Customers of Coosa Valley Credit Union found something of a guide in their email boxes Tuesday about the seizures of Silicon Valley Bank and Signature Bank of New York.
The message was one of reassurance to area customers. It was similar to comments from area bankers as well, several of whom praised swift action by Washington “to emphasize the overall stability and strength of the nation’s banking industry.”
CVCU President and CEO Andy Harris said, “Coosa Valley Credit Union is safe and sound. We meet or exceed the financial standards regulators require for a credit union to be considered well-capitalized. In addition, we take steps over and above what is required to ensure safety and soundness, with additional exams exceeding federal and state standards.
“The National Credit Union Share Insurance Fund insures our members’ money, and it is protected up to $250,000 per individual depositor,” says Harris. “Important to note is that credit union members have never lost a penny of insured savings at a federally insured credit union. Credit unions are heavily regulated and we are required to remain in compliance with strict soundness standards.”
Says Ryan Earnest, president and chief executive officer of First National Community Bank: “The matters over the weekend appear to be related to unique situations which should not represent a spillover into the industry as a whole. It has been reassuring to see our national leaders act quickly to emphasize the overall stability and strength of the nation’s banking industry and the state of Georgia and Northwest Georgia, specifically, are no different.
“...First National Community Bank is proactively taking a business-as-usual approach, noting the sensitivity of this matter... (T)he bank is supported by strong capital and liquidity positions earned by executing safe and sound business models with focus on risk management practices that will serve our customers and communities well into the future.”
Adds Earnest: “As always, I encourage consumers to talk to their bankers and ask questions. The community banking brand is built on relationships and trust.”
That’s also part of the message from Connie J. Mathis, the chief financial officer of River City Bank. The bank staff “is here to help,” she says.
“While the events surrounding those bank failures are unfortunate, the issues that led to those failures are not systemic within the banking industry,” says Mathis. “... (T)he clients and communities we bank can be assured that our risk practices and industry exposures are in stark contrast to those two institutions.
“At River City Bank, we see the federal response as swift and effective, protecting insured and uninsured depositors and sending a message intended to ensure stability. We continue to operate normally, with strong capital and liquidity levels, no depositor concentrations and significant levels of contingency funding to meet the needs of our clients.”
And David J. Lance, president and chief executive officer of Greater Community Bank adds, “Georgia banks remain a source of strength. Our capital and liquidity levels remain strong. No one has ever lost a penny of FDIC deposits.”