944725--3/16/2007--UNITED_WESTERN_BANCORP

related topics

{loan, real, estate}

{acquisition, growth, future}

{system, service, information}

{condition, economic, financial}

{regulation, government, change}

{financial, litigation, operation}

{stock, price, share}

{personnel, key, retain}

{debt, indebtedness, cash}

{loss, insurance, financial}

{competitive, industry, competition}

{provision, law, control}

{interest, director, officer}

{stock, price, operating}

Our Board of Directors may authorize the repurchase of common shares that may result in dilution. Control by our executive officers and directors will limit individual ability to influence the outcome of matters requiring shareholder approval and could discourage a potential acquisition by third parties. We may not have the ability to pay dividends in the future. Risks Related to our Business Strategy We may be unable to fully implement our community banking business strategy. We may not be able to effectively manage our proposed growth Our ability to attract and retain management and key personnel may adversely affect future growth and earnings. Changes in economic conditions in the Colorado Front Range market could have a material adverse effect on the implementation and success of our business strategy. Our past operating results and financial condition will likely not be representative of our future results and financial condition. We may elect to divest other non-core businesses, which could have an adverse effect on our results. Risks Related to Our Business United Western Bank relies on institutional deposits. United Western Bank relies on wholesale funding sources for secondary and contingent liquidity sources. We must effectively manage our credit risk. Our business is subject to interest rate risk, and variations in interest rates may negatively affect our financial performance We have invested in loan portfolios, pooled securities and mortgage backed obligations, which may lead to volatility in cash flow and market risk. The carrying value of our residential mortgage loan servicing rights and our loan servicing income derived from residential mortgage loan servicing rights may be adversely affected during periods of declining interest rates. We may have fluctuations in our quarterly results. Our loan portfolio remains concentrated in real estate loans. We face strong competition from financial service companies and other companies that offer banking services, which could hurt our business. The allowance for loan losses may not be adequate to cover actual losses and must be managed to provide sufficient reserves to absorb probable losses in our loan portfolio. The mortgage loans that we hold are subject to risks of delinquency, foreclosure and loss, which could result in losses to us. We are exposed to risk of environmental liabilities with respect to properties to which we take title. If we sell mortgage loans or mortgage servicing rights and the underlying loan defaults, we may be liable to the purchaser for unpaid principal and interest on the loan. If a loan originator or seller of mortgage loans and mortgage servicing rights breaches its representations and warranties to us, we may be at risk if such seller does not have the financial capacity to pay for damages we incur as a result of such breach or to repurchase any such loan. Curtailment of government guaranteed loan programs could affect our SBA business. Failure in our automated systems and controls could subject us to increased operating costs as well as litigation and other liabilities. Any failure to prevent breaches of our computer and network security systems may result in customer information being compromised and/or identity theft, which would have a material adverse effect upon our business. We operate in a highly regulated environment and may be adversely affected by changes in laws and regulations. Sterling Trust is subject to regulation as a trust company and could be the subject of third party actions as a result of the trust services it provides. Our ability to service our debt and pay dividends is subject to our ability to receive dividends from our subsidiaries. Significant legal actions could subject the Company to substantial liabilities.

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944725--3/16/2007--UNITED_WESTERN_BANCORP_INC