3/13/23 Industry Update
With the recent news regarding the failures of Signature Bank, Silvergate Bank and Silicon Valley Bank in California, we would like to address the serious nature of this situation.
Signature Bank and Silvergate Bank were cornerstones in crypto currency and both had been struggling following the challenges of the failure of crypto companies such as FTX and Genesis, while Silicon Valley Bank was a bank centered in technology and venture capital based companies that experienced a significant run on their deposit base over stability concerns.
While Bank of New Hampshire is in no way affiliated with these banks, we understand the nationwide stress this has created, questioning the security of deposits kept in a financial institution. We want to assure Bank of New Hampshire customers, and our communities as a whole, that we are in the strongest financial position we have ever been in, with a strong capital position, combined with the highest liquidity and income levels in our 192 year history. Further, and just as important, we have never accepted the level of risk that these institutions were carrying.
While many factors will continue to challenge financial institutions, Bank of New Hampshire enters this time from a position of strength and will continue to be managed appropriately. “I have confidence in our employees, management and Board to effectively manage our Bank through this period,” stated Chris Logan, President & CEO for Bank of New Hampshire. “We have succeeded for nearly 200 years and sustained many economic cycles. We will manage through this like the dozens that have come before.”
The Secretary of the Treasury, Janet Yellen, released a statement on Friday expressing the full confidence in the banking regulators to take appropriate actions and noted that the banking system remains resilient and regulators have effective tools to address this type of event. No account holder has ever lost deposit dollars up to the $250,000 insured limit and the FDIC further stated that they would back Silicon Valley Bank deposits beyond the federally insured ceiling of $250,000, alleviating concerns of all depositors.
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