Published on March 13, 2023
Confirming the sound, financial state of Community Choice Credit Union
The financial services industry experienced turmoil and uncertainty caused by the failure of California-based Silicon Valley Bank and Silvergate Bank, and New York-based Signature Bank Friday and over the weekend. While these institutions are now under control of state and federal regulators, we wanted to confirm deposits with Community Choice are safe and sound and that Community Choice does not have any financial relationships or investments with these three banks.
It’s important to note how different Community Choice is from these banks. Silicon Valley Bank had very large depositors primarily from venture capital funds with nearly 90 percent of deposits uninsured. Silvergate and Signature Bank were cryptocurrency focused banks. They all engaged in risky lending to a narrow target market.
Unlike these three banks, Community Choice conservatively manages our liquidity and investments that includes a diversified range of traditional products. Nearly all our deposits are fully insured. Plus, we serve a diversified membership, rather than a homogenous niche target market.
Community Choice deposits insured by the National Credit Union Association
Your deposits in Community Choice are federally insured by the National Credit Union Association (NCUA), an organization that supports credit unions the same way that the FDIC insures banks.
Deposits are covered up to $250,000 per share owner, for each account ownership category. The NCUA Electronic Share Insurance Estimator is available to help members better understand what's insured and what portion of their deposits (if any) exceeds coverage limits. Visit www.MyCreditUnion.gov/estimator to learn more.
We can assist members with deposits in excess of $250,000 to maximize NCUA protection. For a better understanding of how NCUA protection can be increased by managing your account types and ownership, click here.
Confidence in Community Choice
There are several additional reasons you can feel confident in Community Choice:
Our deposits are not influenced by any one depositor or small group of depositors.
Our investments are highly diversified and appropriately managed to support future liquidity needs.
As a not-for-profit membership-based organization, we have strong capital levels and don’t operate off investor funds. Therefore, we aren’t tied to the whims of the market.
Our liquidity position and balance sheet are both strong and healthy and have been so throughout the history of our credit union, including throughout the Great Recession from 2007-2009.
We have tools that provide us guidance on ensuring liquidity – tools that we follow every day.
Community Choice was founded amid The Great Depression to give neighbors a safe and accessible place to save and borrow. As such, we are structured for longevity and do not rely on risky, windfall cash profits.
We appreciate your membership and remain committed to responsibly managing our institution for the benefit of all members. Contact us, chat us, or call 877.243.2528 with questions.