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Banking: What Do We Do Now?
Given the recent SVB failure, UCON’s Associate Members from F&M Bank and Heritage Bank of Commerce provided talking points for you and your banker.
Contact your banker – If they have not already reached out to you.
Questions to ask your financial institution:
- How much cash/Fed Funds liquidity does your Bank have?
- Does your Bank have any borrowings?
- What is your Banks loan to deposit ratio? Conservatively, banks typically run 70-80%.
- Does your bank have any exposure within the tech or crypto segments?
- Was your Bank in existence during the Great Recession?
- And if so, how did it fair?
FDIC Insurance covers *– $250,000 per depositor, per insured bank for each ownership category.
- Checking Accounts
- Savings Accounts
- NOW Accounts
- Money Market Accounts
- Time Deposits (CD’s)
- Cashier’s Checks/Money Orders and other official items issued by a bank.
Ownership categories:
- Single Accounts
- Certain Retirement Accounts
- Joint Accounts
- Revocable Trusts
- Irrevocable Trusts
- Employee Benefit Plan Accounts
- Corporation/Partnership/Unincorporated Association Accounts
- Government Accounts
Some banks offer mitigating deposit products referred to as CDARS and/or insured cash sweep accounts which provide additional FDIC insurance.
*The FDIC offers a brochure about Insuring your Deposits. Request a copy at your local bank or contact your Relationship Manager.
Thank you to our Associate Member contributors: Kelly Attebery, F&M Bank, and Clinton Pickering, Heritage Bank of Commerce.