NCUA Takeover of Two Corporate Credit Unions
March 22, 2009 | Alliant Credit Union
This past Friday, March 20, 2009, the National Credit Union Administration (NCUA) assumed control of and placed into conservatorship two “corporate” credit unions – U.S. Central and Western Corporate Credit Union. These two credit unions are not "natural person or retail credit unions" like Alliant that consumers use on a daily basis. Instead, they are "corporate credit unions" that provide wholesale services to other credit unions. The products and services provided to Alliant by U.S. Central and Western Corporate Credit Union will continue uninterrupted. Additionally, 100% of deposits at these institutions are guaranteed by the NCUA.
This development will not impact our ability to serve our members. Alliant continues to perform well despite a weak economy. For example, both our deposits and loans grew over 25% last year. And, Alliant has over $640 million in capital reserves and a Net Worth Ratio of 10.8%, well above the 7% regulatory definition of “well capitalized”.
While there is no direct impact to Alliant as a result of the conservatorship of these two corporate credit unions, Alliant will be impacted by a special assessment to bolster the Credit Union Share Insurance Fund later this year. This special assessment will result in a 2009 expense for all insured credit unions, proportionate to their total deposits. Alliant Credit Union will be able to absorb the expense without significant impact on members, while maintaining a strong balance sheet. Importantly, we don’t anticipate any material impact on Alliant’s everyday great rates.
Rest assured, your funds on deposit with Alliant are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government by the National Credit Union Administration, a U.S. government agency. IRAs are insured separately up to $250,000 by the NCUA. No credit union member has ever lost one penny of federally insured funds. If you would like to review your coverage, we would be happy to provide you with a copy of Your Insured Funds, the NCUA’s official publication regarding share insurance. You may also wish to visit the NCUA web site, www.ncua.gov.
We are proud of our over 70-year heritage of providing financial and service excellence to our members. Our strength and stability should instill a high level of confidence in the safety of your money on deposit with Alliant. For additional insight, review a copy of our 2008 Annual Report, which is available in the “About Alliant” section on our web site. Thank you for your continued support. We look forward to serving you for many years to come.
David W. Mooney
President & CEO
Alliant Credit Union
© 2009 Alliant Credit Union. All Rights Reserved.