PRESIDENT'S LETTER
Napa Community Bank reminds community banking customers that their insured deposits are safe and backed by the full faith and credit of the federal government through the Federal Deposit Insurance Corporation (FDIC). In spite of the headlines about the challenges facing Wall Street financial institutions, community banks are open for business and our customers can bank with confidence knowing their money is safe because it is insured by the FDIC. Since the FDIC was founded in the 1930s, no one has ever lost a penny of FDIC-insured funds.
The FDIC insures bank deposits and protects depositors' money. FDIC deposit insurance covers each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest up to $100,000, with additional protection for joint accounts, and $250,000 for a retirement account.
Napa Community Bank can also protect its depositors’ money up to $50 million through its membership in the Certificate of Deposit Account Registry Service (CDARS). CDARS is a secure savings and investment option for individuals, entrepreneurs, businesses, nonprofits and local governments.
CDARS is a deposit placement service. Deposits placed through CDARS meet the pass-through insurance coverage guidelines established by the FDIC. To offer CDARS, a bank must belong to the CDARS network. When a customer places a large deposit with a network bank, the bank arranges for the placement of funds into CDs issued by other network banks – in increments of less than $100,000 to ensure that both principal and interest are eligible for full FDIC protection.
From the customers’ point of view, CDARS is one-stop shopping. Regardless of the number of CDs they receive, CDARS customers work with only one bank, sign only one agreement and receive one account statement.
Having a safe and sound banking system to rely on shows the importance of the role banks play in our local communities and in our nation's economy. They are the source of stability and of growth. That is true regardless of their asset size, their charter or their business plan.
If members of the community have any questions or concerns about the economy, financial markets or Napa Community Bank, our team of community bankers is always available to talk to all members of the community.
Best regards,
Dennis Pedisich
President & CEO
Napa Community Bank
