There have been a lot of news articles in the financial and national press lately about deposit safety following the failures of Silicon Valley Bank and Signature Bank, and the massive $30 billion liquidity infusion made into First Republic Bank. Some members have asked if these events and/or announcements will negatively affect the safety of InTouch Credit Union.
The answer is NO.
Unlike those failed banks that reported as much as 92% of their total deposits in accounts over the $250,000 government insurance limit, many large credit unions conservatively (on average) only have about 10%-20% of their total deposits in accounts over the $250,000 guaranteed insurance limit. InTouch CU is even more conservative with only about 8% of total deposits above the insurance limit. Importantly, InTouch CU has more than five times that amount in reserves and instant liquidity mechanisms to ensure that you can have access to all of your funds whenever they are needed, because after all, it is your money.
InTouch CU also does not provide financing to venture tech startup companies or make other types of highly leveraged loans. We primarily invest your funds in local home mortgages, vehicle loans, and other small consumer loans that make our communities thrive. InTouch CU, like all credit unions, is a not-for-profit cooperative. That means all earnings (after expenses) are paid to you in the form of lower loan rates, higher deposit rates, or better subsidized service offerings through branch locations or digital means. We do not have stockholders demanding a certain Wall Street quarterly return-on-equity (ROE) or earnings-per-share (EPS); we have stakeholders like you wanting us to deliver service putting “your interests first” while keeping your deposits safe. We’ve been accomplishing that goal for almost 50 years and are committed to remaining safe stewards of your trust.
Similar to the uncertain times during and after 9-11, the Great Recession of 2007-8, and the 2019-2020 COVID-19 Pandemic, InTouch CU kept our doors open, your money safe, and partnered with you and our communities to get through those challenges for better days ahead. This current period of uncertainty is no different in my viewpoint. We plan to continue being your trusted financial partner.
Sincerely,
Kent Lugrand
President & CEO
InTouch Credit Union