On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.

Consumers should feel secure in the knowledge that deposits in The Stephenson National Bank and Trust are insured by the Federal Deposit Insurance Commission (FDIC).  Banks are required by federal law to purchase this insurance for depositors.  While Wisconsin & Michigan banks are facing the same economic struggles faced by the states’ businesses and consumers, customers should understand that their deposits are safe.

Deposits in insured banks are insured for up to, and in some cases in excess of $250,000 per depositor per insured bank and up to $250,000 per depositor for certain retirement accounts, such as Individual Retirement Accounts (IRAs).  Throughout the FDIC’s 75-year existence, there have been no losses of insured deposits when a bank closed its doors.  Bank customers do not need to purchase this insurance-it is paid for by the banks, is automatic and is backed by the full faith and credit of the United States Government.

“The Stephenson National Bank and Trust has been a part of this community for 133 years.  We’ve continued a growth pattern over those years, mainly due to our sound business practices” said John Reinke, Bank President.  “We didn’t stray from our normal lending practice, which means we didn’t engage in the subprime loans or risky mortgage lending, so we’re not negatively impacted to the same degree that some other lending institutions may be”. 

While a sustained economic decline can impact any business, banks tend to be highly capitalized and prepared for economic fluctuations.  Overall, banks are well-positioned to handle economic downturns, and if necessary, take steps to put losses behind them.  “Although it’s a tough market right now, we’re standing solid.  In fact, SNB&T’s capital to asset ratio is well above the federal standard to be considered well capitalized.  The credit quality of our loan portfolio is holding up well with little or no subprime or commercial development exposure” shared Reinke.  

Banking is among the most heavily regulated businesses in the nation.  State and federal bank regulators take extra efforts to ensure that banks are safe and sound to protect depositors.  Depositors should feel confident that their money is safe.  For more information on FDIC coverage, SNBT invites anyone with concerns or questions to meet with one of their Personal Bankers.

The Stephenson National Bank & Trust is a 133-year old independent community bank with assets of $236 million and Trust assets exceeding $196 million.  Offices are located in Marinette and Oconto, Wis. and Menominee, Mich. For more information about The Stephenson National Bank & Trust visit www.snbt.com.