Malvern Bank is Financially Secure
In light of the recent failures of the 16th largest bank in the United States, Silicon Valley Bank (SVB) out of California, and Signature Bank out of New York, Malvern Bank would like to take this opportunity to reassure our customers of our institution’s financial security and continued ability to meet your banking needs.
- Malvern Bank is well capitalized and well positioned to continue to serve our customers and our community. Our assets are strategically spread amongst a wide variety of diverse industries, business models, and business types. This diversification ensures a consistently strong capital position through managed levels of rates and risk. This is in contrast to SVB’s customer base which was highly concentrated in fintechs and venture capitalists or Signature Bank’s customer base which was highly concentrated in cryptocurrency. SVB’s failure began when their fintech startup clients withdrew deposits to stay afloat amid the volatile interest rate environment. SVB found itself short on liquidity and had to sell AFS bonds at a substantial loss to remain liquid. The bank’s next step was to replenish their realized losses but their call to raise additional capital concerned SVB’s depositors, leading to the run on the bank and ultimately, the bank’s closure by the FDIC.
- Malvern Bank is FDIC insured. Nobody has ever lost a penny of FDIC-insured deposits up to $250,000. For those customers who have questions about whether additional insurance coverage is needed, we are ready and prepared to assist you in identifying whether additional insurance coverage is necessary and ensuring your deposit needs are met. The following resources may be useful in learning more about FDIC insurance and how it works:
- Malvern Bank is a relationship-based institution. We take pride in our relationship-banking business model which ensures we truly understand your banking needs and allows us to build long-term trust with our customers through strong financial advice. After all, your success is our success.
We were chartered 131 years ago and expect to serve this community for generations to come. Our office is staffed with knowledgeable individuals who deeply care about the needs of our customers and the health of our institution.
If you have any questions or would like to discuss your unique situation, feel free to call the bank (712-624-8686) and ask for Jay.
As always, thank you for placing your trust in Malvern Bank.
- Jay Burdic
President/CEO, Malvern Bank