As the news coverage continues regarding the failure of Silicon Valley Bank (SVB) and there continues to be uneasiness surrounding financial services, I want to make sure our communication directly addresses Stanford FCU’s differences. My goal is to ease any anxiety you may have and to address any questions. As we have shared, Stanford FCU is very well positioned in capital, liquidity, and balance sheet management. In fact, most Banks and Credit Unions are not struggling.
As you can see in the charts below, Stanford FCU is very different from SVB and other financial institutions frequently mentioned in media coverage. As of 12/31/22 we had only 11.3% uninsured deposits compared to 93.9% at SVB. We are well capitalized at 9.71% (vs. the well capitalized threshold of 7%) with strong liquidity and minimal unrealized gains/losses on our investment portfolio, which is 99% available-for-sale. We historically manage our financials in a conservative manner with our top priority on safety and soundness.
Members are priority one at Stanford FCU. In communications over the last week, as expected, our members are telling us they know their deposits are safe and sound with us and they are! We’ve been in business since 1959 serving the Bay Area and we stand ready to continue serving the Bay Area through this period of uncertainty, strengthening the trust our members have in us. We can share with you that historically there hasn’t been a depositor loss in Credit Unions and we don’t see that changing.