Your Funds are Secure and Safe

A Message from President and CEO, Francis R.N. Proto

Recent news of the economy has not been encouraging, the sub-prime mortgage crisis, high energy and food costs, stock market volatility, and concerns about the health of the banking industry, have put all of us on edge. I want to assure you that you can have confidence in the financial strength of Dutch Point Credit Union and that your money remains safe.

Dutch Point's financial position is strong

Member share deposits at Dutch Point Credit Union are safe and sound. We are pleased to report that our capital position is almost twice the regulatory limit, sitting at just under 14%. Despite these tumultuous conditions, earnings are strong and on target to budgeted projections. We have no financial exposure with Fannie Mae, Freddie Mac, AIG, or Lehman Brothers.

We are monitored and examined by the State of Connecticut Banking Department to ensure that we are financially sound and operating in a safe manner. We are also audited by an independent CPA firm on an annual basis. Our most recent audit can be found online in our 2007 Annual Report.

Your funds are federally insured by the National Credit Union Share Insurance Fund, a fund that was established specifically for and by credit unions. No credit union member has ever lost money insured by this fund. On Friday, October 3, 2008, President Bush signed into law the financial rescue bill referred to as the “Emergency Economic Stabilization Act,” HR 1424. The most significant provision of this legislation was the increase in deposit insurance coverage up to $250,000, up from the prior limit of $100,000. Although this increase is temporary, expiring December 31, 2009, it does provide an additional safety cushion for more than 90 million credit union members throughout the United States. This provision gives credit unions the same level of insurance coverage as FDIC-insured banks. With the signing of the new legislation your funds protection more than doubled. In addition, your IRA accounts are insured separately for up to $250,000.

Dutch Point's lending program is strong

I would like to address some of the ways in which we manage our loan risk. Dutch Point Credit Union offers a traditional lending program, which means we do not engage in “risky” types of lending. We did not underwrite “sub-prime” mortgages. As a result of this, we are able to continue to make loans to you at a time when most other institutions have pulled back. The conservative nature of our underwriting standards, as well as our philosophy of lending responsibly to our members, has allowed us to have one of the lowest loan delinquency ratios in our industry. Going forward, our approach to lending will not change. We have funds to lend, and we want to be sure you, our members, have access to borrowing for an auto loan, mortgage, home equity, or any other loan need you may have.

In closing, with the challenging economic conditions and struggling financial markets, your credit union remains strong. Our focus has always been – and will always be – on you. If you are personally facing difficult times, we encourage you to contact us to see how we can help. We have a variety of options available, and our well-trained staff is ready to assist you. Remember, Dutch Point is a member-owned, locally managed financial cooperative. Our members financial well-being is our primary and only focus.