October 6, 2008 Dear Member: With recent headlines reflecting trouble in the banking sector and spreading concern about bank failures, I wanted to personally tell you your credit union remains stable and strong. To illustrate this, I want to highlight some facts about Bellwether Community Credit Union. These facts are public, available at the National Credit Union Administration's (NCUA) website at www.ncua.gov. First, our capital reserves are almost twice the amount defined as "well-capitalized" by the NCUA. As of August 31, 2008 our capital position was 13.70% of assets. The NCUA defines credit unions as "well-capitalized" if their capital-to-asset ratio is 7% or greater. Capital is a credit union's financial reserves, in other words, a "cushion" against unforeseen losses. The NCUA, a U.S. government agency, ensures the deposits of BCCU members to at least $250,000.
Secondly, I want to underscore that BCCU has always maintained solid lending underwriting standards. We do not engage in speculative lending practices or subprime lending, which have led to some of the foreclosures and losses some institutions are experiencing. Our loan delinquencies as of the end of August stood at only .49% of our assets. Peer credit unions are averaging a delinquency rate of .96%. Many of the troubled banks making headlines have delinquency rates above 5%.
Finally, independent agencies rate BCCU as strong. Bauer Financial, an independent bank and credit union rating company, has rated Bellwether Community Credit Union with their highest "Superior, Five-Star Rating" for multiple years.
Bellwether Community Credit Union has been around since 1921. We have seen and weathered numerous cycles in the financial industry. By keeping our focus on our members and sticking to safe and sound business practices, Bellwether Community Credit Union remains stable, strong, and well-positioned for the future.
Sincerely,
Michael L'Ecuyer
President/CEO
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