Deposit Protection

Your deposits are safe at United Prairie Bank.

There’s been a lot of distressing news in the financial sector lately. Because of this, some of our depositors have asked us to confirm that their money is safe at United Prairie Bank. Rest assured, United Prairie Bank is in a strong financial position.

Here are some reasons and proof that United Prairie Bank is sound and prospering and that your UPB deposits are safe:

1. United Prairie Bank holds no mortgage-backed securities in its investment portfolio.
   Poorly written mortgage loans are at the root of much of the turmoil in the financial industry. Many investment houses and some large banks bought those loans as an investment. As borrowers default on those loans, it becomes a loss to the institution holding related mortgage-backed securities. We own NO mortgage-backed securities.
    
2. United Prairie Bank employs strict and conservative underwriting procedures.
   A bank’s biggest asset are the loans in its portfolio. Naturally, having loans that do not default is extremely important. Good conservative lending practices protect both the borrower and the lender. No one wins when a poorly underwritten loan goes bad. United Prairie Bank strives to make sure each and every loan is structured for success. We take great pride in our conservative loan underwriting, and our results prove it. To see our stability first hand, you can visit the FDIC website and look at our latest Call Report: https://cdr.ffiec.gov/public/SearchFacsimiles.aspx. Just type in “United Prairie Bank” and enter “Mountain Lake” and “Minnesota” to find our report.
    
3. United Prairie Bank is well managed – that is proven by independent agencies.
   Government agencies, such as the FDIC, which regulate and examine banks never release their ratings on the safety and soundness of financial institutions. But there are several independent companies that grade banks, credit unions and thrifts on their financial strength and stability. The FDIC lists a number of these companies: http://www.fdic.gov/bank/individual/bank/index.html. Typically, these companies measure the following:
    
   • Capital adequacy – do we have enough cash to weather financial bubbles or storms?
   • Asset quality – are our loans good?
   • Profitability – are we providing a good return for our shareholders?
   • Liquidity – do we have enough uninvested money to serve our customers?
     

     The top three of these independent rating agencies show United Prairie Bank as:

   • AM Best: no consolidated rating (possibly pending due to our recent charter merger)
   • Bankrate, Inc.: Four Star rating (out of a possible 5 stars – 3 is “Safe”)
   • BauerFinancial, Inc.: Four Star rating (deemed “Excellent” on their scale)
      
4. Regardless of United Prairie Bank’s condition, your deposits are insured.
   United Prairie Bank pays substantial premiums to the FDIC to make sure your deposits are insured by the Federal government. The basic insurance amount has been $100,000 per depositor, per insured bank, but was recently increased to $250,000 until the end of 2009. FDIC insurance covers all types of deposits received at an insured bank, including deposits in checking, NOW, and savings accounts, money market accounts, and time deposits such as certificates of deposit (CDs).
   FDIC deposit insurance covers the balance of each depositor’s account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank’s closing.
    
   The coverage does not include money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investments were purchased from an insured bank. And, the FDIC does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.
    
   You can confirm that United Prairie Bank carries FDIC insurance by calling the FDIC toll free at 1-877-275-3342 or checking online by using “Bank Find” at:
   www.fdic.gov/deposit.
    
   The FDIC website also has a calculator you can use to make sure all your deposits are covered. To use the calculator, go to: http://www.fdic.gov/EDIE/index.html.
   

Lastly, please feel free to visit with our staff about their confidence in United Prairie Bank. First, last and always, our people are the best asset any bank can have. As always, you’ll find them open and honest.

Thank you for your business!