Times Observer file photo A Northwest Bank sign is pictured in Warren.

The recent closures of Silicon Valley Bank in California and Signature Bank in New York have brought up questions about the banking industry in general.

The situations at those banks were different from conditions at Northwest Bank.

“We are aware that Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation and Signature Bank closed by the New York State Department of Financial Services,” Northwest Bank Executive Vice President, Communications and Regional Marketing, Shawn Walker said. “Both are currently under the control of the Federal Deposit Insurance Corporation (FDIC).”

“We anticipate these recent events will have no impact on Northwest Bank,” Walker said. “Our institution has a solid liquidity and funding position with a strong balance sheet. We are well-capitalized, well above regulatory standards, with a long history of safety and soundness.”

According to S&P Global Market Intelligence, those banks are about as different as possible from Northwest Bank in terms of typical investments.

In the fourth quarter of 2022, both SVB and Signature were in the bottom five banks in percentage of investments under $250,000. SVB was 99th with 2.7 percent and Signature was 96th at 6.2 percent.

Northwest Bancshares was at the very top of the list – first at 64.5 percent.

The banks hold different investments, but they are still backed by the same entity.

“Our customers can rest assured knowing that deposits with Northwest Bank are insured by the FDIC up to $250,000 per depositor per account ownership category,” Walker said. “FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost any FDIC-insured funds.”

The FDIC has stepped in to the cases of SVB and Signature.

“The U.S. Department of the Treasury has taken steps to protect all deposits for Silicon Valley Bank and Signature Bank customers,” he said. “All depositors of these institutions will be made whole, and the taxpayer will bear no losses. Both failures appear to relate to the specific banks’ operations and unique circumstances.”

Both the government and Northwest want investors to be at ease.

“Our customers can rest assured knowing that deposits with Northwest Bank are insured by the FDIC up to $250,000 per depositor per account ownership category,” Walker said. “FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost any FDIC-insured funds.”

“Recently, the federal government reinforced the view that “the U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry,” Walker said. “In addition, the Federal Reserve is establishing other measures to address any other potential liquidity situations that may arise.”

“At Northwest, we take great pride in our experience model, focused on building long-term relationships and trust with our customers,” he said. “As a ‘Main Street’ bank for the last 126 years, we remain committed to supporting individuals, families and businesses based in the communities we serve – when they succeed, we succeed.”

“We will continue to closely monitor the situation and encourage our customers to reach out if they have any questions,” he said.