In light of the recent bank failures of Silicon Valley Bank (SVB) in California and Signature Bank in New York, we wanted to take this opportunity to address any concerns of our customers and those in the community may have.
Both of those banks specialized in unique, high-risk profiles that were different from those of community banks like First National Bank of Burleson. SVB specialized in funding tech startups and venture capital firms, while Signature Bank focused on cryptocurrency lending. The government will be stepping in to ensure all depositors of those banks, both insured and uninsured, will be made whole.
As it relates to SVB or Signature Bank, we have NO exposure to their failure. Having been in business for almost 42 years, First National Bank of Burleson has weathered many economic storms by maintaining a conservative risk profile. Our job is to serve the needs of our customers and our community while maintaining appropriate concentration and risk thresholds to ensure a safe and sound operation of the bank. Our loan to deposit ratio sits at just 42%, our investments to assets are just 32% with most of those being government-backed, and our capital ratio is around 10%.
There will be a period of concern for consumers due to negative media articles and social media, but know that community banks like First National Bank of Burleson have been a haven of quality for both depositors and businesses. Since the 2008 financial crisis, the banking system is more resilient and in better shape due to enhanced regulations that required banks to shore up capital, reserves, and liquidity.
We will continue to serve the needs of our customers and the community by maintaining our personalized service that sets us and other community banks apart from the rest. If anyone has any questions or concerns, please feel free to reach out to us at firstname.lastname@example.org or 817-295-0461.
James H. (Jim) Easter, Jr.
President & CEO
First National Bank of Burleson
FDIC: Understanding Deposit Insurance