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FOR IMMEDIATE RELEASE

Community Bank-Owned ICBA Reinsurance Declares Dividend

Community Banks Offer Competitively Priced, Quality Insurance Products to Consumers

Washington, D.C. (January 24, 2007)—ICBA Reinsurance, a subsidiary of the Independent Community Bankers of America (ICBA), declared a $125,000 dividend, or 13.1 percent of the shareholders' earned surplus. This is the fourth consecutive year ICBA Reinsurance, which is owned by community banks, has declared a dividend. To date dividends received total almost a half million dollars.

"ICBA Reinsurance allows community banks to offer competitively priced, quality insurance products to their customers from an A+ rated insurance company backed by ICBA's due diligence and commitment to service to its member banks," said Robert C. Fricke, chairman of ICBA Reinsurance and president and CEO of Farmers & Merchants National Bank in Ashland, Neb. "By offering credit life and disability insurance to our customers we provide them with stability in the event they experience a death or disability and it also protects the bank's portfolio from risk."

The dividend will be distributed to shareholders who posted positive underwriting results for the year. Over 80 percent of the participants in the program qualified to receive a dividend. "ICBA Reinsurance was created to provide community banks access to additional revenue beyond the standard commission income most banks earn and stability in the marketplace for the bank and their customers," 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 and helping them offer competitively priced, quality insurance products to their customers."

ICBA Reinsurance participants have access to credit life and disability insurance products to meet virtually any borrowing need from a nationally known and respected insurance company. Program participants earn commission income and share in insurance underwriting earnings and investment income on their premium reserves. Dividends received by banks are subject to tax exclusion rules and are therefore taxed at a lower rate than retro income.

About ICBA Reinsurance
Founded in 1999, ICBA Reinsurance is a captive reinsurance company formed exclusively for ICBA members and run by a board of community bankers. In addition to offering new revenue opportunities for community banks, ICBA Reinsurance also offers proven training programs and marketing materials developed specifically for community banks.




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