While it appears the markets are much calmer today than they were immediately following two recent bank failures, it is still important to reaffirm the strength and stability of FineMark National Bank & Trust for our clients. We are focused on our enterprise risk-management practices and want to ensure our clients of the following: 1) FineMark has a well-diversified, stable and growing deposit base; 2) we have ample access to liquidity, including significant borrowing capacity with the Federal Home Loan Bank and Federal Reserve Bank; 3) we have a strong capital position that exceeds regulatory requirements for being well capitalized; and 4) we have a notable history of exceptional credit quality. Since inception, FineMark’s net loan losses have been negligible and significantly less than peer banks.
It is equally important for our clients to understand that the reported deposit base of each of these two failed banks differs dramatically from FineMark’s deposit base. Our diverse deposit base is relationship driven rather than transactional, and we have no exposure to higher-risk venture capital-backed deposits. As regulatory agencies have pointed out, the failure of these two banks “appear to be caused by idiosyncratic events related to the specific bank’s circumstances.”
While the clients with whom we have spoken are comforted by our stability and understand the differences between the two failed banks and FineMark National Bank & Trust, we want to alleviate concerns for all our clients. So, should you have any questions or concerns whatsoever, please do not hesitate to contact us. We are confident we will be able to put your mind at ease.
As always, FineMark is committed to providing our clients with the highest level of service and outreach, and we are available at any time to answer questions you might have. We value our relationship and the continued trust you have placed in FineMark.