EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
Third Quarter 2009
Investor Presentation
 
 
 
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Forward-looking Statement
Disclaimer and Prospectus Disclosure
Certain statements contained in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of
1995 that are subject to significant risks and uncertainties.  Forward-looking statements include information concerning our liquidity, exposure to
construction and development loans, exposure to non-agency, residential-mortgage-backed-securities, management of nonperforming loans, and
community bank implementation and business strategy. These statements often include terminology such as “may,” “will,” “expect,” “anticipate,”
“predict,” “plan,” “estimate,” “continue,” “could,” “should,” “would,” “believe,” “intend,” “projects,” or the negative thereof or other variations
thereon or comparable terminology and similar expressions.  As you consider forward-looking statements, you should understand that these statements
are not guarantees of performance or results.  They involve risks, uncertainties and assumptions that could cause actual results to differ materially from
those in the forward-looking statements.  These factors include, but are not limited to: the successful implementation of our community banking
strategies; the performance of the individual residential mortgages underlying the non-agency, senior subordinated and other mortgage backed securities
(“RMBS”) held by the Company and United Western Bank; any future downgrades of the investment ratings issued by independent third parties with
respect to our owned RMBS; the anticipated rate of prepayments and other recoveries from RMBS; the imposition of any agreement between us and our
principal regulator, the Office of Thrift Supervision, which may take the form of an informal memorandum of understanding or a more stringent
enforcement action by the OTS any one of which may limit United Western Bank’s ability to conduct its business; the continuing strength of our existing
business, which may be affected by various factors, including but not limited to interest rate fluctuations, level of delinquencies, defaults and
prepayments, increased competitive challenges, and expanding product and pricing pressures among financial institutions; changes in financial market
conditions, either internationally, nationally or locally in areas in which we conduct our operations, including without limitation, reduced rates of
business formation and growth, commercial and residential real estate development, real estate prices and other recent problems in the commercial and
residential real estate markets; demand for loan products and financial services; unprecedented fluctuations in markets for equity, fixed-income,
commercial paper and other securities, including availability, market liquidity levels, and pricing; increases in the levels of losses, customer bankruptcies,
claims and assessments; the extreme levels of volatility and limited credit currently being experienced in the financial markets; legal and regulatory
developments, such as changes in fiscal, monetary, regulatory, trade and tax policies and laws, including policies of the U.S. Department of Treasury and
the Federal Reserve Board; our participation, or lack thereof, in governmental programs implemented under the Emergency Economic Stabilization Act
(the “EESA”), and similar federal laws and the impact of such programs and related regulations on our business and on international, national, and
local economic and financial markets and conditions.
Additional information concerning these and other factors that may cause actual results to differ materially from those anticipated in forward-looking
statements is contained in the “Risk Factors” section of the prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on
September 17, 2009 and in the Company’s other periodic reports and filings with the Commission. The Company cautions investors not to place undue
reliance on the forward-looking statements contained in this presentation.
Any forward-looking statements made by the Company speak only as of the date on which the statements are made and are based on information known
to the Company at that time. The Company does not intend to update or revise the forward-looking statements made in this presentation after the date on
which they are made to reflect subsequent events or circumstances, except as required by law.
 
 
 
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Successful Public Offering
 
 
 
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Franchise Overview
o 3rd largest federal savings bank
 in the Western United States
o $2.6 billion asset franchise
 focused on Colorado’s Front
 Range
 - Pueblo to Fort Collins including
 Denver
o Traditional community bank -
 target business first, consumers
 second
o Other services:
 n National Preferred SBA Lender
 n Treasury management
 n National trust services
 n FINRA member firm to provide brokerage
 and related services
 
 
 
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Source: SNL Financial June 30, 2009
Deposit Franchise Overview
o  3rd largest market share of Colorado based banks and thrifts
 
 
 
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Colorado: among strongest economies in US
 
 
   
 
  Unemployment Rate     Median Home Price Appreciation
     (YoY)
o Case-Shiller®:  (11.3%)
o Denver:   (1.9%) 
o Boulder:   (8.1%) 
o Ft. Collins:   (2.3%)
o Aspen/Roaring Fork: (60.1%)
o Nationwide:  9.8%
o Colorado:  7.0%
o Denver:  7.1%
o Boulder:  5.5%
o Ft. Collins:  5.6%
Notes:
Nationwide unemployment data is for Sept 2009. Colorado and the Colorado MSA’s unemployment data is for Sept 2009; Case-Shiller® data for the month of August 2009.
Colorado cities and regional Median Home Price Appreciation data provided by Trulia: July - Sept 2009 information.
Sources: CO Department of Labor & Employment, S&P/Case-Shiller®, Trulia
 n Colorado’s Front Range includes 82% of the state population
 n Colorado’s employment base is the 3rd most highly educated in the
 U.S.
 n Strong employment concentrations in aerospace, bioscience, software,
 information technology, renewable energy and energy research
 n Better than national average projected population growth, median
 household income and projected household income change
 
