An Update on the Banking Industry

A message from Executive Chairman Bob Aston

March 16, 2023

Dear TowneBank Family Member,

As I am sure you are aware, the banking industry has been experiencing an unusual amount of volatility over the past few days driven by the failure of Silicon Valley Bank in Santa Clara, California and Signature Bank in New York City. Both banks had inherently risky business models distinctly different than the traditional banks you have come to know.

Here at TowneBank, we pride ourselves in being a Main Street bank that is focused only on serving our friends, neighbors, and businesses that all of you know and patronize in your daily lives. Our hometown bankers are dedicated to serving others and enriching lives in the communities we serve each and every day.

Rest assured that your bank is conservatively managed and dedicated to keeping you, your family and your money safe and secure.

We have recorded consistent profitability over the past 23 years while maintaining great credit quality along with capital ratios that exceed all FDIC Standards for Well-Capitalized banks.  Importantly, we currently maintain cash, securities, and other funding sources of nearly $5 billion that keeps us well positioned to meet the credit needs of our members as well as protecting your deposits.

For additional protection, I encourage you to visit the FDIC website at www.FDIC.gov/Resources/Deposit-Insurance to learn more about how you may be able to increase your insurance coverage well above the standard $250,000 coverage.  Our bankers in each of our offices can assist you in optimizing your coverage.

On behalf of our Towne family, please know how proud we are to have you as a member of our Towne family.

Thank you for your loyalty and support.

 Most sincerely,