Area bank leaders seek to reassure customers following failures
PHOTO | GARY LEWIS
Timothy Geelan, who is president and CEO of Guilford-based GSB, is the new board chairman of the Connecticut Bankers Association.
Following the recent collapse of Silicon Valley Bank and Signature Bank, multiple area banks have been working to reassure customers that their money is safe.
This week, Timothy Geelan, president and CEO of GSB in Guilford, issued a statement on the bank’s website indicating it is “as strong today as it ever has been.”
“GSB has provided safe, secure banking to families, businesses, and commercial clients for nearly 150 years,” Geelan said. “We are, and remain well-capitalized, protected and positioned to serve your financial needs into the future.”
According to Geelan, GSB has higher capital ratios, a stronger balance sheet, a stable deposit base, and better access to funding compared to the failed banks. He noted how GSB’s depositor base is diversified, with a mix of consumer deposits from many towns, and deposits from businesses in multiple industries.
“The bank does not rely on a small concentration of large depositors to fund our assets,” Geelan said.
Anthony Joyce, president and CEO at Chelsea Groton Bank, sent a message to customers noting the bank’s business model does not include specialized services like cryptocurrency and venture capital.
“Chelsea Groton Bank remains highly capitalized and well-positioned to continue to serve our customers and community,” Joyce said. “We were chartered 169 years ago and expect to serve this community for generations to come.”
Joyce noted how the bank rating firm Bauer Financial has given Chelsea Groton Bank its highest 5-Star rating for 116 consecutive quarters, due to Chelsea Groton’s performance in areas such as capital adequacy, profitability and loan quality.
Joyce, and other area bank leaders, pointed out that the FDIC insures deposits of up to $250,000.
Diane H. Arnold, president and CEO at Essex Savings Bank, also issued a statement to allay customer fears, noting Essex Savings has been around for 172 years.
Banking customers with more than $250,000 overall may be able to secure additional FDIC insurance coverage by keeping their money in different accounts, such as joint, individual and retirement, Arnold noted.
“Essex Savings Bank, along with other Connecticut banks, are healthy, strong, and continue to provide all of the services and access to funds that customers expect,” Arnold said. “Various risks associated with the business models of banks currently in the news were the leading factor in their inability to continue operations. These risks are not seen with traditional banks such as ours.”
Arnold said the failed banks had different customer bases, with high concentrations of customers in technology startups, venture capital and cryptocurrency firms.
“We are very well capitalized and our access to additional capital is more than sufficient to ensure that we can continue to serve the financial needs of our customers and the community,” Arnold said. “Our customers are also very diversified, and we are not reliant on just a few types of depositors.”
The region’s bank leaders urged customers with lingering concerns to reach out to a bank representative.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
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