurement date, U.S. GAAP requires that an entity assess the impaired security to determine
whether the impairment is other than temporary. Before this FSP, to conclude that an
impairment was not other than temporary an entity was required, among other considerations, to
assert that it had the intent and ability to hold the security for a period of time sufficient to allow
for any anticipated recovery in fair value in accordance with Staff Accounting Bulletin
(SAB) Topic 5M, Other Than Temporary Of Certain Investments in Debt and
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1367
1
FSP FAS 115-2 and FAS 124-2
Equity Securities, and other authoritative literature. If the impairment was determined to be
then an impairment loss was recognized in earnings equal to the entire
difference between the investment's amortized cost basis and its fair value at the balance sheet
date.
4. On October 3, 2008, the Emergency Economic Stabilization Act of 2008 (the Act) was
signed into law. Section 133 of the Act mandated that the U.S. Securities and Exchange
Commission (SEC) conduct a study on mark-to-market accounting standards. The SEC
submitted its study, Report and Recomme1(ldations Pursuant to Section 133 of the Emergency
Economic Stabilization Act of 2008: Study on Mark-To-Market Accounting, to Congress on
December 30, 2008. One of the recommendations in the study was that the F ASB reassess
current impairment accounting models for financial instruments. The SEC recommended that
the F ASH "evaluate the need for modifications (or the elimination) of current OTT! [other-than-
temporary impairment] guidance to provide for a more uniform system of impairment testing
standards for financial instruments." The SEC also noted that a model that would require that
only credit losses be recognized in income with the remaining decline in fair value of an
. investment being recognized in other comprehensive income "has the potential to provide
. investors with both fair value information as well as transparent information regarding the cash
flows management expects to receive by holding investments, rather than through accessing the
market currently."
5. On January 12, 2009, the Board issued FSP EITF 99-20-1, Amendments to the
Impairment Guidance of EITF Issue No. 99-20, to make the accounting for other-tha.D.-
temporary impairments in EITF Issue No. 99-20, "Recognition of Interest Income and
Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to Be Held
by a Transferor in Securitized Financial Assets," more consistent with the accountmg in F ASB
Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities,
However, constituents continued to express concerns that the requirements for recognition and
measurement of impairment losses for investments in debt securities are different from those for
loans. Those constituents also observed that financial statements do not provide users with
sufficient information about the amount of cash the entity expects to collect by holding the
FSP on Statement 115 and Statc:ment 124
(FSP FAS 115-2 andFAS 124-2)
1368
2
FSP FAS 115-2 and FAS 124-2
asset. Some constituents asserted that current market conditions have caused temporary declines
in value that go well beyond the cash flows that are no longer expected to be collected.
6. This FSP incorporates other-than-temporary impairment guidance for debt securities .
from SAB Topic 5M and other authoritative literature, modifies and expands it to address the
unique features of debt securities, and clarifies the interaction of the factors. that should be
considered when determining whether a debt.security is other than temporarily impaired.
7. For debt securities, the Board is modifying the existing requirements that to avoid
recognizing an other-than-temporary iinpairment an investor must assert that it has both the
intent and the ability to hold a security for a period of time sufficient to allow for an anticipated
recovery in its fair value to its amortized cost basis. Instead, the Board believes it is more
operational for an entity to assess whether the entity (a) has the intent to sell the debt security or
(b) more likely than not will be required to sell the debt security before its anticipated recovery
(for example, if its cash or working capital requirements or contractual or regulatory obligations
indicate that the debt security will be required to be sold before the forecasted recovery occurs).
If either of these conditions is met, the investor must recognize an other-than-temporary
impairment.
8. Additionally, the Board decided to modify the terminology used to assess the
collectibilify of cash flows from probable that the investor will be unable to collect all amounts
due to the recovery of the entire cost basis of the security to clarify that an entity should not
wait for an event of default or other actual shortfall of cash to conclude that some or all of the
cash flows are not likely to be collected. In the Board's view, in assessing whether the entire
amortized cost basis of the security will be recovered, the entity should compare the present
value of the cash flows expected to be collected from the security with the amortized cost basis
of the security. The Board intends that the term cash flows expected to be collected should
represent the cash flows that the entity is likely to collect after a careful assessment of all
available information, including the factors described in paragraph 25 of this FSP. The
difference between the present value of the cash flows expected to be collected and the
amortized cost basis is hereafter referred to as the credit loss.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1369
3
FSP FAS 115-2 and FAS 124-2
9. In instances in which a determination is made that a credit loss exists but the entity does
not intend to sell the debt security and it is not more likely than not that the entity will be
required to sell the debt security before the anticipated recovery of its remaining amortized cost
basis (that is, the amortized cost basis less any current-period credit loss), this FSP changes the
presentation and amount of theother-than-temporary impairment recognized in the statement of
earnings (or the "performance indicator" of not-for-profit entities within the scope of the
AICPA Audit and Guide, Health Care Organizations). In those instances, the
impairment is separated into (a) the amount of the total impairment reiated to the credit loss and
(b) the amount of the total impairment related to all other factors. The amount of the total other-
than-temporary impairment related to the credit loss is recognized. in earnings (or the
performance indicator). The amount of the total impairment related to all other factors is
recognized in other comprehensive income (or outside the performance indicator). The total
other-than-temporary impairment is presented in the statement of earnings with an offset for the
amount of the total other-than-temporary impairment that is recognized in other comprehensive
income. This new presentation provides additional information about the amounts that an entity
does not expect to collect related to a debt security.
10. In instances in which a determination is made that a credit loss exists but the entity does.
not intend to sell the debt security and . it is not more likely than not that the entity will be
required to sell the debt security before the anticipated recovery of its remaining amortized cost
. basis, this FSP more closely aligns the amounts recognized in earnings for impairments of
investments in debt securities and impairments of loans. classified as held-for-investment.
However, unlike loans, the total other-than-temporaryimpairment recognized in comprehensive
income for a debt securio/ reflects the difference between fair value and the security's
remaining amortized cost basis at the measurement date.
11. Investors have informed the Board that two key financial metrics they use in evaluating
many financial institutions are Tangible Common Equity and Net Interest Margin. This FSP has
little or no effect on total Tangible Common Equity. This FSP does not result in a change in the
carrying amount of debt securities in the statement of financial position (that is, available-for-
sale securities are reported at fair value and held-to-maturity securities are reported at their
amortized cost basis unless they are other-than.-temporarily impaired, in which case they are
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1370
4
FSP FAS 115-2 and FAS 124-2
adjusted to fair value at that time). However, this FSP does require that the portion of an other-
I
than-temporary impairment not related to a credit loss for a held-to-maturity security be
recognized in a new category of other comprehensive income and be amortized over" the
remaining life of the debt security as an increase in the carrying value of the security (with no
effect on earnings unless the security is subsequently sold or there are additional decreases in
cash flows expected to be COllected). Compared with current requirements, this FSP does
change the Net Interest Margin to better reflect the cash flows expected to be collected by an
entity. It requires that the amortized cost basis of the security be adjusted by the credit loss only
whell the entity does not intend to sell the security and it is not more likely than not that the
entity will be required to sell the security before recovery of its remaining amortized cost basis.
12. This FSP expands and increases the frequency of existing disclosures about other-than-
temporary impairments for debt and equity securities. For example, itrequires a more detailed,
risk-oriented breakdown of major security types and related information currently required by
Statement 11S. In addition, this FSP requires that the annual disclosures in Statement l1S and
FSP FAS 11S-1 and FAS 124-1, The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments, be made for ~ t e r i m periods (including the aging of
securities with unrealized losses). This FSP also requires new disclosures to help users of
financial statements understand the significant inputs used in determining a credit loss, as well
as a rollforward of that amount each period. These collective disclosure enhancements
significantly improve the information provided to 'users about impaired securities.
13. This FSP does not amend existing recognition and measurement guidance for other-than-
temporary impairments of equity securities because the Board does not believe the requirement
for an entity to assess whether the entity more "likely than not will be required to sell a security
before its recovery is more operational for equity securities.
14. The Board understands that the staff of the SEC's Office of the Chief Accountant plans to
amend SAB Topic SM to conform with the guidance for debt securitie$ in this FSP.
IS. Beyond making short-term changes in this FSP, the FASB has a joint project with the
International Accounting Standards Board to more broadly improve and achieve convergence of
their respective standards on accounting for financial" instruments. That project is being
FSP on Statement l1S and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1371
5
FSP FAS 115-2 and FAS 124-2
conducted on an expedited basis with a goal of working toward convergence. The F ASB
anticipates a joint Exposure Document will be issued later in 2009,
16. This FSP includes amendments to Statement 115 and FSP FAS 115-1 and FAS 124-1 and
conforming changes to other standards, including Issue 99-20 and AICPA Statement of Position
03-3, Accountingfor Certain Loans or Debt Securities Acquired in a Transfer.
All paragraphs in this FSP have equal authority.
Paragraphs in bold set out the main principles.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1372
6
FSP FAS 115-2 and FAS 124-2
FASB Staff Position
Scope
17. The recognition guidance in paragraphs 19-34 of this FSP applies to debt securities
classified as available-for-sale and held-to-maturity that are subject to other-than-
temporary impairment guidance within:
a. Statement 115
b. FSP FAS 115-1 and FAS 124-1
c. EITF Issue 99-20, as amended by FSP EITF 99-20-1
d. AICPA Statement of Position 03-3.
For debt securities that are within the scope of F ASB Statement No. 124, Accounting for
Certain Investments Held by Not-lor-Profit Organizations, and that are held by an entity that
reports a "performance indicator" as defined inAICPA Accounting and Audit Guide,
Health Care Organizations, throughout this FSP, the term earnings shall be replaced with
peiformance indicator, and other comprehensive income shall be replaced with outside the
peiformance indicator.
18. The presentation and disclosure guidance in paragraphs 35-43 of this FSP applies to
debt and equity securities that are subject to the disclosure requirements of Statement115
and FSP FAS 115-1 and FAS 124-1.
Recognition
Evaluating Whether an Impairment of a Debt Security Is Other Than Temporary .
19. If the fair value of a debt security is less than its amortized cost basis at the balance
sheet date, an entity shall assess whether the impairment is other than temporary.
Amortized cost basis includes adjustments made to the cost of an investment for accretion, .
amortization, collection of cash, previous other-than-tempomry impairments recognized in
earnings (less any cumulative-effect adjustments recognized in accQrdancewithparagraphs 45
and 46 of this FSP), and fair value hedge accounting adjustments.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS i24-2)
1373
7
FSP FAS 115-2 and FAS 124-2
20. H an entity intends to sell the debt security (that is, it has decided to sell the
. security), an other-than-tempo.rary impairment shall be considered to have occurred.
21.H an entity does not intend to sell the debt security, the entity shall consider
avaDable evidence to assess whether it more Ukely than not will be required to sell the
security before the recovery of its amortized cost basis (for example, whether its "Cash or
working capital requirements or contracmalor regulatory obligations indicate that the
security will be required to be sold before a forecasted recovery occurs). Hthe entity
more likely than not will be required to sell the security before recovery of its amortized
eost basis, an other-than-temporary impairment shall be considered to have occurred.
22. H . the entity does not expect to recover the entire amortized cost basis of the
security, the entity would be unable to assert that it will recover its amortized cost basis
,
even if it does not intend to sell the security. Therefore, in those situations, an other-than-
temporary impairment shall be considered to have occurred. In assessing ,Whether the
entire amortized cost basis of the security will be recovered, an entity shall compare the present
value of cash flows expected to be collected from the security with the amortized cost basis of
the security. H present value of cash flows expected to be collected is less than the
amortized cost basis of the security, the entire amortized cost basis of the security will not
be recovered (that is, a credit loss exists), and an other-than-temporary impairment shall
be considered to have occurred.
23. In determining whether a credit loss exists, an entity shall use its best estimate of the
present value of cash flows expected to be collected from the debt security. One way of
estimating that amount would be to consider the methodology described in paragraphs 12-16 of
FASB Statement No. 114, Accounting by Creditors for Impairment of a Loan, for measuring an
impairment on the basis of the present value of expected future cash flows. Paragraph 14 of
Statement 114 provides guidance on this calculation. Briefly, the entity would discount the
expected cash flows at the effective interest rate implicit in the security at the date of
acquisition.
24. For debt securities that are interests in securitized financial assets within the
scope of Issue 99-20, an entity shall determine the present value of cash flows expected to be
FSP on Statement 115 and Statement 124
(FSPFAS 115-2andFAS 124-2)
1374
8
FSPFAS 115-2 andFAS 124-2
collected by considering the guidance in paragraph 12(b) of Issue 99-20 for determining
whether there has been a decrease in cash flows expected to be collected from cash flows
previously projected. In other words, the cash flows estimated at the current financial reporting
date shall be discounted at ~ rate equal to the current yield used to accrete the beneficial interest.
Additionally, for debt securities accounted for in accordance with SOP 03-3, an entity shall
consider that standard in estimating the present value of cash flows expected to be collected
from the debt security. A decrease in cash flows expected to be collected on an asset-backed
security that results from an increase in prepayments on the . underlying assets shall be
considered in the estimate of the present value of cash flows expected to be collected.
25. There are numerous factors to be considered when estimating whether a credit loss exists
and the period over which the debt security is expected to recover. The following are a few
examples of the factors that shall be considered. This list is not meant to be all-inclusive.
a. The length of time and the .extent to which the fair value has been less than the
. amortized cost basis
b. Adverse conditions specifically related to the security, an industry, or a geographic
area (for example, changes in the financial condition of the issuer of the security, or
in the case of an asset-backed debt security, in the financial condition of the
underlying loan obligors, including changes in technology or the discontinuance of a
segment of the business that may affect the future earnings potential of the issuer or
underlying loan obligors of the security or changes in the quality of the credit
enhancement)
c. The historical and implied volatility of the fair value of the security
d. The payment structure of the debt security (for example, nontraditional loan terms as
described in FSP SOP 94-6-1, Terms of Loan Products That May Give Rise to a
Concentration of Credit Risk) and the likelihood of the issuer being able to make
payments that increase in the future
e. Failure of the issuer of the security to make scheduled interest or principal payments
f. Any changes to the rating of the security by a rating agency
g. Recoveries or additional d e c ~ e s in fair value subsequent to the balance sheet date.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1375
9
FSP FAS 115-2 and FAS 124-2
26. In making its other-than-temporary impairment assessment, an entity shall consider all
available infOlmation relevant to the collectibility of the security, including information about
past events, current conditions, and reasonable and supportable forecasts, when developing the
estimate of cash flows expected to be collected. That information generally should include the
remaining payment terms of the security, prepayment speeds, the fmancial condition of the
issuer(s), expected defaults, and the value of any underlying collateral. To achieve that objective,
the entity should consider, for example, industry analyst reports arid forecasts, sector credit
ratings, and other market data that are relevant to the collectibility of the security. An entity also
should consider how other credit enhancements affect the expected performance of the security,
including consideration of the current fmancial condition of the guarantor of a security (if the
guarantee is not a separate contract as discussed in paragraph 8 of FSP F AS 115-1 and F AS 124-
1) andlor whether any subordinated interests are capable of absorbing estimated losses on the
loans underlying the security. The remaining payment terms of the security could be significantly
different from the payment terms in prior periods (such as for some securities backed by
nontraditional loans). Thus, an entity should consider whether a security backed by currently
performing loans will continue to perform when required payments increase in the future
(including "balloon" payments). An entity also should consider how the value of any collateral
would affect the expected performance of the security. If the fair value of the collateral has
declined, an entity needs to assess the effect of that decline on the ability of the entity to collect
the balloon payment.
Determination of the Amount of an Other-Than-Temporary Impairment Recognized in
Earnings and Other Comprehensive Income
27. When an other-than-temporary impairment has occurred, the amount of the
other-than-temporary impairment recognized in earnings depends on whether an entity
intends to sell the security or more likely than not will be required to sell the security
before recovery of its amortized cost basis less any current-period credit loss.
28. If an entity intends to sell the security or more likely than not will be required to sell the
security before recovery of its amortized cost basis less any current-period credit loss, the other-
than-temporary impairment shall be recognized in earnings equal to the entire difference between
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1376
10
FSP FAS 115-2 and FAS 124-2
the investment's amortized cost basis and its fair value at the balance sheet date. In assessing
whether the entity more likely than not will be required to sell the security before recovery of its
amortized cost basis less any current-period credit losses, an entity shall consider the factors in .
paragraph 25.
29. If an entity does not intend to sell the security and it is not more likely than.not that the
entity will be required to sell 1hE . security before recovery of its amortized cost basis less any
current-period ~ r e d i t loss, the other-than-temporary impairment shall be separated into (a) the
amount representing the credit loss and (b) the amount related to all other factors.
30. The amount of the total other-than-temporary impairment related to the. credit loss shall
be recognized in earnings. The amount of the total other-than-temporary impairment related to
other factors shall be recognized in other comprehensive income, net of applicable taxes ..
31. The previous amortized cost basis less the other-than-temporary impairment recognized
in earnings shall become the new amortized cost basis of the investment. That new amortized
cost basis shall not be adjusted for subsequent recoveries in fair value. However, the amortized
cost basis shall beadjllSted for accretion and amortization as prescribed in paragraph 32.
Accounting for Debt Securities after an Other-Than-Temporary Impairment
32.. An entity shall account for the other-than-temporarily-impaired debt security as if
the debt security had been purchased on the measurement date of the otber-than-
temporary impairment at an amortized cost basis equal to the previous amortized cost
basis less theother-than-temporary impairment recognized in earnings. For debt securities
for which other-than-tempofBlY impairments were recognized in earnings, the difference
between the new amortized cost basis and the cash flows expected to be collected shall be
accreted in accordance with existing guidance as interest income. An entity shall continue to
estimate the present value of cash flows expected to be collected over the life of the debt
security. For debt securities accounted for in accordance with Issue 99-20, an entity should
look to that standard to account-for changes in cash flows expected to be collected. For all other
. debt securities, if upon subsequent evaluation, there is a significant increase in the cash flows .
. .
expected to be collected or if actual cash flows are significantly greater than cash flows
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1377
11
FSP FAS 115-2 and FAS 124-2
previously expected, such changes shall be accounted for as a prospective adjustment to the
accretable yield in accordance with SOP 03-3 even if the debt security would not otherwise be
within the s c ~ p e of that standard. This FSP does not address when a holder ora debt security
would place a debt security on nonaccrual status or how to subsequently report income on a
nonaccrual debt security.
Debt Securities ClassifU!d as Available-for-Sale
33. Subsequent increases and decreases (if not an additional other-than-temporary
impairment) in the fair value of available-for-sale securities shall be included in other
comprehensive income.
Debt Securities ClassifU!d as Held-to-Maturity
34. The other-than-temporary impairment recognized in other comprehensive income for
debt securities classified as held-to-matririty shall be accreted from other comprehensive income
to the amortized. cost of the debt security over the remaining life of the debt security in a
prospective JIllUlD.er on the basis of the amount and timing of future estimated cash flows. That
accretion shall increase the carrying value of the security and shall continue until the security is
sold, the security matures, or there is an additional other-than-temporary impairment that is
recognized in earnings. If the security is sold, paragraphs 8 and 11 of Statement 115 provide
guidance on the effect of changes in circumstances that would not call into question the entity's
intent to hold other debt securities to maturity in the future.
Presentation
35. In periods in which an entity determines thata security's decline in fair value below
its amortized cost basis is other than temporary, the entity shall present the total other-
. than-temporary impairment in the statement of earnings with an offset for the amount of
the total other-than-temporary impairment that is recognized in other comprehensive
iJicome in accordance with paragraph 30, if any.
36. The following is an example of the presentation on the face of the statement of earnings:
Total other-than-temporary impairment losses
FSP on Statement 115 and Statement124
(FSP FAS 115-2 and FAS 124-2)
1378
($10,000)
12
Portion of loss recognized in other comprehensive
income (before taxes)
Net impairment losses recognized in earnings
,FSP FAS 115-2 and FAS 124-2
4.000
($ 6.00Q)
37. An . entity also shall separately in the fInancial statement where the components
of accumulated other comprehensive income are reported, amounts recognized therein related to
held-to-maturity and available':'for-sale debt securities for which a portion of an other-than-
temporary impairment has been recognized in earnings.
Disclosures
38. An entity shall disclose information for interim and annual periods that enables
users of its financial statements to understand the types of available-for-sale and held-to-
maturity debt and equity securities held, including information about investments in an
unrealized loss position for which an other-than-temporary impairment has or has not
been recognized. In addition, for interim and annual periods, an entity shall disclose
information that enables users of f'mancial statements to understand the reasons that a
portion of an other;.than-temporary impairment of a debt security was not recognized in
earnings and the methodology and significant inputs used to calculate the portion of the
total other-than-temporary impairment that was recognized in earnings.
39. In satisfying the principle in paragraph 38 an entity shall identify major security types
consistent with 'how it manages, monitors, and measures its securities on the basis of the nature
and risks of the security. An entity shall consider the (shared) activity or business sector,
vintage, geographic concentration, credit quality, or economic characteristic in determining'
whether disclosure for a particular security type is necessary and whether it is necessary to
separate further aparticular security type in greater detail. When complying with the disclosure
requirements in paragraph 19 of Statement 115, a fInancial institution .shall include the
following major security types, although additional types also may be necessary: equity
securities (segregated by industry type, company size, or investment objective); debt securities
issued by the U.S. Treasury and other U.S. government corporations and agencies; debt
securities issued by states of the United States and pOli!ical subdivisions of the states; debt
securities issued by foreign governments; corporate debt securities; residential mortgage-backed
securities; commercial securities; collateralized debt obligations; and other
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1379
13
FSPFAS 115-2 8ndFASl24-2
. ,
debt obligations. For purposes of this requirement, the term financial institutions includes
banks, savings and loan associations, savings banks, credit unions, finance companies, and
insurance companies.
40. For securities classified as available-for-sale or held-to-maturity, an entity shall disclose
the amortized cost basis by major security type that the entity discloses in accordance with
Statement 115 as of each date (interim and annual) for which a statement of financial position is
presented. Additionally, an entity shall provide all disclosures required by Statement 115 on a
quarterly basis.
41. An entity shall disclose, by major security type, the information required by FSP F AS
115-1 and FAS 124-1 for each interim and annual reporting period presented. The information
required by paragraph 17 of F ~ P FAS 115-1 and FAS 124-1 also shall be presented for debt
securities for which an other-than-temporary impairment was recognized and only the amount
related to a credit loss was recognized in earnings.
42. For periods in which an other-than-temporary impairment of a debt secUrity is
recognized and only the amount related to a credit loss was recognized in earnings, an entity
shall disclose, by major security type, the methodology and significant inputs used to measure
the amount related to the credit loss. Examples of significant inputs include, but are not limited
to, performance indicators of the underlying assets in the security (including default rates,
delinquency rates, and percentage of nonperforming assets), loan to collateral value ratios, ~ d
party guarantees, current levels of subordination, vintage, geographic concentration, and credit
, '.
ratings.
43. For each interim and annual reporting period presented, an entity shall disclose a tabular
rollforward of the amount related to credit losses recognized. in earnings in accordance with
paragraph 30, which shall include at a minimum:
a. The beginning balance of the amount related to credit losses on debt securities held by
the entity at the beginning of the period for which a portion of an other-than-temporary
impairment was recognized in other comprehensive income
b. Additions for the amount related to the credit loss for which an other-than-temporary
impairment was not previously recognized
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1380
14
FSP FAS 115-2 and FAS 124-2
c. Reductions for securities sold during the period (realized)
d. Reductions for securities for which the amount previously recognized in other
comprehensive income was recognized in earnings because the entity intends to sell
the security or more likely than not will berequired to sell the security before recovery
of its amortized cost basis
e. Additional increases to the amount related to the credit loss for which an other-than-
temporary impairment was previously recognized when the entity does not intend to
sell the security and it is not more likely than not that the entity will be required to sell
the security before recovery of its amortized cost basis
f. Reductions for increases in cash tlowsexpected to be collected that are recognized
over the remaining life of the security (see paragraph 32)
g. . The ending balance of the amount related to credit losses on debt securities held by the
entity at the end of the period for which a portion of an other-than-temporary
impairment was recognized in other comprehensive income .
. Effective Date and Transition
44. The FSP shall be effective for interim and annual reporting periods ending after June 15,
2009, with early adoption permitted for periods ending after March 15, 2009. Earlier adoption
for periods ending before March 15, 2009, is not permitted. If an entity elects to adopt early
either FSP FAS 157-4, Detennining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not
Orderly, or FSP FAS 1 0 7 ~ 1 and APB 28-1, Interim Disclosures about Fair Value of Financial
Instruments, the entity also is required to adopt early this FSP.Additionally, if an entity elects to
adopt early this FSP, it is required to adopt FSP FAS 157-4. This FSP does not require
disclosures for earlier periods presented for comparative purposes at initial adoption. In periods
after initial adoption, this FSP requires comparative disclosures only for periods ending after
initial adoption.
45. This FSP shall be applied to existing and new investments held by an entity as of the
beginning of the interim period in which it is adopted (for example, as of April 1, 2009, if an
entity adopts the FSP for periods ending after June 15, 2009). For debt securities held at the
beginning of the interim period of adoption for which an other-than-temporary impairment was
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2) 15
1381
FSP FAS 115-2 and FAS 124-2
previously recognized, if an entity does not intend to sell and it is not more likely than not that
the entity will be required to sell the security before recovery of its amortized cost basis (after
considering the guidance in paragraphs 19-26 of this FSP), the entity shall recognize the
cumulative effect of initially applying this FSP as an adjustment to the opening balance of"
retained earnings with a corresponding adjustment to accumulated other comprehensive income.
The cumulative effect on retained earnings shall be calculated by comparing the present value of.
the cash flows expected to be collected determined in accordance with the methodology. in
paragraphs 23 and 24 with the amortized cost basis of the debt security as of the beginning of the
interim period in which this FSP is adopted. The cumulative-effect adjustment shall include
related tax effects. The discoUnt rate used to calculate the present value of the cash flows
expected to be collected sluill be the rate in effect before recognizing any other-than-temporary
impairments and not a rate that has been adjusted to reflect those impairments.
46. The amortized cost basis of a security for "which an other-than-temporary impairment
was previously recognized shall be adjusted by the amount of the cumulative-effect adjustment
before taxes. The difference between the new amortized cost basis and the cash flows expected
to be collected shall be accreted in accordance with existing guidance as interest income (see
paragraph 32).
47. In the period of adoption, an entity shall provide the disclosures required by FASB
Statement No. 154, Accounting Changes and Error Corrections, for changes in accounting
principles.
The provisions of this FSP need
not be applied. to immaterial items.
FSP on Statement 115 and Statement 124.
(FSP FAS' 115-2 and FAS 124-2)
1382
16
FSP FAS 115-2 and FAS 124-2
This FSP was adopted by the affirmative votes of three members of the Financial
Accounting Standards Board. Messrs. Linsmeier and Siegel
Messrs. Linsmeier and Siegel dissent to issuance of this FSP for two reasons. First, they
believe that to the extent there is an other:than-temporary impairment, it should be measured as
the entire difference between the fair value and the carrying value of the impaired item with that
change fully reflected in net income as an unrealized loss. Messrs. and Siegel believe
that investors generally have opined that their preference is for the fair value of financial
instruments to be reflected in net income. While other financial statement users might have
different views, the difference in opinion often is due to concerns about regulatory capital, as
users find increased worth in fair value information. Messrs. Linsmeier and Siegel note
that investors changed their focus in recent months from analyzing Tier One Capital to Tangible
Common Equity. Tier One Capital reverses from regulatory capital unrealized fair value losses
on securities reported in other comprehensive income. In the current markets, investors are
focusing more on Tangible Common Equity consistent with Ii preference for reporting full fair
value changes in capital. Critical to this analysis is the inclusion of unrealized fair value losses
on debt and equity securities within net income and not other comprehensive income. This FSP
.serves to increase the unrealized losses reported in other comprehensive income, exacerbating
investors' concerns with Tier One Capital information. Thus, Messrs. Linsmeier and Siegel do
not believe that investors generally will be served by requiring a bifurcation of the fair value
write-down between net income and other comprehensive income, as is required in certain
circumstances by this FSP.
Messrs. Linsmeier and Siegel believe that the primary purpose of fmancial reporting is to
serve investors; therefore, if a bifurcation of the full fair value change into credit and noncredit
components is needed. to facilitate bank regulators in their regulatory capital decisions, that
bifurcation should be provided on the face of the income statement with both components
recognized in earnings consistent with investors' preferences. regulators then can choose
whether or not to include the noncredit portion of the fair value change in their regulatory capital
requirements. Messrs. Linsmeier and Siegel also object to bifurcating the impairment loss into
credit and noncredit components because they do not believe the expected loss approach (as
prescribed in this FSP) can isolate the credit loss from other losses (particularly liquidity risk) as .
is advocated by those supporting this approach. In current market conditions, liquidity risk is
FSPon Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2)
1383
17
FSP FAS 115-2 and FAS 124-2
inextricably intertwined with credit risk, representing the discount associated with uncertainty
about the collectibility of contractual cash flows in the security.
Second, Messrs. Linsmeier and Siegel object to the change in the trigger for the
nonrecognition of the full impairment loss in net income. The previous GAAP requirements
permitted nonrecognition of the full impairment loss when an entity could assert its ,intent and
ability to hold the instrument to recovery of its amortized cost basis. Instead, this FSP permits
nonrecognition of the npncredit portion of the full impairment loss in net income if the entity can
. assert that it does not intend to sell the security and it is not more likely than not that the entity
will be required to sell the security before recovery to its amortized cost basis. While Messrs.
Linsmeier and Siegel understand that the primary objective of this change is to make the held-to-
recovery concept more operational, they also recognize that a likely result of this change is a
reduction in the amount of impairment losses recognized in net income. A 1991 U.S. Treasury
report cited delayed recognition of impairmeht losses as' having an exacerbating effect on the
length and ultimate cost of the savings and loan crisis .. There also are potential parallels to the
experience in Japan when delays in recognition of losses resulted in the so-called lost decade in
the 1990s. Similarly, MessrsLinsmeier and Siegel are concerned that to the extent the proposed
FSP results in delayed recognition of impairment losses in net income, . there also may be a
negative effect on investor confidence.
Finally, Messrs. Linsm:eier and Siegel believe that there potentially may be other
standard-setting issues that need to be addressed within the. current other-than-temporary
impairment model. However, they would prefer to .address those concerns in the joint medium-
term project with the International Accounting Standards Board (IASB). Messrs. Linsmeier and
Siegel believe that . there is a high risk that the unilateral change to the recognition and
presentation of other-than-temporary impairments could create the' opportunity for an
"accounting arbitrage" with pressure for F ASB and IASB standards to converge to the standard .
perceived most lenient. In addition, when one standard setter enacts changes on its own, there is
a failure. to achieve convergence of accounting standards, which continues the challenges faced
by investors in comparing global financial institutions reporting under two different accounting'
models.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2)
18
1384
Members of the Financial Accounting Standards Board:
Robert H. Herz, Chairman
Thomas J. Linsmeier
Leslie F. Seidman
Marc A. Siegel
LaWTenceVV.Smitll
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2)
1385
FSP FAS 115-2 and FAS 124-2
. 19
FSP FAS 115-2 and FAS 124-2
Appendix A
AMENDMENTS TO EXISTING PRONOUNCEMENTS
At. FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises, is
amended as follows: [Added text is underlined and deleted text is swek eut.]
a. Paragraph 50 as amended:
Realized gains and losses on all investments (except those that are accounted for
as either hedges of net investments in foreign operations or cash flow hedges as
described in Statement 133) shall be reported in the statement of earnings as a
component of other income, on a pretax basis. Realized gains and losses shall be
presented as a separate item in the statement of earnings or disclosed in the notes
to the financial statements. Realized gains and losses shall not be deferred, either
directly or indirectly. Realized gains and losses on the sale of assets other than
investments, such as real estate used in the business, shall be reported in
accordance with APB Opinion No. 30, Reporting the Results of Operations.
Losses arising from an other-than-temporary impairment shall be presented in
accordance with FSP FAS 115-1 and FAS 124-1. The Meaning of Other-Than-
Temporary Impairment and Its Application to Certain Investments.
A2. F ASB Statement No. 115, Accounting for Certain Investments in Debt and Equity
Securities, . is amended 8$ follows:
a. Paragraph 16, and its related footnote 4, as amended:
For individual securities classified as either available-for-sale or held-to-
maturity, an enterprise shall determine whether a decline in fair value below the
amortized cost basis is other than temporary. (If a security has been the hedged
item in a fair value hedge, the secUrity's "amortized cost basis" shall reflect the
effect of the adjustments of its carrying amount made pursuant to paragraph
22(b) of Statement 1 3 ~ . ) Far eHHlple, if it is Jlf813a131e that tBe iBYester will13e
1:Hl8:1:Jle ta ealleet all BmeQBts due aeeaFdiBg ta tBe eeBt:Faetael tenBs af a de13t
seeurity Bet impaired at aeEtuisiiieft; ftB: ather 1:hftB: t8mp8fBFY impaHmeBt shall
13e eaBSideFee te haYe eeetlff'ee.
4
If tae eeeliBe iB: faH yalue is juagee te 13e ether
th:aB teHlfJafiH'Y, the east 'Basis aftae iB:Qividual se6tifity shall13e 'WTiUeB 6eWfl: te
fair yalue as a B&'N east 13asls ftB:ti tae IH1i8UBt af the wfite dalfl shall 13e
iB:eludetl iB:. eamiBgs (that is, aeeaUBtee fer as a realizee lass).The enterprise
shall apply the guidance in FSP FAS 115-1 and FAS 124-1. The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments,
to determine whether the decline in fair value is other than temporary and how
an other-than-temporary impairment should be recognized. The amortized cost
basis . shall be written down by the amount of an other-than-temporary
impairment recognized in earnings. The new amortized cost basis shall not be
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2)
1386
20
FSP FAS 115-2 and FAS 124-2
changed for subsequent recoveries in fair value. Subsequent increases in the fair
value of available-for-sale securities shall be included in other comprehensive
income pursuant to paragraph 13; subsequent decreases in fair value, if not an
other-than-temporary impairment, also shall be included in other comprehensive .
income.
4A EleelHle iB die ',reI.ae ef a dlat is etlier thaB teJRfJeraPY is else disetlsSeEl iB
WSlU 1 aBEl }1.,\S124 1, "The MeaBiBg ef Other The TBfftfJ9f8:l'Y ImllairmeBt aBEl Its
t'4JIIHeati9ft te CertaiB lwJestmeRts," AJCPt' StatetBeBt 9ft AaeitiBg Stan.6al:EIs We. 92, AetdiRJtg
fJer:ivaR'ltJ ./niffl'tlf'llents, HetlgiJtg Aeii'liReB, SJllti b'l'leBtments iJil SeeW";Re8, &BEl iB SOC Staff
Bell. We. 39, Aee8WJIIRJIIg;{al' J
1
l61f6f;11't"eJ11t Ala"kelable Eqwity SeefII";ReB
.
b. Paragraph 18A is added after the heading "Disclosures" as follows:
The disclosures in this Statement are required for interim and annual periods.
c. Paragraph 19, as amended:
For securities classified as available..:.for-sale, all reporting enteIprises shall
disclose the amortized cost basis. the aggregate fair value, the total other-than-
temporarY Impairment recognized in accumulated other comprehensive income.
the total gains for securities with net gains in accumulated other comprehensive
income, and the total losses for securities with net losses in accumulated other
comprehensive income, by major security type as of each date for which a
statement of financial position is presented. For securities classified as held-to-
maturity, all reporting enteIprises shall disclose the amortized cost basis. the'
aggregate fair value, gross unrecognized holding gains, gross unrecognized
holding losses, the net carrying amount, the total other-than-temporarv
impairment recognized in accumulated other comprehensive income. and the
gross gains and losses in accumulated other comprehensive income for any
derivatives that hedged the forecasted acquisition of the held-to:..maturity
securities, by major security type as of each date for which a statement of
financial position is presented. Major security types shallbe based on the nature
and risks of the An entetprise should consider the (shared) activity or
business sector. vintage, geographic concentration. credit quality, or economic
characteristic in determining whether disclosure for a particular security type is
necessaty and whether it is necessary to further Stmarate a particular security
type into greater detail. In complying with this requirement, financial
institutions
6
shall include in their disclosure the following major security types,
although additional types also may be necessaryiBeb:ltlea as aPflFeflriate:
a. Equity securities (segregated by industry type, company size. or investment
objective)
b. Debt securities issued by the U.S. Treasury and other U.S. government
cOIporations and agencies
c. Debt securities issued by states of the United States and political subdivisions
of the states
d. Debt securities issued by foreign governments
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1387
21
e. Corporate debt securities
f. Residential Mmortgage-backed securities
g. Commercial mortgage-backed securities
h.Collateralized debt obligations
gi. Other debt see:aritiesobligations.
FSP FAS 115-2 and FAS 124-2
A3. F ASB Statement No. 130, Reporting Comprehensive Income, is amended as follows:
a. Paragraph 17, as amended:
. Items included in other comprehensive income shall be classified based on their
nature. For example, under existing accounting standards, other comprehensive
income shall be classified separately into foreign currency items, gainS or losses
associated with .pension or other postretirement benefits, prior service costs or
credits associated with pension or other postretirement benefits, transition assets
or obligations associated with pension or other postretirement benefits, t1:BE1:
unrealized gains and losses on eeFtaiB iBvestmeBts iB debt and equity securities
classified as available-for-sale. and amounts recognized in other comprehensive
income for debt securities classified as available-for-sale and heid-to-maturitv
related to an other-than-temporary impairment recognized in accordance with
FSP FAS 115-1 and FAS 124-1. The. Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments. when a portion of the
impairment was not recognized in earnings. Additional classifications or
additional items within current classifications may result from future accounting
standards.
b. Paragraph 19:
An enterprise shall determine reclassification adjustments for each classification
of other comprehensive income. excq!t as noted in paragraph 19A. The
requirement for a reclassification adjustment for Statement 52 foreign currency
translation adjustments is limited to translation gains and losses realized upon
sale or upon complete or substantially complete liquidation of an investment in a
foreign entity.
c.Paragraph 19A is added as follows:
An enterprise shall only determine reclassification adjustments for amounts
recognized in other comprehensive income related to other-than-temporary
impairments of debt securities classified as when the loss is
realized as a result of a sale of the securitv or an additional credit loss occurs. If
the securitv is sold. paragraphs 8 and 11 of Statement 115 provide guidance on
the effect of changes in circumstances that would not call into question the
entity's intent to hold other debt securities to maturity in the future. If the held-
to-maturity debt security isnotsold and additional.credit losses do not occur. the
amount recognized in other comprehensive income shall be accounted for in
accordance With FSP FAS 115-1 and FAS 124-1 (that is. the amount shall be
FSP on Statement 115 and Statement 124
(FSPFAS 115-2 and FAS 124-2)
1388
22
FSP FAS 115-2 and FAS 124-2
amortized over the remaining life of the debt security in a prospective manner on
the basis of the amount and timing of future estimated cash flows).
A4. FSP FAS 115-1 and FAS 124-1, The Meaning of Other-Than-Temporary Impairment and
Its Application to Certain Investments, is amended as follows:
a. Paragraph3A is added as follows:
FSP F AS 115-2 and F AS 124-2, Recognition and Presentation of Other-Than-
Temporary Impairments. amends the recognition, presentation. and disclosure
guidance in this FSP.
b. Paragraph 4b:
Debt and equity securities that are within the scope of Statement 124 and that are
held by an investor that . reports a "performance indicator" as defined in the
AICPA Accounting and Audit Guide, Health Care Organizations. Throughout
this standard. the term earnings shall be replaced with performance indicator, and
other comprehensive income shall be replaced. with outside . the performance
indicator for debt securities .that are within the scope of Statement 124 ..
c. Footnote 2:
Amortized eGost basis includes adjustments made to the cost hasis of an
investment for accretion, amortization, collection of cash. previous other-than-
temporary impairments recognized in earnings ness any cumulative-effect
. adjustments recognized in accordance with the transition provisions of FSP F AS
115-2 and FAS 124-2. Recoinition and Presentation of Other-Than-Temporary
Impai'rments), and hetlgiflg fair value hedge accounting adjustments.
d. Paragraph 13:
When the fair value of an investment is less than its amortized cost basis at the
balance sheet date of the reporting period for which impairment is assessed, the
impairment is . either temporary or other than temporary.
4
In addition to the
guidancein this FSP, AID:t investor shall apply other guidance that is pertinent to
the determination of whether an impairment is other than temporary, such as
flllf'ftgfllflB 1 i ef StatemeBt 115 ('lIhieh fefeRJBees SEC Staff Ai:leeHBtiBg
BaDetiB Teflie 5M, OIhe Than Tempe,wiry !"'pail"l'Hent ejCe"tain bwestmenM
in Deet antlE'lNity 8eewflities), paragraph 6 of Opinion IS; and EITF Issue No.
99-20, "Recognition of Interest Income and Impairment on PUrchased.
Beneficial Interests and Beneficial Interests That Continue to Be Held by a
Transferor in Securitized Financial Assets."
e. Paragraph 13A and its related heading are added as follows:
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2)
1389
23
FSPFAS 115-2 andFAS 124-2
Equity Securities
For eguity securities. an investor shall apply guidance that is pertinent to the
determination of whether an impairment is other than temporary. such as SEC
Staff Accounting Bulletin Topic 5M. Other Than Temporary Impairment of
Certain Investments in Debt and Equity Securities. and other authoritative
literature.
f.Paragraphs 14A-14G and their related heading are added as follows:
Debt Securities
14A. If an investor intends to sell the debt security (that is. it has decided to sell
the security), an other-than-temporarv impairment shall be considered to have
occurred.
14B. If an investor does not intend to sell the debt security. the investor shall
consider available evidence to assess whether it more likely than not will be
reguired to sell the security before the recovery of its amortized cost basis (for
example. whether its cash or working capital reguirements or contractual or
regulatory obligations indicate that the security will be reguired to be sold
before a forecasted recovery occurs). If the investor more likely than not will be
reguired to sell the security before recovery of its amortized cost basis. an other'-
than-temporary impairment shall be considered to have occurred.
14C. If an investor does not expect to recover the entire amortized cost basis of
the security. the investor would be unable to assert that it will recover its
amortized cost basis even if it does not intend to sell the security. Therefore. in
those situations. an other-than-temporary impairment shall be considered to
have occurred. In assessing whether the entire amortized cost basis of the
security will be recovered. an investor shall compare the present value of cash
flows expected to be collected from the security with the amortized cost basis of
the security. If the present value of cash flows expected to be collected is less
than the amortized cost basis of the security. the entire amortized cost basis of
the security will not be recovered (that is. a credit loss exists). and an other-
. than..,temporary impairment shall be considered to have occurred.
J
14D. In determining whether a credit loss exists. an investor shall use its best
estimate of the present value of cash flows expected to be collected from the
debt security. One way of estimating that amount would be to consider the
methodology described in paragraphs 12-16 of FASB Statement No. 114.
Accounting by Creditors tor Impairment of a Loan. for measuring an
impairment on the basis of the present value of expected future cash flows.
Paragraph 14 of Statement 114 provides guidance on this calculation. Briefly.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1390
24
FSP FAS 115-2 and FAS 124-2
the investor would discount the expected cash flows at the effective interest rate
implicit in the security at the date of acquisition.
14E. For debt securities that are beneficial interests in securitized financial
assets within the scope of Issue 99-20, an investor shall determine the present
value of cash flows expected to be collected considering the guidance in
paragraph 12(b) of Issue 99-20 for determining whether there has been a
decrease in cash flows expected to be collected from cash flows previously
projected. In other words, the cash flows estimated at the current financial
reporting date shall be discounted at a rate equal to the current yield used to
accrete the beneficial interest. Additionally, for debt securities accounted for in
accordance with AICPA Statement of Position 03-3, Accounting for Certain
Loans or Debt Securities Acquired in a Transfer, an entity shall consider that
standard in estimating the present value of cash flows expected to be collected
from the debt security. A decrease in cash flows expected to be collected on an
asset-backed security that results from an increase in prepayments on the .
underlying assets shall be considered in the estimate of the present value of cash
flows expected to be collected.
14F. There are numerous factors to be considered when estimating whether a
credit loss exists and the period over which the debt security is expected to
recover. The following are a few examples of the factors that shall be
considered. This list is not meant to be all inclusive.
!L. The length of time and the extent to which the fair value has been less than
the amortized cost basis
b. Adverse conditions specifically relatedto the security, an industry, or
- geographic area (for example, changes in the financial condition of the
issuer of the securitv. or in the case of an asset-backed debt security, in the
financial condition of the underlying loan obligors, including changes in
technology or the discontinuance of a segment of the business that may
affect the future earnings potential of the issuer or underlying loan
obligors of the security or changes in the quality of the credit
enhancement)
c. The historical and implied volatility of the fair value of the security
d. The payment structure of the debt security (for example, nontraditional
loan terms as described in FSP SOP 94-6-1, Terms of Loan Products That
May Give Rise to a Concentration of Credit Risk) and the likelihood of the
issuer being able to make payments that increase in the future
~ Failure of the issuer of the security to make scheduled interest or principal
payments .
t Any changes to the rating of the security by a rating agency
. & Recoveries or additional declines in fair value subsequent to the balance
sheet date.
140. In makingits other-than-temporaryimpairment assessment. an investor
shall consider all available information, relevant to the collectibility of the
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2)
1391
25
FSP FAS 115-2 and FAS 124-2
security, including information about past events, current conditions, and
reasonable and supportable forecasts, when developing the estimate of cash
flows expected to be collected. That information generally should include the
remaining payment terms of the security, prepayment speeds, the fmancial
condition of the issuer(s), expected defaults, and the value of any Underlying
collateral. To achieve that objective, the investor should consider. for example.
industry analyst reports and forecasts. sector credit ratings, and other market
data that are relevant to the collectibility of the security. An investor also should
consider how other credit enhancements affect the expected performance of the
security, including consideration of the current fmancial condition of the
guarantor of a security (if the guarantee is not a separate contract as discussed in
paragraph 8) and/or whether any subordinated interests are capable of absorbing
estimated losses on the loans underlying the security. The remaining payment
terms of the security could be significantly different from the payment terms in
prior periods (such as for some securities backed by nontraditional loans). Thus,
an investor should consider whether a security backed by currently performing
loans will continue to perform when required payments increase in the future
(including "balloon" payments). An investor also should consider how the value
of any collateral would affect the expected performance of the security. If the
fair value of the collateral has declined. an investor needs to assess the effect of
that decline on the ability of the investor to collect the balloon payment.
g. The headings before paragraph 15:
Step 3: Recognition of an Other-Than-Temporary ImoairmentIf the
Impairmeat Is Other Thaa Temporary, R e e o g a ~ e aa ImpairmeatLoss
E'lual to the Differeaee i:)etweea the IaycstJReat's Cost BBd Its Fair Value
Equity Securities-If the Impairment Is Other Than Temporary,
Recognize an Impairment Loss Equal to the Difference between the
Investment's Cost Basis and Its Fair Value
h. Paragraphs 15A-'-15E and their related heading are added as follows:
Debt Securities-Determination of the Amount of an Other-Than-
Temporary Impairment Recognized in Earnings and Other Comprehensive
Income
15A. When an other-than-temporary impairment has occurred, the amount of
the other-than-temporary impairment recognized in earnings depends on
whether an investor intends to sell the security or more likely than not will be
required to sell the security before recovery of its amortized cost basis less any
current-period credit loss.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1392
26
FSP FAS 115-2 and FAS124-2
. l5B. If an investor intends to sell the security or more likely than not will be
required to sell the security before recovery of its amortized cost basis less any
current-period credit loss, the other-than-temporary impairment shall be
recognized in earnings equal to the entire difference between the investment's
amortized cost basis and its fair value at the balance sheet date In assessing
whether the investor more likely than not will be required to sell the security
before recovery of its amortized cost basis less any current-period credit losses,
the investor shall consider the factors in paragraph l4F.
l5C. If an investor does not intend to sell the security and it is not more likely
than not that the investor will be required to sell the security before recovery of
its amortized cost basis less any current-period credit loss, the other-than-
temporary impairment shall be separated into the following:
a. The amount representing the credit loss
b. The amount related to all other factors.
l5D. The amount of the totalother-than-temporary impairment related to the
credit loss shall be recognized in earnings. The amount of the total other-than-
temporary impairment related to other factors shall be recognized in other
comprehensive income, net of applicable taxes.
15E. The previous amortized cost basis less the other-than-temporary
impairment recognized in earnings shall become the new amortized cost basis of
the investment. That new amortized cost basis shall not be adjusted for
subsequent recoveries in fair value. However, the amortized cost basis shall be
adjusted for accretion and amortization as prescribed in paragraph 16.
i. Paragraph 16 and its related heading:
ACCOUNTING FOR DEBT SECURITIES SUBSEQUENT TOAFTER
AN OTHER-THAN-TEMPORARY IMPAIRMENT
In periods subseqaeetto after the recognition of an other-than-temporary
impairment loss for debt securities,s an investor shall account for the other-than-
temporarily impaired debt security as if the debt security had been purchased on
the measurement date of the other-than-temporary impairment at an amortized
cost basis equal to the previous amortized cost basis less the other-than-
temporary impairment recognized in earnings. That is, the disco\HJ:t or redl:lced
premiam recorded for the debt seclil'ity, based on the ne:wcost basis, V/Ol:lld be
amortilled over the remainifl:g life of the debt setmrity in a prespectiye manner
based on the amll:lB:t afl<i timing of mtl:lre esti1'B:ated cash flows.For debt
securities for which other-than-temporary impairments were recognized in
earnings, the difference between the new amortized cost basis and the cash
flows expected to be collected shall be accreted in accordance with existing
applicable guidance as interest income. An investor shall continue to estimate
the present value of cash flows expected to be collected over the life of the debt
FSP on Statement 115 and Statement 124
(FSPFAS 115-2andFAS 124-2)
1393
27
FSP FAS 115-2 and FAS 124-2
security. For debt securities accounted for in accordance with Issue 99-20. an
investor should look to that standard to account for changes in cash flows
expected to be collected. For all other debt securities. if upon subseguent
evaluation. there is a significant increase in the cash flows expected to be
collected or if actual cash flows are significantly greater than cash 'flows
previously expected. such changes shall be accounted for as a prospective
adjustment to the accretable 'yield in accordance with SOP 03-3 even if the debt
security would not otherwise be within the scope of that standard. Subsequent
increases and decreases (if not an other-than-temporary impairment) in the fair
value of available-for-sale securities shall be included in other comprehensive
income.
j. Paragraphs 16A-16C and their related heading are added as follows:
16A. The other-than-temporary impairment recognized in other comprehensive
income for debt securities classified as held-to-maturitv shall be accreted from
other comprehensive income to the amortized cost of the debt security over the
remaining life of the debt security in a prospective manner on the basis of the
amount and timing of future estimated cash flows. That accretion shall increase
the carrying value of the security and shall continue until the security is sold. the
security matures. or there is an additional other-than-temporary impairment that
is recognized in earnings. If the security is sold. paragraphs 8 and 11 of
Statement 115 provide guidance on the effect of changes in circumstances that
would not call into question the investor's intent to hold other debt securities to
maturity in the future. .
Presentation
16B. In periods in which an investor determines that a security's decline in fair
value below its amortized cost basis is other than temporary. the investor shall
present the total other-than-temporary impairment in the statement of earnings
with an offset for the amount of the total other-than-temporary impairment that
is recognized in other comprehensive income. in accordance with paragraph
ISO. if any. The following is an example of the presentation on the face of the
statement of earnings:
Total other-than-temporary impairment losses ($10.000)
Portion of loss recognized in other comprehensive
income (before taxes) 4.000
Net impairment losses recognized in eainings
($ 6,000>
16C. An investor also shall separately present. in the financial statement where
the components of accumulated other comprehensive income are reported.
amounts recognized therein. related to held-to-maturitv and available-for-sale
debt securities for which a portion of an other-than-temporary impairment has
been recognized in earnings.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124':'2)
1394
28.
FSPFAS 115-2 andFAS 124-2
k. Paragraph 17:
For all investments in an unrealized loss6 position, including those that fall
within the scope of Issue 99-20, for which other-than-temporary impairments
have not been recognized in earnings, an investor shall disclose the following in
its interim and annual financial statements (included in this disclosure are
investments for which a portion of an other-than-temporary impairment has
been recognized in other comprehensive income):
a. As -of each date for which a statement of financial position is presented,
quantitative information, aggregated by category of investment-each
eategery ef mVesBBeftt major security type that the investor discloses in
accordance with Statements 115 and 124 (see paragraph 4(b and cost-
method investments-in tabular form:
(1) The aggregate related fair value of investments with unrealized
losses
(2) The aggregate amount of unrealized losses (that is, the amount by -
which amortized cost basis' exceeds fair value).
The disclosures in (1) and (2) above shall be segregated by those investments
that have been in a continuous unrealized -loss position for less than 12
months and those that have been in a continuous unrealized loss position for
'12 months or longer. The reference point for determining how long an
investment has been in a continuous ~ a l i z e d loss position is the balance
sheet date of the reporting period in which the impairment is identified. For
entities that do not prepare interim financial information, the reference point
wouid be the annual balance sheet date of the period during which the
impairment was identified. The continuous unrealized loss position ceases
upon either (a) the recognition of the total amount by which amortized cost
basis exceeds fair value as an other-than-tempotary impairment in earnings
or (b) the investor becoming aware of a recovery of fair value up to (or
beyond) the amortized cost basis of the investment during the period.
b. As of the date of the most recent statement of financial position, additional
information (in narrative form) that provides sufficient information to allow
financial statement users to understand the quantitative disclosures and the
information that the investor considered (both positive and negative) in
reaching the conclusion that the impairment(s) are not other than temporary.
The application of Step 2 shall provide insight into the investor's rationale for
concluding that unrealized losses ,are not other-than-temporary impairments.
The disclosures required may be aggregated by investment categories, but
individually significant unrealized losses generally shall not be aggregated.
This disclosure could include:
(1) The nature of the investment(s)
(2) The cause(s) of the impairment(s)
, (3) The number of investment positions that are in an unrealized loss
position
(4) The severity and duration of the impairment(s)
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2)
1395
29
FSP FAS 115-2 and FAS 124-2
(5) Other evidence considered by the investor in reaching its. conclusion
that the investment is not other-than-temporarily impaired, including,
for example, performance indicators of the underlying assets in the
security (including default rates, delinquency rates and percentage of
nonperforming assets), loan to collateral value ratios, third-party
guarantees. current levels of subordination. vintage. geographic
concentration, industry analyst reports, sector credit ratings, volatility
of the security's fair value, andlor any other information that the
investor considers relevant.
1. Paragraph 18:
For cost-method investments, an investor shall disclose the following additional
information, if applicable, as of each date for which a statement of fmancial
position is presented in its interim and annual fmancial statements:
a. The aggregate carrying amount of all cost-method investments
b. The aggregate carrying amount of cost-method investments that the
investor did not evaluate for impairment
c. The fact that the fair value of a cost-method investment is not estimated if
there are no identified events or changes in circumstances that may have a
significant adverse effect on the fair value of the investment, and
(1) The investor determined, in accordance with paragraphs 14 and 15
of Statement 107, that it is not practicable to estimate the fair value of the
investment,-ef
(2) The investor is exempt from estimating annual fair v a l u e ~ under
F ASB Statement No. 126, Exemption from Certain Required Disclosures
about Financial Instruments for Certain Nonpublic Entities":. or
(3) The investor is exempt from estimating interim fair values because
it does not meet the definition of a publicly traded company. as defmed by
APB Opinion No. 28. Interim Financial Reporting.
m. Paragraphs 18A and 18B are added as follows:
18A. For interim and annual periods in which an other-than-temporary
impairment of a debt security is recognized and only the amount related to a
credit loss was recognized in earnings. an investor shall disclose by major
security type, the methodology and significant inputs used to measure the
amount related to credit loss. Examples of significant inputs include. but are not
limited to, performance indicators of the underlying assets in the security
(including default rates, delinquency rates, and percentage of nonperforming
assets). loan to collateral value ratios. third-party guarantees, current levels of
subordination, vintage. geographic concentration. and credit ratings.
18B. For each interim and annual reporting period presented. an investor shall
disclose a tabular rollforward of the amount related to credit losses recognized
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1396
30
FSP FAS 115-2 and FAS 124-2
in earnings in accordance with paragraph 15D. which shall include at a
minimum.:
a. The beginning balance of the amount related to credit losses on debt
securities held by the investor at the beginning of the period for which a
portion of an other-than-temporary impairment was recognized in other
comprehensive income
b. Additions for the amount related to the credit loss for which an other-than-
temporary impairment was not previously recognized
:. Reductions for securities sold during the period(realized)
d. . Reductions for securities for which the amount previouSly recognized in
other comprehensive income was recognized in earnings because the
investor intends to sell the security or more likely than not will be required
to sell the security before recovery of its amortized cost basis
~ Additional increases to the amount related to the credit loss for which an
other-than-temporary impairment was previously recognized when the
investor does not intend to sell the security and it is not more likely than
not that the investor will be required to sell the security before recovery of
its amortized cost basis
L. Reductions for increases in cash flows expected to be collected that are
recognized over the remaining life of the security (refer to paragraph 16)
&. The ending balance of the amount related to credit losses on debt
securities held by the entity at the end of the period for which a portion of
an other-than-tem.porary impairment was recognized in other
comprehensive income.
n. Paragraph A2:
U.S. Treasury Obligations. The unrealized losses on the Company's
investments in U.S. Treasury obligations and direct obligations of U.S.
government agencies were caused by interest rate increases. The contractual
terms of those investments do not permit the issuer to settle the securities at a
price less than the amortized cost bases of the investment!. Because the
Company Bas the ahility It:BS iBteBt te heM tliese iB";estmems lHltH a reee
7
{ery ef
fait' valae does not intend to sell the investments and it is not more likely than
not that the Company will be required to sell the investments before recovery of
their amortized cost bases, which may be maturity, the Company does not
consider those investments to be other-than-temporarily impaired at December .
3l,20X3.
o. Paragraph A3:
Federal Agency Mortgage-Backed Securities. The unrealized losses on the
Company's investment in federal agency mortgage-backed securities were
caused by interest rate increases. The Company purchased those investments at
a discount relative to their face amount, and the contractual cash flows of those
investments are guaranteed by an agency of the U.S. government. Accordingly,
FSP on Statement 115 and Statement 124
(FSPFAS 115-2 and FAS 124-2)
1397
31
FSP FAS 115-2 and FAS 124-2
it is expected that the securities would not be' settled at a price less than the
amortized cost bases of the Company's investment,. Because the decline in
market value is attributable to changes in interest ~ t e s and not credit quality,
and because the Company Bas tBe allil:ify B:B6iBteBt te helEl these iB ... reseeBts
1:1ftti1 a reeavefj" af fair y.'al8:9does not intend to sell the investments and it is not
more likely than not that the Company will be required to sell the investments
before recoverY of their amortized cost bases, .which may be maturity, the
Company does not consider those investments to be other-than-temporarily
impaired at December 31, 20X3.
p. Paragraph A4:
Corporate Bonds. The Company's unrealized loss on investments in corporate
bonds relates to a $150 investment in Manufacturing Company's Series C
Debentures. The unrealized loss was primarily caus,ed by (a) a recent decrease
in profitability and near-term profit forecasts by industry analysts resulting from
intense competitive pricing pressure in the manufacturing industry and (b) a
recent sector downgrade by several industry analysts. The contractual terms of
those investments do not permit Manufacturing Company to settle the security
at a price less than the amortized cost basis of the investment. While
Manufacturing Company's credit rating has 4ecreased from A to BBB (S&P),
the Company currently does not heli8T+'e it is fI:Fehallle tBat it will he lHl6hle te
eallee! all ftfB9Uftts &8:9 aeeaFEliBg te the eaatraetaal tetms af the iBvestmeB:t.
T1lefefere, it is expecteEl t:kat-Manufacturing Company to settle the debentures
watHEl Bet he settleEl at a price less than the amortized cost basis of the
investment (that is. the Company expects to recover the entire amortized cost
basis of the security). Because the Company: Bas the Bhil:ify eEl iRteBt te heM
this iB:T+'eSHBeBt lftltil B Feea ... 'ery af fair val8:9does not intend to. sell the
investment and it is not more likely than not that the Company will be required
to sell the investment before recovery of its amortized cost basis, which may be
maturity, it does not consider the investment in Manufacturing Company's
debentures to be other-than-temporarily impaired at December 31, 20X3.
AS. APBOpinion No. 28, Interim Financial Reporting, is amended as follows:
a. Paragraphs 30(0) and 30(P) are added as follows:
o. The information about certain investments in debt and equity securities as
required by FASB Statement No. lIS. Accounting for Investments in Certain
Debt and Equity Securities. .
p. The information about other-than-temporary impairments as required by
FSP FAS 115-1 and FAS 124-1. The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments.
FSP on Statement 115 and Statement 124
(FSP FAS 1 1 5 ~ 2 and FAS 124-2)
1398
32
FSP FAS 115-2 and FAS 124-2
A6. EITF Issue No. 99-20, "Recognition of Interest Income and Impairment on Purchased
Beneficial Interests and Beneficial Interests That Continue to Be Held by a Transferor in
Securitized Financial Assets," is amended as follows:
a. Paragraph 12, as amended:
[The original Task Force consensus was superseded by FSP EITF 99-20-1 and
FSP FAS 115-2 and FAS 124-2.] The holder of a beneficial interest should
continue to update the estimate of cash flows over the life of the beneficial
interest. Ifupon evaluation:
a. Based on current information and events it is probable that there is a
favorable (or an adverse) change in estimated cash flows from the cash flows
previously projected, then the investor should recalculate the amount of
accretable yield for the beneficial interest on the date of evaluation as the
excess of estimated cash flows expected to be collected over the beneficial
interest's reference amount (the reference amount is equal to (1) the initial
investment less (2) cash received to date less (3) other-than-temporary
impairments recognized in earnings to date [as described in paragraph 12(b)]
plus (4) the yield accreted to date). The adjustment should be accounted for
prospectively as a change in estimate in conformity with Statement 154
[Note: See paragraph 25 of the Status section.], with the amount of periodic
accretion adjusted over the remaining life of the beneficial interest. Based on
estimated cash flows expected to be collected, interest income may be
recognized on a beneficial interest even if the net investment in the beneficial
interest is accreted to an amount greater than the amount at which the
beneficial interest could be settled if prepaid immediately in its entirety.
b. The fair value of the beneficial interest has declined below its reference
amount, an enterprise should determine whether the decline is other-than-
temporary. An entity should apply the impairment of securities guidance in
paragraph 16 of Statement 115 and the related implementation guidance (see
paragraphs 13, 13A, 13B, and 15 of this Issue). If based on current
information and events it is probable that there has been an adverse change in
estimated cash flows expected to be collected (in accordance with paragraph
12(a) above), then (1) an impairment should be
considered to have occurred and (2) the beneficial interest should be written
down to fair value with the resulting change being inoladed . in
inoemerecognized in accordance with FSP FAS 115-1 and FAS 124-1.
Determining whether there has been a favorable (or an adverse) change in
estimated cash flows expected to be collected from the cash flows previously
projected (taking into consideration both the timing and amount of the
estimated cash flows) involves comparing the present value of the remaining
cash flows as estimated at the initial transaction date (or at the last date
previously revised) against the present value. of the cash flows
estimatedexpected to be collected at the current [mancial reporting date. The
FSP on Statement 115 and Statement 124
FAS 115-2 and FAS 124-2)
1399
33
FSP FAS 115-2 and FAS 124-2
cash flows should be discounted at a rate equal to the current yield used to
accrete the beneficial interest. If the present value of the original cash flows
estimated at the initial transaction date (or the last date previously revised) is
less than the present value of the current estimateQ of cash flows expected to
becollecteg, the chatige is considered favorable (that is, an other-than-
temporary impairment should be considered to have not occurred under the
consensus in this Issue). If the present value of the original cash flows
estimated at the initial transaction date (or the last date previously revised) is
greater than the present value of the current estimated cash flows, the change
is considered adverse (that is, an other-than-temporary impairment should be
considered to have occurred under the consensus in this Issue). However,
absent any other factors that indicate an other-than-temporary impairment
has occurred, changes in the interest rate of a "plain-vanilla," variable-rate
beneficial interest generally should not result in the recognition of an other-
than-temporary impairment (see footnote 2, Exhibit 99-20A) (a plain-vanilla,
variable-rate beneficial interest does not include those variable-rate beneficial
interests with interest rate reset formulas that involve either leverage or an
inverse floater).
b.Paragraph 15, as amended:
The Task FOrce observes that, consistent with TefJie D 44, "R:eeegBitieB:
ef 0tBer T1J..aB: TemfJemry HBf)llifmeB:t lifJeB: the PlaB:B:eEl Sale ef a Seemty
W1iese Cest F'aif' Val'ae," FSP FAS 115-1 and FAS 124-1 when an
entity intends to sell a specifically identified beneficial interest classified as
available-for-sale for which fair value is less than the amortized cost basis, at
a less sheftly aftel' the }'alaB:ee skeet Elate wRese fair vallie is less 1:h8:li its
. eal'fyillg aBleliB:t eEl the. eB:Hty aees B:8t e*fJeet the fair T.'Iikie te Feee\'eF fJRef
te the eKfJeeteEl time ef the sale, a write-down for other-than-temporary .
impairment should. be recognized in earnings iB: the fJerieEl iB: whieli the
EleeisieB: te sell is maEle. [Note: See paragraph 28 of the STATUS section.]
Furthermore, SAB 59, SAS 92, the Statement 115 Special Report, andFSP
FASl15-1I124-1 provide additional guidance to consider when determining
whether an other-than-temporary impairment exists. SAB TefJie 3M states,
"[THe RelEleF aees B:et the iB:teB:t eEl . . . tEl FetaiB: its iB:'1estmeB:t
ill the isS1:1:eF fef a fJeFieEl ef time SllffieieB:t te allaw fef ey
FeeeYfery iB: IB8:fket val'ae."
c. Paragraph 29A is added as follows:
FSP FAS 115-2 and FAS 124-2, issued in April 2009, amends paragraphs 12
and 15 of Issue 99-20. These amendments are conforming changes that reflect
the Board's decisions to amend guidance for recognizing and presenting other-
than-temporary impairments. All instances of the term. estimated cash flows in
this Issue should be replaced with the term. cash flows eJfllected to be collected.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1400
.34
FSP FAS 115-2 andFAS 124-2
A7. . EITF Topic 0-41: "Adjustments in Assets and Liabilities for Holding Gains and Losses
as Related to the Implementation of F ASB Statement No. 115," is amended as follows:
[For ease of use, only the portion of the Subsequent Developments section affected by this
Statement has been reproduced.]
Subsequent Developments
In June 1997, the FASB issued Statement 130, which amends Statement 115 to require
that unrealized gains and losses on available-for-sale securities be reported in other
comprehensive income. The accumulated balance of those changes in value continues to
be reported in a separate component of shareholders' equity until realized.
In Apri12009. the FASB issued FSP FAS 115-2andFAS 124-2. Recognition and
Presentation of Other-Than-Temporary Impairments. which amendsFSP FAS 115-1 and
FAS 124-1. The Meaning of Other-Than-Temporary Impairment and Its Application to
Certain Investments. to require that an entity separately present. in the financial statement
where the components of accumulated other comprehensive income are reported.
amounts recognized in accumulated other comprehensive income related to held-to-
maturity and available-for-sale debt securities for which an other-than-temponuy
impairment has been recognized and only the portion related to a credit loss is recognized
in earnings.
No further EITF discussion is planned.
AS. Q&A 115-AGuide to Implementation of Statement 115 on Accounting for Certain
Investments in Debt and Equity Securities: Questions and Answers, is amended as follows:
a. Question 46, as amended:
46. Q PftfftgfliJlft 1{; JlFeVides ftB: eHIBJlle .efwfteB: a.deelifte iB tB.e fair ,"8l1.ie
ef a seat seeurityis ether tkaB temJlemry. Wliat edieF :faetefS iBElieate that
HBJlaHmeo.t is edieF thaB temJlefBFY'? HeYt' is aft' e(jaity seewity evtH1:Hlteti fef
edieF thaB teIBJl.eF8l'f HBJlaifmeBt?
A StatemeBt 1 13 tiees B.8t Sf'eeifiealfjr atltlress tB.ese (jaestieDs, aat refefS te
lH:ee etB.er semees ef liteFatlHe that sliewti ae . eeDsidereti . iB. evalaatiBg
iHq<JaifmeBt: W .. S8 StaffPesmeD FASUS 1/124 1, The }A8al'ting o{O#',er Thlfll't
1'emfJ6F1f1FY Il'ItfJlfli"lftent 1fIl'tt/ Its AflfJHBIfIU61f 16 GeFllflil't Investments, SEC. Staff
AeeeetiBg 8a1letiB SM, Other ThIfl1t TemfJ6Ft1Ff I1'I'fJlfliRl'tenls 8{ GeFtlflil't
in";estl'ltenls il't Beet 1fIl'tt/ EfINily SeeNFiUes,BBti StatemeBt eD AatiitiBg
StftBtiaFtls (SAS) Ne. 92, A Nt/iUng Be"iVlflUve I1'tStFNlftenls, lletJgil'tg AeUyiUBS, lfIl'td
In";estments il't SeeuriUe6. AJt&elfgli f)BfBgfBJlft ef StatemeBt 115 1BeB:tieBS a
deeMe iii a seearity's v.al:ae tiaets a tieteFiemtieD iB tB.e issaeFseretiitweFtBiBess,
reeegBitieD ef etB.er thaB te1B:JleF8l'f imJlairmeBt alsemay ae re(j1iireti if the
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1401
35
FSP FAS 115-2 and FAS 124;.2
tieelHie iB a see:arity's11a11le is d1:le ta 8B: iBefease iB lB8fket iBteFest f8tes af a
" elHmge iB fereigB eJteBmge f8tes BiBee 8efl1:lisftieB. B*8IBples af 1..,lieB a EieeliBe iB
the fair val1le af atieet see1lfify JB8y ae ather t&8B: teBipaf81'Y iBelBEle sit1:laaeBS
WBefe the see1:lrity ,,'ill ae tlispeseti ef aefere it JB8tares ef the iB'lestmeBt is "Bet
realiM91e (alse see p8I'Bgi'8f'B 47 af SAS i.39 ef the
A1:ltlit ANtlitiffg f)8I"i';stiwe 11'lsWwlfteHts, Hetlgiffg Aeti'Aties, anti
Ini'8sHltents, in 8eeNFities. [lteryiseti 9.l99; 9l{;)l; 11/93.]
b. Question47,as amended:
47. Q-Should an enterprise recognize other-than-temporary impairment
when it decides to sell a specific available-for-sale debt security at a loss shortly
after the balance sheet date?
A-Generally, yes, if the enterprise intends to sell the securitv (that is. a decision
has been made to sell the securityltiees Bet the fair val1:le ef the seetirity te
reee'ler ta the time ef sale. lB tliat ease, the write tieWft fef the
other-than-temporary impairment would be recognized in earnings in the period in
which the decision to sell is made, not the period in which the sale occurs. Refer
to FSP FAS 115-11124-1 and the two documents in the appendix to this
implementation guide for additional information. {Revised 11105; 4/09.1
c. Question 48:
48. Q-May a valuation allowance be used to recognize impairment on
securities subject to Statement 115?
A-No. Paragraph 16 requires that each individual security be evaluated for
impairment.:. 8Iiti, wlieB HBpairmeBt is itieBtitiea, "the eest aasis ef the iBttivitiaal
seearity shall ae vlf'itteB EieVffl: te fair val1le as a Be'''' east aasis aBEl the 8IBel:1Bt ef
the write tie'.vB sBaI1 ae iBel1:lEiea is eamiBgs." Guidance for determining whether
an impairment is" other than temporary and how an other-than-temporary
impairment should be recognized is provided in FSP F AS 115-1 and F AS 124-1.
Providing a general allowance for unidentified impairment in a portfolio of
securities is not appropriate. [Revised 4/09.]
A9. AICPA Statement of Position 03-3, Accountingfor Certain Loans or Debt Securities
Acquired in a Transfer, is amended as follows:
a. Paragraph .07:
Loan accounted for as a debt security. An investor should continue to estimate
cash flows expected to be collected over the life of the loan. If, upon subsequent.
evaluation:
. (I; The fair value of the debt security has declined below its amortized cost
basis, an entity should determine whether the decline is other than
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1402
36
FSP FAS 115-2 and FAS 124-2
temporruy. An entity should apply the impairment of securities guidance
in paragraph 16 of F ASB Statement No. 115 and FSP F AS 115-1 and F AS
124-1, The Meaning of Other-Than- Temporary Impairment and Its
Application to Certain Investments. For example, if it is probable, based
on current information and events,4fta.t.. there is a decrease in cash flows
expected to be collected (that is, the investor is unable to collect all cash
flows expected at acquisition plus any additional cash flows expected to
be collected arising from changes in estimate after acquisition (in
accordance with paragraph .07b of this SOP), an other-than-temporruy
impairment should be considered to have occurred. The investor should
consider both the timing and amount of cash flows expected to be
collected in making a determination about whether it is probaBle fl:la.t the
mvestor is 1:lBable to oolleot all oash flo''NS e2qJeoted at aOJ:HisitioB plus aa:y
additioBal there has been a decrease in cash flows expected to be collected
arismg from ehaBges iii estimates after aOJ:HisitioB.
h. Based on current information and events, it is probable that there is a
significant increase in cash flows previously expected to be collected or if
actual cash flows are significantly greater than cash flows previously
expected, the investor should recalculate the amount of accretable yield
for the loan as the excess of the revised cash flows expected to be
collected over the sum of (1) the initial investment less (2) cash collected
less (3) other-than-temporary impairments plus (4) amount of yield
accreted to date. The investor should adjust the amount of accretable yield
by reclassificatiOli from nonaccretable difference. The adjustment should
. be accounted for as a change in estimate in conformity with F ASB
Statement No. 154, Accounting Changes and Error Corrections
AoooH:Bting Priaoiples Board (A.PB) OpiniOB No. 20, Aee61mnng
Changes, with the amount of periodic accretion adjusted over the
remaining life of the loan.
b. Paragraph A-6 and its heading:
Illustration-Scenario C
Base Case With Decrease in Cash Flows Expected for Years 20X3-X5
Accounted for as a Debt Security
A-6. Change in Expectations. Assume instead that, at December 31, 20X2,
Company A determines that the loan accounted for as a debt security has incurred
an other-than-temporary impairment of$232,163 recognized in earnings in
accordance with FSP FAS 115-1 and FAS 124-1, The Meaning of Other-Than-
Temporary Impairment and Its Application to Certain Investments. The
Company does not recognize any additional other-than-temporary impairments in
other comprehensive income because the entire impairment relates to a decrease
in cash flows expected to be collected. Company A estimates that it is probable
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1403
37
FSP FAS 115-2 and FAS 124-2
-tBet cash flows expected to be collected will be $100,000 less in each of the
remaining three years than expected at acquisition. Using the new carrying
amount (amortized cost basis) of $2.472,850 and the , remaining cash flows
expected to be collected. the effective interest rate would be calculated as 14
percent effeea."Ie iBtefest f8te af 14 "efEleB:t, 'tBe f'FeSeB:t ef die femaiBiBg
sash ila's EHf"esteti te ae sallesteti is saletHatetlas $2,472,8$0. Following are the
resulting calculations.
Beginning Cash Flows Reduction Ending
Year Ended
Carrying Expected Interest of Carrying Carrying
December 31
Amount to Be Collected Income
6
'Amount Amount
20X1
$4,000,000 $1,165,134 $560,000 $605,134 $3,394,866
20X2
3,394,866 1.165.134 475.281 922.016
7
2,472,850
Totals for years
20X1-X2
$2.330.268 $1.035.281 $1.527.150
20X3
$2,472,850
$1,065,134 $346,199 $718,935 $1,753,915
20X4
' 1,753,915 1,065,134 245,548 819,586 934,329
20X5
934,329 1.065.134 130.805 934.329
Totals for years
20X3-XS

