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Silicon Valley Bank Collapse

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Silicon Valley Bank collapse and understanding FDIC deposit insurance.


On March 10, 2023, the FDIC took control of deposits held at Silicon Valley Bank in Santa Clara, California, amid a series of unique circumstances that led to its collapse. Silicon Valley Bank is the first FDIC–insured institution to fail this year. The last FDIC–insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.

We recognize that our members may have concerns about the security of their deposits and want to offer timely context and essential information. 

Banking experts, regulators, and state/federal agencies continue to emphasize the unique circumstances facing Silicon Valley Bank. The industry has become substantially more resilient over the last 10 to 15 years due in large part to several regulations aimed at protecting consumers and small businesses. In short, regulators require stronger and more conservative capital and risk profiles.

As of December 31, 2022, the San Luis Valley Federal Bank’s capital-to-asset ratio was 14.21%, far exceeding regulatory requirements. You may read about our Statement of Financial Condition here.

Silicon Valley Bank was specialized in serving venture capital firms and technology startups. In contrast, SLVFB serves members across various industries, business models, and business types. This diversification ensures a consistently strong capital position.

In response to the sudden closure of Silicon Valley Bank, we want to assure you that our capacity to preserve and protect your funds is and remains strong. SLVFB is especially well-capitalized, in addition to having ample available liquidity. In short, these conditions ensure that your accounts and funds remain protected amid uncertainty. During our 124 years of business in the San Luis Valley, we have built one of the strongest capital positions of any banking company in Colorado.

As an FDIC-insured bank, deposits are automatically insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category (e.g. single, joint, trust, business,  and certain retirement accounts). The website provides information on insurance rules, limits, and coverage by account type. We have a short video to help explain how FDIC coverage works. Also, we are available to help you assess, understand, and structure your deposit accounts to ensure the best FDIC coverage possible.

We are here for you and available to discuss your needs now and in the future. We’re proud to serve our community and hold close relationships with many of its civic leaders, business owners, entrepreneurs, students, families, and community members. 


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