Dear Shareholders and Customers,

With the first quarter of 2008 complete, we are proud to report Sovereign Bank continues to grow in a profitable manner. As of March 31, 2008, the bank reported roughly $625 million in total assets and again posted positive earnings.

These results are even more impressive when considered in the context of today’s market environment. Continued fall-out from the “sub-prime crash” and the “credit crunch” has resulted in many banks – both national and local – reporting substantial financial losses and, in the case of Bear Stearns, outright insolvency.

Moreover, the dramatic decreases in interest rates by the Fed have strained the ability of many financial institutions to maintain a reasonable “spread” for profitability – an issue Sovereign, too, has been forced to manage.

In short, while many financial institutions are attempting to recover from gambles made in their recent past, Sovereign Bank is able to continue to focus on our future.

To prepare and fortify Sovereign for the next stage of our corporate evolution, the bank recently completed a capital initiative through offering additional shares to our existing investor base. We are quite pleased to report excellent success in this endeavor with approximately $16 million in new capital raised – a testament to the ongoing commitment of our shareholders and the phenomenal “story” behind the bank’s strategy and success to date.

Funds acquired through this initiative will provide Sovereign the necessary financial resources to continue our strong trend of organic growth and, at some point, possibly consider a unique asset acquisition should the opportunity present itself.

Our executive management, Board of Directors, and entire bank staff are incredibly excited about what the future holds for Sovereign Bank.

To our valued clients and shareholders, we thank you for your ongoing patronage of Sovereign for your banking business. And, as always, we appreciate your ongoing referrals of both depository and loan prospects. We look forward to continuing to serve you.