This breadth of experience tells us that tomorrow will always bring new challenges, but we stand confident, knowing that Community First and Easy Street are strong and viable financial brands. This strength reflects our efforts to protect our balance sheet throughout the pandemic while navigating significant regulatory change and a period of record low interest rates, which are now increasing.

We have been operating under Australia’s Banking Act since 1959. Community First is member-owned and does not have any external shareholders which means profits are reinvested for the benefit of members in the form of fairer fees, higher standards of service and competitive interest rates.

Is there any exposure to Easy Street as a result of the Silicon Valley Bank collapse?

Community First and Easy Street do not invest in overseas institutions that do not have an Australian ADI licence and the Australian market and legislation is different to the United States. Hence, Easy Street has no direct exposure to the downfall of the Silicon Valley Bank. Our parent bank’s conservative investment policy means we invest a portion of our liquidity portfolio in floating rate notes with Australian licensed institutions which reprice every 90 days. Plus, all of our investments are held to maturity.

Is my money safe with Easy Street?

As an Authorised Deposit-Taking Institution (ADI) regulated under Australia’s Banking Act 1959, member deposits are protected under the Federal Government’s Financial Claims scheme (FCS) which is exactly the same as Australia’s biggest banks. The FCS is a government-backed safety net for deposits of up to $250,000 per account holder per ADI. Put simply, your deposit money with Easy Street is guaranteed by Community First Bank’s $105 million in net assets and by the Federal Government’s scheme up to $250,000.

Also, Easy Street carries significantly more than the statutory minimum capital requirements which ensures we can meet all commitments at all times.

How does Easy Street fund its loans?

Around 94% of Community First’s total loans are funded by retail deposits and 6% are wholesale deposit funded.

The traditionally high retail funding exposure represents a very stable, conservative and secure source of funds. Our parent bank also has various lines of credit to increase wholesale exposures at any time if required which include the Reserve Bank of Australia.

What is the impact of recent interest rate increases on Easy Street?

Our assets are repriced faster than liabilities in a rising interest rate environment which means profits will increase quickly in the first year. Demand for Easy Street products and services, and our overall performance is very strong. However, as a member owned financial institution, we will try and minimise any impact on our members regardless of where interest rates land.

Is Easy Street Financial Services, Community First Bank and Community First Credit Union considered the same entity under the Financial Claims Scheme?

Yes. “Community First Credit Union” is our registered name but we trade under the name “Community First Bank” simply because it explains what we do, and Easy Street is a division of Community First. The FCS limit of $250,000 applies to the sum of an account holder's deposits under the one banking licence (i.e. the sum of deposits held at both Community First and Easy Street).

Community First Credit Union is registered as an Authorised Deposit-Taking Institution (ADI) and thereby covered by the Government’s Financial Claims Scheme (FCS) Guarantee, exactly the same as the Big 4 Banks which are also ADI’s, even though we currently hold more capital as a percentage of assets.