People’s Bank sends message to customers following the collapse of Silicon Valley Bank
To the Valued Customers of People’s Bank of Commerce,
Given the events that have occurred in the banking industry over the past few days, your team at People’s Bank of Commerce wanted to reach out and share with you that our bank remains well capitalized and well positioned to continue to serve our customers and our communities. We were chartered over 25 years ago and during that time we’ve weathered several economic cycles.
As of December 31st, the company’s tangible capital was 8.1.%. Tangible capital is a ratio that compares total capital less goodwill and AOCI (investment gains and losses). Recent bank failures have occurred at banks with negative tangible capital. People’s Bank remains well capitalized, above regulatory requirements to be considered well capitalized. Furthermore, we do not have any held-to-maturity investments with undisclosed losses.
The board and senior management own over 47% of our bank stock – we have a strong, vested interest in the success and security of People’s Bank.
As a community bank, we take pride in our relationship-based business model focused on building long-term trust with our customers. We live in your community and your success is our success.
- 100% of our deposits are from local deposit customers in the communities we serve.
- Almost half of the bank’s deposits are in non-interest-bearing small business and personal deposits.
- About 70% of our deposits are at work in our communities as loans to local businesses. These loan customers are also a notable portion of our deposit base which evidences our relationship-based business model.
- Our credit portfolio is well diversified and remains strong.
The Federal Deposit Insurance Corporation (FDIC) has guaranteed all deposits at the two large regional banks that failed recently, which was good for their customers and for the banking industry as a whole. For those of you who have questions about FDIC insurance coverage, feel free to reach out to any one of the officers listed below.
The following links may also be helpful:
Finally, as a community bank customer, you have access to our experienced team, and we stand ready to always assist with any of your questions or concerns.
Ken Trautman, CEO 541-774-7654
Julia Beattie, President 541-608-8920
Lindsey Trautman, Chief Financial Officer 541-774-7665
Bill Whalen, Chief Credit Officer 541-608-8921
Joan Reukauf, Chief Operating Officer 541-774-7656
Steve Erb, Chief Strategy Officer 541-608-8926
Hey Bing! – What happened to Silicon Valley Bank?
Silicon Valley Bank was a regional lender that served the tech industry for 40 years. It collapsed in March 2023, marking the largest bank failure since the 2008 financial crisis.
The bank had grown rapidly during the pandemic-era tech boom, but made risky investments in long-term Treasury and mortgage bonds that lost value due to rising interest rates.
When the bank announced a $1.8 billion loss on the sale of securities, investors and depositors panicked and withdrew their funds, triggering a bank run.
The Federal Deposit Insurance Corporation (FDIC) took over the bank to protect depositors and prevent further damage to the financial system.
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