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In today’s economy, the news of possible financial institution failures have many consumers concerned about where they keep their money and the safety and soundness of the financial institution they do business with. Independence Bank would like to take this time to share with you our corporate philosophy and how it stacks up against other financial institutions.

When many financial institutions participated in making “sub-prime” mortgage loans, Independence Bank made the decision to stay out of it. Independence Bank is proud to have had zero exposure to “sub-prime” mortgages. We believe in making local loans to local borrowers. Why? Because Independence Bank is a bank built on tradition, trust and technology. The underwriting standards have always been guided by traditional financing. That’s why Independence Bank has one of the lowest delinquency ratios in the nation.

Below is a chart comparing loan delinquency percentages for Independence Bank and other institutions of the same asset size nationwide:

Loan Delinquency Compared with Peer Group

Source: www.fdic.gov

• Not only does Independence Bank have a much lower loan delinquency rate than our national peers, we also have a much lower net loan charge-off percentage than its peers. The troubled financial institutions read about today have very high loan delinquency rates and extremely high loan charge-offs. In 2009, the net loan charge-off rate for Independence Bank was approximately one tenth of those financial institutions of the same asset size nationwide. Our net loan charge-off rate was 0.11% compared to peers at 1.06%.
• Independence Bank’s capital position has received the highest regulatory rating of “well capitalized.” We are very proud of this rating, and, as an Independence Bank customer, you should be too.
• Banks are also given a rating based on their performance of financial ratios from a third party called Interactive Data Corporation. Many in the financial industry believe IDC is the premier rating service for banks. Those rankings range from 1 being the lowest and 300 being the highest. Independence Bank’s IDC rating is 228, which is “Superior” and in the top 10% of all banks. Banks with a “Superior” rating are strong financial institutions with favorable capital ratios, have quality management in place, a strong balance sheet and outstanding income performance. Independence Bank has increased our IDC rating quarter over quarter during the worst financial crisis our nation has seen since the Great Depression.

The following graph depicts Independence Bank’s strong performance over the past two years.

Below Average 75-124
Average 125-164
Excellent 165-199
Superior 200-300

Independence Bank’s philosophy has always been to provide Everyday Excellence to not only customers but to each other as well.

“Customer service is our number one priority. No amount of additional service charges, no amount of cost cutting, no amount of interest margin gain will ever reap the financial rewards that superior customer service will benefit our bank.”
– Charles J. Reid

This simple but effective philosophy has Independence Bank’s financial ratios going up while other financial institutions ratios are going down. Independence Bank just completed 2009 with record earnings and a very strong liquidity position.

In summary, rest assured that you have chosen a solid financial institution. Independence Bank is “well capitalized” with virtually no loan problems. For over a century, our knowledgeable, experienced management and staff has been dedicated to you!

For more information on how we’re doing, please visit your nearest Independence Bank location or www.fdic.gov.