As news of SVB has come to light over the weekend and more information has been shared over social media, it’s human nature for customers to have questions about their own bank. The good news is here at OlyFed we have a completely different business structure than SVB.
OlyFed’s Unique Business Model
As you know, we are a mutual bank, accountable to our customers not stockholders. This neighbor-helping-neighbor business model is not about maximizing profits at all costs. It’s centered on good, sound and conservative business practices to ensure the financial well-being of our customers and the bank. This is why we’ve been able to thrive for more than 116 years.
In fact, during the Great Depression, not one of our customers lost a single dollar and throughout the S&L Crisis in the 1980s, not a nickel was lost when more than 1,000 other Savings & Loans closed their doors. Moreover, don’t forget about the Great Recession in 2008, when OlyFed continued to be in a financially stable position and remained strong. And most recently, in the midst of the global pandemic, OlyFed continued to grow and serve more customers in caring and responsible ways.
The same is true today. We are strong, prepared and well-capitalized to meet our community’s and customers’ financial needs. This commitment to responsible money management has not gone unnoticed and is why for the past 139 straight quarters (34+ years), OlyFed has received a five-star superior rating from Bauer Financial, an independent rating agency. Only 1% of the nation’s banks has earned Bauer’s top rating for so long and with such consistency.
OlyFed’s Financial Strength
While we do have some investments; they only represent approximately 6% of our overall balance sheet (SVB had approximately 57% of its balance sheet in investments). It’s important to recognize that most of our deposit dollars are put to work with a well-diversified portfolio of relationally based and locally sourced mortgage, construction, small business and commercial loans. This strategy not only helps strengthen and grow our local economy but also provides for a reliable and stable operating model.
Moreover, OlyFed has never participated in “risky” business practices, such as sub-prime lending. Additionally, as you know, OlyFed is a mutual bank, which means we aren’t publicly traded, further limiting the outside exposure to market conditions.
For additional details regarding our finances, please review our most recent Statement of Condition from the end of our prior fiscal year on March 31, 2022. When our audited financial statements for the current year are complete, we should have a new Statement of Condition available in the summer of 2023.
For further information, you can access public bank data on the FDIC’s website.
Confidence in America’s Banking System
Overall, it’s critical to consider nobody has ever lost a dime of FDIC-insured deposits up to $250,000. In addition, all depositors in the case of SVB will be made whole. Similarly, depositors at SignatureBank of New York, which was closed on Sunday by its state chartering authority will also be made whole. No losses will be borne by taxpayers. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
America’s banking system remains strong and continues to perform its vital role of protecting deposits and providing access to credit to households and businesses in a manner that promotes solid and sustainable economic growth. The U.S. banking system is resilient and on a solid foundation, in large part due to reforms and safeguards that have been implemented over the years. Those protections combined with FDIC’s most recent actions demonstrate the industry’s commitment to taking the necessary steps to ensure that depositors’ savings remain safe.
Here for You, Here for Good
More specifically, when it comes to OlyFed, at the core of our mission is a vision to be financial partners that build relationships, celebrate diversity and use our resources to help our communities succeed. We do this by living out our values of doing the right thing, putting people first, being inquisitive and seeking knowledge and remaining authentic and kind.
These values are foundational to maintaining your trust and confidence in OlyFed, which is why they are core to everything we do. We have served Thurston and Mason County for generations and it’s our plan to serve this wonderful place we all call home for generations to come. Our story is your story, and your success is our success.
If you have questions about your accounts, our team of knowledgeable and caring bankers is available and prepared to assist you in making sure your deposit needs are met. Please contact us for more information. Thank you for your business and belief in us.
President & CEO