Northland financial institutions remain strong
The news of Silicon Valley and Signature Bank collapsing days from each other sent shock waves across the U.S banking system and causing customers to panic.
Here in the northland local independent financial institutions are reassuring customers that their deposits will be their when they need it.
We spoke to two local financial institutions on this matter. First is Annie Lepper, the Vice President of Lending and Marketing at Minnesota Power Employees Credit Union.
“With our institution, Minnesota power employees’ credit union, we are in great financial shape. We have always been financially strong and financially conservative. We are entering our 90th year of business and we have over double of what we are meant to have in capital reserve”
Second is the Noah Wilcox, President/CEO Grand Rapids State Bank.
“Today was another normal day on Main Street in grand rapids, Minnesota, and for Grand Rapids State Bank today. While Signature Bank and Silicon Valley bank have in some ways been described in larger media outlets as a smaller bank, Silicon Valley bank, is the 16th largest bank in the United States of America, at the point it failed. Certainly not reflective of a community bank like grand rapids state bank or any community bank across the northland”
Why should customers remain confident in local banks?
“In my case, grand rapids state bank. I’m the fourth generation of my family to own and operate the bank. It’s me and my family’s capital at risk. We’re not using capital from private equity investors. We’re not using capital from Wall Street. This is our capital. So our risk tolerance and the business model is very different than the largest banks in the nation. So, we have very strong capital reserves and our credit quality is very good.”
The Northshore Bank also released a statement saying they are in good shape. And, President Biden reiterated that there is no cause for alarm as the American banking system remains strong.