Dear Metro Member:
When Silicon Valley Bank failed in March, we sent members an email highlighting the differences between how Metro operates compared to banks experiencing trouble in this higher interest environment. We noted that:
- Metro is very conservative and did not buy investments or put a large number of long-term, low-rate loans in our portfolio.
- Metro does not have a high concentration of members with uninsured deposits.
- Metro does not have liquidity issues, because nearly 25% of our assets are in cash and cash equivalents.
The message was well-received. In fact, several members responded with how much they appreciate the responsible management of the credit union.
Since that last message, however, we’ve noticed something else happening. We’ve seen other institutions advertising “interest rate specials” on loans where their “special rate” is higher than our normal rate.
How can our normal rate be better in many cases? The reasons are simple. As outlined above, it’s because of our liquidity and the fact we have very few long-term, fixed rate assets from when rates were at historical lows. These advantages, together, position us to offer some of the best rates in our area on both loan and deposit products. Said another way, we can offer good rates whether you’re borrowing or depositing.
Reflecting on the various competitor “specials,” one of our employees said, “We really need to tell members to ‘check with Metro first, because we are a better deal’.” So that’s what we’re doing today, encouraging you to reach out to us first.
Regardless of the problems you hear about with other financial institutions, remember Metro isn’t among them. We are safe, sound, and secure, and because we didn’t take on risk when rates were near zero, we can offer you a better deal most of the time today.
Don’t just take our word for it. Before you open a certificate or borrow money from one of our competitors, check with Metro first. You’ll likely find that we are truly your local advantage.
Thank you for the faith and trust you place in us and for the opportunity to serve you. You have our word – we’ll continue to be conservative and work hard to be worthy of your trust.