Safe & Secure

What to Know About Bank Failures

March 14, 2023
by Team SESLOC

The recent failure of high-profile banks is making news headlines and we understand this may potentially cause concern among consumers and businesses. We want to share with you how SESLOC and other credit unions stand out as a reliable and secure option for consumers and small businesses in our local communities.

Key Points About Credit Unions:

  • Credit unions are not-for-profit financial cooperatives owned by their members to serve those members’ interests, offering traditional financial products and services to local consumers and small businesses in their communities. We are not subject to big-profit pressures from investors/stockowners (unlike many banks).
  • Credit unions are among the most well-capitalized financial institutions, maintaining equity reserves and liquid investments that prioritize needed safety and soundness for their members.
  • All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, a separate fund not associated with the Federal Deposit Insurance Corporation for banks. These credit union deposits are insured for up to $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union, and our industry’s deposit insurance fund has the backing of the full faith and credit of the U.S. government.

What Does SESLOC Do With Member Deposits?

The 2021 annual statement on our website ( should help in explaining that the majority of our deposits ($1.1 billion as of Dec 31, 2021) are loaned back to the membership ($700 million as of Dec 31, 2021 – this is roughly 65%).  The remainder as of Dec 31, 2021, is sitting either in cash in our Federal Reserve bank account or invested in U.S. treasury or U.S. agency bond investments.  In the 2021 annual statement on our website, this figure shows as $467 million titled as “investments”.

Is the SESLOC Balance Sheet Information Public Knowledge?

Yes, as we report quarterly to the National Credit Union Administration (NCUA).  On the website is an “Analysis” tab, which then leads to another link called “Research a Credit Union”.  From there, you are able to search “SESLOC Credit Union” and see our financial call report data. Additionally, SESLOC has received the “Well Capitalized” highest rating for safety and soundness from our federal regulator, NCUA, for its entire 80-year history.

Filed under Member News | SESLOC News

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