Dear Members,
Over the last five days the media has reported that two large U.S. Banks have been seized by regulators. Silicon Valley Bank (SVB) and Signature Bank are both ranked among the top 30 banks in the U.S. by asset size. We recognize that headlines concerning these bank failures are troublesome and that you may have questions regarding the safety of your deposits at CorePlus Federal Credit Union.
SVB and Signature Bank were niche banks that dealt almost exclusively with large business depositors that kept large balances well above FDIC insurance limits. SVB had 3% of its deposits covered by the FDIC while Signature had 6% covered. CorePlus is very different than these banks; 96% of our deposits are insured by the NCUA. CorePlus is financially strong. We are considered well capitalized by the NCUA and manage our balance sheet to ensure sufficient liquidity. In addition, CorePlus posts strong earnings quarter after quarter and maintains a healthy loan portfolio with low delinquency.
Understanding share insurance is important. Deposits are insured up to $250,000 per depositor by the NCUA. Members with more than $250,000 on deposit can be covered for much larger amounts of insurance if their accounts are titled properly. If you would like to discuss how to qualify for greater insurance limits, please call us at 860-886-0576 or stop by any branch office. You can also log into www.mycreditunion.gov and use the share insurance estimator to determine your insured level based on your balance and account structures.
If you would like to discuss your concerns with a member of our management team, please call us at 860-886-0576 and we will direct you to the proper person.
Sincerely,
Raymond J. Currier
Raymond J. Currier, EVP/COO
