NC regional banks in 'fantastic health' as Silicon Valley fails

Elaina Athans Image
Friday, March 17, 2023
Are North Carolina banks safe?
State Treasurer Dale Folwell said North Carolina's 36 regional or community banks are in good shape.

RALEIGH, N.C. (WTVD) -- There are 36 regional or community banks in North Carolina, which are regulated directly by the North Carolina Banking Commission. Truist Bank is one of them, First Citizens Bank is another. ABC11 asked about their financial health after seeing another regional bank fail just a week ago.

Silicon Valley Bank collapsed last Friday and its parent company filed for bankruptcy this Friday.

The fall is fueling fear here in the Triangle.

"That concerns me," said Benson resident Jorge Valero. "(I'm) thinking about taking all of my money and saving under the mattress."

ALSO SEE: Will Americans end up footing the bill for bank failures?

He's worried other institutions could collapse. He lived through the 2008/2009 financial crisis.

"It was a lot of lack of work and I had hard times, and I don't want to happen again," said Valero.

North Carolina lost almost $10 million worth of stock with Silicon Valley's closure.

State Treasurer Dale Folwell said the investment equates to less than 1% of the pension portfolio and won't really affect plans.

Some of North Carolina's other exposures include:

  • Stock exposure of $3.2 million in First Republic
  • Stock exposure of $2.8 million in Zions Bancorp
  • Stock exposure of $1.8 million in Western Alliance Bancorp
  • Stock exposure of $3.6 million, Bond exposure of $1.8 million in Comerica

"We are still not into a crisis in North Carolina and I think we're going to be fine," said Folwell.

He said the state's 36 regional banks are in good shape.

"I think they're in fantastic health and you're seeing some evidence of this," said Folwell. "Many (are) contributing towards keeping some of these other banks going. They would never ever do that if they didn't think they're in good shape internally."

Folwell is urging folks to keep their faith and money in North Carolina banks.