I’d like to take this opportunity to address what is happening in the financial markets and how it relates to Day Air Credit Union. In the past month, we’ve seen the failure of Silicon Valley Bank (SVB), other banks, and a financial landscape that has been considered turbulent at best.
It understandably creates worry any time there is a banking failure, I’d like to assure you that the banks that failed are nothing like Day Air Credit Union, and your Credit Union remains safe, sound, highly liquid, and in excellent financial condition.
The banks and financial institutions that have failed focused heavily on the volatile crypto industry, and Silicon Valley Bank (SVB) was the largest bank serving start-up technology businesses and venture capital firms – a niche business that’s very different than Day Air’s business model.
Those banks did not practice prudent diversification or risk management, unlike Day Air and the majority of both credit unions and community banks in this country. At the close of 2022 as an example, 97% of SVB’s $175 billion in deposits were uninsured (i.e. over the $250,000 limit for federal deposit insurance). This compares to Day Air’s 6% of total deposits that are uninsured, and Credit Union members have never lost a penny of insured savings at a federally insured credit union.
While SVB grew rapidly by attracting billions of dollars from tech companies, Day Air serves the Dayton community and is funded with stable local deposits as opposed to “hot” unreliable money that funded the banks that failed.
Day Air Credit Union has been through both good and bad economic times, and we continue to operate with the same conservative philosophies that have served us well for almost 80 years. Those conservative banking principles have led your Credit Union to have a far stronger net capital ratio of 13.02% than peer institutions and more than double what is considered adequately capitalized.
Day Air has thrived due to our culture of always prioritizing member interests. We are a member-owned financial cooperative that understands the need for liquidity and proper risk management. We want to be your trusted lifetime financial partner. As a local organization, you can always stop by and talk to us about any issue.
Please do not confuse Day Air with these other institutions that you may hear about in the weeks to come. I am extremely confident in our cooperative, in our associates, and in our ability to provide you a better banking experience.
Please call me directly at 937-643-2081 or email to bburke@dayair.org if you would like to talk about these issues.
Thank you for being a member of your Credit Union.
