OT- Letter from credit union

[Andrew]

I got this letter yesterday.......

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Dear Member,

There has been a lot of coverage in the media recently about troubles in the banking system. Unwise lending and management practices have weakened some banks outside of our area. Because of our local orientation and conservative practices we have not had the kinds of problems that these banks are experiencing.

To start with, Hoosier Hills Credit Union never got involved with sub-prime lending. The only mortgages we have made are to credit worthy members that live in our market. HHCU has never gone out and bought mortgages that were originated in other parts of the country and we do not own any mortgage backed securities. In addition, HHCU has been putting back "extra" money each month for the past 12 months in anticipation of an economic slowdown.

We have operated in a safe and sound manner over the years, building our capital along the way. Today we have nearly $28,000,000 set aside in our capital accounts. In fact, HHCU has been profitable every month since 1985 and has been a top performance credit union for many years.

In addition to the financial strength of the Credit Union we offer members $100,000 in federal deposit insurance through the NCUA, plus another $250,000 in excess deposit insurance from ASI.

Thank you for your continued loyalty to Hoosier Hills Credit Union; we will do all we can to help you meet your financial goals through this slow economic time. That is why we are here.

If you have any questions or concerns please visit your nearest service center and we would be happy to assist you in any way possible.

Thank you,

George McNichols
CEO / President
Hoosier Hills Credit Union
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I can see that they don't do much lending, but it is still nice to hear that there are still institutions, financial or otherwise, that can "weather storms" anymore. I get tired of hearing about businesses(especially the big ones) that get low numbers on Monday and can't make it to Friday without going belly up.

[rjohns94]

Andrew, sounds like they are ready to lend you some cash for all those temptations you are finding yourself having on this forum.

[Ysabel Kid]

Andrew, sounds like they are ready to lend you some cash for all those temptations you are finding yourself having on this forum.

+1

[Gun Smith]

Banks, credit unions, etc. stay in business by lending. That is how they can pay interest on accounts and cover business expense when their customers use their services. I think what they meant was they had not purchased blocks of sub-prime mortages as many investment banks in the U.S. have done. Fanny Mae and Freddie Mac are examples of large lenders in trouble as a result of these lending practices over the last several years. Most credit unions lend their available funds to their members, usually at better rates than banks because CU's are owned by their customers. That was the original intent of credit unions when they were first started.

[Lefty Dude]

I will never use a Bank,ever. I have been a member with Credit Unions for 25 years and have never had a problem. When we were dealing with Banks & Major Banks we always had some sort of an operational problem. I got shafted by banks several times, after the last go-around that was it. Credit Unions care about the Members as they are Member owned.

[kimwcook]

That's why I use a credit union and have for 30 years.

[Bogie35]

Your credit union sounds a lot like mine. They're great institutions.

bogie

[FWiedner]

Did you ever have a boss walk into the office several weeks into a meltdown and explain to his staff that the company is in financially difficult times, but... your jobs are secure. So "Just keep on working!"

... and then the next thing anyone knows, the doors are locked and you're wondering how you're gonna pay your bills?