Totals for years
20X1-X5
$5,525,670 $1,757,833 $4,000,000
6 The yield recognized is 14.00 percent for years 20X1 through 20X5. In this
example the yield imputed after the write-down remains at 14 percent but this
would not always be the result.
7 The reduction of carrying amount includes an amount representing the decrease
in cash flows expected to be collected aIlawlHlse fef laM lasses af$232,163 fef a
laM Btlt aeeatmteti faf as a tieet Mti a wflte tteY/il of $232,163 fer
recognized as an other-than-temporary impairment in earnings a laM aee81Hlteti
fef as a tieet ses1:l:fity.
Measurement oflmpairment
Recorded amount before "Fief te change in
estimate
Less: Present value of cash flows expected to
be . collected
Measureti Other-than-temporary impairment
recognjzed in earnings at December 31, 20X2
Recalculation ofAccretable Yield
Remaining cash flows expected to be
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1404
$2,705,013
(2.472.850)
$232,163
$3,195,402
38
FSP FAS 115-2 and FAS 124-2
collected, December 31, 20X2
Less the sum of:
Initial investment
Less: Cash collected to date
Less: Other-than-temporary
impairment recognized in
eamingsWrite dov/tis a:B:d allo'lIa:B:ee
Plus: Yield accreted to date
Remaining accretable yield as recalculated
Less: Unadjusted balance at December 31,
20X2
Adjustment needed to accretable yield
Total decrease in cash flows expected to be
collected
Pres eat >;alae of total desf6ase Other-than-
temporary impairment recognized in earnings
(current period loss)
Future accretable yield no longer expected
$4,000,000
(2,330,268)
(232,163)
1,035,281
2.472,850
722,552
(790,389)
$(67,837)
$300,000
(232,163)
$67,837
c. Paragraph A-7(a) and its heading (A-7(a) is now part of A-6):
AGGOURted for as a DestSeGUFity
A 7(R). If Company A receives the cash flows as expected in years 20Xl and
20X2 but at the end of20X2 determines cash flows will be $100,000 less in each
of years 20X3 through 20X5, the following is a summary of the effects of that
activity.
A B
Contractually
Required Cash Expected
Payments to Be
Receivable Collected
Acquisition $7,500,000 $5,825,670
20Xl
collections 0.165.134) 0.165.134)
Balance 6,334,866 4,660,536
20X2
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
C
Nonaccretable
Difference
A-B
$1,674,330
1,674,330
1405
D
A cere table
Yield
$1,825,670
(560,000)
1,265,670
E
Debt
Security
B-D
$4,000,000
(605,134)
3,394,866
39
FSP FAS 115-2 and FAS 124-2
collections
(1,165,134) (1,165,134) (475,281) (689,853)
Other-than-
. temJ2Qrary
!Impairment
(300
2
000)8 300
2
000 (232
2
163)
Balance
5,169,732 . 3,195,402 1,974,330 722,552 2,472,850
20X3
collections
. (120652134)
(1
2
065
2
134) (3462199) (7182935)
Balance
4,104,598 1,974,330 376,353 1,753,915
20X4
collections
(1
2
0652134) (120652134) (2452548) (8192586)
Balance
3,039,464 1,065,134 1,974,330 130,805 934,329
20X5
collections
(1
2
065
2
134) (1
2
065
2
134) (1302805) (934
2
329)
Balance
1,974,330
1,974,330
$ $ $
Disposition
(129742330)
(129742330)
$ $======
8 The $300,000 decrease in cash flows expected to be collected represents $67,837 of
interest income (accretable yield) foregone that had been expected at acquisition to be
earned and $232,163 of carrying amount that will not be recovered. The $3QQ,QQQ
aesFeaee iB eaeli "Dews te he eelleeteEl Fesuks iB a less ef $232,1 (;3 (FeeeF6eEl as
a 'Wflte eft) aatl feFegeBe iBterest iBeeme iB mtafe yeBfS ef$(;7,837.
Debt
Security
Allowance
Acquisition
$4,000,000
20X1
collections
(6052134)
Balance
3,394,866
20X2
collections
(689,853)
Impairment
(2322163)
Balance
2,472,850
20X3
collections
(7182935)
Balance
1,753,915
20X4
collections
(8192586)
Balance
934,329
20XS
collections
(9342329)
Balance
$
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
Debt Interest
Security Loss Cash Income
9
$4,000,000 $(4,000,000)
(6052134) 1,165,134 $560,000
3,394,866
(689,853) 1,165,134 475,281
(2322163) $232,163
2,472,850
(718
2
935) 1,065,134 346,199
1,753,915
(819586) 1,065,134 245,548
934,329
(934329) 120652134 1302805
$232,163 $1,525,670 $1,757,833
$
40
1406
'"
FSP FAS 115-2 and FAS 124-2
9 The accretable yield recognized as interest income for years 20X3 through 20XS FefIl&i:es at
14.99 palest would be the discount rate that equates the adjusted carrying amount (that is. after
recognition of the decrease in cash flows expected to be received on the security) to the cash
flows expected to be collected. Under the assumptions given. this rate remains at 14 percent in
this example.
d. Paragraph A-7(b) and its heading (A-7(b) is now part of A-7):
[The purpose of this amendment is to provide separate examples for loans and
debt securities. There have been no changes to the guidance for accounting for
loans in SOP 03-3.]
Accounted for as a Loan
A-7. Change in Expectations. Assume instead that. at Deceinber 31, 20X2,
Company A determines it is probable that cash flows expected to be collected will
be $100,000 less in each of the remaining 3 years than expected at acquisition.
Using the effective interest rate of 14 percent. the present value of the remaining
cash flows expected to be collected is calculated as $2.472,850. Following are the
resulting calculations.
Year Ended
December 31
20Xl
20X2
Totals for years
20XI-X2
20X3
20X4
20X5
Totals for years
20X3-X5
Totals for years
20XI-X5
Beginning Cash Flows
Carrying Exoected
Amount to Be Collected
$4,000,000
3.394,866
. $2.472.850
1.753.915
934.329
$1.165,134
1.165,134
$2,330,268
$1,065,134
1.065.134
1.065,134
$3.195.402
$5.525.670
Interest
Incom/
Ja

