Local banks react to SVB fallout, but say ‘no cause for alarm’ for local depositers

MARYLAND – Local banks are reassuring their customers that their operations are safe and sound, despite the failure of SVB and other speculative banks this week. 

Hebron Savings Bank Chief Executive Officer Donna Defino tells 47 ABC, that consumers need to know that local banks like hers, only take local deposits, and do not engage in the same risky bets that lead to the failure of Silicon Valley Bank.

Defino also stressed to 47 ABC, that, unlike those institutions, community banks are required to have more cash on hand at any given time compared to their total worth, known as liquidity, which is another safety measure for consumers to have confidence in.

“We are considered well capitalized by FDIC standards we are regulated by FDIC we have a lot of cash on hand we have a lot of liquidity to meet customer demands and needs,” Defino said adding that the FDIC guarantees deposits up to 250,000 dollars for anyone worried about their savings or ability to withdraw. 

“No one has ever lost a penny of FDIC-insured deposits,” Defino said.

Defino tells 47ABC the bank has 800 million dollars in assets, putting them in a different category to the SBV, a $200 billion bank, specializing in loans to start-up technology companies worldwide.

“We are locally owned and operated, we’ve been here since 1910, 113 years, and we’re not going anywhere,” she said.