FDIC Insurance Update

South Sound Bank is participating in the Temporary Liquidity Guarantee Program.

Under this program all funds held in noninterest-bearing transaction accounts at South Sound Bank are insured in full by the FDIC until December 31, 2013.

Commercials:

Commercial 1 Commercial 2 Commercial 3 Commercial 4 Commercial 5

Press Release

SOUTH SOUND BANK ONCE AGAIN POSTS STRONG PROFITS

OLYMPIA, Wash. - Once again locally-owned South Sound Bank posted strong year-to-date profits that surpassed the bank's budgeted net income for the first half of 2008. The bank's $1.1 million dollar profit was down from this time last year, but it still remained strong. Total assets were up more than $21 million from second quarter 2007, to $153 million.

"The financial markets are still suffering nationally, and to a certain extent, locally, but we are optimistic about the resiliency of our region," said Dan Yerrington, president and CEO of the local bank. "The economic climate is challenging on many levels, but we feel good about our prospects, the quality of our assets, and the strength of our capital position.

"Our performance this year has been ahead of budget and we are pleased with that. About 18 months ago we changed our emphasis from residential to commercial lending, and that decision has worked well for us," added Yerrington. "According to (www.) BankRate.com, South Sound Bank is the only 5 star (highest rating) bank currently doing business in Thurston County."

In addition to the strong financial position this past quarter' South Sound Bank's FREE online bill-paying service continued to grow due to customer demand for the freedom of online services. The bank's Remote Deposit - where businesses process checks from their offices - also continues to grow.

South Sound Bank is a full-service local bank with offices in West Olympia and Lacey. Call (360) 705-4200 for more information, or visit www.SouthSoundBank.com.

2006 Harrison Ave. NW, Olympia, WA 98502 (360) 705-4200 4530 Lacey Blvd., Lacey, WA 98503 (360) 528-4200

South Sound Bank Named a Top Performer

National "Top 20" Ranking Credits the Bank's Efficiency Washington, D.C. - ICBA Independent Banker, the award-winning national magazine of the Independent Community Bankers of America (ICBA), highlighted South Sound Bank as a "Top 20" industry earnings performer. South Sound Bank was recognized for posting one of the 20 best year-end performances in 2007 for ICBA member banks with $100 million - $250 million in assets. "Community Banks are integral to the economic and civic fabric of thousand of towns and cities across American, "said Cynthia L. Blankenship, ICBA Chairman and Vice Chairman of the Bank of the West, Texas. "In addition to offering quality financial products and services, community banks like South Sound Bank spend countless hours and resources helping their communities thrive. IBA congratulates South Sound Bank for serving its community so efficiently and effectively." South Sound Bank was identified in ICBA Independent Banker's annual year-end ranking of ICBA members based on the standard industry performance measures of return on assets and return on average equity. The magazine compiles its annual member rankings in its June issue from the latest available year-end FDIC call report data.

Employment Opportunities:

We do not have any positions available at this time. You may submit a resume to karenr@southsoundbank.com