Landscape photo of Lake crescent in Washington State

How Does The SVB Failure Impact You?

March 15, 2023
The past few days have been quite eventful in the banking world. The failures of Silicon Valley Bank (SVB), in Santa Clara, California and Signature Bank, in New York City, have created a sense of uncertainty for many consumers across the nation. 
Over the weekend, the Department of the Treasury, along with federal banking regulators announced steps they have taken to protect the depositors of these institutions. SVB and Signature Bank were both highly specialized banks, targeting deposits from technology and cryptocurrency industries, respectively.

While the government's actions should help ease concerns about the ability of the banking industry to meet their obligations to depositors, we want to take a moment to share how Community Bank is different from these organizations, and ensure you continue to remain confident in your local bank.

As a locally owned commercial bank, our loans are self-funded by our depositor base, people and small businesses who live and work in the communities of Eastern Oregon and Southeastern Washington. While SVB and Signature Bank operated in very niche markets, Community Bank operates with a very diverse set of individuals and operating businesses in our local markets.

Community Bank's current capital ratio is 9%. The regulatory threshold of a "well-capitalized" bank is 7%. In addition to our capital ratio, we have strong contingent liquidity sources. Our finance department is monitoring the Bank's liquidity needs to ensure our secure financial state.

As an FDIC-insured bank, deposits are automatically insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category (e.g. single, joint, trust, business, employee benefit, and certain retirement accounts). The website provides information on insurance rules, limits, and coverage by account type. We are also here to help you assess, understand, and structure your deposit accounts to ensure FDIC coverage.

We are here for you and available to talk through your specific needs now and in the future. We’re proud to serve our communities and hold close relationships with many of our civic leaders, business owners, entrepreneurs, students, families, and community members, and have done so since 1955.