GRANTS, NM – Over the weekend, two major US banks failed. Silicon Valley Bank in California – one the of the 20 largest banks in the country, and Signature Bank in New York both collapsed, locking depositors out of their accounts and forcing the Federal Deposit Insurance Corporation to take control of the two banks to limit damage to the nationwide economy. These bank failures sent jitters up and down the economy and the stock market and prompted a response by TBK Bank, the largest financial institution in Grants.
Due to the rural nature of Cibola County, banking has historically been controlled by local assets, and when the local assets were purchased; the county’s banking abilities have been controlled by limited organizations. Cibola residents have put their trust in TBK bank for years with limited to no complaints. Understanding they have the trust of Cibola, TBK issued a statement to reassure their customers and those with money in the bank.
TBK Bank is owned by a larger financial company, Triumph Financial Inc. which is said to be financially stable with cashon- hand in quantities much higher than those required for banks by federal law. TBK says depositors should be confident that the bank has resources it can sell to generate more cash in the event it is needed without suffering material losses.
TBK Reassures Bankers
Todd Ritterbusch, president of TBK Bank corporation, released the following statement at 8 p.m. on March 12.
“Dear Valued Client: “From our inception, one of the long-standing core values at TBK Bank has been transparency. We believe in communicating the truth consistently, directly and professionally, because we know open communication is the foundation of strong relationships.
“In response to the closing of the Silicon Valley Bank (SVB) and Signature Bank (SBNY) by the FDIC, we want to assure you that TBK Bank and our parent company, Triumph Financial, Inc. (Nasdaq: TFIN), remain financially strong and stable.
“Specifically: “Our deposit base is stable and diverse, consisting primarily of traditional retail and commercial deposits spread across over 78,000 depositors served by branches in six states “Our credit quality is excellent, including very low past due and nonperforming loans “Our investment portfolio is comprised primarily of high-quality, short duration securities that, if necessary, could be converted into cash without material losses. We have minimal investments in long duration securities, the sale of which at steep losses triggered the collapse of Silicon Valley Bank “We maintain capital above and beyond what is required by regulatory standards “We have access to several large sources of additional liquidity if needed in the future.
“Triumph Financial has long been, and remains, a diversified financial services organization focusing on creating value by helping our customers succeed, our team members thrive and our communities prosper.
“As your banking partner, TBK Bank and Triumph Financial are steadfastly committed to providing you continued transparency, strength and stability. Please reach out to us with any questions you may have or feel free to call us at 866.644.3935.
“We thank you for the trust you put in us and look forward to continuing to serve your banking needs now and in the future.
“Sincerely, “Todd Ritterbusch “President, “TBK Bank, SSB”
Federal Response to Closures
On the morning of March 13, right before the stock market opened, US President Joe Biden spoke from the White House to clarify the federal response to the closure of these banks.
“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” President Biden said Biden noted that the managers of any bank taken over by the federal government will be fired and those who invested in failed banks will lose their money. He said, “They knowingly took a risk, and when the risk didn't pay off the investors lose their money. That's how capitalism works.”
While investors will lose their money, President Biden assured depositors that their money will be safe. “Americans can have confidence that the banking system is safe, your deposits will be there when you need them,” he said during the short speech, “Small businesses across the country with deposit accounts at these banks can breathe easier knowing they’ll be able to pay their workers and pay their bills.”
President Biden noted that taxpayer dollars will not be used to bail out the failed banks This statement follows US Treasury Secretary Janet Yellen’s statements over the weekend when she said that the federal government was “not looking” to bail out the failed banks.
The full ripple effects of the bank failures need to be fully examined before it can be sure that the current banking crisis has come to an end. Until then, both the federal government and TBK bank are reassuring those with assets in the bank that their money is safe.