April 8, 2008

Dear Covenant Bancshares Shareholder:

After almost seven years, I am very pleased to announce that we have accomplished our goal of acquiring a bank. On Wednesday, March 12, 2008, Covenant Bancshares, Inc. (our bank holding company), completed the purchase of the Community Bank of Lawndale, which has served the local community on the west side of Chicago for almost thirty-one years.

I would like to express my sincere appreciation to you for making this bank purchase possible. Through your financial investment, and that of almost 2,900 other individual shareholders, we raised more than $7 million to buy the bank. The bank currently has nearly $37 million in assets. My vision is to grow the bank’s assets to $1 billion dollars.

In the next several weeks and months, shareholders can expect to see the following plans implemented. First, we are changing the bank’s name to Covenant Bank; this will be completed shortly. Second, we will be opening an office immediately in the Forest Park Plaza. This office will accept business, mortgage and consumer loan applications. Third, we will file an application with the bank regulators for permission to open our first full-service branch with others to follow in the Chicagoland area. Finally, I hope every shareholder will become one of our first customers by opening an account.

In closing, let me say that this bank is not only a personal victory for every shareholder, but also an historic one. Covenant Bank is the first step in a long-term plan to create a banking franchise that will help rebuild communities, promote entrepreneurship, and create jobs and income opportunities within the communities we will serve. We look forward to serving you not only as a shareholder of Covenant Bancshares, Inc., but also as a customer of the new “Covenant Bank”.

God Bless you.

Sincerely,

Dr. William S. Winston
Chairman of the Board

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