Frequently asked questions

Q: What is everyone talking about regarding bank closings?

A: Between Friday, March 10, 2023 and Sunday, March 12, three banks failed or entered voluntary liquidation. These banks included: California-based, Silvergate and Silicon Valley Banks as well as New-York-based, Signature Bank.

Q: Will these bank’s depositors be made whole?

A: Yes. In a joint statement Sunday, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corporation Chairman Martin J. Gruenberg said the FDIC will make Silicon Valley and Signature Banks’ customers whole. All depositors will have access to 100% of their funds.

Q: Is Red River Bank an FDIC Bank?

A: Yes. Anyone can check if a bank is insured by FDIC by calling 1-877-ASK-FDIC. The FDIC insures deposits in most, but not all, banks and savings associations. Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank. All FDIC-insured depository institutions must display an official FDIC sign at each teller window or teller stations.

Q: Can I depend on the FDIC coverage through Red River Bank?

A: Yes. Since the FDIC was established and began insurance coverage for banks in 1934, no depositor has lost insured funds due to a bank failure. Individuals and businesses are covered up to $250,000 per depositor, per bank, in each account ownership category. Additional insurance through the FDIC is available if accounts are structured according to recommended guidelines. The FDIC has a helpful tool to help you calculate your individual statistics. You can find the tool by visiting FDIC: Electronic Deposit Insurance Estimator (EDIE) or contacting your Red River Personal Banker who will be happy to assist you with maximizing coverage.

Q: Why should I be confident in Red River Bank?

A: We recognize the chatter in the media is alarming. However, you can be confident in Red River Bank, first because we have no connection to the failed banks. These three banking models, all had components that were very different from Red River Bank as well as other more diversified traditional banks. Second, Red River Bank has had a consistent, long-term track record of financial results and prudent management of primarily organic growth, driven by a conservative credit culture. You can be confident in our proven continuity of management, a key factor in our success as our four key founding executives have been with the company since inception, offering over 100 years of combined industry experience.

Most certainly, Red River Bank is different from these three failed banking systems:

  • We serve a multitude of different industries, which provides a wide range of diversification in our loan and deposit portfolios.
  • We have a stable, long-term, relationship-based core deposit base consisting of a healthy mix of both consumer and commercial clients.
  • We have no brokered deposits and no long term debt.
  • Our capital base is strong, well above required levels, and our modest loan-to-deposit ratio is a key factor in our ample sources of liquidity.
  • Our asset quality is best in class. Our Non-Performing Assets represent only .08% of our total assets as of 12/31/22.
Thanks to the leadership of our board and the hard work of our entire Red River Bank team, 2022 resulted in the strongest earnings per share in the Bank’s history. Responsible management and prudent growth created peer-leading balance sheet strength with 9.0% of our total assets in cash and other liquid assets, along with 15.8% Common Equity Tier 1 capitalization. Additionally, our ratio of loans to deposits stood at 68%. (December 31, 2022; Q4 Call Report)

Q: What if I want to take some money out of the bank?

A: You are always able to take funds out of the bank. However, we believe putting your money in an FDIC-insured bank like Red River, can offer you financial safety, easy access to your funds, savings from check-cashing fees, and overall financial peace-of-mind.

Q: Will you let me know if I should worry?

A: Yes. As your trusted financial partner, we take our responsibility to educate our customers in a timely manner, seriously. We will be monitoring the ripple effect of these bank failures and will communicate regularly if anything of significance develops. We are confident in the strength and proven history of our conservative banking practices as well as the strength of our partners like the FDIC. You can count on us.