On March 10, 2023, the FDIC took control of deposits held at Silicon Valley Bank in Santa Clara, California amid a series of unique circumstances that led to its collapse. We recognize that our customers may have concerns about the security of their deposits and want to offer some timely context and important information.
Banking experts, regulators, and state/federal agencies continue to emphasize the unique circumstances facing Silicon Valley Bank. The banking industry as a whole has become substantially more resilient over the last 10 to 15 years due in large part to a number of regulations aimed at protecting consumers and small businesses. These regulations require banks to maintain stronger and more conservative capital and risk profiles, which helps to ensure their stability in times of uncertainty.
Silicon Valley Bank was highly specialized in serving venture capital firms and technology startups. AbbyBank serves customers across a variety of diverse industries, business models, and business types. This diversification helps to ensure a consistently strong capital position, even in the face of market fluctuations or unexpected events.
Unfortunately, on March 12, 2023, Signature Bank, a New York State based financial institution with a big real estate lending business that recently also began serving the cryptocurrency industry, was closed by state authorities in the wake of the Silicon Valley Bank collapse. This event may have heightened concerns about the stability of other financial institutions, but we want to reassure our customers that we are a separate and distinct bank with a strong financial position.
In response to the sudden closure of Silicon Valley Bank and the recent events involving Signature Bank, we want to assure you that our capacity to preserve and protect your funds is and remains strong. Our bank is especially well-capitalized, in addition to having ample available liquidity. In short, these conditions ensure that your accounts and funds remain protected amid uncertainty.
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). We encourage you to visit the FDIC website https://www.fdic.gov/ for more information on insurance rules, limits, and coverage by account type. And if you have any questions or concerns about your deposit accounts, we’re here to help.
We are here for you and available to talk through your specific needs now and in the future. We’re proud to serve the community and hold close relationships with many of its civic leaders, business owners, entrepreneurs, students, families, and community members.