MidFirst Bank Earnings Remain Strong, Growth Continues

May 8, 2009

PHOENIX, AZ – Despite the worst economic downturn in the past 60 years, Arizona's largest privately held bank, MidFirst, continues to post solid results. Similar to its peers, MidFirst's earnings declined from the same quarter last year as it added to its loan loss reserves. However, based on the most recently available industry data, MidFirst's earnings performance ranks it in the top 5% of all banks in the United States. MidFirst's assets grew by 2% compared to the same period last year.

In light of the nation's recession, the bank decided to further strengthen its reserves as protection from future potential loan losses, resulting in a first quarter net income of $44.8 million, compared to $68.2 million for the same quarter last year. MidFirst's assets total $14.4 billion and the bank has a combined regulatory capital and reserve base of $1.2 billion, exceeding well-capitalized criteria established by its regulators.

"MidFirst's strong capital position and diversified business strategies have enabled the bank to establish a long trend of superior financial results, consistently outperforming national averages relative to its peers. Among the 100 largest banks in the United States, only 14, including MidFirst, achieved year-over-year earnings growth in 2008," remarked Jeff Lowe, MidFirst Bank Arizona president.

"While many banks struggle as a result of the decisions that led to the mortgage crisis, MidFirst's role as the fifth largest government loan servicer in the United States with 340,000 loans totaling $26.6 billion, and its related government-backed investments provide exceptional strength and stability to the bank's balance sheet. During 2008 MidFirst expanded its government loan servicing operation with the purchase of servicing rights related to loans totaling $14.5 billion. This sizeable acquisition led to the creation of 100 additional jobs within MidFirst's mortgage servicing operation," Lowe continued.

"Although the decline in earnings for the first quarter partially reflects the strengthening of the bank's reserves, it also reflects the fact that 2008 was an exceptionally strong year as evidenced by comparison to peers. As such, we remain committed to our expansion plans. This is a time when MidFirst is not only investing in its future, but also positively impacting the economy with continued growth and job creation. MidFirst's optimism is evidenced by its increasing investment in Arizona where MidFirst has already celebrated five new banking centers in 2009, with nine additional centers scheduled to open this year. These new locations will bring our number of Phoenix banking centers to 18, and will add nearly 100 new jobs. By the end of 2009 MidFirst's banking center network will be among the 10 largest in Phoenix," Lowe further commented.

MidFirst is Arizona's largest privately held bank with over 570,000 retail, commercial, and mortgage customers. MidFirst Bank has 9 banking centers open in Phoenix and will celebrate 14 grand openings in 2009.