March 15, 2023
RE: Update from Monday, March 13th.
To Our Valued Customers,
It has been an interesting couple of days in the financial markets, and I am sure many of you have been watching the events unfold with interest.
As we further understand the failed institutions’ details, the contrast with Texas Regional Bank becomes clear and reaffirming. Since events began to unfold last Friday, we have made it a point to reach out to our regulators daily to gauge the impact in our district. There has yet to be any indication of problem banks evolving out of the approximately 450 community banks in Texas.
While we saw the markets rebound yesterday, volatility and lots of noise from the media will most likely remain in the near term. The actions of our government earlier in the week should lay to rest concerns over financial institutions’ ability to meet their liquidity needs. Community banks, like Texas Regional Bank, prosper in these times because our business model is built on local bankers building relationships with customers they know and that know them. As we have said from the beginning, “Bank with the people you know” in the communities where you live.
Texas Regional Bank continues to see growth in deposits and new relationships. Our customers and owners are from the communities we serve and are spread among many, not a few. Our twenty-eight locations within four regions around the state provide us with geographic and financial diversification that continue to serve us well in disruption events such as we experienced this past week.
If you missed our first letter on Monday, it is available on our website’s home page. It provides more details on the west coast bank closure and the government’s actions that stabilized the markets and protected 100% of customer deposits.
As always, thank you for allowing us to be your bank.
Sincerely,
Michael Scaief
Chairman & CEO
