UMCU Financial Highlights
What is the NCUSIF Stabilization Expense?
2009 has presented many challenges directly related to the national recession and uncertainty at home with our domestic automobile industry. Nearly every facet of the economy has been hurt by the downturn. Your credit union has been able to avoid these difficulties by focusing on our member’s needs and conservatively managing our risks.
As a UMCU member, you can be assured that your credit union is operating in a sound financial manner and remains well capitalized. Your deposits are insured up to $250,000 by the NCUA. In fact, no credit union member has ever lost a dime of federally insured funds. Through responsible lending and investment practices, UMCU and other credit unions remain strong and in a great position to serve our members and our community.
Two corporate credit unions have been placed into conservatorship by the National Credit Union Administration (NCUA). The corporate credit unions operate in the capital markets and hold highly rated, investment grade securities. But like so many others in those markets, they have seen the value of their investments decline in the current economic downturn. These two corporate credit unions had losses significant enough that the NCUA had to take action.
To assist these large corporate credit unions, the NCUA has required every credit union to contribute additional funding to the National Credit Union Share Insurance Fund (NCUSIF). Credit unions are unique in that we have not received any federal funds or TARP money to support our industry. Every federally insured credit union is required to pay an amount into the NCUSIF to support the potential losses.
This unexpected assessment, which is unrelated to the safety and soundness of your credit union, is required due to the cooperative manner in which credit union deposits are insured. While it will be a significant expense to your credit union, in the cooperative spirit of credit unions, it is the right thing to do. Since your credit union continues to remain financially strong and well capitalized, UMCU will continue to meet our members' deposit, lending and transaction needs like we have for over 50 years.
UMCU strives to be your trusted partner in this difficult economic environment. If you have any questions, please don’t hesitate to call us at 734-662-8200 or 800-968-8628.
Your
savings federally insured to at least $250,000 and backed by the full faith
and credit of the United States Government
We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.