MARCH 27-APRIL 2, 2023 26 · SBJ.NET FROM THE COVER Banks: Missouri institutions are more diversified than SVB, Signature Bank Continued from page 1 sound,” Hataway said, noting the state has over 200 banks in operation. “We are incredibly well capitalized. Our banks have strong liquidity. If you look at banks in Missouri, we are widely diversified.” Hataway said the makeup of Missouri’s banks includes consumer, business, agricultural and real estate lending, and deposits reflect that. “For your average consumer, the FDIC-insured institution is the safest place to have your money,” he said. “The vast majority of consumers don’t exceed the $250,000 threshold and so they have ample room for insurance. There’s plenty of opportunity for people to trust in the soundness of the banking system.” Reaching out Local leaders at Great Southern Bancorp Inc. (Nasdaq: GSBC) and Legacy Bank & Trust Co. say their companies were proactive after the bank failures to reach out to large depositors to calm worries they might have about the security of their funds. “We called our larger customers who would have uninsured balances, and there was essentially no concern at all,” said Joe Turner, Great Southern president and CEO. “The activity we’ve seen over the last 10 days has been pretty normal.” It was a similar situation for Legacy Bank, said President Brett Magers. “The Springfield market on the whole is a really safe banking market,” he said, noting there have been relatively few banking problems locally in recent years compared to nationwide – even including during the Great Recession, in which roughly 460 banks failed across the country from 20082012, according to FDIC data. “It’s a good place to bank because of the stability,” Magers said. “There’s a more conservative approach to banking than there was 15 years ago. There’s a lot more capital, and people love liquidity and all the things that make a safe and sound bank. We’re in a lot better position.” Data published March 16 by the Federal Reserve showed banks borrowed a combined $164.8 billion from two Fed backstop facilities in the week ended March 15. It was a record high, with the previous top amount, $111 billion, reached during the 2008 financial crisis, according to media reports. The Fed’s data didn’t identify the banks who took out the loans. Great Southern and Legacy officials said they were not among the borrowers. Hataway said for consumers and businesses with bank accounts, the most important thing is for them to understand their banking relationship. “Know that you have FDIC deposit insurance,” he said. “Most importantly, knowing the bank and the banker you work with are huge components in being able to manage your finances, manage your business finances in a way that makes you not only comfortable with where your finances are but with the people that are managing them for you.” Keith Noble, president of Commerce Bank in Springfield, said a financial institution’s performance can reflect its management and decision-making. “Consumers should look for a bank that is well-capitalized, produces good returns, manages risk and has diverse revenue streams,” he said via email. “Commerce has one of the highest Tier 1 risk-based capital ratios among the top 50 publicly traded banks in the country at 14%. Moody’s recently reaffirmed Commerce’s financial strength by assigning the bank an A1 baseline credit assessment.” Great Southern and Legacy are among banks that offer insured cash sweep, a service that allows customers to secure large deposits while maintaining access to their funds. Any financial institution that offers ICS services are included in a network, and deposits made are handled through a network member of the customer’s choosing and can be spread among multiple banks to be covered by the FDIC limits, according to officials. When placing a large deposit using ICS, funds are placed into a demand deposit account, money market account, or both. On the rise In advance of the Federal Reserve’s Joe Turner wouldn’t have a problem if the FDIC insurance coverage limit were raised. Brett Magers: Springfield is a safe banking market. $250K Federal Deposit Insurance Corp. insurance coverage limit Consumers should look for a bank that is wellcapitalized, produces good returns, manages risk and has diverse revenue streams.” — Keith Noble, Commerce Bank in Springfield Contact advertising@sbj.net to request details and pricing. Each section will run one time per month in the Springfield Business Journal. Week 1: At Your Service - Your source for finding providers for the services you need in your home or business. Week 2: Ask the Experts - A monthly digest of frequently asked business questions answered by our experts. Week 3: On Your Radar - Your source for innovative solutions, unique value propositions, and novel core products that can improve your business and may not be on your radar. Week 4: To Your Health - Your source for finding products, services, and professionals dedicated to your health. 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