Photo by Cassidy Norton | Banker & Tradesman Staff

Metro Credit Union said it was one of the financial institutions able to grab depositors from the spring bank failures in March, taking in more than $200 million in deposits.

“With what took place in the environment, several financial institutions had some issues and there was a flight to safety for depositors. Metro took advantage of that, and depositors were looking for a place to put their money,” Metro President and CEO Robert Cashman said in a phone interview.

“We actually were able to bring in over $200 million in deposits for individuals that are really looking for a safe haven, a place that they felt safe and secure. And as such, we saw some tremendous growth that was taking place there,” he added, noting the credit union saw growth in certificates of deposits and money market offerings.

The banking industry has experienced a wave of disruption since spring when large regional banks Silicon Valley Bank, Signature Bank and First Republic Bank collapsed after a series of bank runs and badly-managed exposure to rising interest rates.

Cashman noted that other financial institutions have also benefited from this market disruption, and now these institutions must work to retain newfound deposits and depositors as there is less money circulating in the economy which translates to lower volumes of interest income and deposits.

“Like other institutions, there was some disintermediation from other deposit categories but even with this occurring and a large amount of new money deposits, our net increase in deposits has been approximately $200 million, but has since reduced down due to some normal cyclical timing and continued increase in consumer spending. All-in-all, the retention has been very high with total deposits holding steady,” the president of the Chelsea-based, $3 billion-asset institution said.

Metro Credit Union currently offers a 5 percent APY rate for deposits for 24 months.

Metro Credit Union Scooped Up $200M in Deposits from Spring Bank Failures

by Nika Cataldo time to read: 1 min