Dear Members First Credit Union Members,
Members First Credit Union was founded by the employees of Sub Zero Freezer Company in 1954 who wanted a safe, convenient place to save and borrow money at reasonable rates. From its humble beginnings in 1954, the assets of Members First Credit Union have grown steadily and now exceed $16 million. Throughout the years, the values and principles of thrift have remained a part of our culture. As the national financial services sector continues to stumble, we want to assure you that Members First Credit Union is exceptionally strong and well positioned to serve you.
You can be confident in our commitment to you and our financial strength because:
• We are very well capitalized. From 2003 to 2008, we've boosted our capital reserves from $773,000 to $1.5 million. Over the same period our capital to assets ratio has increased from 8.5% to 9.5%, well above the regulator's "well capitalized" level of 7%. Today we hold nearly 20% more in capital than the amount our regulators require for their top "well capitalized" rating of financial strength.
• We take a cautious approach in the quality and marketability of our investment securities, as well as the investments and deposits we maintain in other federally regulated financial institutions. As a result, there has been no impairment in the value of our investment portfolio. Our approach continues to put safety and soundness first when making decisions about our balance sheet assets.
• Our prudent lending practices are based on the fundamental principle of acting in the members' best interests. As a result, our loan portfolio does not contain exotic adjustable rate mortgages and other types of subprime mortgages that are currently causing concerns for many consumers. Members First Credit Union has not originated mortgage loans through brokers or other third parties. Our mortgage loan portfolio reflects our own underwriting and the credit quality of our membership. We have not experienced any increase in mortgage loan payment delinquencies, and in fact loan delinquencies declined during the first nine months of 2008 and stood at just .35% at quarter end.
• We have seen continued strength in our net income. We had net income of $151,000 during the first six months of 2008 which compares to $105,000 during the same period for the previous year. These earnings continue to be added to capital reserves providing for additional strength.
Finally, deposits in Members First Credit Union are Federally Insured up to $250,000 by the National Credit Union Administration, and the National Credit Union Share Insurance Fund. This fund is backed by the full faith and credit of the U.S. Federal Government.
Sincerely,
Nicholas Kessenich
President
