Credit Union Stabilization by the National Credit Union Administration

In this widespread economic crisis, all financial institutions have been affected including credit unions.  On January 28, 2009, the Board of the National Credit Union Administration (NCUA) began taking action to stabilize a part of the credit union system that is under stress due to the dislocations in the mortgage market.  Corporate Credit Unions, which handle investments and payment services for over 7,800 traditional credit unions, are struggling with mortgage backed securities in their investment portfolio.  The actions that will be taken by NCUA will result in all federally insured credit unions being required to write-off a portion of their deposit in the National Credit Union Share Insurance Fund (NCUSIF) and an assessment of a premium in order to maintain a strong federal insurance fund for credit union members.  This assessment from NCUA will be similar to the premium being charged to banks by the FDIC in order to restore their federal insurance fund to its regulatory level.

NCUA has stated that they are committed to protecting your funds in a federally insured credit union, and will continue to take all steps necessary to preserve a safe and sound credit union industry.

MECE Credit Union is financially well positioned to remain strong during this economic crisis.  Strong earnings, low operating expense ratios, excellent asset quality, and almost $8 million in reserves will ensure a stable financial condition as we look for an economic recovery.  MECE Credit Union’s closed field of membership, which only serves employees of the Missouri Electric Cooperatives and their immediate family members, gives us an owner base that is far superior to other credit unions that serve communities which may be struggling or select employee groups that are experiencing high unemployment rates.  MECE Credit Union continues to grow and serve our members with competitive dividend and loan rates.

It is important to remember that your funds in a NCUSIF-insured credit union are backed by the full faith and credit of the United States Government, up to at least $250,000 per account.
As a member of a federally insured credit union, you do not pay directly for your share insurance protection. MECE Credit Union places a deposit into the NCUSIF and pays an insurance assessment based on the total amount of insured shares and deposits in the credit union. Federally insured credit unions are required to deposit and maintain one percent of their insured shares and deposits in the NCUSIF.  Not one penny of insured savings has ever been lost by a member of a federally insured credit union.
If you have questions, please contact MECE Credit Union or visit the NCUA website at www.ncua.gov.