In the past few days, two large bank failures have made the news. As your bankers and friends, we want to update you with facts about Sullivan Bank and the industry as a whole.
First and foremost, Sullivan Bank’s financials are very strong. We were chartered in 1895 and are proud that our returns on assets and equity, our capital level and our efficiency ratings are all solid. In addition, our bond portfolio is a very small percentage of our assets and all investments are considered investment grade rated AA or higher. As a Midwest community bank, Sullivan Bank does not participate in the type of venture capital deals, technology lending, and a basis in cryptocurrency that the large failed banks used heavily. We are very conservative and diverse in our lending, without heavy concentrations in specific industries.
Next, while you have heard it on the news, we want to reiterate that nobody has ever lost a dime of FDIC-insured deposits, which are insured up to $250,000 by certain account types. Even at these failed banks, insured depositors will be made whole. If you have questions about whether additional insurance is needed to protect your savings, we are ready to assist you in identifying whether additional insurance coverage is necessary. If you would like to know more about how FDIC insurance works, we have included some resources below. Now and always, we want to ensure your deposit needs are met.
Not only does the FDIC insure qualified deposits, the Federal Reserve system is in place to address banking issues as they arise. They have already established a program to fund any liquidity pressures that may arise in the banking system.
As a community bank, Sullivan Bank takes pride in our relationships with you, who are our customers, friends and neighbors. We know that you trust us, but we also know that sometimes you need to hear from us to be reassured that your money is safe and our bank is strong. Remember, we live in your community, too, and your success is our success. As a member of our SulliFam, we stand ready to assist you at all times with any of your questions or concerns. We fully expect to serve our customers and communities for generations to come and will continue to invest our resources into the people and neighborhoods who have trusted us for their banking needs.
We want you to know that community banking in the Midwest is very different from specialized banks on the coasts. At those large banks, they ran a complicated structure and few depositors had access to management and their business strategies. We want you to be educated and informed about our bank and the financial industry as a whole and we invite you to call or stop by your local branch and talk to your banker. Thank you for your continued confidence.
Michael P. Hoffman, President & CEO
