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A message from President/CEO, Parker Cann
With all the recent financial news, consumers are naturally wondering about the strength of their financial institution. I want to assure you that, as a member of Columbia, your money remains safe.
Our financial position is strong
Our capital helps us to grow and weather the occasional dip in the economy. Columbia Credit Union is in the highest capital category, well capitalized, as established by our federal regulator, the National Credit Union Administration (NCUA). As of June 30, 2008, Columbia’s capital was 10.59%, exceeding the NCUA threshold for well capitalized by over 50%.
In our first six months of 2008, we also experienced a very strong net interest margin of 3.80%, which means management is strategically managing the spread between interest expense and interest income. Not only is our capital position very strong, but our net margin bolsters our stability. We are positioned to help you today and in the future; just as we have since 1952.
Columbia’s financials are posted on our website. Please visit online at any time to view our financials. If you have any questions, your branch manager is happy to help.
We have managed our loan risk
Because we are committed to serving our members with responsible loan options, Columbia has a strong portfolio of business, consumer and home loans. We are vigilant in reviewing our lending practices, taking care to balance the needs of our members with the needs of the credit union to remain strong for future generations. Because of this, we never originated “sub-prime” or “ALT-A” home loans.
Dan Mica, CEO of the Credit Union National Association, recently commented on credit union lending practices: “We are the certified white hats. Everyone else is stained now. Credit unions can offer training and education, make appropriate loans and, if the loans aren’t appropriate, use compassion.”
It is no surprise in these challenging economic times that some good members are simply unable to repay their loans. As part of our normal business practice, we have taken prudent steps to place money in reserves to cover any potential losses. Columbia has experienced higher loan delinquency, but our reserves are more than adequate to cover any loss on these loans. The vast majority of our members are paying loans on time.
There is a lot of talk in the media about credit tightening and declining home values, which nip at your ability to borrow. Know that Columbia Credit Union will continue to offer you and your family responsible and affordable loan options in the future.
We provide federal and private deposit insurance
You may also have questions about insurance on your deposits at Columbia Credit Union. Your deposits are insured by the National Credit Union Share Insurance Fund (NCUSIF), backed by the full faith and credit of the United States Government, up to the limits established by the NCUSIF. This means each individual account holder is federally insured up to $250,000. Our federal insurance is essentially the same as that provided at other financial institutions.
Additionally, Columbia Credit Union provides private insurance of another $250,000 on all personal deposit accounts (excluding non-IRA certificates). This type of private deposit insurance is only available to credit unions.
I encourage you to read our complete information page explaining your insurance coverage. You may be eligible for coverage above and beyond the limits I’ve mentioned above depending on the ownership structure of your accounts. Please visit with a credit union representative who can assist you in structuring your accounts in order to maximize your insurance coverage.
Free financial workshops for your family
We know many Clark County families are concerned about making ends meet right now, and we want to help. In recent weeks, almost 200 members attended Columbia’s free workshops on budgeting, credit, and smart investing during an economic downturn. We’ll be hosting more of our popular “Budgeting Basics” workshops this summer and fall at a branch near you. Register online now.
On behalf of all of us at Columbia Credit Union, we thank you for your continued support. We are now, and always have been, committed to remaining financially healthy, so that we can provide the benefits of credit union membership to our members and their families for future generations. Rest assured that we stand strong and are well prepared for cyclical fluctuations in our economy. If you would like any additional information, please visit with your branch manager, or call us at 360.891.4000.
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