In light of recent news about the Banking industry and the uncertainty that it has caused, I wanted to reach out to you to let you know your money is safe with us. Poppy Bank is a very strong financial institution with strong capital, liquidity and risk management practices. The three banks that failed had unique characteristics that contributed to their failure. One of the banks relied heavily on deposits from fintech and venture capital firms, while the other two relied heavily on crypto currency deposits.
At Poppy Bank, we apply a more conservative approach to managing our balance sheet. We do not deal with crypto currencies or provide financing to start ups. Additionally, we are extremely careful in how we invest client deposits in securities and loans. Specifically, we avoid concentrations in long-term, fixed rate securities. As of December 31, 2022, our securities portfolio consisted primarily of high-quality government securities with variable rates that reprice every three months or less, so we are not exposed to the same interest rate risk and investment losses being mentioned in recent news reports.
Other points to note about Poppy Bank:
- We are rated “5-Stars” by BauerFinancial Inc., “A” by Egan-Jones Rating Company, and “A+” by DepositAccounts.com, and we are recognized as one of the strongest financial institutions in the nation
- We are opening 10 branches in 2023, a testament to our growth and strength
- We do not rely on fintech, venture capital, or crypto currency deposits
As a result of Poppy Bank’s strength and the security of our clients’ deposits, we are in fact being contacted by clients of other banks about moving deposits to us from other financial institutions. We will continue to apply conservative decision making to ensure our clients’ deposits remain safe and secure. Thank you for being a valued client of Poppy Bank.
President and CEO