Your money is safe with us
Recent bank failures highlight the difference in how we operate.
March 14, 2023
Recent failures of banks in the news
The federal government takeover of California-based Silicon Valley Bank [SVB] ($205 billion assets) on
Friday was the second largest U.S. bank failure, and Sunday’s failure of New York-based Signature Bank
($110 billion assets) was the third largest. These banks focused a lot on technology start-ups and
cryptocurrency respectively. It is reported that around 30% of Signature Bank’s deposits came from the
crypto industry. SVB had a very high percentage of its deposits uninsured as well. The average in the
credit union system is 8%. So, these two banks were different from credit unions and many other banks
given the focus of their activities and structure of their balance sheets.
Is MidWest America financially sound?
MidWest America Federal Credit Union’s members should know that we are a safe place to save money. We
are well capitalized and in solid financial position to meet the saving and borrowing needs of our
members. MidWest America has sound financial policies and receives high rankings annually from
regulators for safety and soundness practices and management of risk. For example, MidWest America has
continually earned the 5-Star rating according to BauerFinancial Inc. The Florida-based firm has been
analyzing and reporting on the financial condition of the nation’s banking industry since 1983. No
institution pays for its rating; nor, can they avoid a rating. The 5-star award recognizes MidWest
America’s continual superior performance and strength. It is based on an analysis of current financial
data as supplied by federal regulators, supplemented by historical data.
Deposits at MidWest America are protected by the National Credit Union Share Insurance Fund and insured
up to at least $250,000 per individual depositor – the same as any other federally insured financial
institution. That means we are backed by the full faith and credit of the U.S. government.
In addition, MidWest America also provides excess deposit insurance through ESI, a subsidiary of
American Share Insurance. American Share Insurance has powered private deposit insurance for up to
$250,000 per member account since 1974 without experiencing a loss. Currently, American Share Insurance
insures $2.2 billion from 1.3 million members. American Share Insurance is licensed and dually
regulated by the Ohio Department of Insurance and the Ohio Department of Commerce, as well as supervised
by credit union regulators in the states of operation. American Share insurance is also audited annually
by the accounting firm Deloitte & Touche, LLP.
The credit union system remains well-capitalized and on a solid footing. The agency continues to
monitor credit union performance through both the examination process and offsite monitoring, and it
will continue to do so into the future. Credit unions have access to a wide range of liquidity sources.
The NCUA, along with its Central
Liquidity Facility is able to provide a back-up source of liquidity to member credit unions as
needed. The agency continues to coordinate with the other federal financial institution regulators to
ensure the continued resiliency of the American financial services system. As always, the NCUA is
committed to the protection of credit union members and the safety and soundness of the credit union
system overall. No one has ever lost a single penny of insured share
deposits within the credit union system.
Beware of scams in these types of situations
Members should be aware that scams have already been reported of fraudsters trying to alarm consumers
by communicating that a bank or credit union is under Federal Bureau of Investigation (FBI) review.
Please be on alert for suspicious calls or emails asking you to withdrawal funds from your credit union
or bank for their own purposes. Scammers like to use situational news to their advantage to get you to
make impulsive decisions with your money. Please be diligent in considering any suspicious inquiries
about your finances.
If you have any questions, about the financial soundness of your credit union, please contact us with
any of your concerns.