Soundness FAQs
- How is Commerce faring in these turbulent times for the banking industry?
- How does the current housing and credit slump affect Commerce?
- What does FDIC insurance really mean?
- Why is FDIC insurance important?
- If I have more than $250,000 with Commerce Bank, how can I make sure all my deposits are covered by FDIC insurance?
- Who should I contact for more information?
How is Commerce faring in these turbulent times for the banking industry?
Commerce has a 140 year history of prudent, conservative management, which has served us well during the ups and downs of economic cycles. Our year-to-date 2008 earnings per share and net income are up from last year. Commerce received Moody’s highest financial strength rating among mid-sized regional banks in April. Commerce’s disciplined lending philosophy and strong investment portfolio serve us well at a time when credit discipline and capital adequacy have become central issues in our industry. Our super-community banking platform allows us to provide high service levels and competitive products while generating the type of financial returns that enable Commerce to receive consistently high ratings from financial analysts.
How does the current housing and credit slump affect Commerce?
The current credit crisis has most severely impacted banks with aggressive loan practices. Commerce has not deviated from its conservative underwriting policies and, as a result, consistently maintains lower than average loan losses. While loan losses have experienced some increase in this difficult economic environment, we have focused on maintaining adequate levels of liquidity and capital while closely monitoring and controlling credit costs.
What does FDIC insurance really mean?
The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000 per depositor; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.
An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure.
The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. With an insurance fund totaling more than $49 billion, the FDIC insures more than $3 trillion of deposits in U.S. banks and thrifts – deposits in virtually every bank and thrift in the country.
Savings, checking and other deposit accounts, when combined, are currently insured to $250,000 per depositor in each bank or thrift the FDIC insures. Deposits held in different categories of ownership – such as single or joint accounts – may be separately insured. Also, the FDIC generally provides separate coverage for retirement accounts, such as individual retirement accounts (IRAs) and Keoghs, insured up to $250,000. The FDIC's Electronic Deposit Insurance Estimator can help you determine if you have adequate deposit insurance for your accounts.
--From the FDIC website: www.fdic.gov
Why is FDIC insurance important?
All FDIC-insured banks must meet high standards for financial strength and stability. The FDIC, with other federal and state regulatory agencies, regularly reviews the operations of insured banks to ensure these standards are met. Even with these safeguards, some insured banks fail. If an insured bank fails, FDIC insurance will cover your deposits, dollar for dollar, including principal and any accrued interest, up to the insurance limit.
Historically, insured deposits are available to customers of a failed bank within just a few days. Since the start of the FDIC in 1933, no depositor has ever lost a penny of insured deposits.
--From the FDIC website: www.fdic.gov
If I have more than $250,000 with Commerce Bank, how can I make sure all my deposits are covered by FDIC insurance?
Your Commerce banker can provide more information regarding ownership options for your Commerce Bank accounts that may allow you to extend your FDIC coverage. In addition, Commerce Brokerage Services, Inc. offers brokered CD’s that are issued by other FDIC member banks and are covered separately by FDIC insurance. You may contact Commerce Brokerage Services during normal business hours at 1-800-772-7283 for more information.
Commerce Brokerage Services, Inc., Member FINRA/SIPC is a wholly owned non-bank subsidiary of Commerce Bank, N.A.
Who should I contact for more information?
Call your Commerce banker or our Customer Care Center at 1-800-453-2265 for assistance Monday through Friday 7:30 a.m. – 10:00 p.m.
and Saturday 7:30 a.m. – 4:00 p.m.
FDIC deposit insurance temporarily increased from at least $100,000 to $250,000 per depositor through
December 31, 2013.
