Officials from Washington, D.C. announced depositors of Silicon Valley Bank, an institution declared insolvent on Friday, March 10th, will have full access to their money at no burden to taxpayers. What happened to the California-based bank was an old-fashioned “bank run” where clients yanked $42 billion from the bank in one day, leaving them with a negative cash balance. Silicon Valley Bank had experienced rapid asset growth in the past few years from just a handful of industries. At the time of closure, it was the 16th largest bank in the country.
Community banks are stable.
“Locally-owned community banks operate under an entirely different business model – one that’s based locally and relationship focused. As a small business themselves, local community banks take pride in serving the unique needs of their clients and communities,” shared Rebeca Romero Rainey, President and CEO of Independent Community Bankers of America. “In short, they are in it for the long haul to serve the needs of those who count on them for financial stability and prosperity.”
Alliance Bank deposits have been protected by FDIC insurance since the program was established 88 years ago. No one has ever lost a penny of an insured deposit. This protection is funded entirely by premiums paid by FDIC-insured member banks. FDIC insures up to $250,000 in eight separate account categories per depositor in the Bank. Click here to learn more about your FDIC coverage on their website. Clients with balances that exceed FDIC coverage, can take advantage of our partnership with IntraFi Network to fully protect deposits in interest-bearing Certificates of Deposit or Money Market accounts.
Verify your FDIC coverage and learn more about how it works at https://edie.fdic.gov/ or by calling Alliance Bank directly at 888-567-2101.
As a community bank, Alliance Bank remains well capitalized and well positioned to serve our clients and community. We were chartered almost 100 years ago and expect to serve this community for generations to come. FDIC Chairman Gruenberg recently noted, ‘the industry remains well capitalized and highly liquid.’ The events of this past week do not change those facts.