February 1, 2010

Dear Jefferson Bank Customer:

As we progress into 2010, there’s no better time than the present to bring you some good news: Jefferson Bank is as strong now as it has ever been. We’ve entered this New Year with the strongest capital position in our history, continuing to make quality loans and investments and reporting solid earnings.

The Bank remains well-capitalized and maintains a healthy and responsible investment portfolio and a historically conservative, well-managed loan portfolio, made up of loans to our customers in South and Central Texas. Plain and simple, that means your money is safe with us.

Recently, some of you may have heard about difficulties plaguing a Jefferson Bank in Dallas. We are not to be confused with that Jefferson Bank. In no way, shape or form are the issues affecting Jefferson Bank Dallas affecting your Jefferson Bank. In fact, the two Jefferson Banks aren’t affiliated, associated or related in any way.

Your Jefferson Bank does business primarily in San Antonio and surrounding Hill Country communities. Your Jefferson Bank is privately owned, by the same San Antonio family that started it some 64 years ago. Your Jefferson Bank is operated by the experienced local bankers you’ve come to know and trust. Most importantly, your Jefferson Bank is here to stay: strong, stable and solvent.

Rest assured, we’ll continue to stand tall as one of Texas’ most respected and strongest independent banks. We’ll continue to be the Bank you can count on, here to help you buy your homes, fund your businesses, save for the future and finance your dreams.

Should you have any questions or concerns about our stability or standing, please don’t hesitate to contact either of us by calling (210) 734-4311.

As always, we thank you for your business and look forward to serving you for generations to come.

Sincerely,