Message From Our CEO Regarding Silicon Valley Bank Collapse

You may have heard in the news that Silicon Valley Bank (SVB) was seized by the Federal Deposit Insurance Corporation (FDIC). We understand that an event such as this could raise concerns about the safety of your money and the security of your financial institutions, including 1st United Credit Union. This is understandable and I wanted to take a moment to reach out with reassurances and to provide some insight into the events.

What occurred at Silicon Valley Bank was a unique situation. SVB was a niche bank serving a particular set of customers within the technology industry, including innovative tech start-ups, entrepreneurs, and venture capital firms. The Bank was focused on a limited sector, which significantly increased its risk profile. When the businesses it served began to struggle and draw down cash, SVB was not able to sell their investments to meet this demand. Therefore, the FDIC stepped in to help protect its depositors.

Unlike SVB, 1st United is a not-for-profit financial cooperative, owned by our members to serve their interests. We are not subject to big-profit pressures from investors or stockowners (unlike many banks), and instead focus on traditional products for our local community.

1st United Credit Union remains one of the largest and strongest credit unions in the nation. We maintain a capital ratio of over 10%, well above the 7% threshold recommended by the National Credit Union Administration. Additionally, we maintain equity reserves and liquid investments that prioritize needed safety and soundness for our members.

I can assure you that 1st United is well positioned to remain operational during turbulent times. We continue to adjust our business practices to align with market conditions while keeping your best interests our priority.