Your money is safe with us

If you are concerned about the state of the economy and the health of the nation’s financial systems, you are not alone. We all share that concern. However, there are some facts we want to share about Andover State Bank:

There are no similarities between “Investment Banks” (like Bear Stearns, Lehman Brothers, and Merrill Lynch), Government Sponsored Entities (GSE’s) like Fannie Mae and Freddy Mac, thrifts like IndyMac and Washington Mutual, insurances companies like AIG, and a “Community Bank” like ours.

Andover State Bank is a community bank regulated by the Kansas State Banking Department and the Federal Deposit Insurance Corporation (FDIC). We are closely scrutinized for our loan policies and practices.

The media should not refer to these other types of financial institutions as “Banks”. It is confusing!

Investment Banks take risks that community banks are not allowed to take.

Investment Banks and Brokers do not make loans; they buy loans from others to resell for a profit.

Investment Banks and Mortgage Brokers do not have depositors.

The current problems with the Investment Banks do not affect the deposits of Community Banks.

Andover State Bank does not make sub-prime mortgages. We do not engage in any high risk lending.

As you know, all of our depositors are insured by the FDIC, now up to $250,000. Moreover, that insurance coverage can be greatly expanded depending on different ownership capacities.

The deposits of Andover State Bank customers are used to make loans in our community to help local families and businesses – people we know. We stick to lending fundamentals and practices that have served us well and safely for many years.

Our asset quality is high, and the bank enjoys good liquidity. Consequently, and contrary to media reports, we have funds available for car loans, boat loans, home improvement loans, home purchase mortgages, and business lending. It is what we do, and we have been doing it since 1916.

Our first priority has always been the safety of your deposits. This difficult economic cycle is not the first we have endured. The smoke will clear; our financial system will restore itself. We have great faith in our community and in our future. If you have questions or concerns about your finances, do not hesitate to contact us. We are here in your community, and we are here to help.

Sincerely,

Kirk F. McConachie
President and Chairman of the Board