Financially Sound and Ready to Serve

Friends and Customers, 

First PREMIER Bank is recognized for its financial strength and for its dedication to our customers, employees and the South Dakota communities we serve.

It’s why we believe it is important to provide you with some assurance in response to the recent collapse of Silicon Valley Bank of Santa Clara, CA, and Signature Bank of New York, NY.

It is important to understand the U.S Treasury, Federal Reserve and FDIC issued a joint statement announcing that depositors of these two banks have access to all their money. We support this decisive action and the way it was accomplished to ensure the U.S. banking system continues to perform its vital roles of protecting deposits and providing households and businesses access to credit.

We also want you to know that First PREMIER Bank is a highly diversified bank that is exceedingly well-positioned for industry and economic challenges like this. Here are a few key points to be aware of:

• We are one of our nation’s most well-capitalized banks.
  • Our Total Risk-Based Capital Ratio of 19.3% is nearly 2x the level of what our regulators would deem to be “well-capitalized”. In addition, our sister company PREMIER Bankcard is funded 100% by our owner’s capital.
  • First PREMIER Bank and PREMIER Bankcard have no debt.

• We have a strong and liquid balance sheet.
  • Cash and Investments total nearly $800 million, representing 27% of our total assets.
  • Like nearly all our nation’s 4,700+ banks, the recent rapid rise in interest rates has created an unrealized loss in our $635 million investment portfolio. This currently totals $60 million, representing only 9.5% of our investment portfolio. We expect these investments to be held to maturity, resulting in no loss of principal and no adverse effect on our capital levels or ratios.
  • Even after adjusting for this unrealized loss, our capital ratios far exceed industry norms.

• We use a significant majority of our customer deposits to fund loans to consumers, businesses and ag producers in South Dakota and the surrounding region.
  • Our $1.8 billion loan portfolio is safe and sound with exceedingly low levels of delinquency and loss.

• We have served South Dakota communities for over 100 years, managing through a myriad of economic cycles and circumstances, including the Great Recession.
  • While we acknowledge and appreciate any concerns you may have, we assure you that your deposits are safe and secure. We look forward to serving you in the same way you have come to expect for as far as we can see into the future.

If you have any questions regarding First PREMIER Bank or its financial strength, please contact your banker.

Sincerely,

Dana Dykhouse, CEO

Dave Rozenboom, President