Partners Bank
Blaine Boudreau
March 30, 2023
Op-ed: Maine banks remain strong
File photo / Jim Neuger
Jim Roche is president of the Maine Bankers Association.
By Blaine Boudreau, Partners Bank, and Jim Roche, Maine Bankers Association
We’ve all read or heard the news about the recent difficulties with Silicon Valley Bank in California and Signature Bank in New York.
As chair of the board and president, respectively, of the Maine Bankers Association, we can say with some authority that banks in Maine are different in fundamental ways from those two banks. What happened in California and New York is highly unlikely to ever happen here in Maine.
To begin with, Maine banks do not have the same tech and startup focus that Silicon Valley Bank had, nor do we have the crypto/digital asset-focused-lending profile of Signature Bank.
Banks in Maine are focused on our towns, our neighbors and our small businesses with a diverse customer base. In the case of Silicon Valley Bank, nearly 94% of its deposits exceeded the amount covered under federal insurance. For Signature Bank, the percentage of uninsured deposits was close to 90%. The Federal Deposit Insurance Corp. insures deposits for individual accounts up to $250,000. At a typical bank in Maine, the vast majority of deposits are insured.
Maine’s 29 retail banks employ 9,000 people and operate 454 offices in nearly every community throughout the state. Each year, bank employees donate over 70,000 volunteer hours to local, charitable causes and events, and raise over half a million dollars for their communities. In addition, banks in Maine annually provide over $14 million to worthy community charities and nonprofits; make $4.6 billion in residential real estate loans; and $4.8 billion in loans to businesses throughout the state.
Many banks in Maine have operated for decades, through the Great Depression, World Wars, the Great Recession and the global COVID-19 pandemic. They remain strong and resilient; embrace sound management practices; hold strong capital reserves; and ample liquidity. Maine banks are part of the fabric of our state. Events in California and New York do not change that.
Even when a bank runs into trouble, bank regulators have a broad range of tools at their disposal. Federal regulators already deployed many of them in recent days and are adding to them regularly to eliminate any uncertainty around the country’s banking system.
MBA member banks assist Maine’s citizens and businesses with financial decisions about home purchases, college funds, retirement planning, home improvements, business loans and other decisions that strengthen the state’s economy and improve the quality of life for everyone.
Bank customers in Maine have access to experienced bankers who are ready to assist at all times to answer any questions or concerns, and to ensure customer deposit needs are met. Banks in Maine have served customers and communities for decades (many for over a century) and will continue to do so for generations to come.
The fact is, Maine banks remain strong.
Most Recent
Most Recent
0 Comments