475.281
$1.035.281

245.548
130.805

$1.757.833
Reduction Ending
o[ Cal1J!:,ing 'Caming
Amount Amount
'
' 922.016
9b
2.472.850
$1.527.150

819.586 934.329
934.329

$4.000.000
9a The yield recognized is 14.00 percentfor years20Xl through 20XS.
9b The reduction of carrying amount includes an allowance for loan losses of
$232.163 for a loan not accounted for as a debt security.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124 ... 2)
1407
41
FSP FAS 115-2 and FAS 124-2
Measurement oflmpairment
Recorded amount before change in estimate
Less: Present value of cash flows expected to .
be collected
Measured impainnentat December 31, 20X2
Recalculation ofAccretable Yield
Remaining cash flows expected to be
collected, December 31, 20X2
Less the sum of:
Initial investment
Less: Cash collected to date
Less: allowance
Plus: Yield accreted to date
Remaining accretable yield as recalculated
Less: Unadjusted balance at December 31,
20X2
Adjustment needed to accretable yield
Total decrease in cash flows expected to be
collected
Present value of total decrease (current period.
loss)
Future accretable yield no longer expected
$4,000,000
(2.330,268)
(232,163)
1,035,281
$2,705,013
(2.472,850)
$232,163
===
$3,195,402
2,472,850
722,552
(790,389)
$(67,837)
====
$300,000
(232,163)
$67,837
==--=--=
i" ... 7(b). If Company A receives the cash flows as expected in years 20Xl and 20X2 but at the
end of20X2 determines cash flows will be $100,000 less in each of years 20X3 through 20X5,
the following is a summary of the effects of that activity.
Acquisition
20Xl
collections
A
Contractually
Required
Payments
. Receivable
$7,500,000
(1,165,134)
B
Cash Expected
to Be
Collected
$5,825,670
{l,165,134}
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
C
Nonaccretable
Difference
A-B
$1,674,330
1408
D
E
Accretable
Loans
Yield
Receivable
B-D
$1,825,670 $4,000,000
(560,000)
(605.134)
42
FSP FAS US-2and FAS 124-2
Balance
6,334,866 4,660,536 1,674,330 1,265,670 3,394,866
20X2
collections
. (1,165,134)
(1,165,134) (475,281) (689,853)
Impairment
(300.000)10 300,000 (67.831) (232.163)
Balance
5,169,732
3,195,402 1,974,330 722,552 2,472,850
il
20X3
collections
0.065.134)
. 0.065.134) (346.199) (718.935)
Balance
4,104,598
2,130,268 1,974,330 376,353 1,753,915
20X4
collections
0.065.134)
(1.065.134) (245.548) (819.586)
Balance
3,039,464
1,065,134 1,974,330 130,805 934,329
20X5
collections
0.065.134)
(1.065.134) (130.805) (934.329)
Balance
1,974,330
. 1,974,330
$ $ $
Disposition
0.974,330)
(1.974.330)
$
$
10 The $300,000 decrease in cash flows expected to be collected represents $67,837 of interest
income (accretable yield) foregone that had been expected at acquisition to be earned and
$232,163 of carrying amount that will not be recovered. The $300,000 decrease in cash flows
expected to be collected results in a loss of $232,163 (recorded as an allowance for loan loss) and
foregone interest income in future years of $67,837.
11 For a loan (not accounted for as a debt security) with an allowance, this amount equals the net
loans receivable.
Loans
Receivable
Allowance
Acquisition
$4,000,000
20Xl
collections
(605.134)
Balance
3,394,866
20X2
collections
(689,853)
Impanment

