Letter from our CEO
Dear Clients,
With all of the recent turbulence in our financial markets, it’s no wonder we are worried about the safety of our money. The media is focused on troubled institutions. I thought it would be helpful to provide you with some perspective on the industry as a whole. And, I want to share what we’re doing at Sound Community Bank to help customers confidently manage the safety of their money.
First, it’s important to understand that in spite of the recent headlines, 98% of the 8,500 banks in the U.S. are currently rated “well-capitalized.” Being a well-capitalized bank is important, because it provides the financial cushion necessary to withstand the volatility of economic cycles. “Well-capitalized” is the industry’s highest designation, and we’re proud to tell you that Sound Community Bank is rated well-capitalized.
Beyond being well-capitalized, most institutions are also regularly reviewed by outside rating agencies like Bankrate.com and Bauer Financial. You’ll be pleased to know that in the “Safe and Sound Ratings” at Bankrate.com, Sound Community Bank has been recognized as a 4-Star institution. And at Bauer Financial, we’ve received their highest rating of 5-Stars. You can find our ratings and those of other banks at www.bankrate.com and www.bauerfinancial.com.
Some of the currently troubled institutions are those who were involved in sub-prime mortgage lending. Others became troubled by investments in securities backed by sub-prime mortgages. And finally, more troubles emerged from stock ownership in other institutions that had purchased sub-prime mortgages and/or related securities. To avoid these troubles, well-managed institutions like Sound Community Bank have never been involved with sub-prime mortgages and don’t own stock in Fannie Mae, Freddie Mac, Lehman Brothers, or others invested in these loans and securities.
It’s always smart to keep your funds in a well-capitalized, highly-rated and well-managed bank. We appreciate your confidence in us. But no matter where you bank, it’s also important to make sure your funds are insured, particularly if you have deposits of more than $250,000. You should know that it’s possible to obtain significantly higher insurance coverage by properly structuring your account ownerships. And, if it’s not possible to secure FDIC insurance coverage for all of your funds, Sound Community Bank participates in a variety of other programs that can provide additional deposit insurance coverage for our customers. If you want more information on these programs, or would like to learn more about how to maximize your FDIC coverage, come into any Sound Community Bank office and we’ll be happy to help you.
Sincerely,
Laurie Stewart
President & CEO
Sound Community Bank
Member FDIC
FDIC Press Release
http://www.fdic.gov/deposit/deposits/index.html
FDIC Chairman Bair Comments on Enactment of Financial Rescue Package
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FOR IMMEDIATE RELEASE |
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FDIC Chairman Sheila C. Bair said, “The enactment of this legislation should ease fears among the public and financial institutions that have created uncertainty and disruption in the credit markets. As mandated by the statute, the FDIC will consult closely with the Treasury Department on the implementation of this new law.
"I am particularly pleased that the bill includes provisions for loan guarantees and credit enhancements on whole loans. This authority has the potential to permit innovative efforts to facilitate loan modifications and avoid unnecessary foreclosures. It has the ability to create incentives to leverage the private sector with minimal initial cash outlays.
"Temporarily raising the deposit insurance limits should address public confidence issues and provide additional liquidity to banks. As always, any potential borrowings from Treasury to support this additional coverage would need to be paid back from the FDIC’s traditional funding mechanism – industry assessments."
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,451 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing the risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations. FDIC-PR-92-2008
