Issue link: https://nebusinessmedia.uberflip.com/i/1498182
HARTFORDBUSINESS.COM | APRIL 17, 2023 23 If the news of last month's bank failures came as a surprise to you, you are not alone. Not since 2008 have we seen anything like it, nor has information ever been so publicly accessible so quickly. Especially in the case of Silicon Valley Bank, the situation unfolded rapidly as opinions of individual investors, entrepreneurs, portfolio managers, and others were published to audiences of millions via social media. As followers engaged and shared in real time, news and opinions – no matter how reliable – spread like wildfire. Understandably, this left people with serious questions and concerns about the banking industry. Silicon Valley Bank, founded in 1983, and Signature Bank, founded in 2001, experienced extraor- dinarily rapid growth in considerably short periods of time. Their customer bases consisted largely of venture capital, start-up technologies, and cryptocurrency firms. Both institutions practiced high-risk financial strategies, which included holding large amounts of uninsured deposits and concentrations of undiversified investments. These factors created a perfect storm of high volatility risk, ultimately leading to their collapse. As banking experts, regulators, and state and federal agencies continue to emphasize – these bank failures were caused by unique circumstances and are anomalies not representative of the banking industry. The industry has become substantially more resilient over the last 10 to 15 years, largely due to a number of regulations aimed at protecting consumers and small businesses. In short, regula- tors require stronger and more conservative capital and risk profiles. Windsor Federal is proud to represent a banking industry that is healthy and strong, here in Connecticut and across the nation. Our institution was founded in 1936, out of the Great Depression, with the purpose of building homes and a strong community through prudent investment practices. Over the last 87 years, we have grown steadily, guided by our founding mission through every stra- tegic step along the way. We are a community-based, and focused, mutual institution: Our customers are our owners; we are not traded publicly and don't have stockholders to satisfy. Windsor Federal takes great pride in our leadership role within the communities we serve. We do not take this responsibility lightly; we main- tain prudent risk practices to ensure long-term financial performance and capital preservation, which in turn help to strengthen our communities. As an FDIC-insured bank, customer deposits are insured up to at least $250,000.00 per depositor, per ownership category. Windsor Federal's relationship with IntraFi allows us to obtain additional coverage through a network of membership banks. We work with our customers to help them assess, understand, and structure their deposit accounts to ensure maximum coverage. Windsor Federal is consistently rated as a BauerFinancial 5-Star Bank. These ratings are from an independent, unbiased organization and are based on quarterly financial reports, filed with regulators, that are thoroughly analyzed and compared with historical data for consistency and validation. Windsor Federal is highly regulated, well-capitalized, and has ample available liquidity. We assure you that our capacity to preserve and protect our customers' funds remains strong. Our customers, from students to retirees, family-owned landscaping businesses to international manufacturing companies, can be confident that they are banking with a top-rated, sound institution. Yours in trust, George Hermann Chief Executive Officer