CEO Message on Silicon Valley Bank and Signature Bank Failures

To Delta Community’s Members and Partners,

We want to acknowledge the questions and concerns that the recent failures of Silicon Valley Bank and Signature Bank are prompting. Delta Community’s management team is monitoring the situation proactively, and members can rest assured that our Credit Union continues to be in a strong financial position and adheres to sound, conservative investment practices.

Based on news coverage, these commercial banks failed primarily due to a crisis of confidence over their liquidity and capital positions. Their business model differs from the mission and standard operating practices of Delta Community and credit unions generally. Each bank had exposure to the cryptocurrency market and other investments that we do not hold as a matter of policy.

Members can take confidence in the following:

• Delta Community’s current liquidity and capital levels are highly favorable. Our capital or net worth ratio stands at 10.54%, which is significantly above the average for banks as well as the 7% threshold that regulators use to categorize a financial institution as Well Capitalized.
• We operate with a consumer-first focus and adhere to sound, conservative investment practices. Delta Community is structured as a not-for-profit, member-owned financial cooperative. Our investments consist primarily of high-credit-quality, conventional loans to our members. Annual earnings are reinvested in the business, so we can sustain the financial health of the cooperative and deliver consistent service and value to members through different economic cycles as demonstrated during the Great Recession and COVID-19 pandemic.
• Our 2022 Annual Report has been posted to our website within the Publications area of the Home section. The report includes relevant, year-end financial data as well as written business updates from the Chairman of our Board of Directors and me.
• Deposits at Delta Community are insured by the National Credit Union Administration up to $250,000 per member or individual account holder.

Delta Community understands the faith members place in us, and our goal is to foster long-term relationships and serve as our members’ preferred financial partner through every stage of life. We always welcome the opportunity to answer questions members have about Delta Community’s operations or performance.

Thank you for entrusting us with your business.

Hank Halter
Chief Executive Officer