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ICBA Reinsurance Declares Third Dividend

Washington, D.C. (January 10, 2006) - ICBA Reinsurance, a subsidiary of the Independent Community Bankers of America (ICBA), the nation's largest banking trade organization, declared its third consecutive dividend.

The dividend will be distributed to shareholders that posted positive underwriting results for the calendar year. Over 70 percent of the participants in the program qualified to receive a dividend. "ICBA Reinsurance was created to provide community banks with access to additional revenue beyond the standard commission income most banks may earn," said Stephen A. Ello, ICBA Reinsurance president and CEO. "This dividend confirms that we're successfully supporting our member banks by providing them with new revenue opportunities."

Craig Reeves, president and CEO of the First National Bank of New Mexico in Clayton, N.M., said his bank joined ICBA Reinsurance to offer a first-class product to customers and for the ownership opportunity. "It has been a win-win relationship for our bank and our customers. We received our first dividend this year and look forward to many more years of success due to our association with this ICBA sponsored program."

"Prior to ICBA Reinsurance, many community banks did not have access to the same captive reinsurance company profit opportunities larger banks have enjoyed for years," added Robert C. Fricke, chairman of ICBA Reinsurance and president and CEO of Farmers & Merchants National Bank in Ashland, Neb. "Today, 225 community banks in 24 states can offer their customers first rate credit life and disability insurance products through the ICBA Reinsurance program and also gain access to additional profit opportunities."

ICBA Reinsurance participants have access to credit life and disability insurance products to meet virtually any borrowing need from a nationally known and respected, A+ rated (Superior) insurance company. Program participants continue to earn commission income and now have the opportunity to also share in insurance underwriting earnings and investment income on their premium reserves. Dividends received by banks are subject to tax exclusions rules and are therefore taxed at a lower rate than retro income. ICBA Reinsurance participating banks have shared over a quarter of a million dollars in dividends.