Monday, March 23, 2009

NCUA's Conservatorship of U.S. Central and Wescorp

Members may have seen or read that the National Credit Union Administration (NCUA) has recently (March 20th) placed two corporate credit unions into conservatorship; U.S. Central Corporate Credit Union of Lenexa, Kansas and Western Corporate Credit Union (Wescorp) of San Dimas, California. These are wholesale credit unions, not credit unions that serve individual consumers. Corporate credit unions provide liquidity, investment, and payment services to credit unions that do serve consumers. North Alabama Educators Credit Union does not have a membership relationship in either of these two corporate credit unions.

What does the conservatorship of U.S. Central and Wescorp mean to North Alabama Educators Credit Union? In short, not much. It's business as usual for the credit union. Our service to the members of North Alabama Educators Credit Union is not impacted at all by the action of the NCUA. Keep in mind that all member deposits are federally insured by the NCUA to at least $250,000 per member. In addition to your accounts being federally insured, North Alabama Educators Credit Union is financially sound. Our current net worth is 8.20% which means that 8.20% of our total assets have been set aside in reserves to protect you, the member. Loan delinquencies remain very low at North Alabama Educators Credit Union. As of December 2008, the ratio of delinquent loans to total loans was only 0.31%, compared with an industry peer average of 1.46%. We have not experienced a single foreclosure during this entire "housing crisis".

Credit unions have been serving members for 100 years, in good times and bad. No credit union has ever cost the U.S. taxpayers anything. We will continue to operate safely. protecting your assets through conservative lending and investment choices.

If any members have questions or comments, please feel free to contact me at 256-534-2423 or by email: . - Greg Olmsted.

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