Our CEO's Open Letter on Industry Upheaval

On Friday, March 10, 2023 Federal Regulators shut down Silicon Valley Bank (SVB) due to its lack of liquidity. SVB had a unique customer composition very different than traditional financial institutions, as it was a key player in the tech and venture capital community. Closely connected with SVB, Regulators also closed Signature Bank, on Sunday, March 12, 2023. Signature Bank provided banking services to real estate companies, law firms, and cryptocurrency companies. All depositors of both institutions will have access to and receive their full deposits, and losses will not be borne by taxpayers, according to Regulators.

Financial Center Protects You. While bank closures can be unsettling, rest assured that Financial Center is a safe place to save money. Your Credit Union has sound financial policies and receives high rankings annually from Regulators for safety and soundness practices and management of risk. Furthermore, Financial Center is well capitalized and in solid financial position to meet the saving and borrowing needs of members.

Your Deposits Are Insured Up to $500,000. Deposits at Financial Center are insured by the National Credit Union Share Insurance Fund up to $250,000 per individual depositor – the same as any other federally insured financial institution. Additionally, Financial Center also provides Excess Share Insurance (ESI), additional protection for accounts over the $250,000 covered by the National Credit Union Administration (NCUA). ESI covers deposits up to an additional $250,000. That means Financial Center deposits are insured up to a total of $500,000. Both types of share insurance are per person, not per account.

Beware of Scams. Scammers often capitalize on industry happenings to trick members into providing sensitive information. Scams have already been reported, trying to alarm consumers that their bank or credit union is under Federal Bureau of Investigation (FBI) review and the person needs to take out their cash from their bank/credit union or risk losing it. Please be aware of suspicious calls or emails at all times.

As always, we’re here to answer your questions or concerns. If you have questions, please feel free to visit your local location or call us at 800.473.2328.

Thank you for your continued trust in Financial Center.

Sincerely,
Cam Minges
CEO & President | Financial Center

Additional Resources

Financial Center FAQs Related to Recent Industry Upheaval
Joint Statement by the Department of the Treasury, Federal Reserve and FDIC
Share Insurance (National Credit Union Share Insurance Fund)
Share Insurance Fund Calculator