FAIRWINDS Credit Union
Blue arch Blue arch Apply Now Find Us Contact Us Login Help Search
Printer friendly version Printer Friendly Button

Your Money is Safe at FAIRWINDS

 
 
Larry Tobin
President/CEO		 
 
In these dynamic and turbulent economic times I want to again take the opportunity to reassure you that your money is safe with FAIRWINDS. Your deposits are federally insured by the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF is backed by the full faith and credit of the U.S. Government and is managed by the National Credit Union Administration (NCUA), our governing regulator. With the recent passing of the Emergency Economic Stabilization Act, deposits are insured up to $250,000 on accounts. In many cases you may qualify for even more coverage with the appropriate structuring of account ownership. I encourage you to visit www.ncua.gov for numerous resources on how to maximize your coverage or contact us directly with your questions as these new developments unfold.

While you can have peace of mind knowing your deposits are insured, you can have added comfort knowing that your credit union is financially sound. This is evident by our net worth which is the measurement of strength for a financial institution. FAIRWINDS' capital ratio is at the highest possible rating as determined by the NCUA and as such we have been designated as well-capitalized. Your credit union continues to be a safe and valuable source for your money.

While many of the losses being incurred by other financial institutions are due to subprime lending and non-traditional loan products, FAIRWINDS' lending practices did not include these types of risky loans. However, we are not immune to the current market conditions and we are experiencing an increase in our delinquency rate which is the result of two issues.

First, economic issues including unemployment and a decline in housing values in our market are affecting our members and their ability to repay their loans. We continue to work with these members through seminars and one-on-one counseling to help meet their individual needs.

Second, we currently have four non-performing business loans that were originated in 2005 and 2006. Each of these loans are commercial land and development loans for projects that were impacted by the slow economy and are now in some stage of foreclosure. We are proactively working with the borrowers and anticipate a resolution for these assets by year end. The majority of our member business loan portfolio continues to perform well.

In a response to the rise in delinquencies in the loan portfolio, we have conservatively and prudently added to our reserve for loan losses. This addition to our loan loss provision, despite having a direct negative impact on our bottom line, was a sound financial decision and helps to further strengthen our financial position to weather these difficult economic times.

As member advocates we have a commitment of transparency and want you to be informed as members. It is with great confidence that I tell you our financial position remains strong, as it has since 1949, and we will continue to exceed the needs of our members with the highest degree of safety and soundness.


Larry Tobin
President/CEO

Rate this page  
Return Home Personal FinanceSmall BusinessInvestmentsHome LoansInsuranceMember Community
© 2008 FAIRWINDS Credit Union Equal Housing Lender Equal Housing Lender National Credit Union Administration  Federally Insured By The NCUA About FAIRWINDS  |  Privacy, Security & Legal