Dear Loyal Customers,

      Lafayette Savings Bank understands that consumers are concerned about recent news reports surrounding the banking industry. Specifically, IndyMac Bank F.S.B., based in California, was closed by the Office of Thrift Supervision on July 11, and the Federal Deposit Insurance Corp. (FDIC) was named conservator. “Could the same happen to my bank?” is on the minds of many bank customers.

      Lafayette Savings Bank is safe and sound. We are an entirely different institution than IndyMac. While we are a community-based, traditional lender, IndyMac was a West Coast-based, nationwide originator of nontraditional loans, including subprime mortgages. Some of those loans do not even require proof or verification of income, which ultimately is not in the best interest of consumers.

      By contrast, Lafayette Savings Bank is committed to making sound, traditional loans that serve our customers well. We know that by helping our customers, we help the community … our community.

      In addition, Lafayette Savings Bank is well-capitalized. We have ample reserves of capital. This capital acts as a buffer against potential economic downturns. In fact, right now the capital level among traditional banks like us is at historic highs.

      Consumers may rest assured that Lafayette Savings Bank is insured by the FDIC. Backed by the full faith and credit of the U.S. government, FDIC insurance covers up to: $250,000 per person, plus $200,000 per joint account (with a spouse, child or someone else), plus $250,000 for most retirement accounts, such as individual retirement accounts. The FDIC was created in 1933, and during that history not one consumer has ever lost a penny of FDIC-insured funds.

      As a common-sense lender, Lafayette Savings Bank is committed to serving our customers, and our community, with care and integrity. Please contact us with any questions or concerns. Our doors are open … and will remain that way.

Randolph F. Williams

President/CEO

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