Balance
2,705,013
(232,163)
20X3
collections
(718.935)
Balance
1,986,078
(232,163)
20X4
collections
(819.586)
Balance
1,166,492
(232,163)
20XS
collections
(934.329)
Balance
232,163
(232,163)
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
Net Loans Bad Debt Interest
Receivable Expense Cash Income
12
$4,000,000 $(4,000,000)
(605.134} 1,165,134 $560,000
3,394,866
(689,853) 1,165,134 475,281
(232.163) $232,163
2,472,850
(718.935) 1,065,134 346,199
1,753,915
(819.586) 1,065,134 245,548
934,329
(934.329) 1.065.134 130.805
$432,163. $1,525,670 $1,757,833
$
43
1409
FSP FAS 115-2 and FAS 124-2
Disposition
(232,163) 232.163
$ $===
12 The accretable yield recognized as interest income for years 20X3 through
20X5 remains at 14.00 percent.
e. ParagiaphA-9(a)(1):
A-9(a)(I). If the loan is accounted for as a debt security, the entire subsequent
increase in cash flows expected to be collected is recorded as a yield adjustment
on a prospective basis because the earlier 7.Vf'ite QeWflOther-than-temporary
impairment write down recognized in earnings may not be r e v e ~ e d . Following is
a stmnilary of activity.
Beginning
Cash Flows Reduction Ending
Year Ended
Carrying Expected Interest of Carrying Carrying
Income
13
December 31
Amount
to Be Collected Amount Amount
20X1
$4,000,000
$1,165,134 $560,000 $605,134 $3,394,866
20X2
3,394,866
1,165,134 475,281 922016
14
2,472,850 ,
20X3
2,472,850
l
s
065s134 346s199 718s935 1,753,915
Totals for years
20X1-X3
$3395A02 $L381A80 $2s246s085
20X4
. $1,753,915 $1,115,134 $309,219 $805,915 $948,000
20X5
948,000 lsl15s134 167s134 948s000
Totals for years
20X4-X5
$2230268 $476s353 $L753,915
Totals for years
20X1-X5
$5,625,670 $1,857,833 $4,000,000
13 The 'yield recognized is 14.00 percent for years 20X1 through 20X3 and
17.6302 percent for years 20X4 and 20XS. .
14 The reduction of carrying amount includes a wfite d9\'lVm'ecognition in earnings
of an other-than-temI!QrmY impairment of $232,163.
f. Paragraph A-9(a)(2):
A-9(a)(2). If Company A receives the cash flows as indicated above, the
following is a summary of the effects of that activity.
A
B
Contractually
Required Cash Expected
FSP on Sta,tement 115 and Statement 124
(FSPFAS 115-2andFAS 124-2)
1410
c D E
44
FSP FAS 115-2 and FAS 124-2
Payments
to Be Nonaccretable Accretable Debt
Receivable
. Collected Difference Yield Security
A-B B-D
Acquisition
$7,500,000
$5,825,670 $1,674,330 $1,825,670 $4,000,000 .
20Xl
collections
(1.165.134) 0.165.134) (560.000) (605.134)
Balance
6,334,866 4,660,536 1,265,670 3,394,866
20X2
collections
(1,165,134)
(1,165,134) (475,281) (689,853)
Other-then-
temporary
,ilmpainnent
(300.000) 300.000 (67,837) (232.163)
Balance
5,169,732
3,195,402 . 722,552 2,472,850
20X3
collections
(1.065.134)
(1.065.134) (346.199) (718.935)
Balance
4,104,598
2,130,268 1,974,330 . 376,353 1,753,915
Increase in. cash
flows expected
100,000
15
(100,000) 100,000
20X4
collections
(1.115.134)
(1.115.134) (309.219) (805.915)
Balance
2,989,464
1,115,134 1,874,330 167,134 948,000
20X5
collections
(1.115.134)
(1.115,134) (167.134) (948.000)
Balance
1,874,330
1,874,330
$ .
$ $
Disposition
(1.874.330)
(1.874.330)
$
$
15 The $100,000 increase in cash flows expected to be collected results in a reclassification of
nOnaCcretable difference to accretable yield.
Debt
Debt
Security
Allowance Security
Interest
Loss Cash. Income
16
Acquisition
$4,000,000
$4,000,000 $(4,000,000)
20Xl
collections
(605,134)
(605.134)
Balance
3,394,866
3,394,866
1,165,134 $560,000
20X2
collections
(689,853)
(689,853)
Impairment
(232,163)
(232.163)
Balance
2,472,850
2,472,850
1,165,134 475,281
$232,163
20X3
collections
(718,935)
(718.935) 1,065,134 346,199
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 andFAS 124-2)
45
1411
FSP FAS 115-2 and FAS 124-2
1,753,915
1,753,915
Balance
20X4
collections
Balance
(805,915)
948,000
(805,915)
948,000
1,115,134 309,219
20X5
collections
Balance
(948,000)
(948,000) 1,115,134 167,134
$232,163 $1,625,670 $1,857,833
$ ----==
$=== == ===
16 Because the loan is accounted for as a debt security, the reduction in cash flows evaluated at
the end of 20X2 resulted in recognition in earnings of an other-than-temporary impairment that
may not be reversed. The increase in the accretab1e yield is recognized as interest income on a
prospective basis resulting in an increase in yield for years 20X4 and 20X5 from 14.00 percent to
17.6302 percent. .
g. Paragraph A-11(a)(I):
A-11(a)(1). If the loan is accounted for as a debt security, the entire subsequent
increase in cash flows expected to be collected is recorded as a yield adjustment
on a prospective basis because the earlier write dowmecognition in earnings of
other-than-temporary impairment that may not be reversed. Following is a
summary of the activity.
Year Ended
December 31
Beginning
Carrying
Amount
Cash Flows
Expected
to Be Collected
Interest
Incomi
3
Reduction Ending
of Carrying Carrying
Amount Amount
20Xl
20X2
20X3
$4,000,000
3,394,866
2,472,850
$1,165,134
1,165,134
1,065.134
$560,000 $605,134 $3,394,866
Totals for years
20XI-X3
20X4
20X5
Totals for years
20X4-X5
Totals for years
.20XI-X5
$1,753,915
997,434
$3,395,402
$1,315,134
1,315.134
$2,630,268
$6,025,670
====
475,281
346,199
$1,381,480
$558,653
317,700
$876,353
$2,257,833
922016
24
, 2,472,850
718,935 1,753,915
$2,246,085
$756,481 $997,434
997,434
$1,753,915
$4,000,000
====
23 The yield recognized is 14.00 percent for years 20Xl through 20X3 and 31.8518 percent for
. years 20X4 and 20X5. Interest income exceeds the difference in cash flows expected to be
. collected and the acquisition price by $232,163, which is the amount of the other-than-temporary
. impairment recognized in 20X2 that may not be reversed.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1412
46
FSP FAS 115-2 and FAS 124-2
24 The reduction of carrying amount includes a wftte 8eWB8D. other-than-temporary impairment
of $232, 163 recognized in earnings.
h.
Paragraph A-11(a)(2:
A-ll(a)(2). If Company A receives the cash flows as indicated above, the following is a
summary of the effects of that activity.
A B C D E
Contractually
Required Cash Expected
Payments to Be Nonaccretable Accretable Debt
Receivable Collected Difference ' Yield Security
A-B B-D
Acquisition
$7,500,000 $5,825,670 $1,674,330 $1,825,670 $4,000,000
20Xl
collections
(lsI65s134} (lsI65s134} (560s000} (6052134}
Balance
6,334,866 4,660,536 1,674,330 1,265,670 3,394,866.
20X2
collections
(1,165,134) (1,165,134) (475,281) (689,853)
Impairment
(300s000} 300s000 (67s837} (232s163}
Balance
5,169,732 3,195,402 1,974,330 722,552 2,472,850
20X3
collections
(ls065s134} (ls065s134} (346s199} (718s935}
Balance
4,104,598 2,130,268 1,974,330 376,353 1,753,915
Increase in cash
500000
25
flows expected
(500,000) 500,000 ,
20X4
collections
(ls315s134} (ls315s134} (558s653} (756A81)
Balance
2,789,464 1 ~ 3 1 5 , 1 3 4 1,474,330 317,700 997,434
20X5
collections
(ls315s134} (l.315s134} (317.700} (997.434}
Balance
1,474,330 1,474,330
$ $ $
Disposition
(l.474.330}
0.474.330}
$
$
25 The $500,000 increase in cash flows expected to be collected results in a reclassification of
nonaccretab1e difference to accretable yield.
Debt
Security . Allowance
Acquisition $4,000,000
FSP on Statement 115 and.Statement 124
(FSP FAS 115-2 and FAS 124-2)
Debt
Security
$4,000,000
1413"
$(4,000,000)
Interest
Income
26
47
FSP FAS 115-2 and FAS 124-2
20Xl
collections
(605.134)
(605.134) 1,165,134 $560,000
Balance
3,394,866
3,394,866
20X2
collections
(689,853)
(689,853) 1,165,134 475,281
Impairment
(232,163)
(232,163) $232,163
Balance
2,472,850
2,472,850
20X3
collections
(718,935)
(718,935) 1,065,134 346,199
Balance
1,753,915
1,753,915
20X4
collections
(756.481)
(756.481) 1,315,134 558,653
Balance
997,434
.997,434
20X5
collections
(997.434)
(997.434) 1.315,134 317,700
$232,163 $2,025,670 $2,257,833
$======
$==== =--=== =--==
26 Because the loan is accounted for as a debt security, the reduction in cash flows expected to be
collected at the end of 20X2 resulted in recognition in earnings of an other-than-temporary
impairment that may not be reversed. The increase in the accretable yield is recognized as
interest income on a prospective basis resulting in an increase in yield for years 20X4 and 20X5
from 14.00 percent to 31.8518 percent.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1414
48
FSP FAS 115-2 and FAS 124-2
AppendixB
FSP FAS 11S-1 and FAS 124-1 as revised by this ESP and FSP FAS 107-1 and
APB28-1
[This appendix is being provided for informatiori.al pwposes only to show the amendments made
to FSP F AS 115-1 and:F AS 124-1 by this FSP and by FSP F AS 107-1 and APB 28-1 in context.
The effective date and transition guidance in paragraph 19 and Appendix B of FSP F AS 115-1.
and FAS 124-1 has not been includedl.
INTRODUCTION
1. ThisFASB Staff Position (FSP) addresses the determination as to when an investment is
considered impaired, whether that impairment is other than temporary, and the measurement of
an impairment loss. This FSP also includes accounting considerations subsequent to the
recognition of an other-than-temporaryimp,airment and requires certain disclosures about
unrealized losses that have not been recognized as other-than-temporary impairments. The
guidance in this FSP amendsF ASB Statements No. 115, Accounting for Certain Investments in
Debt and Equity Securities, and No. 124, Accounting for Certain Investments Held by Not-for-
Profit Organizations, and APB Opinion No. 18, The Equity Method of Accounting for
Investments in Common Stock. Appendix B to thisFSP shows the amendments to those
pronouncements.
BACKGROUND AND SCOPE
2. At its March 17 and 18, 2004 meeting, the Emerging Issues Task Force (EITF) reached a
consensus on EITF Issue No. 03-1, "The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments." At this same meeting, the EITF decided to discontinue
discussion of an impairment model for investments subject to the equity method of accounting.
. Shortly thereafter, the Board was asked to provide implementation guidance on that consensus.
In September 2004, the F ASB staff issued proposed FSP EITF 03-1-a, "Implementation
Guidance for the Application of Paragraph 16 of EITF Issue No. 03-1."
3. The comment period on that proposed FSP ended on October 29, 2004. The Board
received over 250 co1l1iD.ent letters. Most respondents requested that the Board rescind the.
consensus reached in Issue 03-1.
3A. FSP FAS 115-2 and FAS 124-2. Recognition and Presentation of Other-Than-Temporary
Impairments. amends the recognition. presentation. and disclosure guidance in this FSP.
4. The guidance in this FSP is applicable for investments in:
a. Debt and equity securities that are within the scope of Statement 115.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and F AS 124-2)
1415
49
FSP FAS 115-2 and FAS 124-2
(l), As indicated in paragraph 127(b) of Statement 115, insurance companies are '
required to report equity securities at fair value even if they do not meet the
scope criteria in paragraph 3 of Statement 115. Therefore, this FSP would
apply to all equity securities held by insurance companies.
(2) Investors shall not "look through" the form of their investment to the nature
of the securities held by an investee. For example, an investment in shares of
a mutual fund that invests primarily in debt securities would be assessed for
impairment as an equity security under this FSP.
(3) Some investments may require bifurcation and separate accounting for the
host instrument and embedded derivative if the criteria of paragraph 12 of
FASB Statement No. 133, Accounting for Derivatiye Instruments and
Hedging Activities, are met. The bifurcated host instrument would be
evaluated for other-than-temporary impairment in accordance with the
guidance in this FSP if the bifurcated host instrument meets the scope of this
.FSP.
b. Debt and equity securities that are within the scope of Statement 124 and that are
held by an investor that reports a "performance indicator" as defined in. the
AICPA Accounting and Audit Guide, . Health Care Organizations. Throughout
this standard. the term earnings shall be rq>laced with pertormance indicator. and
other comprehensive income .shall be rq>laced with outside the perfOrmance
indicator for debt securities that are within the scope of Statement 124.
c. Equity securities that are not subject to the scope of Statements 115 and 124 and
not accounted for under the equity method pursuant to Opinion 18 and related
interpretations (hereinafter referred to as "cost-method investments").
FASB STAFF POSITION
5. This FSP nullifies certain requirements of Issue 03-:1 and supersedes EITF Topic No. D-
44, "Recognition of Other-Than-Temporary Impairment upon the Planned Sale of a Security
Whose Cost Exceeds Fair Value." This FSP specifically:
a. Nullifies the requirements of paragraphs 10-18 o f I ~ s u e 03-1
b. Carries forward the requirements of paragraphs 8 and 9 of Issue 03-1 with respect
to cost-method investments
c. Carries forward the disclosure requirements included in paragraphs 21 and 22 of
Issue 03-1 and related example
d. References existing other-than-temporary impairment guidance.
FSP on Statement 115 and Statement 124
(FSPFAS 115-2andFAS 124-2)
1416
SO
FSP FAS 115-2 andFAS 124-2
6. Paragraphs 7-15 discuss the three steps in determining when an investment is considered
impaired, whether that impairment is other than temporary, and the measurement of an
impainnent loss.
APPLICATION GUIDANCE
Step 1: Determine Whether an Investment Is linpaired
7. Impairment shall be assessed at the individual secUrity level (herein referred to as "an
investment,,).l An investment is impaired if the fair value of the investment is less than its cost?
Except as provided in paragraph 10, an investor shall assess whether an investment is impaired in
each reporting period. For entities that issue interim financial statements, each interim period is a
reporting period.
8. An investor shall not combine separate contracts (a debt security and a guarantee or other
credit enhancement) for purposes of determining whether a debt security is' impaired or can
contractually be prepaid or otherwise settled in such away that the investor would not recover
substantially all of its cost.
9. For investments other than cost-method investments (see paragraph 4(c, if the fair value
of the investment is less than its cost, proceed to Step 2.
10. Because the fair value of cost-method investments is not readily determirui.ble, the
evaluation of whether an investment is impaired shall be determined as follows:
a. If an investor has estimated the fair value of a cost-method investment (for
example, for disclosure under FASB Statement No. 107, Disclosures about Fair
Value of Financial Instruments), that estimate shall be used to determine if the
investment is impaired for the reporting periods in which the investor estimates
fair value. If the fair value of the investment is less than its rost, proceed to Step
2.
b. For reporting periods in which an investor has not estimated the fair value of a
cost-method investment,
3
the investor shall evaluate whether an event or change
1 Individual security level means the level and method of aggregation used by the reporting entity to measure
realized and unrealized gains and losses on its debt and equity securities. (For example, equity .securities of an issuer
bearing the same CUSIP number that were purchased in sepapate trade lots may be aggregated by a reporting entity
on an average cost basis if that corresponds to the basis used to measure realized and unrealized gains and losses for
the securities of the issuer.)
2 Amortized oGost basis includes adjustments made to the cost ~ f an investment for accretion. amortization,
collection of cash. previous other-than-temporary impairments recognized in earnings (less any cumulative effect
adjustments recognized in accordance with the transition provisions of FSP F AS 115-2 and F AS 124-2. Recognition
and Presentation of Other-Than-Temporary Impairments), and kedgiBg fair value hedge accounting adjustments.
3 For example, an investor may not estimate the fair value of a cost-method investment during a reporting period for
Statement 107 disclosure because (8) SmtemeRt IQ;t feEtWea diselsS1:Ife eBly fef a B B ~ fBpeHiBg "eAsEls; ( ~ the
investor determined that, in accordance with paragraphs 14 and 15 of Statement 107, it is not practicable to estimate
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1417
51
FSP FAS 115-2 and FAS 124-2
in circumstances has occurred in that period that may have a significant adverse
effect on the fair value of the investment (an "impairment-indicator"). Impairment
indicators include, but are not limited to:
(1) A significant deterioration in the earnings performance, credit rating, asset
quality, or business prospects of the investee.
(2) A significant adverse change in the regulatory, economic, or technological
environment of the investee
(3) A significant adverse change in the general market condition of either the
geographic area or the industry in which the investee operates .
. .
(4) A bona fide offer to purchase (whether solicited or unsolicited), an offer
by the investee to sell, or a completed auction process for the ,same or
similar security for an amount less than the cost of the investment
(5) Factors that raise significant concerns about the investee's ability to
continue as a going concern, such as negative cash flows from operations,
working capital deficiencies, or noncompliance with statutory capital
requirements or debt covenants.
11. In addition, if an investment was previously tested for impairment under Step 2 and the
investor concluded that the investment was not other-than-temporarily impaired, the investor
shall continue to evaluate whether the investment is impaired (that is, shall estimate the fair value
of the investment) in each subsequent reporting period until either (a) the investment experiences
a recovery of fair value up to (or beyond) its cost or (b) the investor recognizes an other-than-
temporary impairment loss.
12. If an impairment indicator is present, the investor shall estimate the fair value of the
investment. If the fair value of the investment is less than its cost, proceed'to Step 2.
Step 2: Evaluate Whether an Impairment Is Other Than Temporary .
13. When the fair value of an investment is less than its amortized cost basis at the balance
sheet date of the reporting period for which impairment is assessed, the impairment is either
temporary or other.than temporary.4 In addition to the guidance in this FSP, investor shall
apply other guidance that is pertinent to the determination of whether an impairment is other than
tempoquy, such as 1 (i ef StatemeBt 113 (whieh fElfeFeBees SI1:C StMf 1
A
zeeelHltiBg
the fair value of the investment; ef (eh) the investor is exempt from providing the disclosure under F ASB Statement
No. 126, Exemption from Certain Required Disclosures about Financial Instruments for Certain Nonpublic
or (c) the investor is exempt from providing the disclosure for interim rmorting periods because the investor does
not meet the defurition of a publicly traded company. as defined by APB Opinion No. 28. Interim Financial
Reporting.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
52
1418
FSPFAS llS-2andFAS 124-2
8a11. Tapia SM, ()theY AMI 'FemJ16MFY 11ItpaiRltent 8,lCeFtailt !1weSHlte1ttB ilt };)e6t anti
EttNity 8eewities), paragraph 6 of Opinion 18; and EITF Issue No. 99-20, "Recognition of
Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That
Continue to Be Held by a Transferor in Securitized Financial Assets."
Equity SecuritieS
13A. For equity securities. an investor shall apply guidance that is pertinent to the
determination of whether an impairment is other than temporary. such as SEC Staff Accounting
Bulletin Topic 5M. Other Than Temporary Impairment of Certain Investments in Debt and
Equity Securities. and other authoritative literature.
14. In applying that guidance, questions sometimes arise about whether an investor shall
recognize an other-than-temporary impairment only when it intends to sell a specifically
identified available-for-sale debt or equity security at a loss shortly after the balance sheet date.
When an investor has decided to sell an impaired available-for-sale security and the investor
does not expect the fair value of the security to fully recover prior to the expected time of sale,
the security shall be deemed other-than-temporarily impaired in the period in which the decision
to sell is made. However, an investor shall recognize an impairment los.s when the impairment is
deemed other than temporary even if a decision to sell has not been made.
Debt Securities
14A. If an investor intends to sell the debt securitY (that is. it has decided to sellthe security).
an other-than-temporary impairment shall be considered to have occurred.
14B. If an investor does not intend to sell the debt security. the investor shall consider
available evidence to assess whether it more likely than not will be required to sell the securitv
before the recovety of its amortized cost basis (for example. whether its cash or working capital
requirements or contractual or regulatoty obligations indicate that the security will be required to
be sold before a forecasted recovery occurs). If the investor more likely thannot will be required.
to sell the security before recovery of its amortized cost basis. an other-than-temporary
impairment shall be considered to have occurred.
14C. If an investor does not expect to recover the entire amortized cost basis of the security.'
the investor would be unable to assert that it will recover its amortized cost basis even if it does
not intend to sell the security. Therefore. in those situations. an other-than-temporary
impairment shall be considered to have occurred. In assessing whether the entire amortized cost
basis of the security will be recovered. an investor shall compare the present value of cash flows
expected to be collected from the security with the amortized cost basis of the security. If the
present value of cash flows expected to be collected is less than the amortized cost basis of the
4 Other than temporary does not mean permanent.
. FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
53
1419
FSP FAS 115-2 andFAS 124-2
security. the entire amortized cost basis of the security will not be recovered (that is. a credit loss
exists>. and an other-than-temporary impairment shall be considered to have occurred.
14D. In deter:m:ining whether a credit loss exists. an investor shall use its best estimate of the
present value of cash flows expected to be collected from the debt. security. One way of
estimating that amount would be to consider the methodology described in paragraphs 1216 of
FASB Statement No. 114. Accounting by Creditors for Impairment ofa Loan. for measuring an
impairment on the basis of the present value of expected future cash flows. Paragraph 14 of
Statement 114 provides guidance on this calculation. . Briefly. the investor would discount the
expected cash flows at the effective interest rate implicit in the security at the date of acquisition.
14E. For debt securities that are beneficial interests in securitized financial assets within the
scope of Issue 99-20. an investor shall determine the present value of cash flows expected to be
collected by considering the guidance in paragraph 12(b) of Issue 99-20 for determining whether
there has been a decrease in cash flows expected to be collected from cash flows previously
projected. In other words, the cash flows estimated at the current financial reporting date shall
be discounted at a rate equal to the current yield used' to accrete the beneficial interest.
Additionally, for debt securities accounted for in accordance with AICP A Statement of Position
03-3. Accounting for Certain Loans or Debt Securities Acquired in a Transfer. an investor shall
consider that standard in estimating the present value of cash flows expected to be collected from
the debt security. A decrease in cash flows expected to be collected on an asset.;backed security
that results from an increase in prepayments on the underlying assets shall be considered in the
estimate of the present value of cash flows expected to be collected.
,
14F. ' There are numerous factors to be considered when estimating whether a credit loss exists
and the period over which the debt security is expected to recover. The following are a few
examples of the factors that shall be considered. This list is not meant to be all inclusive.
!!:. The length of time and the extent to which the fair value has been less than the
amortized cost basis
b. Adverse conditions specifically related to the security. an industry, or geographic area
(for example. changes in the fInancial condition of the issuer of the security, or in the
case of an asset':'backed debt security, in the financial condition of the underlying loan
obligors, including changes in technology or the discontinuance of a segment of the
business that may affect the future earnirigs potential of the issuer or underlying loan
obligors of the security or changes in the quality of the credit enhancement)
c. The historical and implied volatility of the fair value of the security
d. The payment structure of the debt security (for example, nontraditional loan terms as
described in FSP SOP 94-6-1, Terms of Loan Products That May Give Rise to a
Concentration of Credit Risk) and the likelihood of the issuer being able to make
payments that increase in the future
e. Failure of the issuer of the security to make scheduled interest or principal payments
f:. Any changes to the rating of the security by a rating agency,
~ Recoveries or additional declines in fair value subsequent to the balance sheet date.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1420
54
FSP FAS 115-2 and FAS 124-2
140. In making its other-than-temporary impairment assessment. an investor shall consider all
available infonnation relevant to the collectibility of the security, including infonnation about
past events. current conditions. and reasonable and supportable forecasts, when developing the
estimate of cash flows expected to be collected. That infonnation generally should include the
remaining payment terms of the security. prsmayment speeds. the financial condition of the
issuer(s), expected defaults, and the value of any underlying collateral. To achieve that objective,
the investor should consider. for example, industry analyst reports and forecasts, sector credit
ratings, and other market data that are relevant to the collectibility of the security. An investor
also should consider how other credit enhancements affect the expected perfonnance of the
security, including consideration of the current financial condition of the guarantor of a security
(if the guarantee is not a separate contract as discussed in paragraph 8) and/or whether any
subordinated interests are capable of absorbing estimated losses on the loans underlying the
security. The remaining payment tenns of the security could be significantly different from the
payment tenus in prior periods (such as for some securities backed by nontraditional loans).
Thus, an investor should consider whether a security backed by currently performing loans will
continue to perfonu when required payments increase in the future (including "balloon"
payments). An investor also should consider how the value of any collateral would affect the
expected perfonnance of the security. If the fair value of the collateral has declined, an investor
needs to assess the effect of that decline on the ability of the investor to collect the balloon
payment.
Step 3: Recognition of an Other-Than-Temporary ImpairmentH the ImpairmeBt Is OtheF
ThaB TempoFary, R e e o g B ~ e aB ImpaiFmeBt Loss EflU:al to the DiffeFeBee hetweeB the
IBnstmeBt's Cost aBd Its Faip Valae
Equity Securities If the Impairment Is Other Than Temporary. Recol!D;ize an
Impairment Loss Equal to the Difference between the Investment's Cost Basis and Its Fair
Value
15. If it is determined in Step 2 that the impairment is other than temporary, then an
impairment loss shall be recognized in earnings equal to the entire difference between the
investment's cost and its fair value at the balance sheet date of the reportingperiod for which the
assessment is made. The measurement of the impairment shall not include partial recoveries
subsequent to the balance sheet date. The fair value of the investment would then become the
new cost basis of the investment and shall not be adjusted for subsequent recoveries in fair value.
Debt Securities-Determination of the Amount of an Other-Than-Temporary Impairment
Recognized in Earnings and Other Comprehensive Income
15A. When an other-than-temporary impainuent has occurred, the amount of the other-than-
temporary impairment recognized in earnings depends on whether an investor intends to sell the
security or more likely than not will be required to sell the security before recovery of its
amortized cost basis less any current-period credit loss.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1421
55
FSP FAS 115-2 and FAS 124-2
I5B. If an investor intends to sell the security or more likely than not will be required to sell
the security before recovery of its amortized cost basis less any current-period credit loss. the
other-than-teinporary impaimlent shall be recognized in earnings equal to the entire difference
between the investment's cost and its fair value at the balance sheet date. In assessing whether
the investor more likely than not will be required to sell the security before recovery of its
amortized cost basis less any current-period credit losses. the investor shall consider the factors
in paragraph 14F.
15C. If an investor does not intend to sell the security and it is not more likely than not that the
invester will be required to sell the security before recovery of its amortized cost basis less any
current-period credit loss. the other-than-temporary impairment shall be separated into the
following:
!!:. The amount re,presenting the credit loss
b. The amount related to all other factors.
15D. The amount ofthe total other-than-temporary impairment related to the credit loss shall
be recognized in earnings. The amount of the total other-than-:-temporary impairment related to
other factors shall be recognized in other comprehensive income. net of applicable taxes.
15E. The previous amortized cost basis less the other-than-temporary impairment recognized
in earnings shall become the new amortized cost basis of the investment. That new amortized
cost basis shall not be adjusted for subsequent recoveries in fair value. However. the amortized
cost basis shall be adjusted for accretion and amortization as prescribed in paragraph 16.
ACCOUNTING FOR DEBT SECURITmS SUBSEQUENT TOAFTER AN OTHER-
THAN-TEMPORARY IMPAIRMENT
16. In periods sli9SeEJ:1:leat teafter the recognition of an other-than-temporary impairment loss
for debt securities,S an investorsball account for the other-than-temporarily impaired debt
security as if the debt security had been purchased on the measurement date of the other-than-
temporary impairment at an amortized cost basis equal to the previous amortized cost basis less
the other-than-temporary impairment recognized in earnings. Tftat is, the atseeUBt eF Fes1:l6ee
f'Femiam Feeertiee reF the seat seem#y, hesee eft the ftew eest hasis, wetHtt he amet"ti2ee eVeF
the FefBaiBiBglife ef the eeat see:t:tr#y iB e pFespeetive IBftBBeF hesee eft the IHB8BBt ftB8 timiBg
ef fatae estimeteEl eesh flews.For debt securities for which other-than-temporary impairments .
were recognized in earnings. the difference between the new amortized cost basis and the cash
flows expected to be collected shall be accreted in accordance with existing applicable guidance
as interest income. An investor shall continue to estimate the present value of cash flows
expected to be c o l l e c ~ over the life of the debt security. For debt securities accounted for in
S This FSPdoes not address when a holder of a debt security would place a debt security on nonaccrual status or
how to subsequently report income on anonaccrual debt security.
FSP on Statement 115 and Statement 124 .
(FSP FAS 115-2 and FAS 124-2)
1422
56
FSP FAS 115-2 and FAS 124-2
accordance with Issue 99-20. an investor should look to that standard to account for changes in
cash flows expected to be collected. For all other debt securities. ifupon subsequent evaluation.
there is a significant increase in the cash flows expected to be collected or if actual cash flows
are significantly greater than cash flows previously expected, such changes shall be accounted
for as a prospective adjustment to the accretable yield in accordance with SOP 03-3 even if the
debt security would not otherwise be within the scope of that standard. Subsequent increases and .
decreases (if not an other-than-temporary impairment) in the fair value of available-for-sale
securities shall be included in other comprehensive income.
16A. The other-than-temporary impairment recognized in other comprehensive income for
. debt securities classified as held-to-maturity shall be accreted from other comprehensive income
to the amortized cost of the debt security over the remaining life of the debt security in a
prospective manner on the basis of the amount and timing of future estimated cash flows. . That
accretion shall increase . the can:ying value of the security and shall continue until the security is
sold, the security matures. or there.is an additional other-than-temporary impairment that is
recognized in earnings. If the security is sold. paragraphs 8 and 11 of Statement 115 provide
guidance on . the effect of changes in circumstances that would not call into question the
investor's intent to hold other debt securities to maturity in the future.
PRESENTATION
16B. In periods in which an investor determines that a security's decline in fair value below its
amortized cost basis is other than the investor shall present the total other-than-
temporary impairment in the statement of earnings with an offset for the amount of the total
other-than-temporaty impairment that. is recognized in other comprehensive income. in
accordance with paragraph 150. if any. The following is an example of the presentation on the
face of the statement of earnings:
Total other-than-temporary impairment losses
Portion of loss recognized in other comprehensive
income (Pefore taxes)
Net impairment losses recognized in earnings
($10.000)
4.000
($ 6.000)
16C. An investor also shall separately present in the financial statement where the components
of accumulated other comprehensive income are reported. amounts recognized therein related to
held-to-maturity and available-for-sale debt securities for which a portion of an other,..than-
temporary impairment has been recognized in earnings .
. DISCLOSURES
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
57
1423
FSP FAS U5-2 and FAS 124-2
17. For all investments in an unrealized loss6 position, including those that fall within the
scope of Issue 99-20, for which other-than-temporary impairments have not been recognized in
. earniIigs, an investor shall disclose the following in its interim: and annual financial statements
(included in this disclosure are investments for which a portion of an other-than-temporary
impairment has been recognized in other comprehensive income):
a. As of each date for which a statement of fmancial position is presented,
quantitative information, aggregated by category of investment-each
eategefY ef iwJesBlieBt major security type that the investor discloses in
accordance with Statements 115 and 124 (see paragraph 4(b and cost-
method investments-in tabular form:
(1) The aggregate related fair value of investplents with unrealized
losses \.
(2) The aggregate amount of unrealized losses (that is, the amount by
which amortized cost basis exceeds fair value).
The disclosures in (1) and (2) above shall be segregated by those investments
that have been ina continuous unrealized loss'position for less than 12
months and those that have been in a continuous unrealized loss position for
.12 months or longer. The reference point for determining how long an
investment has been in a continuous unrealized loss position is the balance
sheet date of the reporting period in which the impairment is identified. For
entities that do not prepare interim financial information, the reference point
would be the annual balance sheet date of the period during which the
impairment was identified. The continuous unrealized loss position ceaseS
upon either (a) the recognition of the total amount by which amortized cost
basis exceeds fair v a l ~ as an other-than-temporary impairment in earnings .
or (b) the investor becomilig aware of a recovery of fair value up to (or
beyond) the amortized cost basis of the investment during the period.
b. As of the date of the most recent statement of fmancial position, additional
information (in narrative form) that provides sufficient information to allow
financial statement users to understand the quantitative disclosures and the
information that the investor considered (both positive and negative) in
reaching the conclusion that the impairment(s) are not other than telllPorary.
The application of Step 2 shall provide insight into the investor's rationale for
concluding that unrealized losses are not other-than-temporary impairments.
The disclosures required may. be aggregated by investment categories, but
6 An unrealized loss is the amount by which the cost of an investment exceeds its fair value.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1424
58
FSP FAS 115-2 and FAS 124-2
individually significant unrealized losses generally shall not be aggregated.
This disclosure could include:
(1) The nature of the investment(s)
(2) The cause(s) of the iri:J.pairment(s)
(3) The number of investment positions that are in an unrealized loss
position
(4) The severity and duration of the impairment(s)
(5) Other evidence considered by the investor in reaching its conclusion
that the investment is not other-than-temporarily impaired, including,
for example, performance indicators of the underlying assets in the
security (including default rates. rates. and percentage of
nonperfonning assets), loan to collateral value ratios. third-party
guarantees. current levels of subordination. vintage. geographic
concentration. industry analyst reports, sector credit ratings, volatility
of the security's fair value, and/or any other information that the
investor considers relevant.
18. For cost-method investments, an investor shall disclose the following additional
information, if applicable, as of each date for which a statement of financial position is presented
in its interim and annual financial statements:
a. The aggregate carrying amount of all cost-method investments
b. The aggregate carrying amount of cost-method investments that the
investor did not evaluate for impairment
c. The fact that the fair value of a cost-method investment is not estimated if
there are no identified events or changes in circumstances that may have a
significant adverse effect on the fair value of the investment, and
(1) The investor determined, in accordance with paragraphs 14 and 15
of Statement 107, that it is not practicable to estimate the fair value of the
investment,-ef
(2) The investor is exempt from estimating annual fair under
FASB Statement No. 126, Exemption from Certain Required Disclosures
about Financial Instruments for Certain Nonpublic or
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1425
59
FSP FAS 115-2 and FAS 124-2
(3) The investor is exempt from estimating interim fair values because
it does not meet the definition of a publicly traded company, as defined by
APB Qpinion No. 28, Interim Financial Reporting.
18A. For interim and annual periods in which an other-than-temponuy impairment of a debt
security is recognized and only the amount related to a credit loss was recognized in earnings, an
investor shall disclose, by major security type, the methodology and significant inputs used to
measure the amount related to the credit loss. Examples of significant inputs include, but are not
limited to, performance indicators of the underlying assets in the security (including default
rates, delinquency rates, and percentage of nonperforming assets), loan to collateral value ratios,
. third-party guarantees, current levels of subordination, vintage, geographic concentration. and
credit ratings.
18B. For each interim. and annual reporting period presented, an investor shall disclose a
tabular rollforward of the amount related to credit losses recognized in earnings in accordance
with paragraph 150, which shall include at a minimum:
a. The beginning balance of the amount related to credit losses on debt
securities held by the investor at the beginning of the period for which a
portion of an other-than-temponuy impairment was recognized in other
comprehensive income
b. Additions for the amount related to the credit loss for which an other-than-
temporary impairment was not previously recognized
c. Reductions for securities sold during the period (realized)
d. Reductions . for securities for which the amount previously recognized in
other comprehensive income was recognized in earnings because the
investor intends to sell the security or more likely than not will be required
to sell the security before recovery of its cost basis
~ Additional increases to the amount related to the credit loss for which an
other-than-temporarv impairment was previously recognized when the
investor does not intend to sell the security and it is not more likely than
not that the investor will be required to sell the security before recovery of
its cost basis
f.. Reductions for increases in cash flows expected to be collected that are
recognized over the remaining life of the security (refer to paragraph 16)
.& The ending balance of the amount related to credit losses on debt
securities held by the entity at the end of the period for which a portion of
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2) .
1426
60
FSP FAS 115-2 and FAS 124-2
an other-than-tempof81Y impairment was recognized in other
comprehensive income.
APPENDIX A; EXAMPLE OF THE APPLICATION ON DISCLOSURES ABOUT
INVESTMENTS IN AN UNREALIZED LOSS POSmON THAT ARE NOT OTHER-
THAN-TEMPORARILY IMPAIRED
AI. The followmg table shows tlJ,e gross unrealized losses and fair value of the Company's
investments with unrealized losses that are not deemed to be other-than-temporarily impaired (in
millions), aggregated by investment category and length of time that individual securities have
been in a continuous unrealized loss position at December 31, 20X3. This exaniple illustrates the
application of paragraphs 17 and 18 and, in doing so, describes the investor's rationale for not
recognizing all unrealized losses presented in the table as other-than-temporary impairments. In
the application of paragraph 17(b), the investor shall provide meaningful disclosure about
individually significant unrealized losses. To facilitate the narrative disclosures and for
simplicity, this example presents only the quantitative information as of the date of the latest
statement of financial position. However, pursuant to paragraph 17, that information is required
as of each date for which a statement of financial position is presented, except in the period of
initial application of this FSP.
Less ThaD UMImths
UMonIhs or Greater Total
Filii- Unrealized Fair Unreallzed \ Fair Unrealized
Descriulil!!l at S.curities Y!l!!.
Losses yalue
L!!m Y!!!!!
Losses
U.S. TreasutY obligations and direct
obligalioos of U.S. government
$ 58 $'1
agencies
$172 $2 $230 $3
Federal ageocy mortwe-backed
securities
301 5 18 385 6
Corporate bonds
150 7 0 0 150 7
Marketable equity securities
44 8 0 0 44 8
ImreS1menlS in equity securities,
..!
carried at cost
..!
Total '1m m
1l
u U62
A2. U.S. Treasury Obligations. The unrealized losses on the Company's investments in U.S.
Treasury obligations and direct obligations of U.S. government agencies were caused by interest
rate increases. The contractual terms of those investments do not permit the issuer to settle the
securities at a price less than the amortized cost bases of the investment.. Because the Company
Bas tile a13ildy aB6 iateBt te ,keW tliese iavestmeBts 1:JBtH 8 feeaveFy at:faif '.raIae does not intend
to sell the investments and it is not more likely than not that the Company will be required to sell
the investments before recovety of their amortized cost bases, which may be maturity, the
Company does not consider 'those investments to be impaired at
December 31, 20X3.
FSP on Statement 115 and Statement 124
(FSP FAS 115-2
1427
,61
FSP FAS 115-2 and FAS 124-2
A3.! Federal Agency Mortgage-Backed Securities. The unrealized losses on the Company's
investment in federal agency mortgage-backed securities were caused by interest rate increases.
The Company purchased those investments at a discount relative to their face amount, and. the
contractual cash flows of those investments are guaranteed by an agency of the U.S. government.
Accordingly, it is expected that the securities would not be settled at a price less than the
amortized cost. bases of the Company's investment. Because the decline in market value is
attributable to changes in interest rates and not credit quality, and because the Company 'has the
ability &Btl _eat te kelli 1:lissemT.'eS&eBts lHltH a FeasT/ery sf fair 711ll11edoes not intend to sell
the investments and it is not more likely than not that the Company will be required to sell the
investments before recoveryoftheir amortized cost bases, which may be maturity, the Company
does not consider those investments to be other-than-temporarily impaired at December 31,
20X3.
A4. Corporate 'Bonds. The Company's unrealized loss on investments in corporate bonds
relates to a $150 investment in Manufacturing Company's Series C Debentures. The unrealized
loss was primarily caused by (a) a recent decrease in profitability and near-term profit forecasts
by industry analysts resulting from intense competitive pricing pressure in the manufacturing
industry and (b) a recent sector downgrade by several industry analysts. The contractual terms of
those investments do not permit Manufacturing Company to settle the security at a price less
than the amortized cost basis of the investment. While Manufacturing Company's credit rating
has decreased from A to BBB (S&P), the Company currently does not aeHer/e it is preheale that
it will ae 1Hl6ele teaslleat all 8Ble'l:lBts Ellie aeesfEIiBg te1:lie asBtfaemal teffBs sf die mves9BeBt
. Tltefefef9: it is expected 1:liat-Manufacturing Company to settle the debentures ",saW Bet a9
~ at a price less than the amortized cost basis of. the investment (that is, the Company
expects to ,recover the entire amortized cost basis of the security). Because the Company 'has 1:lie
a e ~ &Btl iBteBt te hslli 1:liis iBV9iHmeBt lHltH a FeasveFy sf fair 7.<a:11l9does not intend to sell the
investment and it is not more likely than not that the Company will be required to sell the
investment before recovery of its amortized cost basis, which may be maturity, it does not
consider the investment inManufacturing Company's debentures to be other-than-temporarily
impaired at December 31, 20X3.
AS. Marketable Equity Securities. The Company's investments in marketable equity
securities consist primarily of investments in common stock of companies in the consumer tools "-
and appliances industry ($17 of, the total fair value and $2 of the total unrealized losses in
common stock investments) and the air courier industry ($27 of the total fair value and $6 of the
total unrealized losses in common stock investments). Within the Company's portfolio of
common stocks in.the consumer tools and appliances industry (all of which are in an unrealized
loss position) approximately 26 percent of the total fair value and 21 percent of the Company's
total unrealized losses are in Company R. The remaining fair value and unrealized losses are
distributed in six companies. The severity of the . impairment (fair value is approximately 5
percent to 12 percent less than cost) and the duration of the impairment (less than 3 months)
FSP on Statement 115 and Statement 124
(FSP FAS 115-2 and FAS 124-2)
1428
62
FSP FAS 115-2 and FAS 124-2
correlate with the weak 20X3 year-end sales experienced within the consumer tools and
appliance industry, as reflected in lower customer transactions and lower-than-expected
performance in traditional gift categories like hardware and power tools. The Company
evaluated the near-term prospects of the issuer in relation to the severity and duration of the
impairment. Based on. that evaluation and the Company's ability and intent to hold those
investments for a reasonable period of time sufficient for a forecasted recovery of fair value, .the
Company does not consider those . investments . to be other-than-temporarily impaired at
December 31, 20X3.
A6. . The Company's portfolio of common stocks in the air courier industry consists of
investments in 4 companies, 3 of which (or 78 percent of the total fair value of the investments in
the air courier industry) are in an unrealized loss pOSition. The air courier industry and the
Company's investees are susceptible to changes in the U.S. economy and the industries of their
customers. A substantial number of their prinoipal customers are in the automotive, personal
computer, electronics, telecommunications, and related industries, and their businesses have been
adversely affected by the slowdown of the U.S. economy, particularly during the second half of
20X3 when the Company's investments became impaired. In addition, the credit ratings of nearly
all companies in the portfolio have decreased from A to BBB (S&P or equivalent designation).
The severity of the impairments in relation to the carrying amounts of the individual investments
. (fair value is approximately 17 percent to 23 percent less than cost) is consistent with those
market developments. The Company evaluated the near-term prospects of the issuers in relation
to the severity and duration of the impairment. Based on that evaluation and the Company's
ability and intent to hold those investments for a reasonable period of time sufficient for a
forecasted recovery of fair value, the Company does not consider those investments to be other-
than-temporarily impaired at December 31, 20X3.
A 7. Investments in Equity Securities Carried ,at Cost. The aggregate cost of the
Company's cost.:.method investments totaled $45 at December 31, 20X3. Investments with an:
aggregate cost of $10 were not evaluated for impairment because (a) the Company did not
estimate the fair value of those investments in accordance with, paragraphs 14 and 15 of
Statement 107 and (b) the Company did not identify any events or changes in circumstances that
may have had a significant 'adverse effect on the fair value of those investments. Of the
remaining $35 of investments, the Company estimated that the fair value exceeded the cost of
investments (that is, the investments were not impaired) with an aggregate cost of$14.
A8. The remaining $21 of cost-method investments consists of 1 investment in a privately
owned company in the consumer tools and appliance industry. That investment was evaluated for
impairment because of an adverse change in the market condition of companies in the consumer
tools and appliance industry. As a result of that evaluation, the Company identified an unrealized
loss of $1. The severity of the impairment (fair value is approximately 5 percent less than cost)
and the duration of the impairment (less than 3 months) correlate with the weak 20X3 year-end
sales experienced within the consumer tools and appliance industry, as reflected by lower
FSP on Statement 115 and Statement 124
.(FSP FAS 115-2 and FAS 124-2)
1429
63
FSP FAS 115-2 and FAS 124-2
customer transactions and lower-than-expected performance in traditional gift categories like
hardware and power tools. Based on the Company's evaluation of the near-term prospects of the
investee and the Company's ability and intent to hold the investment for a reasonable period of
time sufficient for, a forecasted recovery of fair value, the Company does not consider that
investment to be other-than-temporarily impaired at December 31, 20X3.
FSP on Statement 115 arid Statement 124
(FSPFAS 115-2andFAS 124-2)
1430
64
TabC
Exhibit 44 Q
(Memo Ex. 17)
1431
FAS8 - Accounting Standards Codification
320 Investments-Debt and Equity Securities
10 Overall
35 Subsequent Measurement
Debt Securities
35-'33A If an entity intends to sell the debt security (that is, it has decided
to sell the security),an other-than.,.temporary impairment shall be
considered to have occurred.
35-338 If an entity does not intend to sell the debt security, the entity
shall consider available evidence to assess whether it more likely than not
will be required to sell the security before the recovery of its amortized cost
basis (for example, whether its cash or working capital requirements or
contractual or regulatory obligations indicate that the security will be
required to be sold before a forecasted recovery occurs); If the entity more
likely than not will be required to sell the security before recovery of its
amortized cost basis, an other-than-temporary impairment shall be
considered to have occurred.
35-33C If an entity does not expect to recover the entire amortized cost
basis of the security, the entity would be unable to assert that it will recover
its amortized cost basis even if it does not intend to sell the security.
Therefore, in those situations, an other-than-temporary impairment shall be
considered to have occurred. In assessing whether the entire amortized cost
basis of the security will be recovered, an entity shall compare the present
value of cash flows expected to be collected from the security with the
amortized cost basis of the security. If the present value of cash flows
expected to be collected is less than the amortized cost basis of the security,
the entire amortized cost basis of the security will not be recovered (that is,
a credit loss exists), and an other-than-temporary impairment shall be
considered to have occurred. .
35-330 In determining whether a credit loss eXists, an entity shall use its
best estimate of the present value of cash flows expected to be collected
from the debt security. One way of estimating that amount would be to
consider the methodology described in Section 310-10-35 : afor measuring
an impairment on the basis of the present value of expected future cash
flows. That Section provides guidance on this calculation. Briefly, the entity
would discount the expected cash flows at the effective interest rate implicit
in the security at the date of acquisition.
1432
35-33E For debt securities that are beneficial interests in securitized
financial assets within the scope of Subtopic 325-40 :t'l, an entity shall
determine the present value of cash flows expected to be collected
considering the guidance in paragraphs 325-40-35-4 through 35-9 : tlfor
determining whether there has been a de.crease in cash flows expected to be
collected from cash flows previously projected. In other words, the cash
flows estimated at the current financial reporting date shall be discounted at
a rate equal to the current yield used to accrete the beneficial interest.
Additionally, for debt securities accounted for in accordance with Subtopic
310-30 : 12., an entity shall consider the guidance in that Subtopic in
estimating the present value of cash flows expected to be collected from the
debt security. A decrease in cash flows expected to be collected on an asset-
backed security that results from an increase in prepayments on the
underlying assets shall be considered in the estimate of the present value of
cash flows expected to be collected. .
35-33F There are numerous factors to be considered when estimating
whether a credit loss exists and the period over which the debt security is
expected to recover. The following list is not meant to be all inclusive. All of
the following factors shall be considered:
a. The length of time and the extent to which the fair value has been
less than the amortized cost basis
b. Adverse conditions specifically related to the security, an industry,
or geographic area; for example, changes in the finanCial condition of
the issuer of the security, or in the case of an asset-backed debt
security, changes in the financial condition of the underlying loan
obligors. Examples of those changes include any of the following:
1. Changes in technology
2. The discontinuance of a segment of the business that may
affect the future earnings potential of the issuer or underlying
loan obligors of the security
3. Changes in the q u ~ l i t y of the credit enhancement.
c. The historical and implied volatility of the fair value of the security
d. The payment structure of the debt security (for example,
1433
nontraditional loan terms as described in paragraphs 825-10-55-1
through 55-2 : .and 310-10-50-25 : t1) and the likelihood of the
issuer being able to make payments that increase in the future
e. Failure of the issuer of the security to make scheduled interest or
principal payments
f. Any changes to the rating of the security by a rating agency
g. Recoveries or additional declines in fair value after the balance
sheet date.
3S-33G In making its other-than-temporary impairment assessment, an
entity shall consider all available information relevant to the collectibility of
the security, including information about past events, current conditions, and
reasonable and supportable forecasts, when developing the estimate of cash
flows expected to be collected. That information shall include all of the
following: .
a. The remaining payment terms of the security
b. Prepayment speeds
c. The financial condition of the issuer(s)
d. Expected defaults
e. The value of any underlying collateral.
3S-33H To achieve the objective in the preceding paragraph, the entity
shall consider, for example, all of the following:
a. Industry analyst reports and forecasts
b. Sector credit ratings
c. Other market data that are relevant to the collectibility of the
security.
1434
35-331 An entity also shall consider how other credit enhancements affect
the expected performance of the security,. including consideration of the
current financial condition of the guarantor of a security (if the guarantee is
not a separate contract as discussed in paragraph 320-10-35-23 : ) and/or
whether any subordinated interests are capable of absorbing estimated
losses on the loans underlying the security. The remaining payment terms of
the security could be significantly different from the payment terms in prior
periods (such as for some securities backed by nontraditional loans; see
paragraph 825-10-55-1 : Thus, an entity shall consider whether a
security backed by currently performing loans will continue to perform when
required payments increase in the future (including balloon payments). An
entity also shall consider how the value of any collateral would affect the
expected performance of the security. If the fair value of the collateral has
declined, an entity shall assess the effect of that decline on the Cibility of the
entity to collect the balloon
1435
TabC
Exhibit 45
1436
. UNITED
WES1ERN
BANCORP
December 9, 2010
James R. Peoples
Chainnan, President & Chief Executive Officer
United Western Bank
Telephone: 720.956.6576
jpeoples@uwbank.com
CONFIDENTIAL TREATMENT REQUESTED}
VIA E-MAIL AND OVERNIGHT DELIVERY
Russell Stanton
Federal Deposit Insurance Corporation
1601 Bryan Street
Dallas, TX 75201
Kristie K. Elmquist
Acting Regional Director
Federal Deposit Insurance Corporation
1601 Bryan Street
Dallas, TX 75201
Re: United Western Bank - Proposed Marketing Resolution
Dear Mr. Stanton and Ms. Elmquist:
Yesterday afternoon the board of directors (the "Board") of United Western Bank (the
"Bank") discussed at length a request of the Federal Deposit Insurance Corporation ("FDIC") for
the Board to adopt a so-called marketing resolution with respect to the Bank (the "Resolution").
After careful andconsidered deliberations, at this time, although the Bank desires to maintain a
positive working relationship with open communications with its regulatory authorities, the
Board did not adopt the Resolution. In sum, the Board's action on the Resolution was based
upon the following considerations:
a. There currently are no groimds for the appointment of a conservator or receiver under 12
U.S.c. 182Hc)(5). On a worst case scenario the Bank was deemed to be undercapitalized
on December 8, 2010 due to its risk-based ratio falling to 7.80%, below the required
8.0% as a result of a regulatory directive. The Board believes that this capital deficiency
will be fully remedied in the next few weeks through the consummation of the private-
sector transaction addressed in the Investment Agreement dated as of October 28, 2010
by and among United Western Bancorp, Inc., Oak Hill Capital Partners III, L.P., Oak Hill
I This letter contains confidential information concerning United Western Bancorp, Inc. ("UWBK") and United Western Bank (the "Bank") and
is not in the public domain. This information is being provided to the Office of Thrift Supervision and Federal Deposit Insurance Corporation, the
agencies responsible for the regulation and supervision of UWBK and ~ h e ~ a n k as materials related to the examination and operations ofUWBK
and the Bank as weIl as under Federal Rule of Evidence 408. Any publtc disclosure of confidential information could result in sUbstantial harm to
UWBK and the Bank. Accordingly, confidential treatment of this letter, pursuant to 5 U.S.C. 552(b)(4) and (8), is requested.
LEGAL_US_E #90876625.276898.00002
12/08/10
1437
Russell Stanton and Kristie It. Elmquist
Federal Deposit Insurance Corporation
December 9, 2010
Page20f3 .
b. Capital Management Partners m, L.P., Lovell Minnick Equity Partners m LP, Lovell
Minnick Equity Partners m-A LP, Legent Group, LLC and Henry C. Duques (the
"Investment Agreement"). This private sector transaction negates the need for the
Resolution as it will result in a recapitalization of the Bank at no-cost to the FDIC's
Deposit Insurance Fund. Accordingly, notwithstanding that the Bank is now deemed to
be undercapitalized based on the filing of its amended Thrift Financial Report, given the
explicit purpose of the pending recapitalization transaction to replenish the capital of the
Bank, there is currently no basis to conclude that there is no reasonable prospect for the .
Bank to become adequately capitalized without government assistance.
c. An imminent liquidity crisis is not likely. The Bank believes that the deposits of the
institutional depositors (each a ''Nominee'') addressed in the FDIC's determination dated
November 5, 2010 are not brokered deposits.
2
Accordingly,the current temporary
undeicapitalized status of the Bank poses no risk of a liquidity crisis, as the Bank is not
under a restriction from accepting, renewing or rolling over these deposits.
Notwithstanding the FDIC's erroneous November 5th determination, management of the
Bank has acted diligently and decisively to cause the restructuring of each deposit
relationship to mirror the arrangements set forth in FDIC Advisory Opinion 05-02
(February 5, 2005). Accordingly, even giving credence .to the FDIC's interpretation of
the primary purpose exclusion as expressed in the November 5 determination, there is
now no basis to assert that .any of the Nominees are deposit As a result, the
Bank's temporary undercapitalized status does not impose restrictions on the Bank's
ability tocontinue accepting, renewing or rolling over these deposits from the Nominees.
Thus, there is no likelihood of imminent liquidity crises.
d. Adopting the Resolution could be a breach of Section 4.13 of the Investment Agreement.
without the prior written waiver of the parties to the Investment Agreement. In pertinent
part, Section 4.13 of the Investment Agreement provides that none of United Western
Bancorp, Inc., the Bank or any of their respective directors, officers, employees,
representatives, agents or advisors shall initiate, solicit or encourage any inquiries,
proposal or offer with respect to an "acquisition proposal," which in pertinent part
includes a dissolution or liquidation of the Bank. If the Bank were to cause a breach of
the Investment Agreement, the proposed private-sector recapitalization transaction could
be terminated depriving the FDIC and the insurance fund of a pri,vate sector solution.
2 The Bank strongly disagrees with the conclusion set forth in the November S, 2010 letter and has provided the
FDIC with notice of its intent to exercise its appeal rights in accordance with the policy and procedures of the FDIC.
Furthermore, we note that Ms. Serena L. Owens, Associate Director, Division of Supervision and Consumer
Protection, FDIC, has assured the Bank's litigation counsel that FDIC would not take any action with regard to the
determination made in the November S, 2010 letter until after the Bank has exhausted its administrative appeals
within the FDIC. . .. .
.. ; " .. ".'.::-.,:
1438
Russell Stanton and Kristie K. Elmquist
Federal Deposit Insurance Corporation
December 9, 2010
Page 3 of3
Accordingly, as adopting the Resolution could adversely impact both the pending
recapitalization transaction and the Bank"s fmancial resources, the Board has determined that
such action would be inconsistent with its fiduciary duties to the Bank.
Of coursetod8y's action does not preclude the Board from considering the Resolution at
another time based on information that currently is not before the Board. If you are aware of
additional facts that we should be considering, please provide them to me.
The puipose of the pending recapitalization transaction is to effectively address and
resolve all of the concerns raised by the FDIC and OTS without any cost to the Deposit
Insurance Fund.' Accordingly, we hope to have the FDIC's concurrence and support by
having all parties focus available resources on actions aimed at bringing the pending
recapitalization transaction to a successful close.
;;1: ~ . 4 ' - -
James R. Peoples
cc: Board of Directors, Bank and Company
Thomas A. Barnes
Deborah Dakin, Esq.
Susan L. Chomicz, Esq.
Phillip A. Gerbick
Brian A. Steffey, Esq.
Clay Coon, Esq.
Catherine Toppings, Esq.
, Serena L. Owens
Joseph Meade
Andrew L. Sandler, Esq.
Liana Prieto, Esq.
1439
TabC
Exhibit 46
1440
December 13,2010
OTS Docket No. 06679
Board of Directors
Attn: Mr. James R. Peoples
Chairman, CEO, and President
United Western Bank
700 17th Street, Suite 100
Denver. CO 80202
JIIA SECURE E-MAIL
AND UPS NEXT DAY AIR
Re: (1) Notification that United Western Bank is Undercapitalized
(2) Requirement to File Capital Restoration Plan by December 20, 2010
(3) Restrictions and Requirements Imposed upon United Western Bank
Dear Board Members:
This letter is in response to your recent filing of your amended September 30, 2010 Thrift
Financial Report (fFR) indicating that United Western Bank, Denver. Colorado (Association).
falls into the "Undercapitalized" Prompt Corrective Action (PCA) capital category within the
meaning ofl2 U.S.C. 18310(b) and 12 C.F.R. 565.4(b). The Association's TFR, filed on
December 8, 2010. stated that the Association bad a total risk-based capital ratio of 7.80 percent
as of September 30,2010.
Pursuant to 12 C.F.R. 565.3.8 savings association has notice ofits capital category as of the
earliest of: (1) the due date of the most recent TFR; (2) upon receipt of a final report of
examination; or (3) upon receipt of other written notification from the Office of Thrift
Supervision (OTS). Therefore, the Association is deemed to have notice of its
status under the foregoing capital measure set forth in 12 C.F.R. 565.4 as of December 8, 2010.
I. REQUIREMENT TO FILE CAPITAL RESTORA TIQN PLAN
The Association must increase its capital to return to an adequately capitalized status. Savings
associations in any of the three PCA undercapitalized capital categories must file a capital
restoration plan meeting specific standards. See 12 U.S.C. 18310(e)(2) and 12 C.F.R. 565.5.
The OTS has determi.iled to shorten the time to file a capital restoration plan in light of the
Association's unsafe and unsound Pursuant to 12 C.F.R. 565.5(a), the Association
must submit a capital restoration plan, directed to my attention, no later than 5 p.rn. Mountain
Time, December 20, 2010. The Association also must send a copy of its capital restoration plan
to the Acting Regional Director, Federal Deposit Insurance Corporation, 1601 Bryan Street. .
Dallas, Texas, 75201 (FDIC).
1441
Board of Directors
United WestemBank
Page2 .
December 13,2010
Attactmlent A to this.letter additional guidanQe on the requirements for PCA capital
restoration plans and other aspects of the capital restoration plan process. Notwithstanding the
suggested timeframes set forth in Attachment A to this letter, the OTS is hereby exercising its
authority to specify time frames for attaining certain capital levels in an acceptable capital
restoration plan. In view ofthe Association's deteriorating asset quality and overall financial
condition, the OTS expects that the capital restoration plan will demonstrate compliance with
adequately capitalized standards no later than December 2010, and continuing compliance
with at least that standard for four consecutive quarters.
The OTS may not accept a PCA capital restoration plan unless the plan meets certain criteria
established by statute. In particular, 12 U.S.C. 18310(e)(2)(C)(ii) prohibits the OTS from
accepting a capital restoration plan unless each company that directly or indirectly controls the
Association: (i) guarantees that the Association will comply with its plan until it is adequately
capitalized for four consecutive quarters; and (ii) provides appropriate assurances of
perfonnance. A majority of each company's board of directors or a duly authorized
representative must execute the guarantee. Attachment C is the PCA Standard Fonn of
Guarantees and Assurances that the OTS expects 'holding companies to execute.
ll. RESTRICTIONS AND REQUIREMENTS IMPOSED UPON THE ASSOCIATION
A. RestrictionsIRequirements Resulting Undercapitalized Status.
1. Mandatory PCA Restrictions. The Association is now subject to various restrictions
by virtue ofits PCA capital category. A list of the restrictions that are prescribed by 12 U.S.C.
18310 and related regulations is set forth in Attachment B. Attachment B includes all
mandatory restrictions for each of the three PCA undercapitalized capital categories and,
therefore, may include restrictions that the Association is not subject to at this time. Note that,
unless the OTS approves your capital restoration plan. the OTS may not approve any requests
that you may file for increases in compensation or payment of bonuses to senior executive
officers. See 12U.S.C. 18310(f)( 4)(B). The OTS also retains the ability to impose additional
discretionary restrictions under its PCA authority by issuing a Directive to take prompt
corrective action (PCA Directive). See 12 C.F:.R. 565.7. The ASsociation should expect that
the OTS probably will issue such a PCA Directive in the near future. A PCA Directive is
enforceable as a final order under 12 U.S.C. 1818(i).
2. Other Restrictions. Section 38 of the Federal Deposit Insurance Act (FOIA), 12
U.S.C. 18310, and OTS's PCA Regulations, 12C.F.R. Part56S, supplement but do not replace
the OTS's existing supervisory and enforcement authority to deal with Capital deficiencies and
other supervisory problems. Accordingly, any restrictions or limitations that the OTS imposed
on the Association in other SUpervisory or enforcement actions remain in effect, including those
contained in the Troubled Condition Letter dated March 4, 2010 and the Order to Cease and-
Desist issued to the Association on June 25,2010 (WN-10-019).
1442
Board of Directors
United Western Bank
Page 3
December 13,2010
B. Ongoing Monitoring of Capital Category Required.
The Association must monitor its own PCA capital ratios and provide written notice to
OTS, within 15 calendar days, of any material event that would cause the Association to be
placed into a lower PCA capital category, pursuant to 12 C.P.R. 565.3. If the Association falls
into a lower PCA capital category, it must comply immediately with the appropriate additional
restrictions contained in 12 U.S.C. 18310 and 12 C.F.R 565.6. Refer to Attachment B. If
the Associatiol1 improves from a lower to a higher PCA capital category, it must continue to
comply with the previously applicable mandatory sanctions ofthe lower category, until the
Association requests and receives in writing the OTS' s approval to cease compliance with the
lower category sanctions.
If you have questions regarding this notice, please contact Assistant Director Nicholas J. Dyer at
(650) 746-7025.
Sincerely, ~
~ 0 : a ~ ~
Philip A.i':lOerbick
Regional Director
Enclosures (3)
Attachment A: OTS Guidance on Capital Restoration Plans
Attachment B: Mandatory Restrictions under Prompt Corrective Action as Required by the FDIA
Attachment C: PCA Standard Form of Guarantee and Assurances
cc: Ms. Kristie K. Elmquist, Acting Regional Director. FDIC-Dallas
Mr. Joseph A. Meade, Assistant Regional Director, FDIC-Dallas
Mr. Lawrence Kaplan. Pau1, Hastings, Janofsky & Walker LLP
1443
Board of Directors
United Westem Bank:
Page 4
December 13, 2010
bcc/epdf: S. Auchterlonie
C. Coon
K. Corcoran
A. Dayao
N.Dyer
S. Harris
G.Jeffers
D. Jenkins-King
D. Roberts
W. Santos
Y. Sosa
C. Sterbenz
K. Swanson
M. Sweeney
K. Walter
1444
TabC
Exhibit 46 A
1445
OFFICE OF THRIFI' SUPERVISION
GUIDANCE ON CAPITAL RESTORATION PLANS
Attachment A
This guidance sets forth the policies of the Office of Thrift Supervision (OTS) on capital
restoration plans (Capital Plans) and related statutory provisions in Section 38 ofthe Federal
Deposit Insurance Act (FDIA), 12 U.S.C. 18310, and 12 C.F.R. Part 565. For further
information, contact your Regional Office.
Requirement to File a Capital Plan
Section 38 ofFDIA, 12 U.S.C. 18310, requires associations that fail anyone of the
capital standards for adequately capitalized. associations to submit a capital restoration plan (or
capital plan amendment) to OTS within 45 days from receiving notice or the date it is deemed to
have been notified that it is undercapitalized or significantly undercapitalized. See 12 C.F.R.
565.3(b). Critically undercapitalized associations must submit a capital restoration plan, or
amend an existing plan, within 25 days after they become critically undercapitalized. OTS will
notifY an association when a capital restoration plan is to be filed within a shorter period.
The minimum capital standards for the adequately category are: a 4 percent
leverage ratio (3 percent ifthe association received a composite CAMELS rating of "1 " on its
most recent report of examination), a 4 percent Tier 1 risk-based ratio, and an 8 percent risk-
based ratio.
Capital restoration plans must satisfY (i) the capital plan requirements of Section 5(t) of
the Home Owners' Loan Act (HOLA), 12 U.S.C. 1464(t), and 12 C.F.R. 567.10 and (ii) the
capital restoration plan requirements of Section 38( e)(2)(B) of FOrA, 12 U.S.C.
18310(e)(2)(B), and 12 C.F.R. 565.5 (collectively referred to as capital plans).
Associations operating under an OTS Capital Directive, without an approved capital plan,
must submit an acceptable capital plan and comply with all other applicable provisions of
Section 38e ofFDIA. 12 U.S.C. 18310(e), and this guidance.
When an event or circumstance materially affects the validity of an approved capital plan,
the association must submit an amendment within 25 days of that event Until OTS approves the
amendment, the association must continue to implement the previously approved capital plan.
12 C.F.R. 565.5(g). IfOTS denies the amendment and the initial capital plan is no longer
viable, OTS will tenninate its approval of the capital plan.
Deadlines for Attaining Adequately Capitalized Standards
All critically undercapitalized associations must submit a capital plan (or amend an
existing capital plan) that demonstrates compliance with adequately capitalized standards no
later than a date set by the Regional Director, which date must not be more than 90 days after the
date upon which the association was deemed to be critically undercapitalized except that the
United Western Bank, Denver, Colorado
OTS Docket No. 06679
Page lof4
1446
Regional Director may grant a longer period for compliance if it better serves the purpose of
Section 38 ofFDIA, 12 U.S.C. 18310. With respect to critically undercapitalized associations,'
Section 38o(h)(3) ofFDIA, 12 U.S.C. 18310(h)(3), requires OTS to act within 90 daYs of the
date the association became critically undercapitalized to either (i) appoint a receiver or (ii) take
some other action that better serves the purpose o f S e c ~ o n 38 ofFDIA, 12 U.S.C. 18310, with
the concurrence of FDIC. .
All significantly undercapitalized associations must submit a capital plan (or amend an
existing capital plan) that demonstrates compliance with the adequately capitaJized standards no
later than a date set by the Regional Director.
All undercapitalized associations must submit a capital plan (or amend 'an existing capital
plan) that demonstrates compliance with the adequately capitalized standards no later than a date
set by the Regional Director. .
Contents of the Capital Plan
Generally, capital plans should explain in detail the proposed strategy for becoming, at a
minimum. adequately capitalized, and for accomplishing the association's overall objectives and
generally should include: .
(1) A detailed discussion of (a) the steps the association will take to become adequately
capitalized, includin$ underlying assumptions, strategies to be employed and why they
were chosen, (b) the methods to forecast the disposition of problem assets and the levels of
expected charge-offs, (c) any substantial changes in assets and liabilities, (d) the types and
levels of activities 'to be engaged in, and. (e) strategies to control operating expenSes.
interest rate risk, credit risk, and other significant risk exposures.
(2) Quarterly financial projections that generally follow the Thrift Financial Report, extending
four quarters beyond the date the association becomes adequately capitalized.
The projections should show (a) progressively higher capital levels for complying with
adequately capitalized standards, (b) levels of core and net earnings, (c) any capital
infusions (specific steps must be takenwitbin 6 months of becoming undercapitalized), and .
(d) compliance with applicable statutory or regulatory restrictions and OTS policies.
The association must base itS projections on realistic assumptions of the following:
(a) current Treasury rates and the implied interest rate forecast embedded in the existing
yield curve for Treasury securities, with spreads over TreaSuries on incremental assets and
liabilities consistent with prevailing market spreads; (b) prepayment rates that reflect the
market's consensus estimate for similar mortgage loans; and (c) loan origination rates using
recent experience and taking into consideration current national and regional economic
conditions. The association may use OTS quarterly updates on interest rates that are located
on the OTS Internet site (www.ots.treas.gov).
United Western Bank, Denver. Colorado
OTS Docket No. 06679
Page 2 of4
1447
(3) A standard form of guarantee and assurance (see Attachment C) from all controlling
companies. as required under Section 38(e)(2)(C) ofFDIA. 12 U.S.C. 1831o(e)(2)(C)
and 12 C.F.R. 565.5(i). In a tiered holding company structure, each controlling company
must provide a standard fonn of guarantee and assurance signed by a majority of the board
of directors or a duly authorized official. The guarantee does not supersede any existing
capital maintenance agreements. .
Associations may submit abbreviated capital plans with the concurrence of the Regional
Director, provided the plan meets the applicable statutory standards.
Statutory Criteria for Accepting Capital Plans
Pursuant to Section 38 ofFDIA. 12 U.S.C. 18310(e), and 12 C.F.R. 565.5, OTS can
not accept a capital plan unless OTS determines that the plan: (a) contains the steps that the
association will take to become adequately capitalized, the levels of capital to be attained during
each year the capital plan will be in effect, how the association will comply with the restrictions
and requirements under Section 38 of FDIA, the types and levels of activities that the association
proposes to engage in, and such other information OTS may require; (b) is based on realistic
assumptions and is likely to succeed in restoring the association's capital; and (c) would not
appreciably increase the risk (including credit risk, interest rate risk, and other types of risk) to
which the association is exposed. In addition, each controlling company of an undercapitalized
association must (i) guarantee that the association will comply with the plan until adequately
capitalized on average during four consecutive quarters, and (ii) provide appropriate assurances
of performance.
Pursuant to Section 5(t) ofHOLA. 12 U.S.C. 1464(0, and 12 C.F.R. 5 6 7 . 1 0 ~ the
capital plan must: (a) address the association's need for increased capital, (b) describe the
manner in which the association will increase its capital so as to achieve compliance with capital
standards, (c) specify the types and levels of activities in which the association will engage,
(d) show that any increase in assets win be accompanied by an increase in tangible capital not
less in percentage amount than the leverage limit then applicable, (e) show that any increase in
assets be accompanied by an increase in capital not less in percentage amount than required
. under the applicable risk-based capital standard, and (f) be acceptable to OTS.
Capita) Plan Review Process
Generally, within 60 days after receiving a capital plan (or an amendment to an existing
plan), OTS will notify an association as to whether the plan is acceptable. To ensure a timely
capital plan review, associations should promptly respond to any requests for revisions.
Reguirementto File Variance Reports
Capital plans must include a commitment to provide the Regional Director with variance
reports comparing actual results to projected targets established in the capital plan. The
association must submit such variance reports to the Regional Director within 30 days following
United Western Bank, Denver, Colorado
OTS Docket No. 06679
Page 3 of4
1448
the close of each calendar quarter. The Regional Director may require variance reports on a
more frequent basis than quarterly. OTS will condition its approval of the capital plan upon
submission of these variance reports. Failure to file required variance reports may result in
enforcement action and civil money penalties. Material variances are grounds for tenninating a
capital plan approval.
Failure to Submit or Implement an Acceptable Capital Plan
Failure to successfully implement a capital plan. to meet interim operating and capital
plan targets, or comply with conditions of approval will generally result in termination of a
capital plan approval. When a capital plan is unacceptable or terminated, the association should
not file a new capital plan unless directed to do so by the Regional Director. The failure to
implement successfully a capital plan also constitutes a violation of the prompt corrective action
directive that is issued in conjunction with the approval ofthe capital plan.
An association's failure to implement a capital plan or to comply with a prompt
corrective directive shall subject the association to the assessment of civil money penalties under
Section 8(i)(2)(A) ofFDIA, 12 U.S.C. 1818(i)(2)(A), and other enforcement actions, 12 C.F.R.
565.1 O( c). OTS also may assess civil money penalties and pursue other enforcement actions
against any company that controls the association for its failure to fulfill its guarantee of the
capital plan or any institution-affiliated party who participates in a violation or noncompliance of
the capital plan, prompt corrective action directive, or guarantee. 12 C.F.R. 565.10(b).
Failure to submit an acceptable capital plan (including guarantees and assurances) or
termination of a capital plan, will subject an undercapitalized association, significantly
undercapitalized association, or a critically undercapitalized association to the full range of
supervisory and enforcement actions. 12 C.F.R. 565.10(c). Any undercapitalized association
that fails to submit an acceptable capital plan or fails in any material respect to implement a
capital plan is subject to all provisions in Section 38(t) of the FDIA, 12 U.S.C. 18310(f), and
12 C.P.R. 565.6, applicable to significantly undercapitaliZed associations.
United Western Bank, Denver, Colorado
OTS Docket No. 06679
Page4of4
1449
TabC
Exhibit 46 B
1450
.4.
Attachment B
MANDATORY RESTRICTIQNSIRESTRICTIONS UNDER PROMPT
CORRECTIVE ACIION AS REQUIRED BY FDIA
Undercapitalized Associations
1. The association shaU not make or pay any capital distributions without the prior written
approval of ors if: (i) the association is not adequately capitalized, or(ii) after making the
distribution, the association would be undercapitalized. 12 U.S.C. 18310(d)(1)(A); 12
C.F.R. 565.6(a)(1). .
2. The association or its subsidiary shall not pay any management fees to any person having
control of the association if: (i) the association is not adequately capitalized, or (ii) after
making the payment, the association would be undercapitalized. 12 U.S.C. 18310(d)(2);
12 C.P.R. 565.6(a)(1). .
3. The association may not pennit its average total assets during any calendar quarter to
exceed its average total assets during the preceding quarter unless: (i) OTS has accepted the
association's capital restoration plan, (ii) the increase in assets is consistent with the plan, .
and (iii) the association's ratio of tangible equity assets increases during the calendar
quarter at a rate sufficient to enable the association to become adequately capitalized within
a reasonable time. 12 U.S.C. 18310(e)(3); 12 C.F.R. 565.6(a){2).
4. The association may not, directly or indirectly, acquire any interest in any company or
insured depository institution, establish or acquire any additional branch office, or engage in
any new line of business, unless: 0) OTS has accePted the association's capital restoration
plan, the association is in compliance with the plan, and OTS determines the aCtion is
consistent with, and will further achievement of the plan, or (ii) the FDIC's Board of
Directors approves the action. 12 U.S.C. 18310(e)(4); 12 C.F.R. 565.6(a)(2).
5. . The association may not accept, renew or ron over any brokered deposit or offer interest
rates in excess of penn is sible amounts. 12 U.S.C. 1831f(a) and (h); 12 C.F.a.
337.6(b){3). . .
6. The association may not accept employee benefit plan deposits.
12 U.S.C. 1821(a)(1)(D)(ii).
7. The association shall file a capital restoration plan pursuant to 12 U.S.C. 1831o(e)(2) and
12C.F.R. 565.5.
. 8. The aSsociation shall monitor its compliance with the applicable requirements of 12 U .S.C.
18310(e) and 12 C.F.R. Part 565.
Unilcd Westem Bank, Denver, Colol8do
oTS Docket No. 06679
Page I of2
1451
Significaady Undercapitalized AssociatioDS and Associations Without Approved Capital
Plans
-,,-
Numbers 1,2,3,4,5,6,1, and 8 above, lY!-
9. The association may not, without OTS's prior written approval: (i) pay any bonus to any.
senior executive ofticer, or (ii) provide compensation to any senior executive officer
exceeding that officer's average rate of compensation (excluding bonuses, stock options,
and profit-sharing) during the 12 calendar months preceding the calendar month in which
the association became undercapitalized. 12 U.S.C. 1831o(f)(4)(A); 12 C.F.R. .
565.6(a)(3). (Note: OTS cannot approve these requestS until the association's capital
plan is approved.)
OTS also will impose one or more of the restrictions contained in 12 U.S.C. 18310(1)(2)
in addition to the above-noted restriction. OTS will notify the association of the particular
additional restriction(s) in a Prompt Corrective Action Directive. -
Critic. Undercapitalized Associations
Numbers 1,2,3,4,5,6, 1, 8 and 9 above, plus
to. The aSsociation may not make any payment of principal or interest on any subordinated
debt beginning 60 days after the association becomes critically undercapitalized. 12 U.S.C.
18310(h)(2)(A); 12 C.F.R. 565.6(a)(4). . .
11. Without FDIC's prior written approval, the association may not:
(i)
Oi)
. (iii)
(iv)
(v)
(vi)
(vii)
enter into any material transaction other than in the usual course of business,
including any investment, expansion, acquisition, sale of assets, or similar action
with respect to which the association is required to give notice to OTS;
extend credit for any highly leveraged transaction;
amend the association's charter or bylaws, except to the extent necessary to carry
out any other requirement of any law, regulation or o r d e r ~
make any material change in accounting methods;
engage in any "covered transaction" with an affiliate, as defined in 12 U.S.C. 371c(b);
. pay excessive compensation or bonuses; or
pay interest on new or renewed liabilities at a rate that would increase the asSociation's
weighted average cost of funds to a level significantly exceeding the prevailing rates of
interest on insured deposits in the association's nonnal market area.
12 UIS.C. 1831o(i)(2); 12 C.F.R. 565.6(a)(4).
United Western Bank, JleQver. Colollldo
OTS Docket No. 06679
Page I 0(2
1452
TabC
Exhibit 46 C
1453
ATTACHMENT C
PCA STANDARD FORM OF GUARANTEE AND ASSURANCES
As a condition of the approval by the Office of Thrift Supervision (OTS) of the capital
restoration plan of United Western Bank, Denver, Colorado (OTS No. 06679) (Association), and
as required by 12 U.S.C. 1831o(e)(2)(C}, and 12 C.F.R. 56S.5(i}, United Western Bancorp,
Inc., Denver, Colorado (OTS No. H2192) (Holding Company), hereby guarantees that the
Association will comply with its capital restoration plan until OTS determines that the
Association has remained adequately capitalized on average during each of four consecutive
quarters. This guarantee consists of the following commitments:
The Holding Company shall:
(i)
(ii)
(iii)
(iv)
,
take any actions directly required of the Holding Company under the capital
restoration plan;
take any corporate actions necessary to enable the Association to take actions
required of the Association under the plan;
not take any action that would impede the Association's ability to fuUy implement its
capital restoration plan; and
subject to the limitations contained in 12 U.S.C. 1831o(e)(2)(E) utilize its available
assets, when directed to do so by OTS, to enable the Association to implement its
capital restoration plan.
For purposes of the foregoing, "available assets" shall not include shares of the Association held
by the Holding Company or of any intermediate holding company of the Association held by the
Holding Company. Failure to satisfy any of the foregoing commitments shall constitute a
violation by the Holding Company of a condition imposed in writing by OTS within the meaning
of 12 U.S.C. 1 818(b)(1), (9).
The foregoing guarantee by the Holding Company is a written agreement entered into by the
Holding Company with OTS within the meaning of 12 U.S.C. 1818(b).
IRemai"der of tl,;s page inteltt;onally left blank}
United Western Bancorp. Inc.
Page 1 of2
1454
UNITED WESTERN BANCORP, (NC.
Denver, Colorado
By: ________________________ _
Guy A. Gibson
Chairman
James H. Bullock, Director
Bernard C. Darre, Director
Jeffrey R. Leeds, Director
Michael J. McCloskey. Director
Lester Ravitz, Director
Robert T. Slezak, Director .
William Snider, Director
United Western Bancorp, Inc.
1455
OFFICE OF THRIFT SUPERVISION
By:
~ ~ - - - - ~ - - - - - - - - - - - - - - -
Philip A. Gerbick
Regional Director. Western Region
Page2of2
TabC
Exhibit 47
1456
Office of Thrift Supervision
epartment ofthe Treasury Regional Director. Western Region
225 East John Carpenter freeway, Suite SOO, Irving. TX Telephone: (972) 277-9500
P.O. Box 619027, DallaslFort Worth, TX 75261-9027' Fax: (972) 277-9501
December 13,2010
OTS Docket No. 06679
Board of Directors
Attn: Mr. James R. Peoples
Chairman, CEO, .and President
United Western Bank
700 17th Street, Suite 100
Denver, CO 80202
JI1A SECURE E-MAIL
AND UPS NEXT DAY AIR
Re: Directive Relating to Employee Benefit Plan Deposits
Dear Board Members:
United Western Bank (Association) is currently "undercapitalized" as defined in 12 U.S.C.
18310(b). Pursuant10 12 U.S.C. 1821(a)(1)(D)(ii), aninsllI'eddepository institution that is
not well capitalized or adequately capitalized may not accept employee benefit plan deposits.
The term "employee benefit plati" is defined in 12 U.S.C. 1821(a)(I)(D)(iii)(II).
In earlier submissions to the Office of Thrift Supervision (OTS) and the Federal Deposit
Insurance COIpOration (FDIC), the Association indicated that certain of its institutional
depositors, including Equity Trust Company (ETC) and Lincoln Trust Company, act as plan
administrators of employee benefit plans and that certain employee benefit plan deposits are
accepted by the Association.
By Wednesday, December 15, 2010,you are directed to submit: (1) a written description of all
employee benefit plan deposits accepted by the Association. whether or not placed with the
Association by an institutional depositor; and (2) a written description of the methods that will be
used by the Association to identify such benefit plan deposits and the steps taken to
comply with the statutory prohibition on accepting employee benefit plan deposits.
I See, e.g., Buckley Sandler LLP legal opinion dated March 10,2010; Letter dated July 30,20]0 from the
Association to the FDIC (Brokered Deposit Waiver Request); Association document regarding Core Deposit
Management dated March 8, 2010 (Association White Paper).
1457
Board of Directors
United Western Bank
Page 2
December 13,2010
The OTS reserves all of its rights. Nothing in this directive shall be construed as: (I) restricting
the OTS in any way from taking such actions (enforcement or otherwise) as it determines are
appropriate and authorized; or (2) allowing the Association to violate any law, rule, regulation,
or policy statement to which it is subject.
The Order to Cease and Desist and its accompanying Stipulation and Consent to the issuance by
the OTS COTS Order No. WN-l 0-0 19) against the Association on June 25, 2010 remain in effect.
The restrictions and requirements set forth in this directive are in addition to the restrictions and
requirements set forth in the Order to Cease and Desist and in other directives issued to the
Association.
If you have questions, please contact Assistant Director Nicholas J. Dyer at (650) 746-7025 or
Field Manager Kevin Swanson at (650) 746-7066.
Si.ncerelY, 1
() -O. _ t" ~ \:: t
'<L-'T
Philip A.' Gerbick
Regional Director
cc: Ms. Kristie K. Elmquist, Acting Regional Director, FDIC-Dallas
Mr .. Joseph A. Meade, Assistant Regional Director, FDIC-Dallas
Mr. Lawrence Kaplan, Paul, Hastings, Janofsky & Walker LLP
1458
Board of Directors
United Western Bank
Page 3
December 13, 2010
bcc/epdf: S. Auchterlonie
C. Coon
K. Corcoran
A. Dayao
N. Dyer
S. Harris
G. Jeffers
D. Jenkins-King
D. Roberts
W. Santos
Y. Sosa .
C. Sterbenz
K. Swanson
M. Sweeney
K. Walter
1459
TabC
Exhibit 48
1460
Office of Thrift Supervision
epartment of the Treasury Regional Director. Western Region
225 East John Carpenter Freeway, Suite 500. Irving, TX 75062-2326 Telephone: (972) 277.9500
P.O. Box 619027, DallasIFort Worth, TX 75261-9027 Fa.x: (972) 277-9501
December 13,2010
OTS Docket No. 06679
Board of Directors
Attn: Mr. James R. Peoples
Chairman, CEO, and President
United Western Bank
700 17th Street. Suite 100
Denver, CO 80202
Re: Directive Relating to Institutional Deposits
Dear Board Members:
VIA SECURE E-MAIL
AND UPS NEXT DAY AIR
In light of the current liquidity position of United Western Bank (Association), the Association's
current liquidity component rating of "5," and the concerns raised by the Federal Deposit
Insurance Corporation (FDIC) regarding the treatment of certain deposits under the brokered
deposit restrictions set forth in 12 U.S.C. 183lfand 12 C.F.R. 337.6, the Office of Thrift
Supervision (OTS) imposes the following restrictions or requirements upon the Association.
For purposes of this directive, the ternl "Institutional Depositors" shall mean: Equity Trust
Company and its related Companies (Equity Administrative Services, Inc., and Sterling
Administrative Services, LLC) (collectively, ETC); Matrix Settlement and Clearance Services,
LLC; Matrix Financial Solutions, Inc.; Lincoln Trust Company; Legent Clearing LLC; UW Trust
Company; Deutsche Bank Trust Company Americas; Trust Management, Inc.; any other one
depositor or deposit broker responsible for placement of deposits with the Association in an
aggregate amount of more than $5 million; and any successor company to any of the foregOing.
The Association entered into written contractual agreements (Depositor Agreements) with
celiain ofthe Institutional Depositors that require such Institutional Depositors to maintain a
minimum dollar amount of deposits at the Association. The Association provided copies of
certain Depositor Agreements to the OTS. Several of these Depositor Agreements contain
covenants whereby the applicable Institutional Depositor promised the Association to deposit
and maintain with the Association a certain minimum dollar amount of deposits.
1461
Board of Directors
United Western Bank
Page 2
December 13,2010
Effective immediately. the Association shall not agree with any Institutional Depositor
(including providing consent to a request by any Institutional Depositor or agreeing to waive,
amend. or telminate contracts or contractual covenants) to allow such Institutional Depositor to
maintain with the Association an amount less than the minimwn dollar amount of deposits that is
currently required to be maintained with the Association pursuant to the terms of the applicable
Depositor Agreement.
The restrictions and requirements set forth above are effective immediately upon receipt of this
directive and shall remain in effect until terminated, modified. or suspended by the Regional
Director. The OTS reserves all of its rights. Nothing in this directive shall be construed as:
(1) restricting the OTS in any way from taking such actions (enforcement or otherwise) as it
determines are appropriate and authorized; or (2) allowing the Association to violate any law,
rule, regulation, or policy statement to which it is subject.
The Order to Cease and Desist and its accompanying Stipulation and Consent to the issuance by
the OTS (OTS Order No. WN-IO-019) against the Association on June 25, 2010 remain in
effect. The restrictions and requirements set forth in this directive are in addition to the
restrictions and requirements set forth in the Order to Cease and Desist and in other directives
issued to the Association. '
If you have questions, please contact Assistant Director Nicholas J. Dyer at (650) 746-7025 or
Field Manager Kevin Swanson at (650) 746-7066.
Sincerely,
QjL-n

