Dear Member,
Over the past few months, the financial markets have been inundated with negative economic news and forecasts. As you know, we have witnessed the crisis in the investment banking industry, and the negative impact on our economy caused by the sub-prime mortgage catastrophe.
As your credit union’s President and CEO, I am here to assure every single MCU member that Municipal Credit Union remains safe, secure and strong. I know that the rise in gas and food prices, bank failures, mounting housing foreclosures, and the slumping stock market have raised concerns with you. MCU has adhered to our core principle of safety before profits. Due to our operating policy of prudent asset, liability, liquidity, and risk management, we have been able to thrive in these difficult economic times.
MCU does not engage in sub-prime lending activities or investments. We practice responsible and safe lending. Our approach to lending is traditionally prudent and our primary liquidity base comes from member deposits, not risky investments. Our sound investment policies ensure that we have a solid capital base and liquidity from which to fund loans and mortgages to members who are approved.
As a matter of fact, our balance sheet is stronger than ever – our total assets have increased to approximately $1.4 billion. Our net worth ratio, a key measure of the financial soundness of any institution, is 12.13% as of September 30th, 2008. This is well above the industry standard of 7% needed to earn a top rating for financial soundness.
At MCU, our members are paramount, and we have worked hard to become one of the strongest financial institutions today in this turbulent market. We are proud to have earned your trust by providing the products and services that meet your needs. In fact, I would encourage MCU members to take advantage of our low loan rates by refinancing your high-rate loans from other financial institutions with MCU. You can count on MCU to offer you sound financial advice and competitive rates. MCU exists to serve you - our members.
In closing, I would like to say that we at MCU are confident in the decisions we have made, and are making, to ensure continued growth, and to maintain our financial safety and soundness. We opened our doors in 1916, and we have faithfully served our members for 92 years.
Thank you for being an MCU member.
Sincerely,
Kam Wong, CMA, CFM
President and CEO
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