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Rest Assured: EECU is safe and sound
September 1, 2008
Dear EECU Member,
The recent failure of Indymac bank has many consumers wondering if their money is safe at their financial institution. At Educational Employees Credit Union, your deposits are insured by the National Credit Union Share Insurance Fund, an arm of the National Credit Union Administration (NCUA), and backed by the full faith and credit of the U.S. Government. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.
During these tough economic times, we want you to know that EECU is a safe and sound financial institution committed to protecting its most valuable asset - our loyal members. We've been around for almost 75 years and have built a solid reputation in the community by being fiscally responsible, maintaining high standards, and providing good service. With over $1.7 billion in assets and over 162,000 members, EECU is the largest credit union based in the Central Valley. We rank 16th in California based on asset size, and 68th in the United States.
Because of the volatile financial markets, many people are seeking the safety and soundness of credit unions. According to the NCUA, approximately 8,600 federally insured credit unions now serve 85 million members with $600 billion on deposit. Credit unions are different from many financial institutions in their operation and their philosophy of placing members' needs first. This "member-first" approach translates into better rates on savings accounts and loans, lower fees, and higher levels of service.
Trust is the foundation of any relationship. At EECU, we have a commitment shared by all of our employees to earn and keep your trust. When we make business decisions, we consider how those decisions will affect our members. The fallout from subprime lending is a good example. While other lenders were making subprime loans, we chose not to, because we recognized the high risk such loans entail. Many banks ignored these risks because subprime loans could generate high returns. Today, we manage a very healthy loan portfolio and have avoided the large losses that many other financial institutions are experiencing.
We recognize that you have many banking options, and we want to take this time to thank you for choosing EECU. Your continued loyalty, support, and confidence in EECU are what make us the strong, stable institution we are today.
Sincerely,
Barbara Thomas
Chair, EECU Board of Directors
Rick Browning
Treasurer, EECU Board of Directors
October 5, 2008
It seems that there isn't a day that goes by that we don't hear about another financial institution experiencing some type of problem. At Educational Employees Credit Union, we have been proudly serving our members since 1934.
Our formula for success is simple: Safety and Soundness + Our Members' Best Interest + Straightforward Products = Success.
We avoid things that sound too good to be true, we keep our members' best interest at heart, and we offer products that make our members' lives less complicated and more convenient. We did not jump on the subprime mortgage train, and we did not invest in subprime-mortgage-backed securities, derivatives or the stock market.
Instead, we invest in our members by providing low-interest home loans, auto loans, and credit cards. We take the earnings from those loans and offer our members competitive rates on their savings products, and we keep our fees low. It is a time-tested formula that has worked for 74 years.
We want to thank our members and employees for their commitment to EECU and the communities we serve.
Elizabeth J. Dooley
EECU President/CEO