Regional Director
cc: Ms. Kristie K. Elmquist, Acting Regional Director, FDIC-Dallas
Mr. Joseph A. Meade, Assistant Regional Director, FDIC-DalJas
Mr. Lawrence Kaplan, Paul, Hastings, Janofsky & Walker LLP
1462
Board of Directol'S
United Western Bank
Page 3
December 13.2010
bcc/epdf: S. Auchterlonie
C.Coon
K. Corcoran
A. Dayao
N.Dyer
S. Harris
G. Jeffers
D. Jenkins-King
D. Roberts
W. Santos
Y. Sosa
C. Sterbenz
K. Swanson
M.Sweeney
K. Walter
1463
TabC
Exhibit 49
1464
Paul Hastings
Allanta
Beijing
Brussels
Chieago
Frankfurt
Hong Kong'
London
Los AngelilS
Milan
New York
Orange County
Palo AHo
Paris
San Diego
San Francisco
Sh1nghai
Tokyo
Washington. DC
1(202) 551-1829
lawtencekaplan@paulhastings.com
December 14, 2010
ATTORNBYOUBNTPRnnLBGB
CONFIDBNTIAL
Dirk Roberts
Deputy Chief Counsel
Office of Thrift Supervision
1700 GStteet, N.W.
Washington. D.C. 20552
Clayton Coon
Senior Attomey
Office of Thrift Supervision
2001 Junipero Serra. Boulevard
Suite 650
Daly City, CA 94014
Paul, HastiI1Qs, Janofsky & Walker LLP
87515111 SIrelt, N.W.
washington, DC 2IlOO5,
telephone 202-551-1700 facsimile 2m-5511705 WWW.paulhasUngs.com
Deborah Jenkins-King
Regional Counsel
Office of Thrift Supervision
225 East John Cru:penter Freeway
Suite 500
Irving, TX 75062
Re: Request for Release of Confidential Unpublished 01'8 Information of
Western .Bank, Denver, Colorado
Ladies and Gentlemen:
On behalf of our client, United Western Banco:i:p, Inc. and its wholly owned
subsidiary United Western Bank, in accordance with Section 510.5 of the rules
and regulations of the Office of Thrift Supervision (the "OTS'') we (i) seek OTS
permission; or alternatively (ii) grant 01'8 permission to release to Lovell Minnick
(defined below) certain unpublished OTS information, as described below.
As' the OTS is aware, Bancorp is a party to an investment agreement dated October 28,
2010 by and among Lovell Minnick Partners III, Lovell Minnick Partners III-A
(collectively, "Lovell Minnick''), Oak Hill Capital Partners III, LP, Oak Hill Capital
Management Partnets III, LP, Legent GroUp U.C, and Henry C. Duques. As reflected in
the Investment Agreement, Bancorp inten.ds to raise at least $200,000,000 in common
equity capital, apptomately $47,000,000 of which willbe by Lovell It
is our understanding that previously Lovell Minnick sought the information .requested
he.tein but was. advised that such .request must be made by Bancorp/Bank,
notwithstanding the litera11angua.ge of Section 510.5, which applies to requests from the
public. It is our unde.tStanding that Lovell Minnick is willing to enter into a confidentiality
agreement in fonn and substance acceptable to the . .
LEGAI .... US.$ ## 90926871.2
1465
PaulHastings
Dirk Roberts
Deborah Jenkins-King
Clayton Coon
Decetnber 14, 2010
Page 2
Bancotp and the Bank (i) seek to provide Lovell Minick, ot(u) alternatively has no .
objection to the OTS providing Lovell Minnick, access to the following unpublished ars
information related to Bancotp and the Bank:
A .. Any OTS reports of examination, supervisory correspondence, internal
agency memoranda, and investigatory files from the last two years and any
during the term of the Investment Agreement copies of such information
"ROEs');
B. Correspondence from the 01'8 to Bancotp and its subsidiaries or their
counsel or other agents to the extent that they include, address; or
teference any of the ROEs or the findings therein;
C. Correspondence from Bancotp and its subsidiaries or their counsel or
other agents to the ars to the extent that they include, address, or
reference any of the ROEs or the findings therein; and
D. Minutes of the board of directors ofBancotp and its subsidiaries for any
meetings to the extent that they include, address, or reference any of the
ROEs or the findings therein ..
As stated above, neither the Bank nor Bancorp has any objection to the release of the
tequested information to Lovell Minnick provided that Lovell Minnick executes a
confidentiality agt:eement in form and substance acceptable to the OTS.
If you have any questions or need any additional information in connection with this
submission, please do not hesitate to contact me at lawrencekapla.n@paulhastings.cgm or
(202) 551-1829.

