From the President’s Desk
It is hard to believe we are already in June. What a great time of year as the Indy 500 marked the start of summer and we finally see some green grass, leaves on trees, and get to lose our winter coats.
For my first letter from the President, I wanted to touch base briefly on the recent bank failures but more importantly how GBC keeps your funds safe. While there were slight differences in all of the recent failures, the majority were triggered by bad risk management practices around concentrated deposits, poor risk management on interest rates, and rapid overall growth. I’d like to provide some assurances in how your GBC Bank has mitigated these risks and operates in a safe and sound manner:
We are proud to have served our communities for over 150 years and are confident we will be here for the next 150 years. We have always operated this bank in a conservative fashion with bank safety and soundness first. GBC has a diverse and low-risk deposit base, strong liquidity, and is well capitalized with strong earnings. Our investment portfolio consists of short-term investment grade bonds, and the bulk of our loans are secured by real estate in our own backyard. We have a long history of safe lending and management of our balance sheet.
We welcome the opportunity to discuss any questions or concerns you may have. Thank you for entrusting us as your financial partner.
As the new CEO, I will carry on the same tradition as the leadership before me in ensuring the institution is run in a safe and sound fashion, all while helping our customers, employees, and the communities that we serve to thrive. GBC will continue to strive to remain independent as I believe a local bank can be such a vital part of a community. And lastly, when you see me around town, please feel free to introduce yourself and your family – getting to know customers personally really is my favorite part of this job. I look forward to being able to serve you for many years to come.
Warmest Regards,
Michael R. Graf
President & CEO