A Message to Our Depositors:

March 22, 2023

Dear Clients,

In response to the concerns about liquidity in the banking industry, GenuBank is pleased to take this opportunity to provide you with selected financial information that you may find useful in managing your financial affairs.

The GenuBank Board of Directors and management believe that the bank is well positioned to meet any liquidity demands from our depositors, as set forth below:

Liquid Assets and Sources of Funds

• As of March 21st, the bank had $61 million in cash and approximately $14.5 million available to borrow from various sources.
• In addition to the cash and sources of funds, the bank had about $20.7 million in investment securities which are available for sale, should the need arise.
• Combined, the bank has $75.5 million in cash reserves and additional sources of funds, and $20.7 million in available investments that could be converted into cash if needed, for a total of cash, sources of borrowings and liquid investments of $96.2 million.
• The total available liquidity of $96.2 compares to total deposits of $145 million, for a funds availability ratio to deposits ratio of 66%, which is extraordinarily high for community banks.

Our Depositors

• Our large depositors are very stable and have been with the bank for several years.
• Many of our depositors have both checking accounts and loans with the bank, which ensure a close relationship between GenuBank and its’ client base.

Our Financial Performance

In addition to the excellent liquidity position, we are pleased to report that in 2022, the bank celebrated its most profitable year ever with approximately $2.3 million in net profit. This performance is expected to continue in 2023.

We thank you for banking with us and are always available to answer any questions or feedback you may have.  So please feel free to contact your account officer, Zach Larson, Chief Credit Officer, David Bergstraesser, Chief Financial Officer, or me.

John Dru

President and Chief Executive Officer