cftL 00 Kapkn
for PAUL, HASTINGS, JANOFSKY & WALKER ILP
cc: James R. Peoples
Guy Gibson .
Michael McCloskey
Theodore Abariotes
LBGAL,.US..B it 9092U71.2
1466
TabC
Exhibit 50
1467
WI
J J UNITED
.
... WE. STE. ... <RN
SAl\:l'v-
.. ~ ~ ~ .
James R. Peoples
Chairman, President & Chief Executive Officer
UnitedWestem Bank
720.956.6576 .
jpeoples@uwbank.com
December 15, 2010
Philip A. Gerbick
Regional Director
CONFIDENTIAL TREATMENT REQUESTED
1
Office of Thrift Supervision
Western Regional Office
225 E. John Carpenter Freeway, Suite 500
Irving, TX 75062-2326
Re: United Western Bank - Directive Relating to Employee Benefit Plan Deposits
Dear Mr. Gerbick:
By letter dated December 13, 2010,transmitted at approximately 5:10 p.m. Eastern Standard Time, the Office
of Thrift Supervision ("OTS") directed United Western Bank (the "Bank") to, among other things, submit by
Wednesday December 15, 2010: (i) a written description of all employee benefit plan deposits accepted by the
Bank by an institutional depositor; and (ii) a written description of the methods that will be used by the Bank
to identify such employee benefit plan deposits and the steps taken to comply with the statutory prohibition on
accepting employee benefit plan deposits (the "December 13th Directive"). The December 13th Directive
seeks information for the purpose of monitoring the Bank's compliance with a limitation in the Federal .
Deposit Insurance Act (''FOIA'') that restricts an undercapitalized insured depository institution from
accepting "employee benefit plan" deposits. See 12 U.S.C. 1821(a)(I)(D)(ii) (the "FDIA Limitation,,).2
''Employee benefit plans" subject to the FDIA Limitation are plans defined under Section 3(3) of the
Employee Retirement Income Security Act of 1974 ("ERISA") as well as any plan described in section 401(d)
of the Internal Revenue Code of 1986. See 12 U.S.C 1821(a)(5)(B). Section 3(3) of ERISA is broad and
provides that the term "employee benefit plan" or "plan" means an employee welfare benefit plan or an
. employee pension benefit plan or a plan which is both an employee welfare benefit plan and an employee
pension benefit plan. 29 U.S.C. 1002(3). ERISA defines an "employee benefit plan" in pertinent part as
"any plan, fund,or program which was heretofore or is hereafter established or maintained by an employer or
by an employee organization, or by both, to the extent that by its express terms or as a result of circumstances
surrounding such plan, fund, or program- (i) provides retirement income to employees, or (ii) results in a
1 This letter and the enclosures thereto contain confidential business information of United Western Bank and its holding
company United Western Bancorp, Inc. that is not in the public domain. This letter is being provided to the federal bank
regulators of United Western Bank in their supervisory capacity over the Bank and therefore should be granted confidential
treatment pursuant to the confidential commercial information and bank examination and supervision exemptions to the Freedom
oflnformation Act. Accordingly, we request, pursuant to 5 U.S.C. 552(b)(4) and (b)(8), confidential treatment ofthis letter.
Please notify us if anyone submits a Freedom of Information Act request for a copy of this letter.
2 As of December 8, 2010 the Bank was deemed undercapitalized as a result of its compliance with an OTS
Directive dated December 3, 2010 directing the Bank to incur additional charges for other-than-temporary
impairment o ~ its non-agency mortgage-backed securities portfolio. .
United Western Financial Center
700 Seventeenth Street Denver, Colorado 80202
tel: 303.595.9898 fax 303.390.0952
w w w . ~ . c o m
Mr. Philip Gerbick, Regional Director
Office of Thrift Supervision, Westerri Region
December 15,2010
Page2of4
deferral of income by employees for periods extending to the termination of covered employment or beyond,
regardless of the method of calculating the contributions made to the plan, the method of calculating the
benefits under the plan or the method of distributing benefits from the plan: 29 U.S.C. 1002(3) (emphasis
added). ERISA defines an "employee welfare benefit plan" in pertinent part as "any plan, fund, or program
which was heretofore or is hereafter established or maintained by an employer or by an employee
organization, or by both, . to the extent that such plan, fund, or program was established or is maintained for the
purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise,
(A) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability,
death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers,
scholarship funds, or prepaid legal services, or (B) any benefit described in section 186!) of this title (other
than pensions on retirement or death, and insurance to provide such pensions). 29 U.S.C. 1002(1) (emphasis
added).
The U.S. Department of Labor summarizes on its website
3
that ERISA "covers two types of pension plans:
defined benefit plans and defined contribution plans." The same Website states that "[e]xamples of defined
contribution plans include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing
plans," and lists the following types of plans as being ERISA pension plans:
.. defined benefit plans;
cash balance plans;
401(k) plans;
profit-sharing plans;
stock bonus plans;
employee stock ownership plans (aka ESOPs); and
money purchase pension plans.
In addition, within the scope of Section 3(3) of ERISA are executive-level "non-qualified" plans, "[t]he most
common types of [which] are supplemental executive retirement plans (SERPs), Top Hat plans, rabbi trusts
and secular trusts", and welfare plans, "[ t ]he most common types of [which] are health, life insurance,
disability, vacation and holiday, apprenticeship, educational or multiple employer welfare arrangements
(MEW A) plans.,,4 All of the plans described or listed above are referred to herein collectively as "ERISA
Plans".
Moreover, section 40 I (d) of the Internal Revenue Code, 26 U.S.C. 401(d), includes any trust forming part of
a penSion or profit-sharing plan which provides contributions or benefits for employees some or all of whom
are owner-employees shall constitute a qualified trust under this section only if, in addition to meeting the
requirements of subsection (a), the plan provides that contributions on behalf of any owner-employee may be
made only with respect to the earned income of such owner-employee which is derived from the trade or
business with respect to which such plan is established. 26 U.S.C, 401(d) (collectively "401 (d) Plans").
As the ots is aware, for over 17 years, the Bank has serviced various'institutional depositors at the Bank.
These institutional depositors serve as custodians and trustees for hundreds of thousands of individual plans.
Since receipt of the December 13th Directive, account representatives at the Bank have been reaching out to
each of these customers to comply with the Directive. As is clear from the definitions of ERISA and 401( d)
Plans, confrrmation of the types of specific plans that constitute an "employee benefit plan" for purposes of the
FDIA is a complicated and painstaking task. While some types of plans clearly satisfy the definition of
3 See www.dol.gov/dol/topic/retirementltYDesofplans.htm.
4 See OTS Trust and Management Handbook, at www.ots.treas.gov/ filesl427040.pdf.
1469
Mr. Philip Gerbick, Regional Director
Office of Thrift Supervision, Western Region
December 15,2010
Page 3 of4
Section 3(3) of ERISA, similar types of plans do not. For example, traditional and Roth IRAs are outside the
scope of Section 3(3) of ERISA and, therefore not subject to the FDIA Limitation, while employer-involved
IRAs such as SIMPLE IRAs andSEP-IRAs could be subject to the FDIA Limitation
We note that the December 13th Directive did not provide an appropriate timeframe to fully complete a review
of hundreds of thousands of accounts, as compliance requires coordination with each institutional depositor
and in some circumstances with a separate third party administrator. Nonetheless, within the deadline set, the
Bank significant strides to comply with the directive, as summarized below:
Matrix Settlement and Clearing Services, LLC ("MSCS"). Based upon preliminary discussions with MSCS,
the Bank has been informed by MSCS that MSCS and its affiliate, MG Trust Company, have over 70,000
accounts. Approximately 30,000 of these accounts relate to non-SEP, self-directed IRAs, which are not subject
to the FDIA Limitation. Approximately 40,000 other accounts involve other types of plans, which require
coordination with approximately 160 third party administrators. Such review is ongoing and it will take time
to determine whether the deposits associated with these plans involve employee benefit plans. Moreover, the
MSCS relationship also includes more than 3200 checking accounts associated with a specific record keeper
known as "CPI." We are working with CPI to ascertain the nature of those deposits.
Lincoln Trust Company. Preliminarily, based on information provided to the Bank, Lincoln Trust Company
appears to service no plans subject to the FDIA The Bank is coordinating with Lincoln Trust
Company to conduct further inquiry to ensure that the prelirninarydetermination is accurate.
Equity Trust Company is currently reviewing its account records and, if necessary, the Bank will restructure
its operations to comply with the FDIA Limitation, to the extent permissible consistent with the OTS's second
December 13,2010 directive to not modify any contracts with institutional depositors.
Legent Clearing LLC is currently reviewing its account records and, ifnecessary, the Bank will restructure its
operations to comply with the FDIA Limitation, consistent with the OTS's second December 13, 2010
directive to not modify any contracts with institutional depositors.
United Western Trust Company ("UWTC") has advised the Bank that its preliminary findings suggest that
UWTC does not maintain or accept any deposits relating to ERISA Plans or 401 (d) Plans.
Trust Management. Inc. ("TMI") has advised the Bank that it may have one SEP-IRA with approximately
$548 in employee benefit plan deposits, which is being confirmed. The Bank has requested additional
information from TMI and will work with it if necessary to comply with the FDIA Limitation.
The Bank will continue to complete this formidable task as promptly as possible, notwithstanding a deadline
that could not realistically be met. Please be advised that the Bank is working towards providing the OTS
with a written description of all employee benefit plans accepted by the Bank on or before December 31,
2010. The Bank will provide the OTS with periodic updates regarding such review, no less than weekly.
Based upon discussions with the various depositors, plans and administrators to identify any impacted
employee benefit plans and the associated-plan personnel, the Bank seeks to also provide the OTS with a
written description of the methods that are being utilized to identify such employee benefit plan deposits and
the steps taken or to be taken to comply with the FDIA Limitation, if necessary.
Notwithstanding the FDIA Limitation, pursuant to Section 11 (a )(3)( A) of the FDIA, deposits already in the
Bank remain insured up to $250,000 per plan participant. 12 U.S.C. 1821{a)(3)(A). Accordingly, even if
1470
Mr. PhilipGerbick, Regional Director
Office of Thrift Supervision, Westem Region
December 15,2010
Page 4 of4
the Bank cannot accept new deposits associated with ERISA or401(d) Plans, deposits already held at the
Bank from ERISA or 401( d) Plans will continue to remain insured up to $250,000 per plan participant:
As we have repeatedly advised the OTS and FDIC, the pending private-sector recapitalization of the Bank
benefits all concerned constituencies, including the FDIC, the OTS, and the public. The Bank's management
and board of directors have been working tirelessly to raise capital, despite the odds and increased .challenges
facing the Bank, and the Bank and its parent have done everything possible to bring the $200 million capital- .
raise to the finish line .. Time remains short to consummate the proposed transaction by December 31, 2010,
the deadline initially set by the Bank and now adopted by the OTS as the deadline to comply with a capital
restoration plan. The success or failure of this effective private-sector resolution to the challenges facing the
Bank depends upon the actions to be taken by the FDIC and OTS in the near-term. .
Management and representatives of the Bank are available to assist the FDIC and OTS with any questions the
agencies may have as we all work together towards a successful private-sector recapitalization.
Sincerely yours,
James R. Peoples
Chaimian of the Board and Chief Executive Officer
cc: Kristie K. Elmquist, Acting Regional Director, FDIC-Dallas
Joseph A. Meade, Assistant Regional Director, FDIC-Dallas
John E. Bowman, Acting Director
Thomas A. Barnes
Nicholas Dyer
Deborah Jenkins-King
Clayton Coon, Esq.
1471
TabC
Exhibit 51
1472
James R. Peoples
Chairman, President & Chief Executive Officer
United Western Bank
720.956.6576
jpeoples@uwbank.com
CONFIDENTIAL TREATMENT REQUESTED!
December 20, 2010
VIA E-MAILAND OVERNIGHT DELIVERY
Philip A. Gerbick
Regional Director
Office of Thrift Supervision
Western Regional Office
225 E. John Carpenter Freeway, Suite 500
Irving, TX 75062-2326
RE: Capital Restoration Piau of United Western Bank, Denver, Colorado
Dear Mr. Gerbick:
By letter dated December 13, 2010 (the "Directive"), the Office of Thrift Supervision
(the "OTS") directed United Western Bank (the "Bank") to submit to the OTS and the Federal
Deposit Insurance Corporation (the "FDIC") a Capital Restoration Plan (the "Capital Plan"), as
required under the prompt corrective action ("PCA") provisions of Section 38 of the Federal
Deposit Insurance Act ("FDIA") and Part 565 of the rules and regulations of the OTS.
Generally, a Capital Plan must be submitted within 45 days from when an undercapitalized
institution receives notice of its status under such category, but the OTS has the authority to
shorten such time frame. Pursuant to the Directive, the OTS exercised such authority to shorten
the time frame to provide only 7 days, until December 20, 2010, for submission of this Capital
Plan.
Moreover, nonnally a capital plan submitted by an undercapitalized association must
demonstrate that it can meet the adequately capitalized standards as soon as possible, but no later
than two years from the date the association was deemed to be undercapitalized unless the OTS
Regional Director specifies a shorter time frame for compliance. Pursuant to the Directive, the
OTS is requiring the Bank to meet adequately capitalized status no later than December 31,
2010, a mere eighteen days after receipt of the Directive. Accordingly, no later than December
31,2010, the OTS is requiring that the Bank meet: (i) a leverage ratio of4.0 percent or greater;
1 This letter and the enclosures thereto contain confidential business information of United Western Bank and its holding
company United Western Bancorp, Inc. that is not in the public domain. This letter is being provided to the federal bank
regulators of United Western Bank in their supervisory capacity over the Bank and therefore should be granted confidential
treatment pursuant to the confidential commercial information and bank examination and supervision exemptions to the Freedom
' of Infonnation Act. Accordingly, we request, pursuant to 5 U.S.C. 552(bX4) and (b)(8), confidential treatment of this letter.
Please notifY us if anyone submits a Freedom of Information Act request for a copy of this letter.
United Western Financial Center
700 Seventeenth Street Denver, Colorado 80202
tel: 303.595.9898 fax 303.390.0952
wwwura,orp.com
Mr. Philip Gerbick
Office of Thrift Supervision, Western Region
December 20, 2010
Page 2 of8
(ii) a Tier 1 risk-based capital ratio of 4.0 percent or greater; and (iii) a risk-based capital ratio of
8.0 percent or greater.
As the OTS is aware, the Bank and its corporate parent, United Western Bancorp, Inc.
("UWBK") have already negotiated a private-sector recapitalization transaction (the
"Recapitalization Transaction") and the parties have been working towards a December 31, 2010
consummation date. As of the date of this Capital Plan, the rebuttals of control filed on
November 8, 2010 by two anchor investors each seeking to hold 24.9% of UWBK's voting
securities after the Recapitalization Transaction, continue to be processed by the OTS staff,
which raises significant logistical issues for a December 31, 2010 closing. It is important to
recognize that the aggregate of the three anchor investors' investment in the Bank would be for
approximately $103 million, which is more than enough new capital to cause the Bank to regain
its adequately-capitalized status. Moreover, the OTS and FDIC have recently issued to the Bank
various directives and determinations that impact the Bank's operations, requiring analysis by.
the various effected parties as well as updates to our proposed investor-base. To date, these
agency actions, such as the OTS' s OTT! directive, which caused the Bank to become
undercapitalized leading to the Directive and a restriction on accepting employee benefit plan
limitations, have not caused our proposed investor base to terminate their interest in the Banle
However, while the Bank has been working assiduously towards a December 31, 2010
Recapitalization Transaction closing, realistically, in light of the OTS not acting promptly to
approve rebuttals of control with respect to proposed shareholders who seek to acquire just shy
of 50% of the Company's post-transaction voting securities compliance with various other
directives and deadlines as well as the up-coming year-end holidays, we respectfully request that
the December 31,2010 deadline set forth in the Directive be amended to January 31, 2011.
Background
The Bank, historically, has been profitable in each year from 1993 when it was
acquired by UWBK un#l June 30, 2009. This time period represents an unbroken 16
years of profitability. There is no reason why the Bank cannot return to profitability.
Historically, the Bank has managed problem assets in its normal course of operations. In
fact, in the course of the 2010 supervisory exam, OTS field examiners raised little-to-no
concerns about the Bank's ability to properly access and manage its single family whole
loan portfolio as well as its other community bank loans.
While the Bank has experienced losses in those portfolios, its loan performance
statistics have proven to be much better than its peer banks. For example, the Bank's
single family residential loan portfolio is very safe based on its historical trends.
Specifically, the portfolio has the following characteristics:
a. Aggregate portfolio value at September 30,2010 $254,379,000, down
from $882,530,000 at December 31,2005;
1474
Mr. Philip Gerbick .
Office of Thrift Supervision, Western Region
December 20, 2010
rage 3 of8
b. Seasoned and over 9 years old on a weighted average basis;
c. FICO scores at origination were over 700 for loans originated and
purchased in the Bank (this excludes loans originated by Matrix
Financial Services Corporation, of which the majority of the remaining
loans are FHA loans guaranteed by HUD);
d. Current residential loans on nonaccrual are 4.68% of total residential
loans. This continues to compare favorably to data from the mortgage
bankers association website;
e. Average loan balances of $125,000; 1lIld
f. The lowest loan balance is under $100 and the highest is $1,151,000;
The Bank has managed this portfolio prudently since the implementation of the
community banking strategy started in 2006. The Bank believes loss exposure from this portfolio
is adequately reserved.
The Bank's Small Business Administration ("SBA") Division also has been operating
under the same management for over 13 years. In that time, the SBA Division has originated
over $600 million of SBA loans (excluding some $107,510,000 were actually purchased from
third parties). The aggregate loss from that portfolio inclusive of the loans purchased from third
parties in 13 years has been less than 1%. The Bank's SBA Division ranks 32
0d
out of over
6,000 SBA loan originators and ranks in the top 5% of originators with regard to its credit
statistics.
The most significant portion of the loss experienced by the Bank ($64,294,000) came
from the Bank's direct credit substitute securities ("DCS") portfolio in the laSt 27 months, during
an unprecedented period of financial stress the country has not seen since the Great Depression.
While we believe the OTS is concerned that these assets will cause future operating losses and
erosion to the Bank's capital levels, as discussed below, as part of the proposed recapitalization
transaction, the Bank and its parent will remove these securities from the Batik's balance sheet,
thereby eliminating any chance of future. losses from these securities.
Plan to Recapitalize the Bank
To address the recent challenges outlined above, on October 28,2010, UWBK entered
into an investment agreement with three anchor investors and agreed to engage in a private
placement of additional equity securities with various other non-controlling investors, which was
publicly announced on October 29, 2010 (the "Recapitalization Transaction")? The
2 On October. 29, 2010, UWBK issued a press release and filed with the Securities and Exchange Commission a Current Report
on FOIDl 8-K publicly announcing the Recapitalization Transaction.' These materials were provided to the OTS and FDIC as
an attachment to the October 29, 2010 letter from Andrew L. Sandler to John E. Bowman and Sandra L. Thompson and are
available at http://www.sec.goY!Archivesledgarldatal94472S/000094472S100000221foIDl8k.htm.
1475
Mr. Philip Gerbick
Office of Thrift Supervision, Western Region
December 20, 2010
Page 4 of8
Recapitalization Plan coupled with the enclosed Revised Business Plan of the Bank constitute
the required Capital Plan, as described herein in light of the accelerated timeframes provided for
in the Directive.
As the OTS and FDIC are aware, the anchor investors have agreed to invest $103 million
pursuant to the investment agreement with other investors expected to invest from $97 million to
$102 million. As noted above, the committed funds of the anchor investors are more than
enough to return the Bank to adequately-capitalized status. Nonetheless, the $200 million to
$205 million in gross proceeds anticipated from the Recapitalization Transaction will
recapitalize the Bank in excess of the levels required by the Directive as well as by the Bank's
Cease and Desist Order dated June 25, 2010 (the "Bank C&D Order"). In pertinent part, the
Recapitalization Transaction currently requires:
1. Non-objection to pending rebuttals of control of the two non-controlling investors
who each filed rebuttals of control on November 8, 2010. In light of the OTS's
accelerated deadline for compliance with this Capital Plan, we assume the OTS is
committed to act on these pending rebuttals of control in a timely and appropriate
manner. The Bank is not aware of any factors that would give rise to such rebuttals not
being accepted.
2. Approval of the pending operating subsidiary application for the Bank to acquire
Legent Clearing LLC ("Legent") under Part 559 of the rules and regulations of the OTS
as well as under the Directive.
We note that both the OTS and the FDIC have raised questions regarding whether
deposits placed by Legent are brokered deposits. As the Bank advised the agencies in
writing on December 6, 2010 and again telephonically on December 15, 2010, the
relationship between the Bank and Legent has been re-structured to mirror the
relationships in FDIC Advisory Opinion 05-02 (February 3, 2005). Accordingly, this
issue appears to be moot and should not further delay the processing of the pending
application. However, if the OTS continues to require a formal FDIC determination, we
assume the OTS is seeking fonnal confIrmation of the status of the deposits from the
FDIC, because as of the date of this Capital Plan, the FDIC has not responded to the
Bank on this matter.
3. Deletion of the "meet and maintain" language of paragraph 3 in the Bank C&D
Order. We note that the OTS advised the Bank on December 3,2010, that "at this time"
the agency is unwilling to delete this language. As this requirement isa condition of
closing imposed by the proposed investors, we believe that it is not a proper exercise of
the agency's fIduciary duties to the Deposit Insurance Fund to refuse to act appropriately
to facilitate a $200 million private sector recapitalization, which would cause the Bank to
far exceed the minimum standards required by so-called meet and maintain provision. As
we have previously advised the OTS and FDIC, the deletion of the "meet and maintain"
1476
I
Mr. Philip Gerbick
Office of Thrift Supervision, Western Region
December 20, 2010
Page 5 of8
maintain" provision can occur simultaneously with the close of the Recapitalization
Transaction.
As discussed herein, the primary cause of the Bank's capital problems can be
traced directly to its DCS portfolio and not to its other assets or stresses faced by the
liability side of its balance sheet. While the Bank did incur approximately $44.4 million
of other-than-temporary impairment ("OTTI") charges to its DCS portfolio in the period
of September 30, 2009 to September 30, 2010 (including additional OTT! charges that
the OTS directed that the Bank take on December 3, 2010, which rendered the Bank
undercapitalized), removing all of the DCS securities from the Bank's balance sheet
means that the Bank will face no risk of those types of OTT! charges in the future.
Accordingly, the likelihood that the Bank would "maintain" the established capital ratio
is high and, thereby supports a basis for the agency to delete a requirement that serves no
legitimate supervisory purpose. '
4. Prompt consideration and approval by the OTS Regional Director as to the
appointment of the Anchor Investors nominees to the UWBK and Bank boards when
named.
5. Prompt consideration and approval by the OTS Regional Director and FDIC of
certain employment agreements for five employees of UWBK and the Bank under the
UWBK Cease and Desist Order dated June 25, 2010 (the "UWBK C&D Order"), the
Bank C&D Order and under 12C.F.R. Part 359, when filed.
6. Prompt OTS Regional Director approval to retire the debt with JPMorgan Chase
Bank in accordance with the current Fifth Forbearance and Amendment Agreement dated
October 29, 2010 between UWBK, a UWBK subsidiary and JPMorgan Chase Bank.
7. OTS Regional Director approval of the revised Bank business plan attached
hereto as Confidential Exhibit A.
As set forth in the Bank's revised business plan, immediately from the date of
consummation of the Recapitalization Transaction, the Bank's capital levels will greatly
exceed the standards required by the Directive as well as those set forth in the Bank C&D
Order.
Moreover, the business plan documents the various activities the Bank will
engage in, including a greater emphasis on its community-based banking operations.
The Bank will focus on originating SBA guaranteed loans and community bank
loans and making both purpose and non-purpose loans secured by securities subject to
Regulation U. In addition, the Bank will acquire government-guaranteed mortgage-
1477
Mr. Philip Gerbick
Office of Thrift Supervision, Western Region
December 20,2010
Page 6 of8
backed securities issued by GNMA, FNMA and Flfl.MC. There is no risk of loss in these
government-guaranteed mortgage-backed security positions.
The Bank re-emphasizes that it has engaged in the same operations over the past
17 years without material supervisory objection until recently. It bears repeating that the
recent challenges facing the Bank were caused by losses in the Bank's mortgage-backed
securities portfolio and community-based operations - the same two areas the OTS has
requested the Bank.concentrate on.
Notwithstanding the OTS's admonition from 2005 and earlier to focus on our
community banking operations, the cause of the Bank's recent deposit challenges was
caused primarily by challenges to the asset .side of its balance sheet. Accordingly,
addressing the challenges on the asset side of the Bank's balance sheet will facilitate the
Bank's ability to attract and market the return of retail (community banking) deposits
through its business development officers who, on average, are 20-year industry veterans;
The Bank, therefore, believes that the Recapitalization Transaction will materially
de-risk the asset-side of the Bank's balance sheet. Specifically, in conjunction with the
Recapitalization Transaction, the Bank will immediately remove the DCS securities,
lower tranche positions in private label mortgage-backed securities from the Bank's
balance sheet. This transaction, of course, is subject to prior OTS approval under the
Bank C&D Order and the UWBK C&D Order. .
In sum, UWBK will acquire the DCS. securities from the Bank at the closing of
the recapitalization, at the Bank's book value, for cash (estimated to be $73,400,000 at
December 31, 201{ij and will thereafter hold those DCS at UWBK for UWBK's
economic risk. As we have previously provided to the OTS, while UWBK currently is
not subject to capital requirements, by 2015 when such ratios are effective, the securities
will have declined to levels where UWBK is comfortable that it will meet the required
capital ratios.
The effect of such transfer of securities from the Bank to UWBK is to
immediately change the risk-profile of the Bank.
peA Guarantee and Assurances by the Company Controlling the Bank
An acceptable capital plan filed under the FDIA and OTS regulations must also include a
guarantee by each company having control of the institution that (i) guarantees the institution
will comply with the capital plan until the institution has been adequately capitalized on average
during each of 4 consecutive quarters, and (ii) provides for appropriate assurances of
performance. 12 U.S.C. 1831o(e)(2)(C)(ii). In accordance with Section 38(e)(2)(E) of the
FDIA, and as applied to the Bank, such guarantee is limited in the aggregate to the lesser of (i)
an amount equal to 5 percent of the Bank's total assets at the time the Bank became
1478
Mr. Philip Gerbick
Office of Thrift Supervision, Western Region
December 20, 2010
Page 7 of8
undercapitalized; or (ii) the amount which is necessary (or would have been necessary) to bring
the Bank into compliance with all capital standards applicable to the Bank as of the time the
Bank fails to comply with an approved capital plan.
Accordingly, UWBK, which is the sole company controlling the Bank, will have an
aggregate maximum liability of $103,532,550, which is the amount equal to 5 percent of the
Bank's total assets as of September 30, 2010, the date on which the Bank is deemed to have
become undercapitalized. Attached hereto as Confidential Exhibit B is the required PCA
Guarantee and Assurances by UWBK, the sole holding company of the Bank.
Approval Criteria
This Capital Plan meets the statutory criteria for approval by OTS. It is predicated on
realistic assumptions based upon the Bank's 17 years of operations. Compliance with this
Capital Plan will result in immediate compliance with the Directive to obtain adequate
capitalized status, and will comply fully with the capital levels set forth in the BankC&D Order.
Moreover, the proposed private sector recapitalization will not appreciably increase the risk
(including credit risk, interest-rate risk, and other types. of risk) to which the Bank is already
exposed. As demonstrated above, the effect of the Recapitalization Transaction will be to
materially lower the various risks currently faced by the Bank by removing the DeS portfolio
from the Bank. Accordingly, as this Capital Plan meets the criteria for approval, we request
prompt OTS action to approve this Capital Plan. Approval of this Capital Plan, and approval of
the required pending applications with the OTS and FDIC, also is the proper exercise of OTS's
fiduciary duties to the Deposit Insurance Fund as the pending Recapitalization Transaction is
clearly the least cost resolution of the Bank's challenges.
* * *
If you have any questions regarding the foregoing, please contact the undersigned at 720-
956-6576 or Lawrence D. Kaplan at Paul, Hastings, Janofsky & Walker LLP at 202-551-1829.
Sincerely,
James R. Peoples
Enclosures
cc: Kristie K. Elmquist, Acting Regional Director
Federal Deposit Insurance Corporation
1601 Bryan Street
1479
Mr. Philip Gerbick
Office of Thrift Supervision, Western Region
December 20, 2010
Page 8 of8
Dallas,TX 75201
Boards of Directors of United Western Bancorp, Inc. and United Western Bank.
Lawrence D. Kaplan, E s q ~ - Paul, Hastings, Janofsky & Walker LLP
Andrew L. Sandler, Esq. - BucldeySandler LLP
1480
TabC
Exhibit 51 A
1481
CONFIDENTIAL ExmBIT A
.,.
1482
1483
i'.
Table of Contents
'- Capital Plan Assumptions
'- Overview
'- Overview - continued
'- Summary of Changes From July 26, 2010 Presentation
'- $200 million Capital Raise
'- Bank - Balance Sheet discussion
'- Bank - Balance Sheet
'- Bank - Statement of Operations
'- Bank - Deposit discussion
'- Bank - Deposits
'- Bank - Loans discussion
'- Bank: - Loans
'- Legent - Financial Statement discussion
'- Legent - Balance Sheet
'- Legent - Statement of Operations
'- UWBI - Balance Sheet
'- UWBI - Statement of Operations
Note:, This document should be reviewed in conjunction with the more detailed Revised 2010 Business and
Financial Plan for the Bank ..



