As you may have heard, Silicon Valley Bank (SVB) and Signature Bank closed last week. We understand the news may have been stressful, and we want to reassure our members that FCCU did not face the same pressures.

SVB primarily served startup companies and venture capital firms, while Signature Bank was heavily focused on banking crypto companies, meaning they were particularly impacted by challenges faced by that industry. As a member-owned, community financial institution in Southeast Wisconsin, we remain financially healthy.

Some of the articles written on SVB are difficult to read, so we put together some FAQs to help our members understand the situation.

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What happened to Silicon Valley Bank?

As the name implies, SVB primarily served startups and other tech companies in Silicon Valley. As the tech industry faced challenges earlier this year, their customers needed more cash on hand, and SVB needed to sell investments to meet that demand.

A large portion of their investments were in US Treasuries bonds, which decreased in value as interest rates increased. SVB sold their bonds before they came to maturity and incurred steep losses causing a run on the bank and, ultimately, its collapse.

Could something like this happen to FCCU?

FCCU primarily serves members currently living or working in Southeast Wisconsin, and is not concentrated on one specific industry. As our membership and investments are diversified, FCCU is in a healthy financial position and is considered low risk.

Is my money insured at FCCU?

Rest assured that along with other federally insured credit unions, FCCU is a safe place to keep your deposits. Our individual members’ deposits are insured up to $250,000 by the National Credit Union Insurance Fund.

What other assurances does FCCU offer?

The state of Wisconsin regularly sends examiners to do an in-depth review our books and practices to ensure we are in-line with state and federal credit union regulations. Our Board of Directors also hires an independent CPA office to provide an annual audit of our accounting practices as an extra layer of financial security. Credit union members have never lost a penny of insured savings at a federally insured credit union.

FCCU takes active steps every year to ensure we are a stable partner for our members and the communities we serve, and we are committed to being your trusted partner for many years to come.