According to Reuters , the collapse of Silicon Valley Bank (SVB) and Signature just days apart has caused great confusion among American customers. Much of this concern comes from uninsured deposit accounts at small and medium-sized banks.
Here are five U.S. banks with high-risk uninsured deposit accounts that Reuters found:
1. First Republic Bank (FRC)
According to FRC's financial reports and data from the US Federal Deposit Insurance Corporation (FDIC), FRC's uninsured deposits amounted to more than $119.5 billion, accounting for 68% of the bank's deposit accounts.
As of December 2022, FRC's available-for-sale securities (AFS) investment was $471 million.
FRC Bank's uninsured deposits amounted to more than $119.5 billion, the highest among banks according to FDIC data. (Photo: Reuters)
In the trading session at the end of March 10, FRC shares decreased by 33% in value.
However, FRC still receives support from additional financial funds guaranteed by financial services company JPMorgan Chase. In addition, FRC has more than 70 billion USD of unused capital.
2. Comerica Bank (CMA)
According to financial reports from CMA Bank and other independent financial institutions, CMA's uninsured deposits are approximately $45.5 billion, accounting for 62% of the bank's deposit accounts.
As of December 2022, CMA's available-for-sale securities (AFS) investments were $3.03 billion.
In late trading on March 10, CMA shares fell 16.1% in value.
3. Western Alliance Bank (WAL)
According to financial reports of WAL Bank and other independent financial institutions, WAL's uninsured deposits are more than 31.1 billion USD, accounting for 58% of the bank's deposit accounts.
As of December 2022, WAL's available-for-sale securities (AFS) investment was USD 674.9 million.
In late trading on March 10, WAL shares fell 16.1% in value.
Despite market volatility following the collapse of SVB and Signature, WAL still forecasts funding growth in 2023 to be between 13% and 17%.
4. Zions Bank (ZION)
According to ZION Bank's financial reports, ZION's uninsured deposits are more than $37.6 billion, accounting for 53% of the bank's deposit accounts.
As of December 2022, ZION's available-for-sale securities (AFS) investment is $1.63 billion
In late trading on March 10, ZION shares fell 20.3% in value.
5. Synovus Bank (SNV)
According to SNV bank's financial reports, SNV's uninsured deposits are more than 25.1 billion USD, accounting for 51% of the bank's deposit accounts.
As of December 2022, SNV's available-for-sale securities (AFS) investments are USD 1.6 billion.
In late trading on March 10, ZION shares fell 17% in value.
According to the FDIC, deposit accounts with deposits of more than $250,000 will receive a Certificate of Uninsured Funds as evidence of a claim against the closed bank. They are paid pro rata when the bank's assets are liquidated, such payments are called dividends.
While fully insured deposits are paid out immediately after a bank closes, settlement of uninsured deposits can take several years.
Creditors and shareholders in general - who are last in priority - typically receive little or nothing from a liquidation.
Tra Khanh (Source: Reuters)
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