Customers & Friends -
Current banking news has us reflecting on something economist (and Hyperion Board Member) Lara Rhame once said – “We’re not really ever in a recession until people stop spending like they’re in a recession.” Her words have never been more resonant, as consumer activity is the largest contributing factor to what state the banking industry is currently in.
And, no, we can’t lean too hard on that parallel, but it is to a great extent true that how consumers and their deposits perceive the current state of banking and how they react to that is the biggest player right now.
Current industry circumstances are nothing like what we saw in 2008. Banks in general are significantly more liquid and solvent than they were in the runup to the Global Financial Crisis. And, again, specifically Hyperion Bank is well diversified, such balance being our standard stance.
Hyperion Bank is far removed from the volatility of 2008; our financial stability and diversification make us sounder than ever before. As a community-focused bank, we embody the spirit of the local community - we are invested both literally and figuratively in ensuring that money remains safe.
In light of recent events, we want to reiterate that we epitomize a healthy community bank, being of, for, and by the community, with many of you being invested, literally and otherwise. Confidence in Hyperion Bank is strong as evidenced by recent developments. Our new CD promotion rolled out amidst much attention in the banking industry - so far it has drawn good interest.
And, in addition to being approached by an Atlanta firm banked by SVB (Silicon Valley Bank) for help finding a robust alternative which resulted in a $20 million deposit, two existing customers moved deposits out of SVB and into Hyperion Bank. This reaffirms the security that comes with smaller banks like ours. Additionally, interest in our reinvigorated SBA program has been good, with the recent addition of SBA lending veteran Susan Battle.
We will continue monitoring the news. That said, even though we’ll probably see further pressure on some banks, we otherwise look for banking to be less “exciting” in the near future. And, yes, the state of banking plays a key role in markets and the economy as a whole, so a faster resolution of things is best all around.
As always, reach out to either of us at any time with questions – or just to talk banking!
Louis J. DeCesare, Jr.
President & COO
(215) 789-4202
(215) 423-2529
Charles B. Crawford, Jr.
Chairman & CEO
(215) 789-4185 (Office)
(404) 381-2115 (Office)
(404) 493-5359 (Cell)
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