Dear Valued Member,

You have probably heard about the recent failure of Silicon Valley Bank (SVB). The failure was caused by an erosion of confidence by bank depositors who in essence withdrew their funds unexpectedly causing a classic “run on the bank” scenario. The bank could not liquidate assets quickly enough to satisfy depositor demands.

The erosion of confidence was caused by SVB’s announcement to liquidate some underperforming investments, taking a large loss, due to the rapid rise in interest rates and other economic conditions. Stockholders quickly became leery and sold off their shares, causing the bank’s stock prices to plummet, thus further placing doubt on the viability of the bank.

How safe is your money at Mutual Security Credit Union? It is extremely safe, and here’s why:

  • Firstly, we don’t have stockholders. Our owners are you, our members.
  • Secondly, under the National Credit Union Association (NCUA) we are considered “well capitalized” meaning we have enough retained earnings (capital) to weather economic storms.
  • Thirdly, a portion of your deposits are lent out to other members who need credit. Since most of the credit union’s assets are in the form of member loans, not market investments, we are shielded from market fluctuations.  

In summary, you can be assured that your deposits are safe and protected, thanks to NCUA’s insurance fund, which insures all deposits for a minimum of $250,000, and many are structured to be insured for much more. Our members have never lost a penny of insured savings, and we have numerous safeguards in place to prevent circumstances that led to SVB’s collapse from happening here. Our knowledgeable member service team representatives are here to assist you in learning more about NCUA Insurance coverage.

Thank you for your valued membership. If you have any questions, please give us a call at 800.761.2400 and we will be happy to help you.


Hank Baum,

President & CEO