With the recent news of several bank failures, we want to share with you how our Credit Union has a different business model and strategic focus to those institutions that failed.
We will analyze the most prominent failure, Silicon Valley Bank. Although the details of decisions made at Silicon Valley Bank have yet to be made public, what we know was that they were:
- A publicly traded bank beholden to their shareholders and short-term results that impact share price.
- Their customer base was concentrated in start-up companies, private equity firms and venture capital funds. Their customers had been challenged by rising rates which impacted their funding needs and company valuations.
Your Credit Union:
- Has a diverse member base of consumers and small businesses across various industries in our community.
- Has a long-term strategic focus on delivering strong products and services for our members, an engaging environment for our team to succeed, and making our community better.
- Is highly capitalized, exceeding the NCUA definition of well-capitalized, and our investments are safe and secure.
Please know that our Credit Union and your deposits are safe. Having just closed out our 100th year, your Credit Union team understands our mission, the trust you place in us, and will continue our long-term focus to make our Credit Union better for the next 100 years. If you have any further questions or concerns, please contact your local branch or our Member Service Center.
Sincerely,
Your Team at People’s Credit Union
