RELEASE: West Virginia Banks Safe and Secure Amid First State Bank of Barboursville Failure

Press Release/April 8, 2020
Contact: Loren Allen, General Counsel/Director of Government Relations

 

The WVBankers Association learned late on the afternoon of April 3, 2020 of the appointment of the Federal Deposit Insurance Corporation as receiver for First State Bank of Barboursville. We understand that First State Bank has struggled financially for a number of years and we do not believe that First State Bank of Barboursville’s failure is related in any way to the COVID-19 crisis.

The failure of First State Bank of Barboursville is not indicative of operating conditions at any other banks in our state and should not reflect in any way on the safety or soundness of any other institution. The safest and most secure place for people’s money is and always will be, in a federally insured deposit account at a bank or credit union. Customer deposits in these federally insured institutions will continue to be protected up to at least $250,000.

“The banking system in West Virginia is very strong and our banks of every size, from the smallest community banks to the very largest banks operating in our state, have and will continue to safeguard their customers money and to provide the essential financial services that West Virginians rely upon to carry on their daily lives” said Sally Cline, President and CEO of the West Virginia Bankers Association.

“Our banks understand the financial pressures brought on by the loss of income during this time and they are working very closely with customers impacted by the COVID -19 crisis to alleviate those pressures” said Cline. Banks continue to provide customer access to services and are implementing programs, such as payment relief on loans, fee waivers, and the suspension of repossessions and foreclosures, to support their communities as well as the broader economy.

Our member banks are also working very hard to assist the U.S. Department of Treasury and the Small Business Administration to implement a multitude of federal economic programs designed to alleviate the impact of the social measures put in place in response to the COVID-19 health crisis on small business owners, their families, employees and the communities where they live, work, and play.

 

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The West Virginia Bankers Association, founded in 1891 and headquartered in Charleston, represents the state’s financial institutions and their employees. The Association provides continuing education, develops and monitors state and federal legislative agendas, distributes information on all components of the financial industry, and promotes the public image of West Virginia’s banking industry. The mission of WVBankers is to represent and support its members, enabling them to provide a full range of quality financial products and services to benefit the communities they serve.