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FOR IMMEDIATE RELEASE

ICBA Reinsurance Pays 10th Consecutive Dividend for Community Bank Shareholders

Washington, D.C. (December 20, 2012)–ICBA Reinsurance, the captive reinsurance company of the Independent Community Bankers of America (ICBA), has paid its 10th consecutive dividend. The $125,000 dividend was paid to community banks that qualified for a dividend based on 2011 results. More than 70 percent of ICBA Reinsurance shareholders received a dividend, which represents almost 5 percent of the shareholders' earned surplus.

“ICBA Reinsurance is focused on delivering sustainable long-term growth and cash returns to our shareholders, and we’re pleased to offer this 10th consecutive dividend so they can continue to invest in their communities,” said Stephen Ello, CAE, ICBA Reinsurance president and CEO. “

Through ICBA Reinsurance, community banks can offer their customers competitively priced, first-rate credit life and disability insurance products from two highly rated, nationally known and respected insurance companies, while also receiving additional tax-advantaged dividend income. Program participants continue to earn commission income and now have the opportunity to share insurance underwriting earnings and investment income on their premium reserves.

“Prior to ICBA Reinsurance, many community banks did not have access to many of the same captive reinsurance profit opportunities that larger banks have enjoyed,” said William Wood, chairman of ICBA Reinsurance and chairman, president and CEO of CBT Financial Corp. and Clearfield Bank and Trust Co.,  Clearfield, Pa. “Our unique business model means that all community banks can protect their portfolio and their customers’ assets while receiving tax-advantaged dividend income based on their successful underwriting results.”

Since its inception, ICBA Reinsurance has paid more than $17.7 million in commission income and $12.5 million in claims on behalf of community banks to their customers. Participating community banks have shared more than $1.25 million in dividends.