Sunday, March 14, 2010  












Communication is Rock Solid

On Friday, March 20, 2009, the National Credit Union Administration Board placed U.S. Central Federal Credit Union, Lenexa, Kansas, and Western Corporate (WesCorp) Federal Credit Union, San Dimas, California, into conservatorship to stabilize the corporate credit union system and resolve balance sheet issues.

Corporate credit unions do not serve consumers. They are chartered to provide products and services to natural-person credit unions. These products and services will continue uninterrupted and there is no direct impact by NCUA’s actions on the 90 million credit union members nationwide.

So, how are Communication Federal/Communication Credit Union and its members affected by this announcement? Our exposure is very limited. We do not have a direct relationship with U.S. Central or WesCorp. However, we do have a relationship with two other corporate credit unions that NCUA deems stable.

We would like to reassure you that Communication Federal/Communication Credit Union is among the most financially stable institutions in the nation. A key indicator of strength and stability for financial institutions is its “Capital Ratio”. This ratio indicates a financial institution’s net worth to total assets. At the end of February 2009, Communication’s capital ratio was 17.06%. Credit unions of a comparable asset size averaged just over 11.51%, indicating that your credit union has approximately a 6% greater net worth than the average credit union in our peer group.

All deposits at Communication are federally insured to at least $250,000 by the National Credit Union Administration, a U.S. Government agency, through the National Credit Union Share Insurance Fund. Structuring your accounts properly may provide significantly more federal insurance coverage, depending on your individual situation. We would like to remind you that when Congress increased the minimum insurance coverage from $100,000 to $250,000, these limits are effective through December 2009 and there is no guarantee that this change will be permanent.

Communication Federal Credit Union’s Management Team and Board of Directors are committed to keeping your funds secure while offering exceptional value in rates, products and service. We appreciate your business, continued support and loyalty.

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APR=Annual Percentage Rate
APY=Annual Percentage Yield
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