Sound Shows Strength In Difficult Times

A message from Sound Credit Union President and CEO Richard Brandsma

March 24, 2009

You may have heard or seen in the news that two large corporate credit unions, U.S. Central Federal Credit Union and Western Corporate Federal Credit Union (WesCorp), were taken over (placed into conservatorship) by the NCUA.

Corporate credit unions do not serve consumers, like Sound Credit Union does. They are chartered to provide products and services to credit unions and the credit union system. They provide services and products like financing, investments, check clearing, and other tasks much like the Federal Reserve.

These products and services from the corporate credit unions will continue uninterrupted, and members are free to make deposits and access funds. There is no direct impact by the NCUA's actions on the 90 million credit union members nationwide. The NCUA took these actions to protect the consumer credit unions.

The NCUA proposed a ruling that requires consumer credit unions pay a percentage of their earnings to the federal insurer to cover the corporate credit unions losses. Sound ended the year 2008 with 11.27% capital and 1.56% ROA. After adjustments for the corporate stabilization plan for the end of the year 2008, Sound recorded 10.65% capital and .86% ROA.

Even after the adjustments, Sound Credit Union remains one of the strongest credit unions in the state. Sound has experienced healthy growth in membership, deposit products, and loan products despite the economy. Rest assured, your funds are safe at Sound.