Farmers Bank is Safe and Sound

On Friday, March 10, 2023, regulators closed Silicon Valley Bank (SVB) in California followed by the closing of Signature Bank in New York on Sunday, March 12, 2023. Because this is being reported in the news, you may have questions and we want you to have this information.

SVB was a niche bank with a unique, specialized balance sheet. Unfortunately, SVB and Signature both held concentrations of deposits in very specific sectors and had a large mismatch in their assets and liabilities. SVB had a concentration of customers in the space of tech and venture capital with a unique balance sheet structure relative to other banks. Signature had a large base of crypto clients. A combination of increased rates, venture capital money drying up, and poor risk management ultimately caused a run on the banks leading to their failure.

Even with the failure, SVB and Signature depositors will have access to all of their money and will incur no losses.  Federal government actions demonstrate the commitment to take the necessary steps to ensure that depositors’ savings remain safe.
About Farmers Bank and Trust Company

Just like other times of crises during our 117-year history, Farmers Bank & Trust has consistently stood ready to serve and take care of our clients and communities.

Farmers Bank remains strong and a source of strength. We are regularly audited and examined by the State Bank Department and Federal Reserve Bank with solid ratings.

Unlike the banks that were closed, Farmers Bank has a diversified balance sheet and is not dependent on one industry sector. Farmers is a profitable bank, has a strong liquidity position and can fund withdrawals of deposits without having to sell assets.

While customers should have no reason to be concerned about the safety of their deposits at Farmers, we will work with customers to structure their deposits to obtain the maximum FDIC insurance coverage. 

If you would additional information, please contact your local branch. We are happy to answer your questions and thank you for trusting Farmers Bank & Trust!

Chris Gosnell

Farmers Bank & Trust

Chief Executive Officer, Chairman of the Board