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A Brennan & Rogers, PLLC Journal Special Edition

FDIC Bank Takeover of Silicon Valley Bank and Signature Bank:

A view through the lens of Northeast Bank

Brennan & Rogers, PLLC thanks

Joe Morse, VP of National Deposits, and Allison Coombs, AVP, Marketing Manager, of Northeast Bank, for their dedication to this collaboration.

This content is meant for informational purposes only, The reader should not use any such information or other material as legal, tax, investment, financial, or other advice.

April coincides with National Financial Literacy Month, which focuses on helping Americans realize the importance of financial literacy and developing and maintaining smart money management habits, including personal financial management, budgeting, and investing. In recent months, the FDIC takeover of Silicon Valley and Signature Banks left many consumers within our Seacoast community uneasy about the banking system's health and unsure what institutions are the safest for their money.


As a local business, we understand that country-wide problems impact small communities differently. Therefore, we are proud to have partnered with Northeast Bank to share with you their perspective, which may help alleviate concerns surrounding this financial crisis and reassure our readers that their finances are secure within our local banking institutions with clear, straightforward language. Brennan & Rogers, PLLC is a law firm and does not offer opinions on financial matters.

Response to Recent Banking Industry Events

by

Joe Morse, VP of National Deposits, Northeast Bank

In response to the recent Silicon Valley Bank and Signature Bank failures, the Federal Reserve, FDIC, and other regulators acted in an extraordinary show of support for our banking system. These parties addressed two failed institutions with unique business models and guaranteed that all depositors would be protected. 


It is important to note that these failed institutions do not reflect the strong health of the broader banking sector, especially here in Maine. 


One of those banks is Portland-based Northeast Bank, founded in 1872, which currently serves customers in southern, western, mid-coast, and central Maine via its banking and customer success centers. 


We spoke with Joe Morse, VP of National Deposits, to learn how the average consumer can protect their financial foundation.


“I’m proud to work at an institution that is always ready to meet the needs of our communities. Northeast Bank has a diversified deposit base, strong liquidity, and strong capital positions,” said Morse. “The Bank is in a solid financial position built on longstanding customer relationships, and we’re here to serve customers and communities in Maine and beyond.”

What is the FDIC and FDIC Insurance? 

The FDIC is a government organization that insures deposits in FDIC member banks up to $250,000 per tax ID, per account type at no cost to the depositor.



If you are unsure how much coverage you qualify for the FDIC’s Electronic Deposit Insurance Estimator (EDIE) is an excellent online resource. Additionally, you can speak with your local Banker to review your accounts and ensure you are properly setup for maximum insurance coverage.

Securing Your Financial Foundation with FDIC Insurance

Between increasing inflation and recent banking industry events, you may be looking at your financial investments or speaking with a financial advisor to ensure your funds are growing to their full potential while staying protected. One of the most effective ways to protect your liquid financial assets, including Savings accounts and Certificates of Deposit (CDs), is through deposit insurance offered by the Federal Deposit Insurance Corporation (FDIC).

What is Extended FDIC Insurance?

If you have deposits that exceed the standard FDIC insurance coverage or want to streamline your banking experience to work with one financial institution, you can access Extended FDIC deposit insurance at participating financial institutions. 


Extended FDIC deposit insurance is provided via a special network of member banks. When you place your deposit through the network, the deposit is divided into amounts less than the FDIC standard insurance of $250,000 and placed into deposit accounts across multiple FDIC-insured banks. Your full deposit amount will stay at your local bank earning the stated interest for your account(s), and you will still see your full deposit via online and mobile banking as well as your monthly statements. For example, through its participation in an extended FDIC insurance network, Northeast Bank can insure deposits up to $125 million per customer or Employer Identification Number (EIN).

What else to consider about your financial foundation?

In addition to seeing how much FDIC insurance you qualify for, you should also review the rate you earn on your funds and what types of savings vehicles you have. 


For example, if you have excess funds in an account you will not need to use in the next 6-12 months, you should look at Certificate of Deposit (CD) rates to maximize the interest those funds are earning. 


“Northeast Bank is here to help you earn more with highly competitive savings rates, minimal to no fees, and extended FDIC deposit insurance,” said Morse. “The Bank is uniquely positioned with dedicated bankers to ensure your personal and business accounts earn the most for your funds.” 

Northeast Bank is a full-service bank established in 1872. They are an experienced balance sheet lender offering speed, certainty of execution, and creativity to structure loan originations and acquisitions nationally. They are a full-service bank serving Western, Central, and Southern Maine customers. 


Northeast Bank is committed to bettering the lives of those in need. They focus their charitable efforts in the markets they serve and aim to raise the aspirations of their youth, support those in need, and promote economic development.


To schedule an appointment with Joe to discuss Northeast Bank’s consumer and business banking solutions, email him at jmorse@northeastbank.com or call 207-650-6645.

A statement from Kennebunk Savings Bank

 President and CEO Bradford C. Paige

"Aside from size, the defining difference is that we have a much lower risk tolerance and more conservative risk profile than SVB. We do not have exposure to high risk start-up technology/financial technology firms, cryptocurrency or the cryptocurrency markets (the latter of which was reported to be the primary factor in Signature Bank’s failure). As a result, we don’t have the volatility in our deposit base that SVB experienced and, importantly, we enjoy incredibly well performing lending portfolios.


Further, be assured that Kennebunk Savings has a strong liquidity position and a well-capitalized balance sheet. Our depositors and our loan customers are local; they are representative of the businesses and citizens who have grown and been a part of our communities since we were founded in 1871. Better yet, our leadership is local: our Board of Directors consists of individuals living and working in our southern Maine and seacoast New Hampshire market territory. Best yet? Our employees are local; they are your neighbors, friends and community leaders.


Our commitment to you for 152 years and counting.


As a mutual bank, without stockholders and formed for the benefit of the communities we serve, we consider it an honor, a privilege and the highest responsibility to provide you with a safe, secure, stable and dependable partner for all of your banking needs. 


As an FDIC insured institution, Kennebunk Savings is well positioned financially, has an appropriately positioned risk appetite and a strong, local leadership team. You can rely on us to be here to help you meet the challenges of today...and tomorrow. Thank you for trusting in us"



More Information from Kennebunk Savings


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Please email Kim for more information!

Meet the Attorneys of Brennan & Rogers, PLLC

Mary Kathryn Brennan, Esq.

Smilie G. Rogers, Esq.

James S. Mundy, Esq.

Michael A. Cahill, Esq.

Katherine M. Audet, Esq.

Brennan & Rogers, PLLC

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York, Maine 03909

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Kennebunk, Maine 04043

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Brennan & Rogers, PLLC

279 York Street (PO Box 467) 

York, Maine 03909

(207) 361-4680 

www.brennanrogers.com