Dear Headwaters State Bank Customer -

We know many of you are following the news regarding Silicon Valley Bank (CA) and Signature Bank (NY), and the response from federal and state regulators.

Note that the U.S. Government has announced plans to unwind these banks in a manner that fully protects all depositors.

While we cannot comment on the specific challenges at these institutions, we wanted to assure you that our risk practices and industry exposures are in stark contrast to these two institutions.

We are a community bank focusing on small businesses and diverse industries within the communities we serve. We have always prioritized safety and soundness, profitability, and growth in that order.

Our risk management processes have resulted in strong capital and liquidity positions, which will allow us to continue to serve all current and prospective customers.

We will remain vigilant as your community partner to changing market conditions and economic developments.

We encourage you to reach out if you have any questions.

Sincerely,

Sally A Folgert
President and CFO