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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Since 1933, no depositor has lost a penny of FDIC-insured funds

Decisions on Bank Applications

Independence Bank (Proposed)


In Re: Independence Bank (Proposed)
Newport Beach, Orange County, California
Application for Federal Deposit Insurance
(Bank Insurance Fund)


The undersigned, acting on behalf of the Board of Directors pursuant to delegated authority, has fully considered all available facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act relating to the application for Federal deposit insurance for Independence Bank (the Bank), a proposed new state-chartered industrial bank to be located at 4525 MacArthur Boulevard, Newport Beach, Orange County, California, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by the Bank for Federal deposit insurance be and the same hereby is approved subject to the following conditions:

1. That beginning paid-in capital funds of not less than $8,500,000 be provided, and that a ratio of Tier 1 Leverage Capital to total assets of not less than eight percent will be maintained throughout the first three years of operation;

2. That any changes in proposed management or proposed ownership (5 percent or more of stock), including new acquisitions of or subscriptions to 5 percent or more of stock, shall be approved by the Regional Director of the FDIC's San Francisco Regional Office (Regional Director) prior to the opening of the Bank;

3. That any change in officers or directors, including any change in the duties or responsibilities of officers or directors, shall receive the prior approval of the FDIC during the first three years of operation;

4. That the Bank will operate within the parameters of the business plan submitted to the FDIC. During the first three years of operations, the Bank will notify the Regional Director of any proposed major deviation or material change from the submitted plan 60 days before consummation of the change;

5. That the Bank will obtain an audit of financial statements by an independent public accountant annually for at least the first three years after deposit insurance is effective, furnish a copy of any reports by the independent auditor (including - any management letters) to the Regional Director within 15 days after their receipt by the Bank and notify the Regional Director within 15 days when a change in its independent auditor occurs; That, prior to the effective date of Federal deposit insurance, the Bank shall obtain surety bond coverage in a sufficient amount to conform to generally accepted banking practices;

6. That prior to the effective date of Federal deposit insurance, the Bank shall obtain surety bond coverage in a sufficient amount to conform to generally accepted banking practices;

7 That Federal deposit insurance shall not become effective unless and until the Bank has been granted a charter, that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by the appropriate State Authority;

8. That until the conditional commitment herein granted becomes effective,. the FDIC shall have the right to alter, suspend or withdraw said commitment should any interim development be deemed to warrant such action; and

9. That if Federal deposit insurance has not become effective within twelve months from the date of this ORDER, or unless, in the meantime, a request for an extension of time has been approved by the FDIC, the consent granted herein shall expire at the end of the said twelve-month period.

Dated at Washington, D.C. this 22nd day of June 2004.


BY: Lisa K. Roy
Associate Director
Division of Supervision and Consumer Protection

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