3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

+::>
OJ
U1


Capital
}" A' t'
'an -'- ssump Cl ons
-> Implements the requirements and restrictions of the C&D against United
Western Bancorp, Inc. ("DWBK") and the C&D against United Western
Bank (the "Bank") as well as OTS Directives dated Decelnber 13, 2010 '
-> Reduce classified assets in accordance with classified asset reduction plan.
Reduce concentration of construction loans, non-residential mortgage
loans and non-agency MBS.
-> No new construction or land loans other than SBA loans unless the Bank
receives the prior written non-objection from the OTS.
-> No purchases of non-agency securities.
-> Adhere to the Bank's Liquidity Plan.
-> Once capital is raised growth in assets on the Bank's balance sheet is
limited to the amounts set forth in this plan.
-> No capital distributions at UWBK or the Bank without prior written non-
objection troin OTS.
-> Acquire Legent Clearing upon receipt of regulatory approvals.
.....
~
CD
~
YJlB
Overview
--- United Western Bank was deemed to be"undercapitalized" as
of September 30,2010
Compliance with adequately capitalized ratios required approximately
$28.0 million in new capital
Compliance with C&D ratios required approximately $67.0 million in .
new capital, without regard to the transfer of direct credit substitute
("DeS") securities out of the Bank .
---. On October 28, 2010, United Western Bancorp entered into.
an investment agreement with three anchor investors in a
. $200 million recapitalization transaction
Consummation of the Private-Sector Recapitalization is subject to
raising an additional $97.0 million from private investors;
Various regulat<;:>ry approvals
.....
..j::::.
OJ
-...J


Overview - continued
{- This revised business plan addresses the various challenges faced by the Bank
Capital- by infusing approximately $102.6 million into the Bank as soon as practical (after completion of the
capital raise transaction) and before January 31,2011 and flU1her increasing capital through earnings during the next
three years
Assets - removing DCS securities as soon as practical and before January 31, 2011, eliminating:


The riskiest assets from the Bank's balance sheet
The Bank's exposure to further OTTI charges from Des securities
Deposits - by addressing capital and asset-quality issues,the Bank's deposit base remains steady, and is not subject
to limitations
Trust and Processing deposits - Bank continues the liability concept that has been successfully in place for over 13
years as a significant source of funding
Since the MOU was issued one year ago and the issuance of the C&D, with all ofthe associated public
disclosure required by UWBr as an SEC registrant, the Bank has maintained all but one of its processing and
trust relationships. .
Demonstrates their "stickiness"
Demonstrates the quality and uniqueness of the services provided to these depositors
Revisedthe contractual account relationships to conform to the structure of FDIC AO 05-02 to
eliminate any "brokered deposit" characterization.
Processing and Trust, or institutional deposits pose no material challenges to the Bank's ongoing
operations
The Bank will reduce the concentration of Equity Trust deposits over time
I-'
,.J:::.
co
co


Summary of Changes July 26, 2010
Plan based on one scenario - a capital raise of $200
million
Updated to reflect actual results through the third
quarter of2010.
Updated to reflect current expectations of transfer of
direct credit substitute securities to UWBI.
Updated to reflect revised balances of DeS
securities after incremental OTTI charge taken as of
September 30,2010
Updated to reflect write off of Bank income tax
receivable as a "dividend"
I-'
..l:::-
cc
\.0


$200 million Capital Raise
-c} UWBK raises $200 million
Three anchor investors for $103.0 million in capital announced October 28
2010 .'
Remainder of capital expected to be raised from non-controlling shareholders
as soon as possible, but no later than January 31, 2011
<> Capital imlnediately injected into Bank $102.6 million
Projected Bank Core Capital 8.5%; Risk Based Capital 16.3%, which is also
inclusive of the Legent transaction.
Eliminate exposure to direct credit substitute MBS
-c} Transfer to UWBK all Des MBS
Significantly de-risks Bank balance sheet from future OTT! exposure and
principal loss exposure from non-agency MBS.
DeS MBS transferred to UWBI from Bank is $73.4 million, inclusive of the
additional OTTI charge reflected at September 30, 2010.
Cash flows from DeS securities expected to provide $14 million additional
capital injection to the Bank from UWBI in Q3 2011.
.....

1.0
o
I

Bank -- Balance Sheet discussion
.-- Upon consummation of Legent Clearing acquisition estimated
capital ratios will be Core 8.5% and Risk Based Capital
16.3%
{o- Capital ratios will be over 8.00% for core and 12.00% for risk
. . . .
based in all periods presented, inclusive of Legent
Acquisition.
-> Asset growth is prudently managed with growth. in agency
securities, SBA lending and granular community bank loans.
{o-Bankactivelytargets and prudently increases community
banking deposits
-- Liability concentration to Equity Trust declines over time
k B'a} Sh' t --I,


30-5ep-10 31-Dec-10 31-Mar-11 30-Jun-11 30-5ep.11 31-Dec11 31Mar-12 3O-Jun12 30-5ep-12 31-Dec-12 31-Mar13 30-Jun-13 30-5ep-13
;sets
Cash $ 170,942 170,942 150,000 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $
GNMAs 182,827 247,445 330,276 328,066 443,496 415,657 380,039 436,615 484,580 507,520
Investments 266,438 247,027 160,349 147,102 133,889 120,724 108,284 95,894 83,542 71,232
Community Bank Loans 1,012,832 1,015,716 1,079,098
Other Loans 314,643 301,217 306,939

, .' . :."11 . . ..
1-1 Other Assets 148,184 145,661 165,521 158,084 150,567 149,712 150,885 161,988 162,723 164,277 184,833 165,556 166,577
..j::>.
Total Assets $ 2,050.401 $ 2,081,916 $ 2,265,386 $ 2,335,949 $ 2,571,493 $2,612,754 $ 2,656,204 $ 2,795,567 $ 2,957,006 $ 3,084,250 $ 3,105,141 $ 3,267,118 $ 3,357,246
1.0
1-1
Community Bank Depos"s $ 419,135 $ 434,852 $ 469,909 $ 505,578 $ 541,881 $ 578,842 $ 616,486 $ 654,839 $ 693,926 $ 733,777 $ 748,371 $ 763,330 $ 778,664
Institutional Deposits 1,232,270 1,256,048 1,195,041 1,208,065 1,368,087 1,385,818 1,399,397 1,475,940 1,555,274 1,599,169 1,611,276 1,743,554 1,791,215
Total DepoeHs 1,651,405 1,690,901 $ 1,664,951 $ 1,713,643 $ 1,909,968 1,964,660 $ 2,015,883 $ 2,130,779 $ 2,249,200 $ 2,332,945 $ 2,359,847 $ 2,506,885 $ 2,569,879
..
Borrowings 273,510 278,587 278,587 278,587 253,587 228,587 203,587 203,587 203,587 203,587 203,587 203,587 203,587
Other Liabilities 14,540 15,086 24,107 25,345 26,604 27,886 29,192 30,523 31,879 33,261 33,768 34,286 34,818
Total LiabHnies 1,939,455 1,964,574 2,091,966 2,143,232 2,362,333 2,400,078 2,439,451 2,562,167 2,715,329 2,812,363 2,841,824 2,990,780 3,066,279
Total Equity 110,946 97,342 193,420 192,716 209,161 212,676 216,753 233,400 241,677 251,887 263,318 276,338 290,967
Total Liabilities and Equity $ 2,050,401 $ 2,081,916 $ 2,285,386 $ 2,335,949 $ 2,571,493 $ 2,612,754 $ 2,656,204 $ 2,795,567 $ 2,957,006 $ 3,064,250 $ 3,105,141 $ 3,267,118 $ 3,357,246
Addttlonallnfonnation
capiiatCori\nWed .....
0.$ '.0 '1:102,587: $. . 'i.o {::1>I,OQO'J.' '!l.:$/';
10,008 $ o $ o $ o $ o $ o $ o $ o $ o $ o $ o $ o $
..
..
5.7% 5;0% lt5% 8.3"% .B.2% 8.2% 82% .8A% 8,2% 8,2% U%
5.8% SJ.
1M: .'
14.4 ' 14.4 '.14;0 . 13.6 14.0 .
13;8 14,1
7U'
. 0:4 . 16;3 . 15,7 :15,6: 1$:2 14.8 15 .3 '14.9 14:9 'lG.r 1U
Net Charge-offs I (Recoveries) $16,855 $11,672 $ 2,575 $ 2,725 $ 2,125 $1,775 $ 2,025 $ 2,075 $ 2,125 $2,375 $ 2,275 $2,175
Nonaccrual Loans I Loans 5.40 % 6.20% 5.13 % 4,99 % 4.84 % 4,68 % 4.53 % 4,37 % 4,22 % 4,06 % 3.90% 3.75%
3.42 3.50 3.66 3.47 3,43 3.34 3.26 3.17 3.14 3.06 2.97 2,88
f--ool
+::>

f\J


ank - Statement of Operations
Income Statement
Interest Income
Interest Expense
Net Interest Income
for Credn losses
Pre-Tax Income I (loss)
Reversal of Valuation ABowance
Tax Expense
Net Income I
Three months ended
30Sep10 31.1)ec10 31Mar11 3O.Jun11 3o.Sep.11 31.1)ec11 31Mar12 30.Jun12 3o.Sep12 31Dec12 31-Mar13 30.Jun13 30-Sep.13 31-Oec.13
$U $U $U SU $. $U $U $0 $Q $_
(4,289) (3,798) (4,824) (5,064) (5,341) (5,579) (5,564) (5,815) (6,2Sn (6,884) (7,311) (7,806) (8,414) (9,099)
$16,646 $16,944 W,636 $18,814 $ 20,333 $ 22,072 $ 23,468 $ 25,100 $ 27,344 $ 29,697 $31,853 $ 34,303 $ 37,143 $ 39.345
(18,876) (12,319) (2,428) (4,024) (2,889) (3,207) (2,935) (3,952) (3,215) (2,698) (2,482) (2,684)
$(15,909) $(321) . $ 6,850 $ 7,222 $10,582 $11,130 $11,464 $11,951 $13,268 $13,912 $14,039 $14,057 $14,453 $14,583
(18,221) (17,695) (24,675) (24,397) (25,553) (25,999) (26,372) (26,588) (26,524) (27,231) (27,112) (27,259) (27,746) (28,062)
$(36,360) $(13,391) $(7,470) $(789) $1.337 $ 4,314 $ 5,353 $ 7,528 $10,135 $13,163 $16,081 $18,619 $ 21,166
0 0 0 0 0 0 0 10,000 0 0 0 0 0
(298) (400) (400) (110) 891 (1,071) (1,606) (1,195) (2,167) (3,223) (4,885) (5,806) (6,717)
. $(36,65ID _$(13,[91) SapO) $(899) $ 2,229 $ 3,243 $ 3,747 $16,333 $ 7,968 $ 9,940 $11,196 $12,812 $14,449
t-'


w
Bank - Loans discussion
1.1 1)11

.-- Expand C&I lending
Growth of $59 million per year over three years
Significant experience in C&I lending by veteran loan officers
Legent acquisition offers additional C&I opportunities.
-'- SBA Originated
Retain guaranteed portions rather than originating to sell into the secondary market.
Add additional business development officers and expand production capacity with all
credit decisions continuing to be made in Denver, Colorado.
-- C&D lending relatively flat over the three year period
Use C&D loans for SBA projects and to maximize return on existing land loans.
-- . CRE loans
Growth to $549 million, implies average annual loan growth of $27 million.
Existing relationships and some continued conversion of C&D loans.
-- . Residential
Bank may supplement agency mortgage loans with well underwritten whole loans.
Infrastructure in place to manage whole loans


k L an,'--' ..,1 to
s
30-Sep-10 31-Dec-10 31-Mar-11 30.Jun-11 30-Sep-11 31-0ec11 31-Mar-12 3O.Jun12 30-Sep12 310ec12 31-Mar13 30.Jun13 3O-Sep-13 31-0ec-13
Loan Detail
Commercial $148,352 $152,802 $167,042 $181,665 $196,688 $ 212,132 $ 225,697 $ 239,523 $ 253,620 $ 267,999 $ 282,669 $ 297,641 $ 312,928 $ 328;540
Real Estate 470,017 467,667 476,005 484,355 492,717 501,091 509,476 517,873 526,283 534,704 538,271 541,849 545,440 549,043
Construction & Development 181.710 181,029 180,350 179,674 179,000 178,329 177,660 176,994 176,330 175,669 175,010 174,354 173,700 173,049
I-'
SBA
169,266 170,466 191,760 213,055 234,349 255,644 279,938 304,233 328,527 352,822 377,116 401,411 425,705 450,000 ..j:::o
1.0
. . Residential Originated 43,487 43,752 63,940 84,237 104,649 125,181 145,840 166,632 187,564 208,642 228,258 247,914 267,612 287,352 ..j:::o
Total Community Bank Loans $1,012,832 $1,015,716 $1,079,098 $1,142,985 $1,207,403 $1,272,376 $1,338,612 $1,405,255 $1,472,324 $1,539,835 $1,601,324 $1,663,170 $1,725,385 $1,787,984
OlherLoans
Residential Purchased $ 251,109 $ 238,589 $ 237,477 $ 237,297 $ 237,991 $ 239,504 $ 239,481 $ 240,495 $ 242,468 $ 245,328 $249,008 $ 253,448 $ 258,589 $ 264,360
SBA Purchased 63,534 62,628 69,462 76,336 83,247 90,196 97,181 104,202 111,257 118,345 125,467 132,620 139,804 147,019
Margin lending 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Other Loans $ 314,643 $ 301,217 $ 306,939 $ 313,633 $ 321,238 $ 329,700 $ 336,663 $ 344,697 $ 353,725 $ 363,673 $ 374,475 $ 386,068 $ 398,394 $ 411,399
TotalGrossloans $1:327,475 $1,316,933 $1,386,037 $1,456,618 $1,528,641$1,602,077 $1,749,952$1,82&,049 $1;903,509 $1,975,799 2J23,V9$2,199,383
J-I
,f::I.
\.0
U"I


Bank - Deposit discussion
The overall amount of processing and trust deposits will be prudently managed within the ..
guidelines set forth in the Bank;s business plan

Bank has various contractual relationships that cannot be terIilinated on short-order
Bank is under OTS Directives not to reduce contractual deposits.
Bank's institutional deposits remained at Bank throughout period of challenges, demonstrating their
"stickiness"
Bank will expand its focus on the growth of community banking deposits
Deposits increase approximately $120 million per year on average.
Deposits are projected to increase to approximately 31% of total deposits by end of2013.
Bank's value proposition will continue to rely upon high quality, attentive service, name
recognition and responsiveness to customer problems.
Bank will drive community banking deposits higher by the following:
Focus on service
. .
Utilization of. targeted advertising to penetrate the market share we are seeking.
Leverage our business development capabilities of our commercial lenders with 20 years of experience
Appropriate incentives related to deposit growth consistent with strategic initiatives
Equity Trust
Equity Trust maintained at contractual amount, which expires in June 2014.
Opportunistically Bank. will evaluate re-negotiation of Equity Trust Agreement to further reduce
Equity Trust concentration, consistent with OTS Directives
I-'
+::0
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B
k\ D . "t
... : .. )epOSl ;:s

3i0ec10 31-Mari1 3O-Jun11 3D-SetH 31-Dec11 31-Mar12 3O-Jun-12 3O-Se1!:12 31Dec12 31-Mar13 3O-Jun-13 30-Se1!:13 31Dec-13
Deposit BreakdoYm
Bank Deposils 419,135 434,852 $ 469,909 i 505,578 $ 541,881 i 578,842 $ 616,486 654,839 $ 693,926 $ 733,m $ 748,371 $ 763,330 $ 778,664 $ 794,380
II1II Trust 699,943 699,943 699,943 699,943 699,943 699,943 699,943 699,943 699,943 699,943 699,943 699,943 699,943
159,829 160,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
223,871 223,871 255,227 241,891 440,875 464,944 491,988 574,150 697,941 755,100 766,395 896,231 956,939
148,626 172,234 189,871 216,230 177,268 170,931 157,466 151,847 107,389 94,125 94,938 97,379 84,333
Total Processing & Trust Deposils 1,232,270 1,256,048 1,195,041 1,208,005 1,368,087 1,385,818 1,399,397 1,475,940 1,555,274 1,599,169 1,611,276 1,743,554 1,791,215 1,801,738
Total Deposils $ 1,651,405 $ 1,690,901 $ 1,664,951 $ 1,713,643 $ 1,909,968 $ 1,964,000 $ $ 2,130,779 $ 2,249,200 $ 2,332,945 $ 2,359,647 $ 2,500,885 $ 2,569,879 $ 2,596,119
!-I
.j::::.
\.0
-.....I


Legent -- Fin,ancial Statement discussion
"'> Legent Acquisition will be beneficial to the Bank from a deposit-gathering
perspective and from a lending perspective
"'> Legent Acquisition distinguishes Bancorp and is why investors are willing
to re-capitalize UWBIlBank
-<> Legent transaction will expand margin lending with guidance froin Bank
credit adlninistration team.
"'> Through continued growth and focus on expense control, Legent will
beCOlne profitable in early 2011.
"'> Profitable operations of Legent effectively reduces costs of deposits to
zero.
-<> Deposits acquired through Legentwill be invested at the Bank or other
institutions in order to maintain the Bank's balance sheet growth within
the business plan levels.


L t
'
, ,
i e'"g'/e.,.n"':_ .
... t of" f _ 'n,".,'. '.;!
alanc,e Sheet


U
' 'i-W' -"B;'I ........... , I 'C'" 'e" S' Ih:e t
o " ", ; _ " '" ., I .:. f. .' _ . ., .. .. '... l .. .
30-Sep.10 31-1lec10 31Mar11 3o.Jun11 3Q.Sep11 31-1lec11 31Mar12 3Q.Jun12 3Q.Sep.12 31-1lec12 31-Mar13 3Q.Jun13 30-Sep.13
$181,566 $174,396 $156,287' $159,707 $149,001 $151,738 $153,725 $155,503 $156,839 $157,817 $158,548 $159,405 $160,265 $161,005
182,827 247,445 330,276' 328,066 443,496 415,657 380,039 436,615 484,580 507,520 483,871 581,424 589,753
276,493 247,027 206,546 191,451 176,464 161,596 147,521 133,561 119,703 105,946 92,783 79,704 66,701
1,330,783 1,316,933 1,386,037 1,456,618 1,528,641 1,602,077 1,675,274 1,749,952 1,826,049 1,903,509 1,975,799 2,049,237 2,123,779
1'-1 .I\JIVlYdlM:
(45,446) (46,093) (50,798) (50,501) (52,400) (53,514) (54,696) (55,556) (57,383) (58,223) (58,646) (58,953) (59,562)
VI
. BD and Clearing Receivables 0 0 144,002 146,580 217,301 228,098 246,419 256,673 307,494 325,935 329,828 332,143 350,712
0
0 I''HL __ ' ___ 1_
147,266 173,749 180,397 170,915 159,010 158,648 160,339 171,995 173,318 175,511 176,602 177,897 179,493 180,862
$2,073,489 .. $2,113,458 .J2,352,746
i
$ 2A02,836 $2,621,512 .'12,664,300 .. $2,708,62f '$2,848,743""$3,010,601$3,118,015/13,156,785 $3,320,856 . $3,411.140 .. $3,455,230
Total $1,646,947 $1,678,050 $1,652,130 $1,700,852 $1,894,207 $1,951,666 $ 2,003,181 $ 2,118,107 $ 2,236,558 $ 2,320,333 $ 2,347,064 $ 2,494,331 $ 2,557,355 $ 2,583,625
Customer, BO and Clearing Payables $0 $0 $124,321 $125,656 $172,174 $178,945 $190,788 $197,277 $ 230,662 $ 242,569 $ 244,822 $ 246,022 $ 257,994 $ 259,238
Borrowings 289,752 304,837 266,587 286,587 264,241 238,621 215,026 216,669 218,021 219,055 219,899 220,943 222,046 223,065
Other Uabmties 22,986 32,166 40,629 41,308 42,011 42,737 43,488 44,264 45,067 45,897 45,852 45,821 45,804 45,801
$1,959,685 .. $2,Of5,054.$t 105,667 ...$l1$,405$ . 2,372,632 $2,411,969 .. . $.2,576,311.$Z73O,368 $2,827,853 $2,$1,63{ $3,O07,116.$3,083,199. .'$3,111,728

83,362 67,962 216,637 215,989 218,438 221,889 225,696 241,984 249,850 259,720 270,707 283,298 297,499
tolaltiablliliesandEglll1y.. ......,..... ..' $2,073,48Q.. J2,113,458 $2,352;746 . . $2,848,143 .... $3,010,ti01 ..$.3,118,015 $3, 1Se,78S' .$3,320;8$ ..$3,411,140'l3,455,23O.
111.1.

