Statement Following the Failure of Silicon Valley Bank

The downfall of Silicon Valley Bank demonstrates how volatile today’s financial markets have become. The purpose of this message is to assure our employees & large depositors that FirsTier Bank remains sound and well-capitalized.

Silicon Valley Bank’s downfall was caused by many factors, but their largest mistake was purchasing long-maturity Treasuries at a low point in the market. When the Fed began raising rates and made these Treasuries less valuable, it eroded SVB’s capital base, while their tech-centered customer base also began to withdraw their deposits. FirsTier Bank has practically no exposure in this area. We have only 1.92% of our Total Assets in any sort of bond, and we remain primarily invested in fully liquid Fed Funds and loans to customers & communities we know well.

 Please be assured FirsTier Bank remains on solid financial footing, with adequate liquidity, strong profitability and strong capital. The bank is under no regulatory orders, and we had no substantive issues in our last audit, in the summer of 2022. Our balance sheet remains well-positioned for a rising rate environment. We invite you to review the bank’s balance sheet and financial performance by viewing our Uniform Bank Performance Report at:

 https://cdr.ffiec.gov/public/ManageFacsimiles.aspx

 FirsTier Bank has been family-owned for 60 years. We’ll continue to be here, serving our customers and communities. If you have any questions or concerns, please reach out to myself or any of our staff. Thank You for being our customer. We appreciate your trust, and do not take it lightly. Thanks again.

Tim K. Ostic,

President