Sam St. Aubin Callender’s Post

It's been a year since the Silicon Valley Bank and Signature Bank failures rocked the industry. We look back at that turbulent time and examine how ICBA has been fighting for a level playing field for community banks. https://lnkd.in/gpew33US #communitybank #communitybanking #independentbanker

Found this article about Banks that are overexposed to CRE. Here is the quick read from it... Flagstar Bank and Zion Bancorporation are chief among the 67 banks in the US that are at increased risk of failure due to their commercial real estate exposures, according to a data analysis from a finance expert at Florida Atlantic University. Flagstar Bank reported $113 billion in assets with a total CRE of $51 billion. The bank, however, only had $9.3 billion in total equity, making its total CRE exposure 553% of its total equity. Similarly, Zion Bancorp had a total CRE of 440% of its total equity; the bank reported $87 billion in assets and total CRE of $26 billion, but only $5.8 billion in total equity.

It’s another exciting week for our team! Securityplus Federal Credit Union has been named the TOP ranked credit union in Maryland on Newsweek’s 2024 America's Best Community Banks & Credit Unions list. This recognition reflects our commitment to meeting the evolving needs of our members and the communities we serve through financial education, inclusive access, and exceptional service - and the passion our amazing employees bring to delivering on that every day. We set a bold new vision for the future focused on fostering financial success and resilience, championing financial health, giving back to our communities, and aligning our strategy, culture, and impact to the #future. This honor from Newsweek reaffirms that we're on the right track. Our dedicated employees and volunteers share a passion for #financialhealth and inclusive banking. Together, we're taking bold steps to expand our impact and push the boundaries of excellence. The results speak for themselves. In just our first year of transformation, we set a new vision for the future and clear roadmap how to get there, built a leadership dream team with a shared passion for excellence and the greater good, and achieved historic milestones. We innovated to provide the banking solutions our members need, when and how they need them. We invested in the safety and soundness of our practices. And, created memorable experiences for our members. We're incredibly grateful to our members, partners, employees, and Newsweek for this prestigious ranking. It proves that community-focused institutions like ours can redefine the banking experience. It also reinforces, as we continue to see more industry consolidation and news of (big bank) branch closures, that community-centric financial institutions matter and are essential to the economic vitality of communities, the financial health of individuals, families, and businesses, and future generations. Our roots in #Maryland run deep for more than 85 years, so we understand the needs of our friends and neighbors and are motivated to take continue to take bold step to make #apositivedifference. Thad Egner Jeffrey Gehris Toby Green Brian Holloway, CUCME Obinna Ndukwe, MBA Ray K. Ragan, MPM, CSR, PMP Caitlin Stibitz, MPA, CSME #BestCreditUnions #transformation #culturematters

Troubles at New York Community Bancorp (NYCB) manifested amid an unanticipated 4Q’23 earnings loss, which accompanied with gaps identified in internal loan review control processes, and a major leadership overhaul, raised alarms of a wider stress in the banking industry.   Though NYCB’s woes were largely idiosyncratic, the rout echoed the vulnerabilities across teetering Commercial Real Estate (CRE) sector, reigniting fears over stability of small US regional lenders which are heavily concentrated in the stressed sector.   In this article, we delve deep into NYCB’s crisis, dissecting the unique factors contributing to the bank’s challenges, while also exploring the implications of the incident on the broader banking sector and the imperative need for heightened regulatory scrutiny and reinforcement of risk management practices in the face of sector vulnerabilities. https://lnkd.in/dDrzpitD     Amit Vora | Alex Paladino | Maninder Singh | Jose Ordonez Pazo MAppFin | Seema Joshi | Vijetha Dsouza | Komal Jain | Radhika Mehrotra

Today New York Community Bank (NYCB) is spiraling towards disaster with reports of material internal control weaknesses that delayed its 10-K filing, a departing CEO and board members, a plunging stock price, and a $2.4 billion impairment charge. Unfortunately, this situation was avoidable and is, in large part, a result of regulators creating a unique Frankenstein monster. Find Better Markets' fact sheet and Dennis Kelleher's full statement here: https://lnkd.in/eg34tGcH #banking #bankingregulation #financialrisk

Hitting the trail for Spring Break travel? Here are some quick tips to keep your money safe on the go! 💵 Notify your bank you're traveling, especially if traveling abroad. 💵 Set up alerts on your account for transactions over a certain limit and low balances. 💵 Avoid using ATMs too frequently to prevent skimming and card fraud. 💵 Keep bags and luggage in front of you and be aware of your surroundings. 💵 Use your phone's personal hotspot instead of publicly available wi-fi, which has less security. Most importantly, enjoy the time away with friends and family! #mycrossbank #SpringBreaktips #moneytips #communitybank Member FDIC | Equal Housing Lender

Is it just me or does the attached WSJ article reflect mixed signals being sent by the FDIC to community banks and their depositors? The article states: “The FDIC said it would make 50% of First National’s customers’ uninsured funds available, and that the amount would increase as the FDIC sells the bank’s assets. But there were no assurances.” What, if anything, does that approach tell a customer who is unsure as to whether his/her deposits over $250,000.00 in a community bank will be covered by the FDIC in the event of a failure of that bank or a failure of more than one community bank? The FDIC is seemingly saying that at times nothing over $250,000.00 is insured; sometimes a portion over $250,000.00 might be insured; and if the bank is large enough or there is a risk of contagion (according to Secretary Yellen) among community banks perhaps all deposits are insured. Not a very clear rule, in my opinion, for customers thinking of opening a depository relationship at a bank.

Read Our New Report: "Credit Unions, Minority, and Community Banks Can Safely Offer Digital Assets & Risk Mitigation Tools to Consumers" Read: bit.ly/3VAur1E #Web3Education #MDI #CDFI #CreditUnions

Why is a bank's life in the US twice shorter than a human's? Bankruptcy statistics in the financial sector show that the lifespan of the average US bank is half that of a human. Only 15% of failed banks were over 100 years old, while the average operating time of other 85% banks was only 38 years. That’s exactly the age that the First Republic Bank would have been in July 2023, if regulators hadn’t been forced to shut it down in May. The biggest bankruptcy story of 2023 only confirms this statistic — Silicon Valley Bank was the 16th largest bank in the U.S. by assets and failed half a year before its 40th anniversary, the crypto-focused Silvergate, which was founded 35 years before its closure, not much older than Signature Bank, which barely reached its “full age” last year, before being closed. Losses to private customers from bank failures over the past 40 have exceeded $1.4 trillion, double the state budget of Louisiana in that time. Why is the modern financial market for most banks a minefield with short life cycles? What is the reason for this situation: management errors, compliance failures, or systemic government problems? https://lnkd.in/etycghGv