Your Funds are Safe with HVCU
Dear Members,
Recent news of significant bank failures may have caused you concern about your deposits. HVCU is a safe, sound, secure financial cooperative, and your funds with us are unaffected by these failures occurring elsewhere. We feel it is important for you to know the following:
- While the failures of Silicon Valley Bank (SVB) and Signature Bank are the second and third largest failures, respectively, since 2008, the US Banking system is not facing a similar financial crisis. What happened recently is the result of individual institutional failures and their exceptional exposure to uninsured and highly liquid deposits – not a systemic failure.
- SVB was heavily concentrated in startup companies and venture capital firms, while Signature Bank was heavily focused on banking crypto companies. These unique business models are not representative of most banks and credit unions—nor is it HVCU’s business model.
- HVCU and the entire credit union industry remains strong and well-capitalized. In the banking system, at least 50 percent of deposits are insured by the FDIC, and in the credit union industry, over 90 percent of deposits are insured by the National Credit Union Administration (NCUA).
- Credit union deposits are protected by the National Credit Union Share Insurance Fund and insured up to at least $250,000 per depositor – the same as any other federally insured financial institution. Most importantly, credit union members have never lost a single penny of insured savings at a federally insured credit union.
Account ownership can determine your insurance coverage, so if you have deposits over $250,000, we are happy to discuss how we can help you to maximize coverage. Please reach out to us by phone or at any branch.
The bottom line is that your credit union deposits are safe. We strongly believe that credit unions like HVCU remain the best option to provide financial services for American families and businesses, and we are proud to serve our members. Thank you for placing your trust in us.
Sincerely,
Jonathan W. Roberts
President & Chief Executive Officer