Dear Valued First Federal Clients:
We’ve all been hearing the confusing and often unsettling information from the media about the banking industry. In this uncertain time in our economy, we want to reach out to our clients and address any concerns you may have about First Federal and the safety of your banking relationship with us.
First Federal Savings Bank and the banking industry remain strong. |
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- Even during this very challenging economic environment, First Federal continues to be profitable. Through cost control, our net income is up 15% from last year’s levels.
- Unlike investment banks, First Federal is a depository institution, with our deposits insured by the FDIC up to $250,000 and unlimited 100% coverage for all non-interest bearing deposit accounts.
- The American banking system remains on a solid footing through the guarantees provided by FDIC insurance. The reserves of the FDIC, funded by the banking industry, are strong the FDIC insurance guarantee is backed by the full faith and credit of the U.S. Government.
- First Federal has strong liquidity reserves to meet any financial emergency.
First Federal continues to have a strong credit record.
- First Federal did not originate or purchase subprime residential mortgage loans.
- First Federal maintains a secure and diversified loan portfolio. The majority of our lending is in Sheridan County, Wyoming.
First Federal continues to exceed the “well-capitalized” standard of bank regulators.
- Our ratio at September 30, 2008 for Tier 1 Leverage (capital relative to the bank’s total assets) was 16.99%. The regulatory minimum is 3% for the most highly rated banks.
- Our ratio at September 30, 2008 for total capital to risk-weighted assets was 29.09%, nearly three times the 10.0% level required by bank regulators to be deemed “well-capitalized”.
- First Federal has added over $1.2 million in new capital during 2008 through retained earnings.
At First Federal, we believe we have remained strong for 73 years because of our focus on banking fundamentals, in this order: soundness, profitability, and growth. As a result our asset growth is both smart and strategically planned with positive impacts on our capital and our profitability.
Although challenges remain to be faced in this recessionary environment you can be confident that we remain well-positioned to weather financial storms. Just like you, we try to do the right things for the right reasons.
Thank you for your business and your continued support and confidence.
David J. Ferries
President & CEO
Nondeposit investments available through First Federal Savings Bank Wealth Management Division are not FDIC insured, and are not guaranteed by First Federal Savings Bank or any other institution and are subject to investment risk, including market risk, and may result in the loss of principal. Nondeposit investments in certain Money Market Funds are guaranteed under the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds.
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