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Upcoming Core Conversion: Account access through online and mobile apps, CO-OP Shared Network, and branches will be temporarily unavailable starting Friday, April 26 around 4pm.

Silicon Valley Bank Failure Does Not Affect Partners 1st

The announcement that Silicon Valley bank (SVB) failed and was taken over by the FDIC came as an unwelcome surprise. The news has negatively affected bank stocks and many of you may be wondering if Partners 1st FCU is at risk. The short answer is, we are not at risk. The credit union remains well-capitalized with ample access to liquid assets to meet member demand. We are a community financial institution. Although we do offer business services, our primary focus is our members and their needs and wants.

SVB was not a community institution. It existed primarily as a funding and depository institution for Silicon Valley tech companies and start-ups. A breath-taking 88% of its deposits were over the $250,000 federal insurance limit. This explains the speed at which the collapse came, as the vast majority of depositors knew that their funds were at risk. Their frenzied withdrawals caused the bank failure.

Partner’s 1st FCU’s balance sheet is much more diversified than SVB’s was. Rapid rate increases do not damage our value to nearly the same degree that SVB experienced. Most of all, Partners 1st FCU is a financial cooperative, owned by the members, not a bank owned by shareholders who may or may not be depositors. The credit union does not issue common stock, so wild stock market fluctuations do not affect it. Partners 1st is safe, stable, and remains a financial partner you can trust. Please feel free to contact the credit union with any of your questions or concerns.