The Alliance news release reported that officials from Washington, D.C. have announced depositors of Silicon Valley Bank, an institution declared insolvent on March 10, will have full access to their money at no burden to taxpayers.

The release goes on to explain that what happened to the California-based bank was an old-fashioned “bank run” where clients yanked $42 billion from the bank in one day, leaving them with a negative cash balance. Silicon Valley Bank had experienced rapid asset growth in the past few years from just a handful of industries. At the time of closure, it was the 16th largest bank in the country.

Community Banks are different

Shane Pilarski President/CEO Alliance Bank

“Locally-owned community banks operate under an entirely different business model – one that’s based locally and relationship focused. As a small business themselves, local community banks take pride in serving the unique needs of their clients and communities,” explains Rebeca Romero Rainey, president and CEO of Independent Community Bankers of America. “In short, they are in it for the long haul to serve the needs of those who count on them for financial stability and prosperity.”

Bank officials note Alliance Bank deposits have been protected by FDIC insurance since the program was established 88 years ago. No one has ever lost a penny of an insured deposit. This protection is funded entirely by premiums paid by FDIC-insured member banks. FDIC insures up to $250,000 in eight separate account categories per depositor in the bank.

With the proper account structure and a partnership with IntraFi, Alliance Bank can provide full FDIC coverage for clients with larger balances.

“As a community bank, Alliance Bank remains well capitalized and well positioned to serve our clients and community,” reports Alliance Bank president and CEO Shane Pilarski. “We were chartered almost 100 years ago and expect to serve this community for generations to come. FDIC Chairman Gruenberg recently noted, ‘the industry remains well capitalized and highly liquid.’ The events of this past week do not change those facts.”

Consumers can verify their FDIC coverage and learn more about how it works at https://edie.fdic.gov/ or by calling Alliance Bank directly at 888-567-2101.

Alliance Bank is a locally-owned community bank, serving the residents of Francesville, Monon, Monticello, Otterbein, Oxford, Rensselaer, Winamac and surrounding communities since 1930. Learn more online at MyAllianceBank.com.