To our Valued Clients, Community and Shareholders:

We want to take a moment to reinforce the safety and soundness of Cornerstone Community Bank in light of recent industry events, particularly the failure of Silicon Valley Bank (SVB). SVB’s failure was primarily due to their heavy concentration in banking high-tech, venture-based companies, combined with significant unrealized losses in their securities portfolio caused by rapidly rising interest rates.

Our business model is fundamentally different.  As a community bank, we know our customers and our customers know us. Our customer base is stable. We do not have any significant depository concentrations. We do not make large, risky bets. We stay within our wheelhouse and greatly value a safe, diversified business model.

Our capital position significantly exceeds the regulatory levels for being considered “well-capitalized” and any changes to our securities portfolio would not have a material impact on our capital.

Our liquidity position is very strong with nearly $275 million of liquid assets and unused borrowing capacity through the Federal Home Loan Bank, Federal Reserve Bank and other correspondent banks.

If you would like to learn more about Cornerstone Community Bank’s financial strength, this information is available to the public on our investor relations page at ir.bankcornerstone.com.

As a community bank, we take pride in our customers and are convinced that relationship banking provides the greatest benefit to our employees, our customers and our shareholders. We look forward to continuing to serve our community through our traditional community banking model as we have for the past 16 years.

We are grateful for your business and support.

Matt Moseley, President and CEO