In today's economy and 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. We at Independence Bank want to take this time to share with you our corporate philosophy and how it "stacks up" against other financial institutions

Independence Bank has zero exposure to "sub-prime" mortgages.

When many financial institutions participated in making "sub-prime" mortgage loans, Independence Bank stayed out of it. We believe in making local loans to local borrowers. Why? Because Independence Bank is a bank built on tradition, trust, and technology. Our underwriting standards have always been guided by traditional financing. That's why Independence Bank has one of the lowest delinquency ratios in the nation. In fact our loan delinquency rate has actually declined while other financial institutions of our asset size nationwide have increased significantly. Below is a chart comparing loan delinquency percentages for Independence Bank and other institutions our asset size nationwide:

*Source: www.fdic.gov

Not only does Independence Bank have a much lower loan delinquency rate than national peers' average, we also have a much lower net loan charge-off percentage than our peers. The troubled financial institutions that we read about today have very high loan delinquency rates and extremely high loan charge-offs. As of March 31, 2008, the net loan charge-off rate for Independence Bank was approximately one third of those financial institutions of our asset size nationwide at 0.07% compared to theirs at 0.18%.

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.

Independence Bank's philosophy has always been providing extraordinary customer service.

"Customer service is our number one priority. No amount of additional service charge; 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 ratio's going up while other financial institutions ratios are going down. Independence Bank just completed the first half of the year with record earnings and we have a very strong liquidity position.

In summary you shouldn't be concerned about your deposits. Your bank, 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 us at one of the 17 locations nearest you or www.fdic.gov