Your savings NOW federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.

 

IMPORTANT MESSAGE to our Member/Owners from your Board of Directors and Management Team – Your Deposits are Safe and Secure

 
In the wake of this extended period of economic turmoil your Board, Management and Staff Teams want to let you know that your University Credit Union is a very safe and sound financial institution.  Some of the facts about your University Credit are as follows:

• Excellent capital (equity) at 14.71% over 2x the required amount to meet the regulatory “well-capitalized” level of 7.00%
• Solid earnings to continue the building of capital strength during these challenging times
• Extremely low delinquency in the loan portfolio with equally low charge-offs
• A solid loan portfolio with no sub-prime paper
• A solid investment portfolio with no sub-prime backed investment paper, a good cash position, and extremely fine quality investments
• Governed and managed in a prudent and conservative fashion
• Solid deposit and asset growth for 2008

In these times of uncertainty your University Credit Union wants our member/owners to know that their funds are safe, their financial institution is strong and that we’ll be here for you today, tomorrow, next year, and for years to come.

In addition to this excellent financial strength we want to remind all member/owners that deposits at your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF).  This fund is backed by the full faith and credit of the United States Government.  The NCUSIF is managed by the National Credit Union Administration (NCUA) and provides insurance coverage on each properly established account to a limit of $250,000.00.  Also, Traditional, Roth IRAs and KEOGH retirement accounts are insured to limits from $100,000.00 to $250,000.00.  Not one penny of insured savings has ever been lost by a member of a federally insured credit union.  For more information on your valuable coverage please visit the NCUA website at: http://www.ncua.gov/ShareInsurance/Index.htm. and http://www.ncua.gov/shareinsurance/SpecialBulletin.pdf  

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With the current state of the economy, the recent news about the IndyMac Bank failure and the issues with Fannie Mae and Freddie Mac, we want to take this opportunity to let you know that your funds on deposit at University Credit Union are safe and secure. Your University Credit Union was not involved in the underwriting or purchase of sub prime mortgages during 2007 or 2008.  In addition, your University Credit Union is not currently experiencing the secondary fallout of this debacle.  Many other financial institutions are suffering with the ill-effects of rapidly increasing delinquencies and subsequent charge-offs on loan types such as automobile and credit cards from those consumers who were erroneously placed into sub primes by other institutions.  The loan portfolio at your University Credit Union is solid.   Also, your management team continues close oversight of the credit union’s investment portfolio realizing safe, yet above market yields on the bulk of the funds.  In addition, your University Credit Union has an extremely sound equity position with well over 14% capital, more than double the regulatory requirement of 7%.  Your University Credit Union is a safe, sound and conservative financial institution and we will weather the current economic storm with you, our valued member/owners.

 

The most recent Summer 2008 University Credit Union Newsletter also contained a “Dear Members” article on this specific topic.  A portion of the article reads as follows:

 

“At University Credit Union you can be tremendously confident that you are handling your personal financial accounts with an exceptionally sound, reputable institution! 

 

Now that we have your attention, please rest assured you are the member and owner of a very strong, solid, financially sound credit union!  Your University Credit Union continues with high-quality assets, consistent earnings, and a firm capital base.  The current delinquency and charge-off ratios are some of the lowest in the industry.  The management of your credit union is market savvy and administrates the credit union operations in a safe, conservative fashion. 

 

Why are we taking time to discuss these issues?  Because the recent negative press surrounding the economy, the financial markets, and the state of the mortgage and real estate industry has caused great consternation for almost all consumers.  In economic times like these our business senses and observations are especially keen toward any and all signs of question or concern.  These feelings are not only natural, but necessary and prudent!

 

When viewing or reviewing any and all of your financial dealings please make sure you are comfortable with not only the institution, but the type or level of the account or investment.  If you have any uncertainties or anxiety whatsoever please call an officer of the respective company and discuss your concerns.  Now is not the time to be timid or hesitate in having a conversation.  Remember, it is your money!

 

As a country, we’ve been here before and we’ll be here again.  We are resilient and our economy is resilient, it’s just a matter of time.  Concerning this current challenge it looks as if we’ll begin to see some light by year-end 2008 and we will actually feel the turnaround by mid-year 2009, barring any unforeseen circumstances.  It’s not fun and it’s not pretty, but it will pass!”

 

We can confidently assure you, our member/owners that your University Credit Union deposits are safe and secure.  Your University Credit Union follows the time honored credit union traditions and philosophies of “People Helping People”, “Not for Profit, Not for Charity, But for Service” and is constantly in pursuit of “World Class Member Service!”

 

Thank you and please remember, we’re here for you.