Current Events in Banking
March 13, 2023
To Our MVB Customers,
Media outlets have been buzzing the last few days and as so often occurs the media can exacerbate a situation. It is true that 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. This event has directly impacted related financial institutions, and while Silicon Valley Bank is unrelated to Middletown Valley Bank, 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 specific circumstances facing Silicon Valley Bank. Silicon Valley Bank was highly specialized in serving venture capital firms and technology startups. Alternatively, Middletown Valley Bank serves customers across a variety of diverse industries, business models, and business types through a conservative risk model. This risk approach ensures a consistently strong capital position and a diverse deposit base. We want to assure you that Middletown Valley Bank’s capacity to preserve and protect your funds is and remains strong.
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. As an FDIC-insured bank, your deposits held at Middletown Valley Bank are automatically insured up to at least $250,000 per depositor, per ownership category (e.g., single, joint, trust, business, and certain retirement accounts). The www.fdic.gov website provides information on insurance rules, limits, and coverage by account type. Our team members are always happy to help you assess, understand, and structure your deposit accounts to ensure maximum FDIC coverage.
As always, Middletown Valley Bank is here for you and available to talk through your specific needs now and in the future. We are proud to serve the community and hold close relationships with many business owners, entrepreneurs, students, families, and community members. Please visit your local Middletown Valley Bank branch or call our Customer Care Team at (844) 533-9211 with any questions you may have.
Robert E. “BJ” Goetz