I would like to start with my gratitude to our shareholders and customers. It is your continued faith in our institution that has allowed us to thrive. We were able to show that gratitude to our past board members at our annual shareholder meeting in March where we had nearly all living board alumni in attendance. Their leadership, and your support, have shown literal dividends for The Bankers Bank.
Perhaps it is our conservative nature, but it feels as though we bankers are always observing headwinds in our industry. Today that headwind is liquidity, and as you know it is manifesting at several large regional institutions on the coasts. The failure of those institutions has actually shown the strength of our community bank customers. Strong relationships, wise financial decisions and a more sustainable deposit base demonstrate why institutions like yours are so important.
Some of the many lessons we have learned (or relearned) from this banking trauma include:
1. A bank run in the digital age can manifest faster than imagined, resulting in bank closures mid-day.
2. Uninsured deposits ratios are an important predictor of customer confidence in uncertain times.
3. Active management of assets and liabilities are fundamental to a healthy balance sheet.
4. Social media/digital communications can stir depositor panic.
You should be proud of your team here at The Bankers Bank. We have great customer relationships and balance sheet management. While we can always use more deposits, we have many methods to fund our commitments, like our very popular money market account. As always, please let us know what we can do to help your bank flourish!
Troy Appling, President & CEO