Dear Valued Customer: 

If you have been reading the newspaper, watching TV or listening to our local radio stations you know that there has been a flood of information regarding the financial turmoil on Wall Street concerning the financial sector.   

Since the beginning of 2008, there have been nearly constant reports concerning the subprime mortgage crisis, the collapse of three of Wall Street’s five investment banks and the banking “crisis.”  Reports concerning the banking industry intensify when seemingly invincible giants like Bear Sterns, Lehman’s and Merrill collapse.  They were investment banks, not a community bank! 

 We have been asked by more of our customers in the past month or so “is my money safe in your bank?”  The answer is “yes!”  We are an independent community bank, locally owned and have been since 1912.  We are a Minnesota State Chartered bank, regulated by the Minnesota Department of Commerce, Banking Division and by the Federal Deposit Insurance Corporation.  The state and federal banking regulators closely monitor the financial health of this bank. We have obtained the highest possible ratings from both regulators.  We are well capitalized, have adequate reserves, are in a strong liquidity position and have a very strong management team.  We operate in a safe and sound manner and will continue to do so.

 As a federally insured bank your deposits are protected up to $100,000.00, with additional protection for joint accounts, and your retirement account is protected up to $250,000.00.  With proper account ownership, your deposits may be insured for a husband and wife with three children up to $600,000.00.   We pay for that protection by paying FDIC insurance premiums.

 We wish to assure you that the Bank is not and has not been involved in any manner with sub-prime mortgage activity, investment banking activities or any other activities of a speculative nature.

 We most surely are in an economic slowdown which will pass, as all the other ones have.  Know that we are your only locally owned independent bank, we have been serving this community for over 96 years and we are doing what we do best:  helping our local customers meet their financial needs and helping make our communities stronger by investing in local projects. 

Be assured United Farmers & Merchants State Bank will continue to serve you and our communities as we have for over 96 years. 

Paul Ersted                                                                                                      President & Chairman of the Board