I
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,'., -. ". ,.; .',' ,

Three months ended
30Sep10 3iOeci0 31Mar11 3Q.Jun11 30-Sep11 31.oec11 3iMarn 30Sep12 31-Dec12 31,fjar13 3Q.Jun13 30-Sep13 31Dec.13
Income Statement
Interesllncome 21,184 22,323 23,856 25,061 H6,715 28,566 29,767 31,499 34,084 36,971 39,515 H2,429
Inleres! Expense (5,13n (4,649) (5,SOn (5,733) (5,917) (6,053) (6,034) (6,261) (6,681) (7,199) V,679) (8,176) (8,77n
I-'
lT1
__ 16,047 17,675 18,249 19,328 20,797 23,733 25,238 i 27,403 29,772 31,835 34,253 37,075
0
I-'
IlRB for Losses (18,876) (12,319) (7,280) (2,428) (4,024) (2,889) (3,20n (2,935) (3,952) (3,215) (2,698) (2,482) (2,684)
Noninteresllncome J (Loss) 8,278 11,6i7 12,259 1Z639 13,170 14,525 15,206 15,239 15,303 15,699
Noninleresl Expense (19,831) (19,211) (26,292) (26,024) (27,175) (27,620) (28,002) (28,226) (28,161) (2B,86n (28,756) (28,911) (29,40n
Pre-Tax Income J (loss) 1,275 H,163 7,247 9,815 15,620 18,162 20,683
421 (205) (54) 198 1,174 (813) (1,356) 9,041 (1,948) (3,027) (4,634) (5,571) (6,481)
.. ... >43,801 'l16,288 17;866_ ....... f10,987 112,591 114,201
to
to
~ .
1502
TabC
Exhibit 51 B
1503
CONFIDENTIAL EXIllBIT B
1504
.WJ.
J.J U ...... N .. !TED .
... WESTERN
BANK .
Memorandum
To: Board of Directors
From: Benjamin C. Hirsh and Lana Juhl
Date: December 20, 2010
Re: Revised 2010 Business and Financial Plan and 2011 Business and Financial Plan
L Executive Summary
General
Please refer to the accompanying power point presentation that includes the :fina.D.cial projections
incorporated into this plan when reading and reviewing this do.cument.
The Board of Directors and management are committed to the following:
(1) The Bank will operate with sufficient capital to support its risk profile, reduce non-
performing and classified assets, reduce concentrations, and comply with any formal
or informal regulatory agreements and correspondence;
(2) To confo:r;mity with applicable laws and regulations;
(3) To provide responsive service to all of our Bank's borrowing and deposit customers
commercial, retail and processing and trust;
(4) To the execution of our business plan; and
(5) The achievement of a reasonable rate of return to our shareholder on its investment
in United Western Bank (the "Bank").
This revised Business Plan for 2010 through 2012 contemplates the completion of United Western
Bancorp, Inc.'s (the "Company") $200 million capital raise. This capital raise will allow the Bank
to substantially de-risk the Bank's balance sheet; bolster the Bank's regulatory capital ratios in
excess of "well capitalized" thresholds; and provide capital to grow the Bank's balance sheet within
the parameters set forth in this Business Plan to take advantage of significant opportunities.
Upon consummation of the capital raise, the Bank intends to transfer all Bank owned direct credit
substitute securities to the Company at book value .. This transfer will eliminate a substantial portion
of the risk included in the Bank's balance sheet.
1505
(3) The community bank platform the Bank has developed over the past four years is in an
attractive bankingmarket. Colorado's economy has not historically had the high degree
of volatility of many of the seacoast states,.has good prospects for growth and favorable
demographics. The Bank has a se!:lSoned management team. The bank operates under
the guidance of James R. Peoples, with over 35 years experience in regional and
community banking in the Pacific and Mountain States. The regional bank presidents
have on average over 20 years of in-market experience. The Bank has enhanced its
credit policies and procedures, improved its loan function and continued to enhance its
asset recovery group over this credit cycle. The Bank is confident that it has appropriate
resources in order to reduce classified and nonperforming loans and assets.
(4) The Bank's SBA division provides the Bank with attractive yields on assets and a high
return on equity. The Bank's SBA division has been a part of the Bank for 13 years.
The yield on the portfolio averages over prime plus two percent over the past two years
and historically this has been the case as well. The Bank's SBA division is highly
regarded by the SBA. The division is ranked 32
nd
among 680 preferred lenders within a
total universe of approximately 8,000 lenders. The SBA division has a nationwide
footprint. Business development officers are currently located in eight locations and the
Bank will look to expand into California, Montana and other locations. The Bank's loss
experience from the SBA division has been approximately 1 % in the aggregate on over
$600 million in volume over the past 13. years.
n. Description of Business
The Bank's headquarters are indowntown Denver, CO. The Bank currently operates eight branch
locations located in the Colorado Front Range. The Colorado Front Range includes approximately
82% of the state population and generally represents a north-south running corridor area east of the
Rockies stretching from Fort Collins to Pueblo .. The Bank's branches are located from Fort Collins
to the southern portion of the Denver metropolitan area. Through the branch network, the Bank
offers a full range of loan and deposit products principally to small to midsized busmesses and also
to retail customers often principals and employees of the businesses the Bank transacts with.
The Bank's principal business has been and will continue to be attracting low cost deposits
primarily from processing and trust entities such as broker dealer clearing firms, trust companies,
third party administrators, mortgage servicers and te-investingthose deposits in loans and securities
that are collateralized by real estate, SBA Ipans, agency securities and commercial loans. In
particular, the Bank intends to purchase government-backed agency securities, GNMA, FNMA, and
FHLMC. The Bank will focus Qn the origination of SBA 7a and 504 loans. The bank will change
its strategy from its prior practice of generally selling the majority of guaranteed portions of SBA 7a
loans and selling 504 loans (more so when the commercial real estate securitization market was
active) to principally' retaining these loans for interest income. (Selected sales may continue to
occur to manage industry concentrations and for other factors.) The Bank will originate community
bank loans, with additional focus on commercial and industrial loans, while reduciI;l.g exposure to
C&D loans and non-owner occupied CRE low.
Other continuing goals for 2010 include maximizing eligible loan collateral for pledging. purposes
to FHLB-Topeka and the continued review of commuriity bank loans for eligibility of pledging.
Community Bank Lending
3
1507
The Bank's eight locations are Loveland., Longmont, Fort Collins, Boulder, downtown Denver,
Cherry Creek, Hampden, and Centennial. The Bank built five of these locations; three were
existing structures including the headquarters location. The Bank does not currently anticipate
building additional branches in the period 2010 through at least 2011; however, the Bank may
consider additional branches on a case-by-case basis via acquisition mther th8n the de novo process
used in the past.
In total, the loan growth forecastis from approximately $1.3 billion at September 2010, to $1.6
billion at the end of 2011, approximately $1.9 billion by the end of 2012 and approximately $2.2
billion by the end of2013. The details of the plan call for growth in commercial lending, modest
increases in CRE lending, with higher growth planned for the SBA division. Loan growth will be
more granular and the Bank will implement a policy of a $10 million limit for the Bank's exposure
to a single credit. The Bank will originate larger credits as a normal course if its business, but only
where it can sell participations in such credits to manage its credit-by-credit exposure.
SBA Division
The Bank has been engaged in the SBA business since early 1998 and has been designated a
Preferred Lender by the SBA since 1999. The Small Business lending department of the Bank,
based in Denver, opemtes seve:r:al Loan Production Offices across the United States and originates
SBA 7a, 504 and USDA business and industry loans. The 7a and USDA loans contain Government
guarantees as high as 90%. Themajority of originated SSA 7a loans in past two years were 90%
guaranteed and the Congress extendedthis legislation through the end of 2010. The maximum loan
size is now $5 million. The cap on interest mte for SBA loans by regulation is prime.plus 2.75%,
which is a very attractive yield. Genemlly, the Bank SBA loans yield approximately prime plus
2.00%. The SBA 504 loans are credit enhanced through a subordinated-mortgage model. In a 504
loan, a loan provided by a Certified Development Company ("CDC") covers approximately 40% of
the project cost generally net of approximately 10% borrower equity. These loans are thus 50%
LTV collateralized by a first lien. Generally, USDA loans are 80% guaranteed while certain USDA
loans have a 90% guarantee. The maximum loan amount is $25 million and USDA loans serve a
broad range of purposes. The Bank is highly regarded in this space.
The current. Business Development Officer network opemtes from the headquarters location and
LPO bases in Colorado, Oregon, Texas, Oklahoma and Pennsylvania. The SBA division has
targeted for California and Montana for immediate growth with other locations to follow
prospectively. Expectations are to increase the BDO network by at least 2-3 in 2011 and maintain
12 BDO'sthrough the year as an optimum level. Internal production, originated primarily by
divisional management, has and will continue to be a portion of loan origination. Including internal
"in-house" production, the Bank expects $100 million for 2010. The majority of the originations
are guaranteed given the Bank's emphasis on 7a loans. The division anticipates 2010 production to
equate to approximately 120 loans at an avemge 7a loan size of $675,000, an avemgeUSDA loan of
$2.5 million and an avemge SBA 504 loan size of $1.5 million. In 2010, we anticipate more than
85% of our production to be 7a1USDA related. Prospectively, the Bank anticipates that it will retain
a larger portion of the SBA loans that it originates. As mentioned above, the Bank has generally
sold the guaranteed portions of 7a loans and certain 504 loans. The Bank anticipates holding for
interest income the majority of the entire loan originated by the SBA division.
Deposit Operations - Processing and Trust Deposits
4
1508
Tom Kientz, the COO of the Bank, heads deposit operations. This area is responsible for the
services provided to the Bank's processing and trust deposit clients. Customers include Matrix
Financial, United Western Trust, Equity Trust, Matrix Financial Solutions (MSCS) CPI, Trust
Management, Inc., Lincoln Trust, Legent Clearing and others. The Bank has developed systems
necessary to offer the solutions these deposit customers have come to rely upon, which is what
makes so many of these relationships core deposits to the Bank. The Bank's processing and trust
clients provide low cost, relatively rate-insensitive deposits to the Bank. The average relationship is
of approximately 11 years in tenure.
Historically, the general banking value proposition and a principal means to increase shareholder
value was to generate core retail deposits that represented a stable source of funds with low
volatility and generally a reasonable associated cost. The Bank has a long history of servicing
processing and trust depositors and has found over time that these deposits are long-lived, as stable
as, if not more so than, traditional retail deposits and an inexpensive alternative to the traditional
branch banking concept. The Bank's acquisition of Legent Clearing will enhance the Bank's
competitive advantage. These deposits will reduce the Bank's overall cost of funding and will
provide the Bank with access to both deposits and loan opportunities.
Retail Deposits
Mr. Kientz also leads the Bank's retail deposit operations. This business unit is responsible for the
Bank branch customers at the eight open locations. Significant growth had occurred as the bankers
met with their relationships and converted deposits from other locations to the Bank. In addition,
with the introduction of CDARs deposits, as customers have sought the safety of an . insured
deposit, the Bank was able to expand its retail deposits. However, CDARs are brokered deposits
by regulation and, given the Bank's current Order and former Informal Agreement, such deposits
may not be renewed, extended, or rolled over without written non-objection of the OTS.
Prospectively, the Bank intends to replace a portion or all of the retail deposits that were lost
principally due to maturity of CDARs. If the Bank is deemed well capitalized, it will make an
allocation through its Asset Liability Committee for the re-attraction of CDARs. If a non-
objection is required the Bank may request non-objection of the regional director of the OTS for an
allocation of new CDARs. The Bank has not attempted a concentrated marketing campaign since
the conversion to the community banking business plan implementation in 2006. Like many
community banks, the Bank intends to compete for deposits based on quality of service. The Bank's
value proposition is dependent upon high quality, attentive service, friendliness of employees, name
recognition, and responsiveness to problems. The Bank will expand on its customer centric model
that focuses on service and provides our customers with the products and services they need and
want in the current fmancial services environment (e.g. remote deposit capture, internet banking,
and mobile banking.) In addition, will enhance the development of sales and growth goals for
applicable employees and locations and will enhance the incentive compensation plan related to
deposits tied to strategic deposit growth initiatives.
The Bank believes that while the majority of deposits will continue to come from processing and
trust customers that retail banking deposits will significantly increase over the period of this
business plan and will contribute to the overall success of the Bank.
Legent Clearing LLC
5
1509
side as well as the eRE. The Bank has currently forecasted the C&I loan book to increase to $329
million by 2013, which implies an average net addition of $59 million per year over the next three
years. The Bank's regional presidents have significant experience in the origination of commercial
loans and are committed to the expansion of these loans as a means to reduce real estate
concentrations indirectly as well as a means to attract community banking deposits. In addition, the
acquisition of Legent would provide another base of businesses (Legent's correspondents) to
underwrite commercial loans to provide working capital or equipment financing.
The current forecast contemplates generally flat level of construction and land loans, with such.
loans declining approximately $8 million to $173 million by 2013. The Bank anticipates continued
reduction of its construction and land concentration through continued completion of existing
construction loans and a replacement rate of primarily SBA 504 or 7a loans with a portion of the
new construction loans used for the community bank portfolio to reduce overall and maximize the
realization from the Bank's existing land portfolio.
In the CRE portfolio, the Bank anticipates growth to $549 million by 2013, which implies a net
addition of $27 million per year over the next 3 years. This growth will come from existing
relationships of our bankers and will include some continued level of completed construction loans.
The Bank indicates no margin lending in the above projection. The Bank is open to the possibility
of margin lending originated through two of our community bankers, but has not yet committed in
its fmancial projections to doing so. The Bank has two of its regional presidents that have
experience in margin lending, John Fiedler and Van Horsley. With the acquisition of Legent, the
Bank will have the monitoring tools necessary to safely and soundly enter this business line, which
will be executed in accordance with Bank board of directors' policies and procedures that will be
drafted in connection with the Legent acquisition. (Note this line item is separate from the Bank's
budgeted line item for broker dealer and clearing receivables, which includes the margin lending
performed directly by Legent with its correspondents' clients.)
The Bank will revise its internal loan limit. Generally, the Bank's current intemalloan limit is $15
million, although the Bank has not originated a $15 million loan for well over a year. Generally, the
Bank contemplates reducing its intemalloan limit to $10 million. As the agent bank, the Bank
generally will look to participate loans over $10 million.
Residential loans
The forecast isfor purchased residential loans to increase $26 million from $239 million in 2010 to
$264 million by 2013. The forecast for originated loans shows an increase of $244 million, from
$44 million for 2010 to $287 million at the end of 2013. The mix of purchases vs. originations may
change from the forecast. The Bank will originate, acquire a team to originate, andlor purchase
jumbo conforming mortgage loans - full documentation, good LTV, good FICO. The Bank's
history includes the strategy of acquiring trust and processing deposits as a low cost funding source
and acquiring relatively low risk assets such as well documented quality residential mortgage loans.
We believe there is a significant demand for mortgage loans in size ranging from between the
agency limits to $2 million. The Bank believes that it can originate or purchase these loans to
appropriate standards to meet a portion of the demand of the marketplace for this product. The Bank
currently originates residential mortgage loans as a complement to its business plan. In the past, the
Bank was a large originator of mortgage loans through its mortgage-banking subsidiary, and the
7
1511
consistent, over the longer run, with its dual mandate. Although the Committee anticipates a
gradual return. to higher levels of resource utilization in a context of price stability, progress
toward its objectives has been disappointingly slow.
To promote a stronger pace of economic recovery and to help ensure that inflation, over
time, is at levels consistent with its mandate, the Committee decided today to expand its
holdings of securities. The Committee will maintain its existing policy of reinvesting
principal payments from its securities holdings. In addition, the Committee intends to
purchase a further $600 billion oflonger-term Treasury securities by the end of the second
quarter of2011, a pace of about $75 billion per month. The Committee will regularly review
the pace of its securities purchases and the overall size of the asset-purchase program in
light of incoming information and will adjust the program as needed to best foster maximum
employment and price stability.
The Committee will maintain the target range for the federal funds rate atO to 114 percent
and continues to anticipate that economic conditions, including low rates of resource
utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant
exceptionally low levels for the federal funds rate for an extended period.
The Committee will continue to monitor the economic outlook and fmancial developments
and will employ its policy tools as necessary to support the economic recovery and to help
ensure that inflation, over time, is at levels consistent with its mandate. "
According to. the National Association of Realtors (Source: www.realtor.org), September existing
home sales increased 10.0% to a seasonally adjusted annual rate of 4.53 million units as compared
to a downwardly revised 4;12 million in August. The level remains 19.1% below the 5.60 million
level from September 2009, which was impacted by the temporary housing tax credits passed by
Congress in 2009.
The national unemployment rate has been relatively flat at 9.6% since May 2010. In October,
41.8% of unemployed persons had been jobless for 27 weeks or more. (Source: www.bls.gov)
Generally, with productivity growing at a faster rate than economic output, there is no need for new
workers in the economy. (Source: FTN Financial, This sentiment is shared by Wells Fargo and
Goldman Sachs with both indicating relatively high unemployment prospectively.
In reviewing research from both Wells Fargo and Goldman Sachs, they both call for the Federal
Funds interest rates to remain flat through 2011 and both call for continued high levels of
unemployment. In the November 19; 2010 Weekly Economic and Financial Commentary, Wells
Fargo anticipates a 3.05% lO-year Treasury at the end of2012. Both entities call for relatively low
growth and neither is calling for.another recession. Core prices continued to be soft and according
to JPMorgan increased 0.6% on a year-over year basis through October, the lowest change ever
reported dating back to 1957. The business plan contains forward interest rate curve information
taken as of September 2010. .
Colorado Economy
The Metro Denver labor market increased employment by 4,500 between August and September.
This is consistent with this time of year. The gain occurred largely because of jobs added in the
state and local government sector offset by losses in leisure and hospitality, construction,
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manufacturing and financial services. The unemployment rate for Metro Denver declined was
unchanged from August at 7.9% and 8.0% for Colorado. Average weekly number of initial
unemployment insurance claims filed in Metro Denver continued to decline. Metro Denver public
trustees filed 11 % fewer foreclosures in September than in the year ago period. Filings during
first nine months of 2010 were down from the same year ago period by 20.1 % in Denver County
and 16.7% in Adams County. (Source: www.metrodenver.org)
Metro Denver builders have pulled more permits for apartment units in September than they did
through all 12 months of 2009. Metro Denver permits issued for all types of housing was up 57.8%
year to date in September. The volume of commercial real estate (CRE) sold in Metro Denver fell
55% between 2008 and 2009. This is in part due to credit availability and limited stock of property
for sale as many owners hesitate to list their properties as values . declined, and many banks
extended loans. Brokers expect these trends to reverse slowly, particularly as banks bring more
properties to market. Near term outlook for CRE is weak, and commercial construction is expected
to remain sluggish in 2010. (Source: www.metrodenver.org)
The Case Shiller Index with data through August 2010, as released October 26, 2010, showed a
one-year change of negative 1.2% for Denver with a negative 0.1 % change between August and
July. The Denver index was 128.57 at August 2010. The index was 128.91 at October 2009.
(Source: S&P Case Shiller report of October 26, 2010)
National Economy - Housing
Housing starts in October were at a seasonally adjusted annual rate of 519,000. This is 11.7%
below the revised September estimate of 588,000, and is 1.9 below the October 2009 rate of
529,000. (Source: www.census.gov) Wells Fargo outlook is for 610,000 housing starts in 2010,
which compares to 1.3 million units for 2007. Household income growth remains modest and credit
standards are tighter. Household expectations for home prices and the state of the market remain
very subdued. (Source: Wells Fargo Economic Group)
The Federal Housing Finance Agency, the successor to Office of Federal Housing Enterprise
Oversight (OFHEO), index of existing home prices increased in the second quarter of 20100.9%
compared to the first quarter of 2010, but fell 1.6% from the second quarter of 2009. (Source:
www.fbfa.gov)
Data released on October 26,2010, through August 2010 by Standard and Poor's for its S&P/Case-
Shiller Home Price Indices, shows a deceleration in the annual growth rates in i 7 of the 20 MSAs
and the 10- and 20-City Composites in August compared to July 2010. The 10-City Composite was
up 52.6% and the 20-City Composite was up 1.7% from their levels in August 2009. Home prices
decreased in 15 of the 20 MSAs and both Composites in August from their July levels.
"A disappo4tting report. Home prices broadly declined in August. Seventeen of the 20 citi.es
and both Composites saw a weakening in year-over-year figures, as compared to July,
indicating that the housing market continues to bounce along the recent lows," says David
M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "Over the last four
months both the 10- and composites show slowing growth, after sustaining
consistent gains since their April 2009 troughs.
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"The month-over-month growth rates tell the same story. Fifteen ofthe 20 MSAs and the
two Composites saw a decline in the month of August as compared to July levels. The 10-
and 20-City
Composites fell 0.1 % and 0.2%, respectively. Indeed, the housing market appears to have
stabilized at new lows. At this time, it does not seem that any of the markets are hanging on
to the temporary momentum caused by the homebuyers' tax credits." (Source:
www2.standardandpoors.com)
The delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a
seasonally adjusted rate of 9.13 % of all loans outstanding as of the end of the third quarter of 2010,
down 72 basis points from the second quarter of 2010, and a decrease of 51 basis points from the
third quarter of 2009. The non-seasonally adjusted rate decreased Ibasis point to 9.39% last
quarter. (Source: www.mortgagebankers.orgNovember 18, 2010 press release).
The delinquency rate includes loans that are at least one payment past due but does not include
loans somewhere in the process of foreclosure. The percentage of loans in the foreclosure process
at the end of the third quarter was 4.39 percent, down 18 basis points from the second quarter of
2010 and down 8 basis points from one year ago. The combined percent ofloans in foreclosure and
at least one payment past due was 13.78 percent on a non-seasonally adjusted basis the highest ever
recorded in the MBA delinquency survey.
"Mortgage delinquency rates declined over the quarter and over the past year, due primarily
to a large decline in the 90+ day delinquency rate. The number of loans in foreclosure also
dropped, bringing the serious delinquency rate to its lowest level since the second quarter of
2009. However, the foreclosure starts rate increased for all loan types and the foreclosure
starts rate for prime fixed loans set a new record high in the survey, as more loans entered
the foreclosure process," said Michael Fratantoni, MBA's Vice President of Research and
Economics.
"Most often, homeowners fall behind on their mortgages because their income has dropped
due to unemployment or other causes. Although the employment report for October was
relatively positive, the job market had improved only marginally through the third quarter,
so while there was a small improvement in the delinquency rate, the level of that rate
remains quite high. As we anticipate that the unemployment rate will be little changed over
the next year, we also expect only modest improvements in the delinquency rate."
"We have frequently observed that there can be a tradeoff between 90+ day delinquencies
and foreclosure starts. That happened this quarter as the foreclosure start rate increased, the
mirror image of the decline in the 90+ delinquency rate, although for both prime and
subprime ARM loans, both foreclosure stans and 90+ delinquency rates increased from last
quarter. Loans that are 90 days or more late remain the largest proportion of delinquencies,
with the 90+ rate still almost four times greater than the average of about 1.1 percent over
the past 20 years."
"The foreclosure paperwork issues announced by several large servicers in late September
and early October are unlikely to have had a large impact on the third quarter numbers, but.
may well increase the foreclosure inventory numbers in the fourth quarter of 20 1 0 and in
early 2011. The foreclosure inventory rate captures loans from the point of the foreclosure
referral to exit from the foreclosure process, either through a cure (perhaps through a
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modification), a short sale or deed in lieu, or through a foreclosure sale. The servicers that
halted foreclosure sales temporarily may show higher foreclosure inventory numbers in the
fourth quarter of 20 1 0 and in early next year than would otherwise have been the case. Any
drop in foreclosure sales over the next few quarters may actually reduce the inventory of
homes on the market, which is still quite swollen, with almost 4 million properties cUrrently
listed. However, these foreclosed homes are likely to come on the market in the medium
term, so it is only a delay rather than a change in the underlying economics."
~ ' O n e of the most important trends in terms of differences across products is the change in
the composition of the market, with a rapidly shrinking pool of subprime and prime ARM
loans, and a significant increase in the number and proportion of FHA loans. Prime fixed
and FHA loans currently make up almost 78 percent ofloans outstanding and these loan
types now account for more than half of the foreclosures started in the quarter, compared to
39 percent a year ago." .
V. Organizational Structure
United Western Bank
As of September 30: 2010, the Bank owns six subsidiaries. Matrix Financial Services Corporation
("MFSC"), is a mortgage company based in Phoenix, Arizona and also has one subsidiary, Matrix
Insurance Services Corporation ("MISC"), which is licensed to sell insurance. At September 30,
2010, MFSC services approximately 11,800 loans with an unpaid principal balance of $689 million
through Dovenmuhle on a national basis. The Bank has not added to the portfolio since it exited the
mortgage originatioIi business in 2003. MISC sells life, accidental death, and disability insurance,
. marketing exclusively to the mortgage-servicing portfolio. The Bank has three New Markets Tax
Credits ("NMTC") entities, Community Development Funding 1, LLC, ("CDF1"), Charter
Facilities Funding IV, ("CFFIV") and Charter Facilities Funding S, ("CFFS").These entities have
deployed NMTC through the SBA division and the community bank. Matrix Tower Holdings
(MTH) is a subsidiary that recognizes amortized deferred gain from the salelleaseback transaction
executed in 2006. The last subsidiary is DCC Holdings, LLC an entity created to hold commercial
REO.
The results of the subsidiary companies are not material to the overall results of the Bank.
Generally, the NMTC entities are profitable on a monthly basis, MFSC and MISC operate at break-
even to a small loss on a monthly basis and adjustments to the foreclosure reserve and repurchase
reserve impacts quarterly MFSC results. DCC Holdings, LLC is an entity funded with nominal
capital and debt with a purpose to hold REO. It incurs a loss on a monthly basis.
Holding Company and Affiliated Companies
United Western Bancorp, Inc. ("VWBI") is a unitary thrift holding company, which has two
significant wholly owned subsidiaries: the Bank and UW Trust. In addition, UWBI owns several
non-core subsidiaries including Matrix Bancorp Trading, Inc. ("MBT"), UW Investment Services
Corporation ("UWIS"), Equi-Mor Holdings Inc., UWBK Fund Management, and the Vintage
Group, Inc. ("Vintage").
The holding company provides core functions to each of the subsidiaries. Human Resources staff
handles all employee and benefit matters. Staffing for Management Information Systems, internal
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audit, and legal deparbnents is at the holding company as well. AssetS of the holding company
consist of cash, certain MBS securities, a portion of the Equity Trust note, and investment in
subsidiaries. Liabilities consist principally of debt. .
UWIS, a wholly owned subsidiary of MBT is a registered broker dealer with the FINRA. It has one
office located in Denver, Colorado, and is currently not active.
UW Trust Company ("UW Trusf'), formerly known as Sterling Trust Company, wholly owned by
UWBI and. headquartered in South Dakota, is a South Dakota non-bank trust company. United
Western Adminstrative Services is a sister company to UW Trust located in Denver, CO that
provides day-to-day back office administrative support services for the trust company. On June 27,
2009, UW Trust consummated the sale of certain of its assets. These assets were associated with
UW Trust's self -directed individual retirement account and qualified employee benefit plan.
administration business. In addition, to the assumption of certain UW Trust liabilities, the purchase
price for these assets was $61.4 million, of which UW Trust received approximately $15.3 million
in cash from the buyers at the closing of the transaction. The remaining portion of the purchase
price was financed pursuant to a loan agreement. In connection with the sale, UWBI recorded a
pre-tax gain on the sale of $56.0 million, or approximately $36.1 million net of tax. The operating
results ofUW Trust Company, which are included in the UWBl's custodial and advisory services
segment, and which was attributed to the custodial IRA and qualified employee benefit plan
businesses sold by UW Trust are presented as discontinued operations. UW Trust will continue to
operate its custodial escrow" paying agent and trust administration lines of business, which
management deems a core operation. '
V. Management and Staff resources
Board and Committees
. The Bank's Board of Directors is responsible for, and directly or indirectly oversees, all activity of
the Bank.
The Board consists of seven directors. There are currently two vacancies. Four positions are filled
by inside directors including James R. Peoples, Chairman, President and CEO of the Bank, Guy A.
Gibson, Vice Chairman and founder of UWBI, Gary G. Petak, EVP and CCO, and Benjamin C.
Hirsh, EVP and CAO. Mr. Gibson is the Chairman ofUWBI. Mr. Hirsh is CAO ofUWBI.
Three directors are independent and include, Bernard C. DarnS, co-founder and partner of Bow
River Capital Partners, a group of private equity/opportunity funds founded in 2003, which make
investments in operating companies and special situation real estate and oil and gas opportunities in
the United States, Canada and Mexico. The other two independent directors are Charles Berling, a
real estate consultant and executive, and Dr. James Bullock, a retired university accounting
professor. Dr. Bullock and Mr. Darre are members of the Board of Directors of UWBI as well.
With the completion of tlle capital formation, Mr. Hirsh and Mr. Petak will resign as directors of the
Bank and one director nominated by each of Lovell Minnick and Oak Hill will replace them.
There are several functional committees of the Board, four of which meet monthly or quarterly, or
more frequently as needed. The outSide directors comprise the Audit Committee and Dr; Bullock is
chairperson. The Audit Committee meets at least quarterly and generally at least twice per quarter.
Dr. Bullock is the chair of the Regulatory Compliance Committee. This Committee meets at least
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1518
quarterly or more often as needed, generally monthly. This Committee monitors the Bank's
progress with regulatory compliance of the Order, and reviews and monitors other
arid arrangements with the regulators. Mr. Petak currently chairs Loan Committee, which is
comprised of six directors including all three outside directors. Mr. Hirsh currently chairs the
Investment Committee, which is comprised of six directors including two independent directors.
Two additional committees, the Nomination Committee and the Compensation Committee, meet as
needed.
In addition to the Board committee structure,. four key management committees meet monthly or
more often. The AssetlLiability Committee, chaired by the CFO, CAO or COO and consisting of
Bank senior.management and selected staff members, meets monthly to discuss the Bank's balance
sheet position, liquidity, and discuss and direct the investments of the Bank.
The Compliance Committee, chaired by the Compliance Officer, with membership that includes
several Bank senior management; and selected line managers, meets monthly to review policies and
the activities of the Compliance function. The Bank has developed policies that cover all material
aspects of the Banks activities and operations .. These include a portfolio of approximately 20 credit
policies, approximately 10 Information Technology policies, over 40 other policies that address
matters ranging from internal controls, accounting, operations and compliance. These policies are
presented for review on a rotating ba,sis and generally, all policies are updated at least annually.
The Compliance Committee and the Compliance department is also responsible for the Bank's
adherence with the Bank Secrecy Act ("BSA"). The Bank rates BSA compliance as a high-risk
compliance ,area. BSA receives appropriate attention from the committee and department. The
Bank's compliance function including its BSA function is well managed and is considered one the
Bank's area of strength.
The Information Technology Committee, chaired by the CTO and attended by Bank, UW Trust and
UWBI IT management and selected staff members, meets quarterly to review policies and
procedures, business resumption planning and testing, the strategic technology plan, and related
matters.
The Executive Loan Committee, chaired by the Chief Credit Officer and consisting of four senior
Bank officers, meets to approve loan requests in amounts delegated by the Board through
resolutions.
The Community Reinvestment Act ("CRA") Committee, chaired by the Compliance officer,
consists of three senior Bank officers and other personnel from various areas in the Bank. The
Committee meets at least quarterly. The CRA Committee reviews and directs the.Bank's progress
towards achievement of the CRA goals and objectives of the Bank for the year. The CRA
committee reports to the Board on a quarterly basis.
The Board of Directors oversees the activities of these committees by attendance and by review and
approval of minutes or other reports of activity conducted. .
Senior Management
The President and CEO of the Bank is James R. Peoples. Mr. Peoples has 35 years experience at
KeyBank, Omni Bank, First Interstate, National Westminster Bank and Central National Bank. Mr.
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Peoples joined the Bank: as EVP Loan Administration in February 2010. The Bank: has five senior'.
management members in addition to. Mr. Peoples. The average tenure with the Bank of the
management team is approximately seven years.
The attached organizational chart reflects the senior managers reporting to Mr. Peoples. Direct
reports include the Vice Chairman, Chief Operating Officer, Chief Financial Officer, Chief Credit
Officer, SVP - General Counsel Bank:, and the regional bank: presidents.
. The senior management team of the Bank: is considered appropriate, in both number and experience
level to operate the Bank: efficiently, competitively, safely and soundly, and in compliance with
applicable rules and regulations, while meeting the goals and objectives contained in this business
plan.
Management has addressed management succession in a separate memo previously approved by the
Board of Directors.
!!f[
The Board considers its employees to be the greatest asset of the Bank:. Staffing at the Bank:
currently consists of 179 FTEs. The attached organizational charts reflect the current structure and
reporting lines of all staff positions. The Bank: reduced certain staff members to align to the 2010
business plan and level of operations. Implementation of the cost reduction was completed prior to
the end of the second quarter of 2010.
As discussed departmentally, major goals for this business plan are to restore the Bank to
profitability, attain and maintain full compliance with the Order while working with the OTS for its
timely removal, ensure compliance with any other written correspondence from the OTS, maintain
compliance with rules and regulations impacting the Bank: and continue with staff training.
Consultants
The Bank: will continue to rely on various outside consultants as resources during the period
covered by this business plan. The Audit Committee will select the auditors for the Bank as well as
a qualified third party service provider for the Information Technology General Controls review.
The Bank uses the services of Mr. Lawrence Kaplan of Paul Hastings in Washington, D.C., as
primary regulatory counsel. Mr. Kaplan has served as regulatory counsel since 2010 when Mr. Lax
left Luse Gorman. Additionally, the Bank uses the services of Buckley Sandler, LLP in
Washington, D.C., as regulatory counsel when deemed appropriate.
The Board or appropriate delegated authority may consider other consultants for specialized
engagements as needed.
VI. Records, Systems and Controls
The Bank: maintains its accounting records, on a network with write access granted only to
appropriate accounting department personnel. The Bank utilizes Navision software to process
general ledger transactions. The Bank, its subsidiaries and affiliates have used Navision software
for the past .10 years.
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The Bank's core processor is FIS fonnerly known as Metavante. Metavante is the system of record
for all deposit accounts other than CDARs and all community bank loans. FIS is fully integrated
to the Navision general ledger. Other loan systems include two versions of PCFS one for SBA
originated, one for SBA purchased, Fidelity for loans owned by MFSC, and SBO for residential
loans owned by the Bank:. Various other in-house systems are used to maintain internal reports,
primarily personal computers and software, such as fmancial spreadsheets.
The Bank, together with the Company, is in the process of implementing an Enterprise Risk
Management Program. The Bank: will use Microsoft Dynamics NA V, which includes an upgrade to
the Navision software that is expected to ultimately reduce the time to produce fmancial reports for
management.
The Bank's documented, updated and periodically tested internal controls are contained in various
policies, procedures and in SOX documentation. The Bank has developed a comprehensive set of
policies and procedures to ensure consistency, efficiency and compliance with applicable rules and
regulations. Policies and procedures are updated at regular intervals to comply with changing laws,
rules and regulations. Key members of senior management each maintain a comprehensive set of
policies and procedures and use the policies and procedures as a working tool.
Management believes that the preventative internal controls in place are appropriate and effective.
In addition, there are several monitoring activities performed by various committees including the
Board of Directors and the Audit Committee. The Audit Committee of the Board of Directors
reviews the Bank's budget and audit performance and meets with the Bank's auditors. The Audit
Committee also monitors and reviews regulatory reports and the reports of Internal Audit reviews
performed. The Audit Committee reviews the SOX r e ~ o r t s prepared by the SOX department, an
adjunct to the Internal Audit function, which is responsible for testing management assertions with
respect to internal controls. The Bank's CFO, COO, and Compliance Officer are responsible for
coordinating all data processing and fmancial reporting, compliance with the Bank Protection Act,
Bank: Secrecy Act and all governmental agency reporting (OTS, IRS, etc.).
The Bank maintains all of its fmancial reports and records in accordance, in all material respects,
with generally accepted accounting principles. Crowe Horwath, LLP, which in the view of senior
management has the fmancial services expertise to service the needs of the Bank:, will perform all
independent accounting functions. Services rendered by Crowe include performance of the annual
audit and tax returns, an annual review of operations, reporting to management and the Board of
Directors and providing accounting and tax advice throughout the year
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VII. Other Departmental Goals and Objectives
Compliance
The Compliance Department plans to maintain the same course of action as followed in 2009. With
the assistance of the Board of Directors, the Compliance Committee and the Community
Reinvestment Act Committee, an extensive compliance audit/review schedule has been developed
and will be followed. A regimented training schedule consisting of on-line courses and live lecture
fonnat has been adopted and will continue to be maintained. The training and auditing components,
accompanied with ensuring that personnel are kept up to date with all new and changing
regulations, will continue to advance the compliance culture of the Bank. Again, the ultimate goal is
to achieve a satisfactory or better compliance rating at the next scheduled examination.
Internal Audit
The internal audit department is located at UWBI and reports to the Audit Committees of UWBI
and the Bank. The specific goals of the internal audit department are included in the Internal Audit
plan presented separately to the UWBI and Bank audit committees. .
Credit Administration
Credit administration is headed by Mr. Gary G. Petak, a 30-year veteran. Credit administration is
the focal point of the Bank's disciplined credit culture. This culture is based on lending to people
with whom our bankers have existing and generally long-standing relationships. The Bank has
established sound lending practices that are traditional to community banking. The portfolio is
Colorado focused and comprised of almost entirely tangible collateral principally real estate. Most
loans contain recourse. Loan origination requires two signatures for all approvals which is tiered as
documented in the Delegations of Authority, including Executive Loan Committee, Directors Loan
committee, and the Board of Directors. Loanreview is an independent function that reports directly
to the Audit Committee. The director of loan review has over 25 years experience with prior OCC
regulatory experience. Each loan officer certifies the loan rating on a quarterly basis. Classified
loans are moved to credit administration and centralized asset recovery group for mOnitoring,
workout and collection. The Bank has established centralized monitoring for construction lending,
commercial borrowing base loans and CRE stress test modeling.
The goals of credit administration for 2010 are to reduce the levels of classified assets, reduce
concentrations of C&D loans and non-owner occupied CRE loans and assist the lending side of the
Bank in the origination of quality loans.
Accounting
The goals and objectives of the Accounting department fall into four primary categories: regulatory,
customer service, fmancial reporting, and staff related. In the regulatory and financial reporting
areas, the highest priority will be to prepare accurate financial statements and regulatory reports and
assist the Bank in achieving a satisfactory safety and soundness ratings. To this end, appropriate
accounting staff members will improve their knowledge and training on required regulatory reports,
participate in required staff regulatory and compliance training, achieve a better working knowledge
of the Thrift Examination Handbook, enhance the level of documentation prepared and maintained
by the department and focus on the fmdings from the most recent examination.
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In the area of customer service, it is important to note that the department's customers are internal
in nature, i.e. other departments responsible for resolving reconciling items, operational staff, etc.,
but also internal and extema1 users of the financial reports produced by the department. By
increasing communication with its internal customers, the department will continue to nurture a
team spirit with other departments to resolve common issues surrounding the accounting and
bookkeeping function. By decreasing the time in preparation of monthly and financial reports, all
users will have additional time to analyze the i n f o ~ t i o n contained therein.
Treasuryl Securities Portfolio
The Company/Bank: has identified a couple of potential candidates at this time, although it is not in
a position to hire this person until the capital raise is completed. The portfolio manager will focus .
on all agency securities and all fa:ctors that affect the valuation of securities, duration, weighted
average life, coupon, final maturity, etc. The Bank is modestly asset sensitive and would expect
based on the nature of the deposits and with the Legent deposits to become slightly more asset
sensitive prospectively.
vm. Financial Management Plan
The financial plan of the Bank for 2011 is to return to profitability, restrict growth as required by
the OTS, improve asset quality, maintain acceptable assetlliability mix (interest rate risk profile)
and comply with other regulatory requirements, while providing superior service to our customers.
Please read the business plan and financial projections in conjunction with the Bank's strategic
plan, and policies and procedures currently in place.
Included in the accompanying Powerpoint presentation are the quarterly financial statements for
2010 through 2012. The presentation includes the significant assumptions made by management in
deriving these projections. The Bank will perform quarterly budget to actual comparisons. In
addition, should the financial plan be changed by approval of the Board of Directors, a reforecast
will be prepared, which may include changes to the current projections based on then existing
current market conditions. As required, any reforecast or change to the budget will be presented to
the OTS for its non-objection.
Capital and Earnings
With the completion of the capital raise, the. Bank will be 'well-capitalized' at all times, with 8%
core and 12% risk-based capital ratios projected throughout the business plan. Further, through
prudent deleveraging of the balance sheet the Bank expects to achieve 8.00% core capital by the
end of the third quarter of 2010 and remain at 8% core capital thereafter. Risk-based capital was
9.18% at March 31,2010, and the attainment of quantitative well-capitalized status for risk-based
capital without a capital raise or means of moving DCS securities at book value from the Bank's
balance sheet is expected to take until mid 2012 to achieve. The Informal Agreement and other
documentation from the OTS requires core capita1levels higher than the ability the Bank has to
achieve them without a capital infusion, which is why UWBI is seeking to raise additional capital.
The Bank anticipates no application or Q.otice for the payment of dividends to UWBI in the period
2010 through 2012.
Balance Sheet Management
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The Bank bas originated over $1 billion of community bank loans since adoption of our current
business plan in late 2005. The Bank has originated loans that are collateralized by real estate,
which is common to its peers. for the state of Colorado. As we manage the overall size of the
organization to monitor capital ratios, we have budgeted for a decline in lolUlS on the balance sheet
for 2010. Asset classes that are being targeted for modest growth in 2010 include loans originated
from the SBA division and GNMA securities. Both contain lower risk weights than community
bank loans and significant portion of the loans originated through the SBA division are expected to
be sold at a premium.
The Bank continues to be modestly asset sensitive and through ALCO the Bank bas maintained an
acceptable risk profIle.
Liquidity and Funds Management
The Bank monitors liquidity and funds management through ALCO. ALCO will meet at least
monthly, but more often as necessary to discuss and manage liquidity for the Bank. The Bank has
updated its Liquidity Policy to reflect the current environment ,and current conditions in the
marketplace as well as enhanced regulatory expectations for liquidity, management and contingent
liquidity funding (see the Liquidity Policy).
As we manage liquidity and grow deposits prospectively we believe the competition for community
banking deposits, both retail and business, will be, substantial and' will continue to increase as the
dominant national banks increase their branch presence further, and as retail and business customers
migrate away from bank branches to other platforms. In this regard, we have continued to
capitalize on our longstanding core deposit base through the development of processing and trust
deposit relationships (which includes securities clearing and settlement, custodial, trust and escrow)
that provide a stable, long-lived and inexpensive alternative to the, traditional branch-banking ,
concept. We anticipate that we will evaluate various additional sources to this deposit gathering
strategy, and in the' future, we may consider acquiring deposits from processing businesses that have
significant deposit generating capacity that is incidental to their primary purpose.
Through ALCO and our COO we will work to retain maturing CDARs deposits and provide our
bankers with certain products that will be aimed at retaining the deposits and relationships.
, ,
Sensitivity to Market Risk
The Bank objective with respect to sensitivity is to maintain a rating 1 minimal or 2 moderate in the
Interest Rate Sensitivity Measure Table of the OTS and by our internal utilizing the
FIMAC software. Management' accomplished this goal for the past several years. The Bank's
interest rate risk profile has been neutral for several years with a' modest asset sensitive position.
The Bank intends to remain modestly asset sensitive for the remainder of 2010.
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TabC
Exhibit 51 C
1527
GUARANTEE AND ASSURANCES
As a condition of the approval by the Office of Thrift Supervision (OTS) of the capital restoration plan of United
Western Bank, Denver, Colorado (OTS No. 06679) (Association), and as required by 12 U.S.C. l83lo(e)(2)(c), and
12 C.F.R. 565.5(i), United Western Bancorp, Inc., Denver, Colorado (OTS o. H2l912) (Holding Company) hereby
guarantees that the Association will comply with its capital restoration plan, to the extent matters in the capital
. restoration plan are under the control of Holding Company, until OTS determines that the Association has remained
adequately capitalized on average during each of four consecutive quarters. This guarantee consists of the following
commitments:
The Holding Company shall:
(i) take any actions directly required of the Holding Company under the capital restoration plan;
(ii) take any corporate actions necessary to enable the Association to take actions required of the
Association. under the plan;
(iii) not take any action that would impede the Association's ability to fully implement its capital
restoration plan;
(iv) utilize its available assets, if directed to do so by OTS, to enable the Association to implement its
capital restoration plan, provided, however that Holding Company's maximum liability
hereunder shall never exceed$103,532,550, which is the amount equal to 5 percent of the
Association's total assets as of September 30, 2010, the date the Association became
undercapitalized.
For purposes of the foregoing, "available assets" includes unencumbered ot unallocated cash at anytime the Holding
Company is required to act under this guarantee and does not include shares of the Association held by the Holding
Company or of any intermediate holding company of the Association held by the Association. Failure to satisfy any of
the foregoing commitments shall constitute a violation by the Holding Company of a condition imposed in writing by
OTS within the meaning of 12 U.S.C. 1818(b)(I), (9). .
No director or officer of the Holding Company shall be deemed to be providing a personal guarantee or indemnity
under this guarantee. Moreover, the foregoing guarantee by the Holding Company shall only be in effect when the
Association is operating pursuant to a capital restoration plan that is accepted by the OTS and this guarantee shall
terminate upon: (i) the Association has been informed that. it 11as remained adequately capitalized for four consecutive
quarters; (ii) termination of an accepted capital restoration plan; or (iii) if Holding Company no longer controls the
Association. When in effect, the foregoing guarantee by the Holding Company is a written agreement entered into by
the Holding Company with OTS within the meaning of 12 U.S.C. 1818(b).
Signatures on Next Page
1528
UNITED WESTERN BANCORP, INC.
Denver, Colorado
By: /s/ Guy A. Gibson
Guy A. Gibson
Chairman
/s/ James H. Bullock
James H. Bullock, Director
/s/ Bernard C. Darre'
Bernard C. Darre', Director
/s/ Jeffrey R. Leeds
Jeffrey R. Leeds, Director
/s/ Michael J. McCloskey
Michael J. McCloskey, Director
/s/ Lester Ravitz
Lester Ravitz, Director
/s/ Robert T. Slezak
Robert T. Slezak, Director
DID NOT ATTEND
William Snider, Director
OFFICE OF THRIFT SUPERVISION
By:
Philip A. Gerbick
Regional Director, Western Region
1529
TabC
Exhibit 52
1530

BANK'
December 20,2010
Mr. Walt Santos, Examiner-fu-Charge
Office of Thrift Supervision
Pacific Plaza
2001 Junipero Sierra Boulevard, Suite 650
Daly City, California 94014-1976 .
RE: Income Tax Receivable
Dear Mr. Santos:
James R. Peoples
Chairman, President & CEO
tel: 720-956-6576
fax 720-946-1186
jpeopleS@Uwbank.com
On Friday moming, December 10,2010, the management of United Western Bank ("Bank") received an email message
from you on stating the following:
"We would appreciate a follow-up response from the bank that addresses our concerns over the bank's income tax
receivable accounting. Considering. our discussion with you yesterday and Qur review of regulatory guidance, it
appears that approximately $9 million reported as a receivable on the bank's books should be considered a dividend to
United Western Bancorp in aCcordance with the OCC Bank Accounting Advisory Series. OTS Regional Accountant
Susan Crosley has provided you the applicable OCC Bank Accounting guidance. We are interested in your comments
after you have had a chance to review the OCC guidance and its applicability to the bank's situation."
"At this time, we believe that the bank should also speak: with Crowe Horwath representatives and have them "weigh
in" on this matter. In addition, please provide us feedback on how: this will impact the 10Q for Septeinber 30, 2010."
We have reviewed the information that you have shared with us from the "Comptroller of the Currency Bank
Accounting Advisory Series," (the "BAAS"). We have also reviewed the information contained in the Holding
Company Handbook Section 400 Appendix: C "Interagency Policy Statement on Income Tax Allocation in a Holding
Company Structure."
Based on a review of this information and consultation with other advisors, if the Bank was a national bank, the fact
pattern has consistent features to the fact pattern contained in the BAAS Section 7B Question 1. Thus, as the Holding
Company does not currently have the financial capability of reimbursing the Bank for the income tax receivable amount
reflected on the Bank'sbooks, it appears as because the tax benefit representing the income tax receivable on the Bank's
books is greater than the Holding Company's income.tax receivable due from the Internal Revenue Service, the
receivable would be currently recorded as a dividend and no longer as a receivable. .
The amount of the proposed reduction of income tax receivable is $10,008,301. Including this as of September 30,
2010 would not result in any change in the Bank's current capital position. The Bank's core capital ratio would
temporarily be 5.74% and the Bank's risk-based capital ratio would be 7.13%. This only a temporary issue, as a portion
of the proceeds of the re-capitalization transaction will be used to reimburse the Bank. The Bank and its holding
company are working towards consummating the recapitalization transaction by December 31,2010. As these changes
are material and could adversely impact our on-going recapitalization transaction, we believe that they must be
reviewed by the boards of directors of the Bank and the Company before being recognized.
United Western Financial Center
. 700 Seventeenth Street, Suite 2100
Denver, Colorado 80202

Mr. Walter Santos, Examiner In-Charge
Office of Thrift Supervision
December 20, 2010
Page 2 of2
As always the Management of the Bank would be happy to discuss any questions or comments that you have with
respect to our response.
Sincerely,
. ~ , e ~
James R Peoples
Chairman of the Board
cc: Mr. Nicholas Dyer, OTS
Ms. Susan "Crosley, OTS
Mr. Clay Coon, OTS
1532

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