EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
April 13, 2009
 
 
 
April 13, 2009
2
Sale of Sterling Trust Company Assets
o Equity Trust Company and an affiliate are acquiring certain assets of
 Sterling Trust in an asset purchase
 
o Sale of Sterling assets - proceeds of (~) $61.2 million
o Estimated after-tax gain on sale of (~) $35.9 million
 
o Sterling’s custodial deposits - (~) $316 million at April 7, 2009 -
 maintained at United Western Bank® under agreement with buyer
 
o Sterling (to be renamed UW Trust Company©) will retain escrow and
 paying agent businesses, including its life settlement operations
 
o Target closing date (subject to regulatory approval and other conditions to close) -
 May 15, 2009
o Equity Trust (buyer)
 
 n Second largest trust company of its kind (post-acquisition)
 
 n Registered in good standing as a South Dakota trust company
 
 
 n Family owned, long-time deposit customer of United Western Bank ®
 
 
 
April 13, 2009
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Sale of Sterling Trust Assets
o Equity Trust acquires Sterling assets for $61.2 million
 n Estimated $15.3 million cash (25%)
 n Estimated $45.9 million seller note (75%)
o Seller Financing
 n Seven-year, fully amortizing term loan
 n Prime rate with collar
 n Level monthly principal plus interest
 n $6.6 million annual principal, $1.4 million interest in year one
 n Collateralized by assets of buyer including those to be sold by Sterling as part
 of the transaction
 n Existing service company affiliate of Equity Trust guarantees debt
 n Standard covenants - using credit underwriting standards typical for United
 Western Bank®
 
 
 
April 13, 2009
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Sale of Sterling Trust Assets
o Deposits - post sale
 n Equity Trust will enter into new deposit contract with United Western
 Bank® for five years.
 n Equity Trust will keep current deposits with United Western Bank®
 for a minimum of three years.
 n Equity Trust keeps acquired Sterling deposits with United Western
 Bank® for a minimum of five years, or until the loan is repaid,
 whichever is longer.
 n United Western Bank® may manage legacy Equity Trust deposits with
 the opportunity to redirect to other banks as community bank and
 other deposits grow at United Western Bank®.
 
 
 
April 13, 2009
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*Please see United Western Bancorp’s Reconciliation of Non-GAAP Tangible Book Value per Share and Non-GAAP
Equity Leverage Ratios Disclosure in Exhibit 99.1 to the Company’s Form 8-K filed April 8, 2009
Sale of Sterling Trust Assets
o Estimated after-tax gain of $35.9 million, or $5.01 per diluted share
o Tangible book value per common share increase as of year-end 2008
 of $4.95 to $19.00 per primary and fully diluted share.*
o United Western Bancorp’s tangible common equity leverage ratio
 would have been 6.01 percent at year-end 2008 versus 4.51 percent as
 reported.*
o United Western Bancorp proceeds of $61.2 million consisting of (~)
 $15.3 million in cash and (~) $45.9 million in note. Estimated after-tax
 proceeds of $35.9 million, net of direct expenses. Current tax on the
 cash proceeds and installment tax treatment on the note proceeds.
o United Western Bancorp will have significant capacity to add capital
 to United Western Bank®, execute its community banking strategy and
 take advantage of strategic opportunities to enhance shareholder value.