Sovereign Bank

What's New At Sovereign Bank

Dear Clients and Shareholders,

Entering the second half of 2010, we are proud to report continued positive earnings for our institution along with a balance sheet that remains strong despite the enduring challenges to the financial industry as a whole.

As of June 30, 2010, Sovereign recorded over $779 million in total assets, representing asset growth more than twenty times our initial capital raise of $38 million in 2004. In addition to our healthy balance sheet, the bank’s earnings continue an impressive trend with Second Quarter 2010 representing Sovereign’s eighteenth consecutive quarter of positive earnings, a remarkable feat given the challenging economy the past several years and the escalating number of failed banking institutions during that period.

Going forward, Sovereign Bank will maintain our conservative business model to preserve the highest possible asset quality while growing in a controlled and responsible manner as dictated by the economy. This strategy will include efforts to sustain our organic growth while also pursuing opportunities to acquire failed banks. Thus far in 2010, our team has proactively performed due diligence on several such potential targets and tested the waters in the formal bidding process for acquiring assets from the FDIC.

Our primary goal, of course, continues to be providing the highest level of banking services to our clients. Whether loans or deposit services or treasury management expertise, our team of professional bankers is here to serve you and provide you with a memorable and outstanding banking experience, each and every time you discover a need or have a special request.

Sovereign’s Board and executive management team would like to thank you for your continued support and your contributions to the achievements of this institution. Your business and your referrals remain integral to our success. We look forward to continuing to serve you throughout 2010 and in the years to come.

Thomas J. Mastor
President/Chief Executive Officer
Chairman

With 7-Eleven, Sovereign Bank Brings you More

When you’re on the go, remember that only Sovereign Bank helps you get fast cash for no cash at conveniently located 7-Eleven stores.

Through an exclusive agreement, Sovereign Bank customers can make free ATM withdrawals using their Sovereign Bank debit card at more than 280 selected 7-Eleven locations in Texas.

Click Here for a list of 7-Eleven Locations in Texas

Sovereign Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2010, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.