Western Liberty Bancorp Forms New Subisidiary, Las Vegas Sunset Properties

Western Liberty Bancorp

has formed a new subsidiary, Las Vegas Sunset Properties, to hold problem loans (including performing and nonperforming loans) and foreclosed real estate of Western Liberty Bancorp's bank subsidiary, Service1st Bank of Nevada. The OREO properties were transferred from Service1st Bank to Las Vegas Sunset Properties on December 28, 2011. The loan asset transfers were completed on January 11, 2012, with the purchase by Las Vegas Sunset Properties of the Service1st Bank classified loans. Funded with cash contributions from Western Liberty Bancorp, Las Vegas Sunset Properties paid fair value for the assets. The purchase price was approximately $15.5 million, including approximately $4.0 million for the OREO properties and $11.5 million for the loan assets. Western Liberty Bancorp believes that the transfer will be of immediate benefit to Service1st Bank, reducing the amount and relative percentage of its classified assets. In addition, Western Liberty Bancorp believes that assembling OREO and classified loans in a separate nonbank subsidiary will promote efficient and cost-effective management and ultimate resolution of the assets.