Update from CEO
With the recent news about the closure of Silicon Valley Bank (“SVB”) in California and Signature Bank in New York, you may have questions about the security of your deposits with 1st State Bank. Please be assured that your deposits are secure.
Both SVB and Signature Bank had unique circumstances leading to their failures. SVB customers were primarily focused in tech start-up and venture capital sectors and Signature Bank in crypto currency banking. Concentration of industries combined with risky investment strategies led to customer fears and large withdrawals of deposits.
The US Treasury Department took swift action over the weekend and announced that all depositors of both banks will have access to their funds with no losses in an effort to mitigate any systemic problems within the broader banking system.
We believe your deposits with 1st State Bank are as secure today as they were last week, last year and since your initial deposit with us. We believe this because:
- 1st State Bank is considered well-capitalized with capital reserves well in excess of regulatory minimums.
- 1st State Bank’s liquidity position is strong. Our source of deposits is well-diversified, originating from individuals to businesses representing many different industries, including for-profit, non-profit and public funds.
- We take our fiduciary responsibilities seriously. We have employed conservative practices since our inception using disciplined strategies when investing in loans and investments without taking undo risks.
- As of December 31, 2022, the Bank received a 4-star Excellent Rating from Bauer Financial Inc., a leading independent bank rating firm.
Should you have any questions, please see your 1st State banker or call us at 989.799.7500
Jim Milroy
President & CEO of 1st State Bank