Your Money is Safe with IFCU
Industrial Federal Credit Union recognizes that members may have questions about the recently announced bank failures of Silicon Valley Bank and Signature Bank. While we do not know all the details that led to their failures, we want to make sure our members know your money is safe with IFCU.
On Friday March 10, 2023, Federal Regulators shut down Silicon Valley Bank. On Sunday March 12, 2023, Federal Regulators shut down Signature Bank. It was announced on Sunday in a joint statement released by the Federal Reserve, the Department of Treasury, and FDIC that all depositors of both institutions will have access to and receive their full deposits.
What led to these failures?
Industrial Federal Credit Union does not do business with either of these financial institutions. Therefore, we are unaware of the specific reasons these two banks failed. News reports indicate that Silicon Valley Bank had a strong focus on tech and venture capital companies, while Signature Bank had a strong focus in the services related to real estate companies, law firms, and cryptocurrency companies. These structures are very different than traditional financial institutions, and far different than our structure at Industrial Federal Credit Union.
How does this impact IFCU?
Our members should know that Industrial Federal Credit Union is a safe place to save money. Deposits at Industrial Federal Credit Union are protected by the National Credit Union Share Insurance Fund and insured up to $250,000 per individual depositor – the same as any other federally insured institution. That means backing by the full faith and credit of the US government. Industrial Federal Credit Union has demonstrated consistent safety and soundness during our 68 years of existence. Our business model is a more traditional financial institution with the products and services we offer, and our focus continues to be on our membership in the areas we serve. We are a well-capitalized credit union and we also have a strong financial position that allows us to meet the needs of our members. The recent challenges faced by Silicon Valley Bank and Signature Bank do not have any impact on our focus or ability to serve our members.
Credit union members have never lost a penny of insured savings at a federally insured credit union. Visit MyCreditUnion.gov for more information about the National Credit Union Share Insurance Fund coverage for consumers.