LOCAL COMMITMENT. GLOBAL VISION.

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1 LOCAL COMMITMENT. GLOBAL VISION.

2 OWN A BANK

3 In building an outstanding financial services operation which brings returns to our investors and produces a lasting footprint on Scottsdale and Arizona of which we can all be very proud. In opening the FIRST community bank in Arizona since 2007 it will be located in the core business center of the thriving Scottsdale community, internationally known for a highly productive business environment, excellent quality of life, and a magnet for tourism.

4 SCB IS BUILT UPON A WIN-WIN CONCEPT FOR BOTH THE BANK S SHAREHOLDERS AND THE COMMUNITY. Business leaders, financial experts, regulators, and government leaders all agree that community banks are essential to the economic health of a community.

5 VISION OUR VISION We will exceed expectations in performance and set standards by which other banks will be judged. We will be known for our people, our service to the community, and the value we bring to our shareholders.

6 VISION OUR VISION We will provide innovative, cutting edge financial services, proactively addressing clients needs while maintaining and taking pride in our integrity, work ethics, efficiency, and traditional values. We will be an enterprise that colleagues and regulators point to as a model of success.

7 IN ORGANIZATION SCB has been recognized by the Arizona Department of Financial Institutions (AZDFI) as in organization and authorized SCB s effort to raise $16 million of capital to start the bank. A minimum investment is $10,000.

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9 RIGHT NOW IS THE RIGHT TIME TO START A COMMUNITY BANK DEFINITION A Community Bank is generally defined as a depository institution that is typically locally owned and operated. Community banks tend to focus on the needs of the businesses and families in the bank s market area.

10 Source: FDIC CHAIRMAN, JUNE 2017 Community banks have outpaced noncommunity banks by a number of measures. Their merger-adjusted loan growth has exceeded that of noncommunity banks in each of the past five years; they have increased lending by more than 8 per cent in each of the past three years. FDIC s efforts (are) to streamline and simplify banking regulations and supervisory programs to reduce regulatory burden, particularly for community banks identify further opportunities to minimize burden to bank management...

11 community banks play a critically important role in the financial system and economy of the United States. Community banks today account for about 13 per cent of the banking assets in the United States, they also account for about 44 per cent of all the small loans to businesses and farms. Source: FDIC Chairman, April 2016 Small banks have been playing just an incredibly important role, particularly as large banks have cut back on their lending to small businesses Source: Former Federal Reserve Chair, 2011 Source: Jeff GerrishBoard Chairman of Gerrish McCreary Tuck, and Former FDIC regional counsel

12 Arizona State Chartered Commercial Banks Performance Summary Source: Call Report and Thrift Financial Report, FDIC Division of Insurance and Research TOTAL ASSETS TOTAL LOANS & LEASES TOTAL DEPOSITS 36% Increase In Total Assets from September 2015 to September ,447 16,337 30% Increase In Total Loans & Leases from September 2015 to September ,241 39% Increase In Total Deposits from September 2015 to September ,649 14,897 16,820 16,539 12,565 13,813 SEP SEP SEP (Dollar Figures in Millions)) SEP SEP SEP (Dollar Figures in Millions)) SEP SEP SEP (Dollar Figures in Millions))

13 .community banks play a crucial role in providing consumers and small businesses in communities across the nation with essential financial services as well as the credit that is critical to economic growth and job creation. Source: Senior Deputy of the U.S. Comptroller of the Currency The value of community banks has always been associated with the unique combination of services they provided to their customers, as well as the manner in which they do business. Community banks tend to be relationship lenders, characterized by local ownership, local control, and local decision making. By carrying out the traditional banking functions of lending and deposit gathering on a local scale, community banks foster economic growth and help ensure that the financial resources of the local community are put to work on its behalf. Community banks have always been inextricably linked to entrepreneurship. Source: FDIC Community Bank Study Dec In 2016, SCB was invited by the FDIC, and attended, an outreach conference for the FDIC s Community Banking Initiative titled: Strategies for Successful De Novo Bank Applications. The FDIC is currently encouraging De Novo applications. The FDIC noted that in a rising interest rate environment, the FDIC is seeing increased interest in De Novo banks. Source: FDIC

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15 ARIZONA by the numbers Arizona s population is currently 6.9 million & is projected to reach 7.4 million by Arizona is one of the fastest growing states for businesses, residents, and visitors. Arizona is ranked the #1 most competitive state in the 7-state mountain region. (Site Selection Magazine s 2017 Prosperity Cup) Phoenix is the 5 th largest city in the U.S. with one of the busiest airports in the country and serves as the financial center of the Southwest.

16 ARIZONA As of June 30, 2016, Arizona s banking deposits reached historic highs. Since 2008, total deposits increased $36 billion with 63% of this deposit growth occurring in the last three years. - FDIC Summary of Deposits

17 ARIZONA Arizona bank loan growth tripled between Employment growth is expected to support increasing GDP in Arizona. The Arizona economy is posting solid and stable economic growth amid an ongoing housing market recovery and positive demographic trends. Senior economist at BMO Capital Markets, February 2016

18 Scottsdale is a dynamic market fueled by increasing employment and expanding infrastructure More than 20% of Arizona s corporate headquarters are located in Scottsdale Scottsdale named one of America s thriving cities Scottsdale designated one of the best cities to launch a start-up Scottsdale ranked nationally as one of the ten best places to live

19 DID YOU KNOW? 1 ST TOP % 97 % SCOTTSDALE IS THE BEST CITY IN THE COUNTRY FOR JOBS, ACCORDING TO A NEW RANKING REPORT FROM WALLETHUB ARIZONA IS THE 9 TH BEST PLACE TO DO BUSINESS ACCORDING TO CHIEF EXECUTIVE MAGAZINE S 2017 BEST & WORST STATES FOR BUSINESS ARIZONA S SMALL BUSINESSES EMPLOYED OVER A THIRD OR 955,194 OF THE STATE S PRIVATE WORKFORCE IN 2012 SMALL BUSINESSES MAKE UP 97.1 PERCENT OF ALL EMPLOYERS IN THE STATE.

