C1ST REMAINS FINANCIALLY SOUND
Posted
10/26/2008
The fall out from the Mortgage industry troubles continue, and recently there has been a lot of press coverage about the failure of IndyMac Bank and the government's support and regulation of Fannie Mae and Freddie Mac. There has also been a great deal of press lately about the safety of your deposits in financial institutions. These articles are a good reminder that you should regularly verify the amount of coverage on your deposits. It is a wise and prudent thing to do for your own piece of mind. However, some of the press coverage borders on the edge of "sensationalism." It is understandable if you have worried about the status of your hard earned dollars but let me assure you that C1st accounts are indeed safe and secure. I am very pleased to report that C1st continues to be prosperous and financially sound.
Many financial institutions are experiencing very high credit losses from making subprime or "exotic" mortgages (often referred to as "negative amortization" or "Alt A" mortgages). Community 1st Credit Union has never offered those products and we never will. The reason we won't is because we don't believe these are the right solutions for our members. Additionally, Community 1st Credit Union, like all credit unions, is significantly restricted to the types of investments that can be purchased and the financial transactions we can enter. We know it is our members' money we are investing-and we proceed with the utmost caution in every case.
Over 90% of the deposits that are held at Community 1st Credit Union are dispersed as loans to members-the true purpose of a credit union. Community 1st Credit Union's responsible and sound lending guidelines allow us to remain in a healthy position and continue to offer highly competitive deposit and loan rates. In addition, C1st is backed by the full faith and credit of the United States Government's National Credit Union Association. The National Credit Union Association is to credit unions what the FDIC is to banks. As the FDIC does for banks, the National Credit Union Share Insurance Fund (NCUSIF) insures a person's savings up to at least $100,000, with higher total coverage available if the member has a combination of individual, joint, trust, payable-on-death and other types of accounts. There is also separate insurance coverage of up to $250,000 for individual retirement accounts (IRA's). The NCUSIF is administered by the National Credit Union Administration (NCUA), an agency of the federal government. To determine your insurance coverage, see the NCUA's insurance estimator at: http://webapps.ncua.gov/ins/. For more information on NCUA insurance visit www.ncua.gov/Publications/brochures/insured_funds/funds.pdf. You may also contact the NCUA Insurance Call Center at toll free 1.900.755.1030, from 8 am - 6:30 pm (EDT) Monday - Friday, to speak to an NCUA insurance expert.
C1st's delinquency and charge off percentages continue to remain at historically low rates. The staff at C1st monitors delinquencies very closely. We also take a proactive approach of working with members who may be dealing with financial challenges to help them find solutions. Certainly we are feeling the effects of the current housing market, tighter lending standards and escalating fuel costs. However, it can also be said that the state of Iowa-where Community 1st Credit Union funds most of its mortgages-has remained in better shape than in most areas of the country. That fact, along with our strong financial position, allows Community 1st Credit Union to continue to be a viable mortgage lender. Our goal is to help members become homeowners-and to keep them in their homes.
Remember, you can turn to C1st for any financial issue you face-with the knowledge that your credit union is financially safe and sound. For more information on how America's Credit Unions are strong and secure, please click here. As always, thank you for your membership at Community 1st Credit Union.
Sincerely,
Terry Maloy
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