Banterra Bank Provides Security To Your Deposits 

Check out WSIL News 3 segment featuring Banterra President and CEO, Jeff May, who is also a previous 20-year FDIC examiner. Silicon Valley and Signature Bank operated on a distinct business model, leading to their collapse, allowing Jeff May to speak confidently of community banks and the importance of FDIC deposit insurance.

Note:  Unique to a lot of Banterra’s competitors, Banterra offers multi-million dollar, FDIC insured deposits through IntraFi®.  With IntraFi, deposits are made using a network of qualified banks, each individual bank deposit up to $250,000, but offering the customer the simplicity of working with just Banterra.  IntraFi product offerings include:  ICS – (Funds are placed into savings or money market accounts) and CDARS (Your funds are placed into CDs).  For more information on our IntraFi offerings, click here or contact or visit your local Banterra branch

Transcript of the WSIL News 3 Local Experts React Segment

News Anchor #1

A major bank collapse like this may have you feeling uncertain about the state of your finances.

News Anchor #2

Local experts do say the situation with Silicon Valley is unique to that area and they say it shouldn't impact our banks at all. News 3’s Paul Wilcoxen explains…

Paul Wilcoxen, Narrator

When banks like Silicon Valley and Signature collapsed, that left people around the country wondering about their money. Banterra Bank President and CEO Jeff May says, “What happened with Silicon Valley and Signature Banks are pretty unique situations.”

Jeff May, President & CEO of Banterra Bank

Both banks grew rapidly, almost exponentially, using volatile deposits and uninsured deposits, which ultimately lead to their downfall.

Paul Wilcoxen, Narrator

May says both banks catered more toward a very unique business model.

Jeff May, President & CEO of Banterra Bank

One was involved with startup tech companies, venture capitalists and the others involved with cryptocurrency companies, so, something you would never see in the local bank here in Southern Illinois.

Paul Wilcoxen, Narrator

May worked 20 years with the FDIC. Therein lies one major difference between those banks and your local community bank.

Jeff May, President & CEO of Banterra Bank

Since its existence, there's never been a single dollar lost to insured deposit. Not one.

Paul Wilcoxen, Narrator

 The FDIC, besides insuring, is responsible for dealing with these failing banks, and resolving the issues.

Jeff May, President & CEO of Banterra Bank

These were unique in that the depositors, which were uninsured, took their money out so fast they had to handle that differently using bridge banks which they can do, but very seldom do.

Paul Wilcoxen, Narrator

May doesn't see any similarities between what happened to SVB and Signature, and your local bank.

Jeff May, President & CEO of Banterra Bank

Just consumer sentiment that we have to worry about, but banks here in Southern Illinois, we're almost all funded by insured deposits and that's a keyword, insured deposits, whereas those banks were not.

Paul Wilcoxen, Narrator

President Biden announced those with deposits at the two banks would be covered through FDIC, even deposits over the usual limits of $250,000. However, investors are a different story.

Kevin Sylwester, SIU Economics Professor

If you have stock in Silicon Valley bank, that stock is worthless right now. So, yes, if you were an investor in these financial institutions, you’ve basically lost your whole investment. So, depositors, I think, are fine but, yeah, if you bought stock in these companies, just like when any company goes down in business, that stock becomes worthless.

Paul Wilcoxen, Narrator

Reporting in Marion, Paul Wilcoxen, News 3..