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23 YOUR BOARD OF DIRECTORS Successful, extensive experience in banking, business, and entrepreneurship. Shared values of integrity, hard work, determination, innovation, and respect for human dignity. Appreciation of shareholders and the sacrifices they make. One Director served as Vice-Chair and Chief Fiduciary officer of the very successful Bank of Hawaii. One Director was a founding Director of First Bank Yuma, a thriving community bank. One Director is a top national expert, and author of 4 books, on family businesses and wealth management. One Director is an expert in forensic accounting. One Director has extensive experience in energy and water management and tech start-ups.

24 YOUR BOARD OF DIRECTORS Three Directors have extensive experience in government operations and policy including oversight of regulatory agencies, and service in the Arizona State Senate, the Arizona House of Representatives, the Governor s Office, the Attorney General s Office, and the Phoenix Mayor s office. YOUR DIRECTORS have vast experience in diverse industries, and our target markets, including aviation, banking, big data, business consulting, computer forensics, construction, energy management, engineering, equity markets, estate planning, family businesses, film/movies, forensic accounting, government affairs, health care, hospitality, insurance, international trade, law, non-profits, public safety, recreation, restaurants, sports, start-ups, technology, trusts, warehousing, water management, and wealth management. YOUR Directors have deep roots in the community and have served on the Boards of numerous non-profit organizations.

25 MARKET AREA Our market area includes economic engines in Scottsdale from the thriving office, retail, and industrial Airpark area on the north, to the ASU SkySong Innovation Center and McDowell Corridor on the south. The family businesses in Paradise Valley on the west, to the creative office, entertainment, and recreational businesses on the Salt River Pima-Maricopa Indian Community to the east. The area encompasses diverse Old Town Scottsdale including its art galleries, financial center, Scottsdale Fashion Square, the Waterfront development, and the entertainment district. The Medical Cure Corridor, and the long, diverse Scottsdale Road Corridor, including world-class resorts, spas, restaurants, and other hospitality operations.

26 TARGET BUSINESS PROFILES There are 18,000+ businesses within our market area that meet the following criteria: Privately owned businesses with annual revenues under $5 million Businesses that match the Directors extensive industry knowledge & experience Businesses with employees Businesses with average credit needs between $100,000 to $2.5 million Businesses with average deposit balances over $100,000.

27 LOCAL SEO Local Search Visibility on mobile and desktop devices will be a primary focus within our marketing strategy.

28 Potential Profitability & Risk

29 DID YOU KNOW? C 10% 44% A. FDIC-insured institutions reported a record $171.3 billion in net income in 2016, marking a net increase of 44% over the past 5 years - FDIC Chairman, June 22, 2017 A B. Our research indicates recent sales of local community banks in 2015, 2016 and 2017 generated an annualized return of approximately 12%. D 7.8% B 12% C. The best banks will produce returns on equity above 10%. - The Motley Fool, May 2016 D. Since 2011, annual increases in banking industry net income have averaged 7.8% per year. - FDIC Chairman, June 22, 2017

30 Community banks revenue and income growth outpaced the rest of the industry, and loan portfolios and community banks grew at a faster rate than the larger institutions. - FDIC February 2017 Capturing a reasonable share of both the loan and deposit markets is essential. SCB only needs about a 7% capture rate of our estimated loan prospects to achieve its loan growth totals for year one. On the deposit side, SCB needs less than one half of 1% of the market area deposits to achieve its goals.

31 Gateway Bank of Mesa, Arizona, started in 2007 with $13 million in capital, and by June 2017 had $129 million in assets and $69 million in gross loans. - Arizona Republic, In 2016, State Bank Corp acquired County Bank in Prescott in a cash-andstock deal that S&P Global Market Intelligence calculated the value as 137.1% of book and tangible book.

32 SCB continues to monitor the option of purchasing a troubled bank that may want or need to sell its assets at a substantially discounted value. Potential opportunities for producing additional revenue will be explored including partnering with wealth management services, financial planning firms, insurance carriers, family business consultants, other community banks, and purchasing participation loans.

33 RISK MANAGEMENT is integrated into all aspects of SCB. The Directors local knowledge, experiences, and deep roots in the community are keys to quality risk management. A RISK MANAGEMENT COMMITTEE, consisting of Directors and senior staff, will continuously monitor and update our internal and external risk management system. SCB will undergo regular STRESS TESTING to evaluate risk tolerance and exposure. A BUSINESS ADVISORY COUNCIL will provide additional expertise and insight into various industries. Being a locally owned and operated community bank, SCB will be able to adapt and respond to risk factors faster and more thoroughly than larger institutions.

34 NEXT STEPS JOIN OUR TEAM! BE ON THE GROUND FLOOR OF THIS EXCITING, REWARDING ENTERPRISE! Request and read our offering circular fully and thoroughly. A subscription form is attached to the offering circular. The minimum investment is $10,000, at $10 per share, with the capital raise of $16 million. Please seek advice from your attorney, accountant, financial advisor, family, friends, or anyone else you would like. We encourage you to ask us any questions and provide any comments or suggestions. Please review our website: NOTICE: This announcement is neither an offer to sell nor a solicitation of an offer to buy the common stock or any other securities of the proposed bank. Such offer may be made only by the offering circular. Shares of the proposed bank s common stock and any other security of such bank are NOT insured nor approved by the FDIC or any other federal or state regulatory agency.

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