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ICBA Reinsurance Declares Dividend

Washington, D.C. (Nov. 9, 2004) - ICBA Reinsurance, a wholly owned credit insurance subsidiary of Independent Community Bankers of America, the nation's largest banking trade organization, today declared its second consecutive dividend to community bank participants.

The dividend represents over 26 percent of ICBA Reinsurance's earned surplus and will be distributed to shareholders that posted positive underwriting for the calendar year. "Over half of the participants in the program qualified to receive a dividend, in banks ranging in asset size from $17 million to $500 million," said Stephen A. Ello, ICBA Reinsurance president and CEO. "ICBA Reinsurance was created to provide community banks with access to additional revenue beyond their standard commission. This dividend confirms that we're doing that by successfully supporting our community banks."

ICBA Reinsurance participants have access to credit life and disability insurance products to meet virtually any borrowing need through A.M. Best A++ rated (Superior), AIG American General. Program participants continue to earn commission income and have the opportunity to also share in insurance underwriting earnings and investment income. Dividends received by bank shareholders are subject to tax exclusions rules and are therefore taxed at a lower rate than retro income.

Rusty Cloutier, president and CEO of MidSouth Bank in Lafayette, La., said MidSouth Bank joined the ICBA Reinsurance program to offer a first-class product to the bank's customers and for the ownership opportunity. "It has been a win-win relationship for our bank and our customers," said Cloutier. "We received our first dividend this year and look forward to many more years of important profitability through this ICBA-governed program."

"Prior to the ICBA Reinsurance program, many community banks could not access the same captive reinsurance company profit opportunities larger banks have enjoyed for years," added James M. Goetz, chairman of ICBA Reinsurance, who also serves as chairman of Security First Bank in Center, N.D. "Today, 225 community banks in over 25 states offer their customers first-rate credit life and disability insurance products through the ICBA Reinsurance program."

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 has also created proven training programs and marketing materials developed specifically for community banks.