WARNING SIGNS

Please do some research before entrusting your money or getting a Sterling State Bank loan. Sterling is a small Seventh Day Adventist family run bank. Typically, religion would not be a factor when bank shopping. However, there may be some Seventh Day Adventist beliefs, rules and views which do not align with your beliefs, views and values.

For a small bank in Rochester, Sterling has a new facility, the largest of any bank in the area. With limited assets and growing dissatisfaction, customers should be concerned regarding Sterling's longevity and their ability to make sound financial decisions.

I ran across this quote in a Sterling blog post, from Bank President Justin McNeilus, "Our bank is not too big to fail!"

This is a very weak and troubling statement you would never expect or want to hear from your bank's president. Entrusting money with Sterling seems more like a bet than a sound financial decision. I want to hear resilience, reliability, trustworthy, adaptable and strong, not... we could fail.

Keep your money safe, do your research and invest wisely, elsewhere.

Thank you for sharing your concerns  with us.  Sterling State Bank was founded in 1958 and for over 65 years  we continue to be regularly examined and audited by bank regulators,  including the Federal Deposit Insurance Corporation (FDIC).  These  frequent and ongoing exams focus on key aspect of banking, including  safety & soundness, liquidity, credit quality, information  technology, compliance and community reinvestment.

Additionally,  we also undergo rigorous independent and internal annual audits  contracted through reputable independent accounting, compliance and  information technology firms who specialize in the financial services  sector.  

Working closely with our regulators, we remain  committed to operating a sound financial institution focused on our  customers and the communities we serve.   If you have any specific  concerns that you would like to discuss in more detail, please do not  hesitate to reach out to us at 507-282-1845.  We appreciate the  opportunity to respond to your comments.

Jen's response offers zero accountability and suggests customers accept FDIC and other regulator's reviews and determinations how stable and secure their operations is.

Jen mentions Sterling annually conducts rigorous audits, accounting, compliance and IT firm review, both contracted and internally. This appears to be good, but how much review is necessary. Again, this is another confidence depleting statement of concern. 

Who do the regulators, auditors, accountants, reviews and analysts report to? Yes, Sterling State Bank, Jen's words are meaningless and not reassuring. Any issues found are not shared with customers. Sterling has a public B rating, the lowest of any bank in Rochester. If they have an internal D or  F rating, who will find out last, the customer!

Like any business, banks fail. A small family run bank is more likely to fail without warning. If you are reading this, consider it a warning, there are enough troubling circumstances surrounding Sterling to concern anyone and everyone. 

More concerning is the high potential for social cancellation over religious factors Sophie B. mentioned. The Seventh Day Adventist Church prohibits, restricts and censors some societal norms and beliefs. It would take very little effort by someone offended, harmed or angry to cancel Sterling State Bank with little effort. Details are available, search "Seventh Day Adventist Beliefs" to discover anything disagreeable to you. 

Jen asks Sophie to call. Call requests have been mentioned in other criticisms of Sterling. It is suggested the bank is trying to avoid a paper trail, preferring calls over other contact. 

If you are moving to Rochester and looking for a bank or credit union, avoid Sterling State Bank and research the others. Sterling State Bank does not care. They do a good job of pretending to care, but they don't.

For example, here is a one star Yelp review.

Comment: I opened a 5 year CD in 2010  and they promised no fees if I held it for the full five years.  Five  years later when it matured, they refused to give me the money until I  agreed to pay a $60 fee.

Sterling Response: Thank you for your feedback. The  limited fees we assess for banking services are fully disclosed,  transparent and regularly reviewed by banking regulators for compliance.  We are committed to our customers and offer fair, transparent, and  affordable banking services to everyone in the communities we serve.

Viewpoints: "Thank you for your feedback" the statement wasn't feedback, it's frustrated criticism.  How about starting with, "Thank you for choosing to invest with us, we are sorry for your experience. We would like the opportunity to personalty discuss your situation."

Typically mature CDs don't have a withdrawal charge. The customer stated the CD was mature after 5 years. They gave Sterling Bank money as an investment.  The bank gets to use the money and when the CD matures, the customer is paid interest from loaning money to the bank. Typically and on the Sterling Bank web site, the only fee applies for early withdrawal. CDs do not have maturation fees, but Sterling  Bank wanted $60 and their public response is a huge red flag. Thanks for nothing and we want our $60!  

These can be long term financial commitments and at one time Sterling was well regarded in the community for their personal service and small bank flexibility. Over time, key employees have moved on. The customer relationships, built by past Sterling executives on a name and a handshake are long gone.  For commercial loans customers have moved to MBT, Premier Banks and others.