March 17, 2023
Letter to our Customers concerning the recent bank failures:
The failure of California-based Silicon Valley Bank and New York-based Signature Bank last week may cause many of our customers to have questions about this event and its relationship to Pioneer Bank. I want to share my perspective on these events and to assure you that Pioneer Bank is sound and safe.
Both banks that failed were non-traditional banks that specialized in exotic and non-traditional areas of banking. Silicon Valley Bank primarily served technology startups while Signature Bank was heavily involved with the cryptocurrency industry.
Unlike these two banks, and some other former community banks that have moved into non-traditional investments and activities, Pioneer Bank is not involved with any cryptocurrency or other exotic financial instruments or products. We have remained and will continue to remain a traditional community bank committed to serving the current and future financial needs of our customers and local communities.
You can have confidence in Pioneer Bank. Our capital is rated "well capitalized" which is the highest capital level category in the government's rating system. We have ample liquidity. Our bond portfolio is comprised primarily of the highest quality U.S. Treasuries, Agencies, and municipal bonds with very short durations. (The bonds in the portfolio have an average maturity of 3.08 years). We have a well-diversified and stable deposit base, made up of a broad mix of consumer, business, and governmental deposits. Our customer relationships are deep with many going back several generations. Our business model is not new and has proven to stand the test of time over our 113 year history.
The Bank's excellent financial strength and performance is recognized by Bauer Financial, an independent bank rating company, which has awarded Pioneer Bank its highest rating of "5-Stars", which is reserved for only "the strongest financial institutions in the country".
As the only remaining locally owned and independent community bank headquartered in Page County, we are proud of our bank and how it serves our customers and communities.
If you have any questions or concerns that you would like to discuss, please feel free to contact us.
Mark N. Reed