A MESSAGE FROM EXECUTIVE MANAGEMENT

September 29, 2008

Dear Valued Customers:

In light of the recent events in the financial industry we understand the concerns many of you may have about your community bank, Bank of the West.  For this reason, we wanted to write to you to assure you that Bank of the West remains in an extremely sound and stable condition.  The bank’s equity capital exceeds all required capital levels for a “well capitalized” bank as defined by our regulatory agencies.  Our asset quality remains solid, our liquidity is strong and our earnings are sound. We did not invest in subprime mortgages, derivatives and other securities that caused the problems with the big corporate banks.  We are your main street bank, locally owned and partners with small business in our community.  We maintain a basic model of banking to accept deposits and lend back into our local markets. We are an FDIC insured bank and no depositor has ever lost a penny of deposits insured by the FDIC held in community banks.
 
We would like to take this opportunity to make you aware that we are fortunate to have a Board of Directors, executives and an officer staff that have been through this environment before and have proven success in managing and maintaining a level of discipline in our business model that the large holding company banks do not have.   We are focused on doing what is best for you, our customers, and the communities we serve.

Finally, while we cannot predict when the turmoil of the nation’s economy will be resolved, we can assure you that Bank of the West is closely watching these events and remains focused on serving you like no other competitor.  It is business as usual for Bank of the West.  We will continue to be diligent in our efforts to protect our customers, our communities and our franchise.

Thank you for your trust in Bank of the West.

Sincerely,

H. Gary Blankenship                 Cynthia L. Blankenship             Mike Pearce
Chairman & CEO                     Vice Chairman                          Corporate President

FDIC DEPOSIT INSURANCE COVERAGE
TEMPORARY INCREASE IN COVERAGE

On October 3, 2008, President George W. Bush signed the Emergency Economic Stabilization Act of 2008, which temporarily raises the basic limit on federal deposit insurance coverage from $100,000 to $250,000 per depositor.

The standard insurance amount of $250,000 per depositor is in effect through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000 per depositor.

TRANSACTION ACCOUNT GUARANTEE PROGRAM

Bank of the West 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. Included in the coverage are IOLTAs and NOW accounts with interest rates of 0.25% or less. Coverage under the Transaction Account Guarantee Program is in addition to and separate from coverage available under the FDIC’s general deposit insurance rules.

IMPORTANT NOTICE

Bank of the West does not request customer account information using e-mail. If you have responded to an unsolicited e-mail and included any type of account information you should immediately contact Bank of the West via telephone or visit one of our locations.

The Bank of the West is chartered under the laws of the State of Texas and by state law is subject to regulatory oversight by the Texas Department of Banking. Any consumer wishing to file a complaint against the Bank of the West should contact the Texas Department of Banking.

The Bank of the West also engages in the business of selling checks as an agent for Travelex Visa, which company is licensed under the laws of the State of Texas and is subject to regulatory oversight by the Texas Department of Banking.  Any customer wishing to file a complaint against the Bank of the West or Travelex Visa concerning sale of check activities should contact the Texas Department of Banking.

Consumers may file complaints with the Texas Department of Banking by contacting the Department through one of the means indicated below: