This crisis is affecting all sectors of the economy and with that, community banks are no exception. In the months ahead, you may continue to see or read of specific challenges the banking industry is facing and we at Sun West Bank (SWB) are not immune to the challenges our industry is feeling. As President and CEO, I want to assure you that through all this, we value your business and you can continue to bank with us with trust and confidence.

Here are some things we are doing to safe guard your relationship and strengthen Sun West Bank:

• All non-interest bearing accounts at SWB are 100% insured by the FDIC. SWB has taken the extra steps by paying for additional FDIC insurance – at no cost to our customers – to make sure your money is safe. SWB participates in the FDIC's temporary guarantee of noninterest-bearing checking accounts. The guarantee also applies to our negotiable order of withdrawal (NOW) accounts, with interest rates of .50 percent or less. The program ensures these types of accounts are fully insured - yes, 100% coverage - through June 30, 2010. On August 26, 2009, the FDIC adopted the final rule extending the Transaction Account Guarantee (TAG) portion of the Temporary Liquidity Guarantee Program from December 31, 2009 until June 30, 2010.
  
   
• In addition to the above added FDIC insurance coverage, Depositors are encouraged to fully utilize the normal FDIC insurance limits. These limits were recently increased to $250,000 until December 31, 2013 and have the ability for extra coverage depending on the type of entities. As an example, Family Trusts and IRA’s have more coverage opportunities.
  
   
• The Board of Directors at SWB has implemented steps to increase capital and improve regulatory capital ratios including seeking new private equity and restructuring the Bank’s balance sheet to reduce capital requirements.
  
   
• SWB has aggressively identified problem loans and has taken proactive steps including establishing a special assets division to assist with reducing and resolving problem loans. Since early 2008, the bank has been reserving at strong levels and allocated $6.8 million in loan loss provision in 2008 resulting in a 2.32% reserve to total loans; and another $26 million as of September 30, 2009 bringing the reserve level up to 5.68% in recognition of the challenged economy and declining real estate values.
  
   
• Personally, I have taken a leadership role and am one of nine Bankers selected at a national level to serve on the American Bankers Association's (ABA) “Community Bank Solutions Task Force” focused on finding constructive solutions to problems faced by community banks as a direct result of the current economic and financial crisis. Additionally I have agreed to serve as a State Director for Nevada with the "Independent Community Bankers Association" (ICBA).  Given the magnitude of the issues and the urgency surrounding the current situation, the ABA task force along with the ICBA are working on solutions and an aggressive schedule of improvements in the hopes of having an immediate, positive impact with policymakers.
   

At Sun West Bank, we believe community banks, like Sun West Bank, are the backbone of the communities we serve. We realize you have many options for your banking, and we are honored you have chosen us as your banking partner. It’s a responsibility and a relationship we take personally, and you can rest be assured we are working diligently to overcome these current economic challenges.

We encourage you, at your convenience, to discuss with us your account needs and to review how your accounts are set up. We are here to help you understand your FDIC insurance coverage and to assist you in achieving your financial security. For your easy access, please refer to “EDIE”, a FDIC calculator by clicking on the Financial Tools tab located on our website…Or stop by and we will show you how EDIE works. EDIE the Estimator, will calculate your FDIC insurance coverage for each FDIC-insured bank where you have deposit accounts. EDIE lets you know in a printable report, for each bank you deposit with, whether your deposits are within or exceed coverage limits.

Thank you again for banking with us and for your continued business.


Jackie DeLaney
President and CEO

1/15/10