Dear friends,

These are most certainly unprecedented times. The vast majority of us have never experienced such a challenging economic environment. Many people compare today’s situation to the Great Depression of the 1930s. Interestingly enough, it was during this time that the Federal Credit Union Act was passed. Congress recognized the need for members of a local community who share a common bond to pool their resources to assist those in need. Overseen by a volunteer Board of Directors, the credit union’s sole concern is helping the membership achieve financial security, not maximizing stockholders’ wealth.

Fast forward to today when this very same model has proven to be a true beacon of light in the midst of large bank failures and government intervention. You can continue to rest assured that your credit union is in extremely sound financial condition. We consciously avoided the unnecessary risks that have threatened the viability of many well-known financial institutions and resulted in the demise of some.

We remain well capitalized, having built up retained earnings (our only source of capital) in excess of $60 million over the last 73 years, and we continue to generate positive earnings despite the challenges of an unstable financial marketplace and a weak economy. Our combination of government-guaranteed deposit insurance and supplemental private insurance now provides up to $500,000 of coverage per qualifying account.

The federal government is spending hundreds of billions of dollars to provide capital to banks in an effort to offset the consequences of the excessive risk taking enabled by their structural flaws. That money comes out of the pockets of each and every taxpaying citizen and business.

That money was supposed to give banks the funds they need to resume lending to the hardworking citizens and small business owners that drive our economy. But some mega-banks, including three that currently or soon will serve northeast Indiana, are using the bailout money instead to purchase failing institutions and expand their market share to levels previously prohibited. In other words, they are using your tax dollars to improve their competitive position and reward stockholders instead of helping consumers and small businesses meet their financial needs.

We realize many members also do business with one or more of these institutions. Perhaps these relationships were established back when Three Rivers could not provide the full array of services needed. Today, however, that is certainly not the case. These institutions have their good features and employ many decent and hardworking people. Unfortunately, their disregard for risk in return for greed clearly demonstrates their priorities. Unlike Three Rivers, where decisions are based on the best interest of members, these institutions view consumers primarily as a revenue source to generate shareholder wealth.

Had enough of big banks gambling unnecessarily to create profits at your expense? Send a clear message that you are not going to reward them with your continued business. You can come home where you belong to Three Rivers Federal Credit Union. Just as in 1935, there is clearly a better solution. To make sure you take advantage of this opportunity, please stop by one of your 19 local, convenient Three Rivers branches.

Want to help out others in our community? Share this message.

Sincerely,
Jeff Meyer
President and CEO
Three Rivers Federal Credit Union