 
 
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Experienced Management Team
 
 
 
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Proven Execution of Business Model
o Established community bank business plan in 2006
o Redirected legacy company into community banking
o Launched United Western brand
o Transitioning balance sheet to community banking from wholesale
 mortgage business
o Capitalized on dynamic Colorado banking environment and growing
 economy
o Recruited veteran bankers disenfranchised by banking consolidation
o Built exceptional “local” banking centers - regional banking model
o Historically stable deposit base and predictable deposit rates
 
 
 
 
 
 
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Net Interest Margin
Proven Execution of Business Model
 
 
 
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Focused Branch Network
o “Best” locations - break-even target of 14 months
o Smaller distribution network - 10-12 banking centers, not 100
 branches
o Average tenure of in-market senior bankers is 20 years
o Eight full-service locations open in the Front Range and a
 private banking focused office serving Aspen and the Roaring
 Fork Valley
 
 
 
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Deposit Franchise Overview
 
 
 
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Source of Deposits
 
 
 
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Disciplined Credit Culture
o Our philosophy-lend to people we know
o Loan administration/workout team created 2006
o Multi-tiered committee based credit approval
o Sound lending practices
 n Traditional/community bank-business credit focus
 n Colorado focused
 n Tangible collateral lender
 n Recourse/co-borrower structures on most credits
 
 
 
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Loan Portfolio Composition                                 Loan Portfolio Summary
Data as of September 30, 2009
Source: Company documents
Loan Portfolio Summary
 
 
 
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$495 Million
Data as of September 30, 2009
Total C&D Loans:
$376 Million
CRE and C&D Loan Portfolio Summary
 
 
 
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*Graphic depiction excludes note receivable of $46 million from Equity Trust Company, received as part of sale of UW Trust assets in June 2009.
Data as of September 30, 2009
Commercial Loan Portfolio Summary
Commercial Loan Portfolio Composition *
 
 
 
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Single Family Residential Portfolio
o $287 million aggregate size across HFI and HFS portfolios
o Weighted average loan age-8 years
o Average loan size $130,000
o Geographically diverse
o Average FICO scores at origination-over 700
 
 
 
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Reserves/NPLs
NCOs/ Average Community Bank Loans
NPLs/Community Bank Loans
Reserves/Community Bank Loans
Asset Quality - Community Bank HFI
 
 
 
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Note: Community Bank NPLs include held for investment Community Bank loans and a held for sale multi-family loan.
Source: Company records as of September 30, 2009
Community Bank NPLs by Location
Community Bank NPLs Composition
Community Bank NPLs
 
 
 
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Data as of September 30, 2009
Non-Performing Assets Summary
 
 
 
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(1) Loans over 90 days past due that remain on accrual are guaranteed as to principal and interest by HUD.
Asset Quality Migration
 
 
 
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Total HTM Securities: $411 million
Total AFS Securities: $35 million
Data as of September 30, 2009
Investment Securities Portfolio
 
 
 
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Note: Excludes RMBS with amortized cost of $36.8 million at September 30, 2009 held by United Western Bancorp, Inc. and its affiliates other than United Western Bank.
 This presentation includes both HTM and AFS securities and categorizes the Bank’s securities based on type and regulatory capital treatments.
Investment Securities Portfolio
 
 
 
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Regulatory Capital Requirements
o Non-Agency RMBS: United Western Bank
 
 
 
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o Portfolio Run-Off: Non-agency RMBS
 n Reductions average $9.2 million per month for first nine months of
 2009
 n From December 31, 2008 through September 30, 2009, the portfolio
 declined $129.9 million, of which $47.3 million was due to sales and
 $82.6 million due to portfolio pay downs.
 n Portfolio run-off frees up balance sheet and risk-based capital
 n Third quarter OTTI losses of $2.8 million on three non-agency RMBS
 n Fourth quarter 2009 projected runoff for non-agency RMBS is $23.7
 million.
 n 2010 projected runoff for non-agency RMBS is $89.3 million.
Investment Securities Portfolio
 
 
 
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o Selective expansion of branch network within local markets
o Continued ability to attract “disenfranchised” bankers from
 larger competitors
o Branch acquisitions from larger bank overlap/closures
o Opportunistic acquisitions of assets or liabilities via FDIC
Opportunities for Growth
 
 
 
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o Top performing bank in attractive market - opportunity to
 grow
o Management team track record
o Temporary support of regulatory capital to hold our
 performing non-agency RMBS securities portfolio
o Sticky deposit franchise
o Performing loan portfolio
o Attractive valuation to tangible book value
Investment Considerations
 
 
 
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