Last week the California Department of Financial Protection and Innovation closed Silicon Valley Bank and named the Federal Deposit Insurance Corporation (FDIC) as receiver. On Sunday, the New York Department of Financial Services took similar action with Signature Bank (NY). Both institutions operated lines of business with specific and unique risks and concentrations, but their closures created more general concern in financial markets. Subsequently, the US Treasury Department, Federal Reserve, and FDIC jointly announced that all depositors in both institutions would be made whole, and the Federal Reserve also announced a new lending program intended to support banks and their depositors and ensure the soundness of the banking system.
The community bankers at the Bank of Cave City are monitoring this situation closely, and we understand our customers and the communities we serve may have concerns about this volatility. We are also hard at work performing the normal, everyday tasks of community banking with confidence, integrity, and joy. The Bank of Cave City remains well-capitalized, our business practices remain safe and conservative, our depositors’ funds remain secure and accessible, and our investments remain diversified, vital, and strong.
We have been empowering our neighbors since 1906, and we continue to grow our capacity to serve our customers and potential customers. We are guided by our commitment to trustworthy integrity, absolute fairness, thoughtful discipline, responsible citizenship, genuine partnership, sustainable growth, common good, and hopeful endurance. We are proud of that purpose and these values.
As an additional reminder, deposits in the Bank of Cave City are FDIC-insured. If you have any questions about FDIC insurance coverage, please visit www.fdic.gov or call or visit with us at any of our locations. And as always, thank you for trusting and partnering with the Bank of Cave City.