NAPA ? As most of us are aware, we are experiencing a historic downturn in our national economy. In the midst of layoffs, falling stock prices and foreclosures, much of the news has also centered on trouble ?the banks? are experiencing. Anxiety is high, and people are understandably fearful, so it?s important to clearly understand the current situation as it pertains to your money at your bank.
First of all, there is significant confusion within the general public pertaining to struggling financial companies that present themselves as a bank in the broadest sense of the term. It is important to understand that many of those struggling financial companies have a function, purpose and regulatory oversight that differs vastly from traditional depository institutions.
In contrast to those companies, traditional commercial banks, like Charter Oak Bank, are among the most stringently regulated in the country. The same can be said of Napa Community Bank and Bank of Napa. It is comforting to know that all of the community banks in Napa are traditional commercial banks and are, therefore, protected by Federal Deposit Insurance Corp. insurance for up to $250,000 per depositor, per insured bank.
Community commercial banks also differ within the traditional bank structure because, typically, community banks do most of their business with the area in which they reside. For Napans, that?s good news. Comparatively, the economy in Napa is much more stable than in other areas of the country and California.
In addition, community banks do not take risks with your money ? they invest in solid, local projects that help their own communities grow and prosper. Community banks are also typically staffed and run by members of the community. These are the people who have the power to make smart decisions based on local knowledge rather than corporate executives from across the country without first-hand experience in the community.
As we have done in previous stressful times, Napa?s community banks are weathering the current economic and financial storm and will continue to do so. Be assured that we have the necessary resources and capital to continue to serve the needs of our community and provide the same level of high quality and trusted service that all of our customers have come to expect.
I invite you to stop by any of your community banks, talk with a local banker and decide for yourself. You?ll be glad you did.
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Brian Kelly is president and chief executive officer of Charter Oak Bank, 600 Trancas St., Napa. He can be reached
at 707-265-2001 or bkelly@charteroakbank.com.
