SALT LAKE CITY (ABC4) – State leaders reassured Utahns on Monday morning that the state’s economy is strong and that Utah banks are stable, including the Salt Lake City-based Zions Bank, days after a major bank failed over the weekend.

Over the weekend, Silicon Valley Bank failed after its customer base, which is largely made up of startups and other tech-centric companies according to the Associated Press, was needy for cash. This led to its customers pulling their money from the bank quickly. The withdrawals required the bank to sell its own assets to meet the requests, leading to the bank’s downfall.

The process is known as a bank run, and it could happen to any bank.

Although a bank run could happen to any bank, as it is sparked by customer panic, former Vice Chair for the Federal Reserve (the Fed) Randy Quarles said it was an unusual situation.

“[SVB had a] high concentration of customers in a single industry and a very high level of very large uninsured deposits,” said Quarles. “They had a few profitable lending opportunities in that industry. Most banks make their money by taking credit risks. SVB made their money by taking interest rate risks and obviously, that moved against them when interest rates began to rise.”

During a virtual town hall featuring Utah political leaders, business leaders, and bankers, Zions Bank spokesperson Scott Anderson admitted the days after SVB’s collapse have been stressful and highly eventful.

Despite the stress, Anderson reassured Utahns that Zions differs from SVB in a number of ways.

“At Zions, we have certainly grown over the past decade, but nothing close to the aggressive growth rate of Silicon Valley Bank has grown,” said Anderson. “We have a business that is geographically diversified and it’s diversified in the terms of the types of clients we bank and the clients we offer.”

According to Anderson, SVB’s average deposited account balance was 22 times more than the average account balance at Zions Bank. Zions Bank also reportedly has a strategy to focus on a number of small and medium market businesses in a wide variety of industries, which he says differs from the “narrow strategies” followed by Silicon Valley. It’s a case of Zions Bank not putting all its eggs into one basket.

“Our capital, earnings, credit quality, and liquidity remain in very solid shape as reflected in our recent 10-K filing with the Securities and Exchange Commission,” said Anderson. “We use a stress testing process and liquidity rules followed by the largest global systemically important banks to plan for and to prepare for industry stress.”

Utah’s Department of Financial Institutions Commissioner Darryle Rude echoed Anderson, saying Utah’s banks are well-capitalized and have plenty of liquidity. Rude said Utah’s banks were not concentrated in any particular industry like how SVB was concentrated on the tech industry.

Political leaders including Utah Gov. Spencer Cox, President Stuart Adams, Speaker Brad Wilson, and Senators Mitt Romney and Mike Lee all rallied behind Zions Bank. The political leaders had all met alongside Utah’s Silicon Slopes, business leaders, and stakeholders to create contingency plans.

Utah officials said they were fully prepared within hours to step in and support local banks and businesses in case the Federal Reserve (the Fed) or the Federal Deposit Insurance Corporation (FDIC) didn’t.

“We aren’t taking a victory lap with this. Our job is to support you – the entrepreneurs in this state who create the jobs and keep our economy running,” said Gov. Cox. “Far too often we are part of the problem but I hope this weekend we were part of the solution. Just know that we’re here, we care, and we are willing to spring into action when you need us.”