Dear Member:

Due to financial difficulties suffered by some credit unions across the country stemming from the current economy, in January it became necessary for the National Credit Union Share Insurance Fund to levy a special assessment on all the credit unions that it insures.  (When the insurance fund incurs losses, a special assessment is levied on all of the insured credit unions to restore the fund to its typical level.) 

It is important to note that the National Credit Union Share Insurance Fund is also backed by the full faith and credit of the U.S. Government.  As a result, your accounts, up to at least $250,000, are federally insured. In addition TRFCU, as a result of its strong financial condition carries an additional $250,000 in private share insurance.

Three Rivers Federal Credit Union’s portion of that special assessment was nearly $3.3 million, which was deducted from December 2008 and January 2009 net income.  Notwithstanding this special assessment, for which Three Rivers Federal Credit Union was not in any way responsible, your credit union remains safe and sound and financially strong.  

Our credit union’s strength is due to you – our members.  The strong capital reserves built by you since we were chartered in 1935, while impacted by this special assessment, remain strong.  As of December 31, Three Rivers Federal Credit Union had $529 million in assets and $60 million in capital. 

Rest assured that the Board and Management of Three Rivers Federal Credit Union holds sacred its duty to manage your funds in a prudent manner.  This has not, and will not change.  While NCUA’s proposed plan may reduce our earnings this year, we will not seek to recoup its costs by reducing our services to you, raising loan rates or reducing dividend rates.  We see this as an unfortunate event that was outside of our control.

Should you have any questions, do not hesitate to contact me directly at (260) 487-3327 or jmeyer@trfcu.org

Jeff Meyer
President/CEO

To:  Members of Three Rivers Federal Credit Union
From: The National Credit Union Administration Board
Subj: Credit Union Stabilization
 
 
On January 28, 2009, the Board of the National Credit Union Administration (NCUA) acted to stabilize a part of the credit union system that is under stress due to the dislocations in the mortgage market. These actions resulted 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 the assessment of a premium in order to maintain a robust and strong federal insurance fund for credit union members. 
 
NCUA is 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.  
 
These difficult economic times are affecting all financial institutions, including credit unions, particularly in the area of earnings. Your credit union has information available that will clearly detail the impact that the insurance assessment may have had on your credit union's earnings. It will enable you, as a member-owner, to get a better picture of the financial condition of your credit union.  
 
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.  
 
If you have questions, please talk to your credit union or visit the NCUA website at www.ncua.gov.