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March 13, 2023
Dear American National Customer,
I am following up with a message following the collapse of Silicon Valley Bank, Signature Bank, and the resulting media coverage of the banking industry. Please note the key points of differentiation between American National Bank & Trust Company and some of the banks making headlines.
- Diversity. American National serves customers like you in dozens of communities across Virginia and North Carolina. Our customer base includes many local consumers as well as businesses of all sizes across various industries. This diverse mix of loans and deposits provides less exposure to risk when compared to banks that focus primarily on niche markets, start-ups, or cryptocurrency.
- Investments. While all banks have investments, we maintain an investment portfolio that is very short in duration and only about 20% of our balance sheet, thus minimizing our balance sheet risk. This is a stark contrast to the investment portfolio Silicon Valley Bank was forced to sell, which comprised nearly 60% of its balance sheet in much longer-term investments.
- Liquidity. American National has always exceeded capital requirements set by our regulators and we maintain many strong sources of short-term liquidity should the need ever arise.
Please be assured American National is very well positioned as I write you today. We invite you to reach out to your local banking office or your Relationship Manager if you have any questions or want to discuss your accounts further.
With a 114-year history of operating a strong and stable community bank, we never take for granted the confidence you place in us. Thank you for banking with American National Bank & Trust Company. |
