FOR IMMEDIATE RELEASE

NEWPORT BEACH, California (July 18, 2008) -- Independence Bank reported its record second quarter net income of $869,000, or $0.22 per share, a 68% increase compared to the second quarter of 2007. Net income for the six months ended June 30, 2008 was $1.7 million, or $0.43 per share, a 67% increase compared to $1.0 million, or $0.26 per share for the comparable period in 2007.

Return on average equity for the three months and six months ended June 30, 2008 was 9.70% and 9.73%, respectively, compared to 6.05% and 6.11%, respectively for the same periods in 2007.

Net interest income totaled $3.0 million and $5.7 million, respectively, for the three months and six months ended June 30, 2008, compared to $1.7 million and $3.2 million, respectively for the same periods in 2007. The increase was largely attributable to the Bank's loan growth and increase in net interest spread.

Provision for loan losses for the three months and six months ended June 30, 2008 was $195,000 and $612,000, respectively, compared to $211,000, and $305,000, respectively, for the same periods in 2007. As of June 30, 2008, Non-accrual Loans and Classified Loans to Tier 1 Capital and Allowance for Loan Losses were 27.8% and 35.4%, respectively. Allowance for Loan Loss Reserve as a percentage of total gross loans was 1.30% at June 30, 2008. For the quarter and 6 months ended June 30, 2008, there were no charge-offs against the Bank's loan portfolio. The Bank reported no REO at June 30, 2008.

Total assets increased by 5% to $404.0 million at June 30, 2008 from $383.0 million at December 31, 2007. The increase was primarily due to the growth in the loan portfolio.

Total deposits increased from $229.0 million at December 31, 2007 to $238.0 million at June 30, 2008. Federal Home Loan Bank (FHLB) advances and other borrowings were $129.0 million at June 30, 2008, compared to $118.1 million at December 31, 2007.

The Bank's Tier 1 leverage capital ratio and total risk based capital ratio were 9.18% and 10.59%, respectively at June 30, 2008, well above the minimum required ratios for well-capitalized banks.

"The banking industry is currently operating under an extremely volatile and challenging economic and real estate environment," stated Chuck Thomas, President and CEO. "Our focus is to proactively monitor our loan portfolio, identify any potential issues, and manage these issues. We have the systems and people in place to assist us accomplish these objectives in a timely manner. At the same time, we are continuing to pursue good business relationships with our surrounding communities by providing excellent products and services that can meet the needs of our business and consumer customers."

Contact Information:

Chuck Thomas, President/CEO
Phone: (949) 266-6000
Fax: (949) 266-6006
Email: cthomas@independence-bank.net

Maria Arakaki, EVP/CFO
Phone: (949) 266-6013
Fax: (949) 266-6006 Email: marakaki@independence-bank.net

Independence Bank
4525 MacArthur Boulevard
Newport Beach, CA 92660

# # #