MidFirst Third Quarter Earnings Increase 26%

October 15, 2008

PHOENIX – MidFirst Bank announced today that earnings for the third quarter of 2008 were up 26 percent totaling $74.6 million, compared to $59.4 million in 2007. The quarter complements a nine-month trend that has resulted in an overall 30 percent earnings increase to date totaling $213.1 million in 2008, compared to $163.9 million in 2007.

Equally important, assets grew by nearly 22 percent-or $2.6 billion-beyond the previous year. The increase was driven primarily by growth in government-backed mortgage loans and to a lesser extent, commercial loans. MidFirst's combined regulatory capital and reserve base was approximately $1.2 billion on September 30, 2008. MidFirst exceeds all regulatory requirements to be considered a "well capitalized" institution.

"MidFirst Bank is in a positive position despite the current economic conditions because of sound practices, including the diversity of our operating strategies. These have enabled MidFirst to grow its assets and earnings," said Jeff Lowe, MidFirst Bank Arizona president. "Fifty percent of the MidFirst balance sheet is comprised of government-backed assets that provide particular strength and stability during this time of economic uncertainty."

Consequently, MidFirst maintains the highest ratings by several independent bank rating firms such as Veribanc, IDC and LACE. Such a ranking is a result of avoiding the high-risk subprime mortgage strategies that have afflicted other financial institutions. Additionally, MidFirst owned no stock in Fannie Mae or Freddie Mac. Instead, MidFirst Bank possesses mortgages that are U.S. government-backed FHA and VA products. In fact, 98 percent of the bank's mortgage loan servicing portfolio is comprised of government-backed loans.

Partial success is also credited to the bank's lending portfolio that is both geographically and product diverse. It is important to note that MidFirst's level of problem assets remains better than market and national averages.

"While we are pleased with the bank's financial results this quarter, we recognize that we are operating in unstable and uncertain financial markets," said Lowe. "We will remain vigilant in managing the bank's credit risk and maintaining strong loan loss reserves."

On the infrastructure front, plans for fulfilling MidFirst expansion efforts in Oklahoma and Arizona remain on target, with the end goal of broadening and building the core deposit base.

MidFirst is the third largest privately owned bank in the United States and the largest privately owned bank in Arizona. MidFirst has three banking centers open in the Valley with 12 more banking centers scheduled to open in 2009. MidFirst has more than 1,600 employees and over 100 in Arizona. MidFirst has offices in Phoenix, Oklahoma City, Tulsa, New York, Chicago, Houston, Atlanta and Southern California.