Taylor: What’s behind USAA’s first losing year in a century?

, its first loss for a full year since 1923 — 100 years ago.

“It’s important to note,” he said, “that this accounting value change is temporary and has already improved in 2023 — and any undervalued securities can simply be held to maturity.”The bigger banking pictureThe recent failures and seizures of First Republic Bank, Silicon Valley Bank and Signature Bank by the Federal Deposit Insurance Corp. —— have bank customers and regulators on edge these days.

Step two in the downfalls of SVB, Signature and First Republic, however, was that they catered to customers who held large deposits, with what we now understand to be an overly large proportion above the FDIC-guaranteed amount of $250,000. Those large and relatively sophisticated depositors moved their accounts too rapidly for the banks to sell their assets in an orderly way.

More broadly, USAA’s banking customer base is not primarily high-net worth individuals, but rather active or retired military personnel and their families. As Seybond confirmed, “Our bank is consumer based, 93 percent of deposits are within the applicable FDIC insurance limits, and we have access to excess liquidity to serve the needs of our members.”

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