PSECU Remains Stable in These Uncertain Economic Times
The news headlines have been dominated recently by reports on the economy and a possible downturn. Many economists believe that a number of factors have brought on this situation, including the collapse of the subprime mortgage market and upheaval in certain investment sectors.
While this news may be distressing, you can rest assured that at PSECU we take the trust you placed in us, your credit union, very seriously. Here are some facts that we want to share with you to help ease any concerns you may have.
First, PSECU has never made subprime loans. While we approve the majority of our members’ loan applications, we don’t approve everything. As a means of protecting our members’ money, PSECU uses sound underwriting and approval standards when considering all loan applications. If a loan doesn’t make sense for the credit union and especially for the member, it won’t be approved. We do not believe it’s ever in our members’ best interests to put them into loans they can’t afford.
Second, PSECU’s investments are limited by state and federal credit union laws and regulations. With very few exceptions, PSECU is restricted to investments that carry some form of federal insurance or backing. With the fallout of the subprime mortgage market, it’s important to note that PSECU does not hold and has not held investments that contain subprime mortgages.
And lastly, PSECU is one of the strongest financial institutions in the state for our asset size. As you can see in the financial reports that we post each month on our Web site, we hold more than $270 million in reserve for our operations. You should know that our records are meticulously audited each year by our internal and external auditors. In addition, PSECU’s financial records and operations are examined annually by the State Department of Banking and the National Credit Union Administration.
Because of the actions that we have taken and our overall philosophy, PSECU remains in a very strong position to continue serving our members for a very long time. If a significant problem should ever arise, however, PSECU is insured by the National Credit Union Savings Insurance Fund (NCUSIF). For more information on NCUA and NCUSIF, please click here.
Since 1933 PSECU members have come to depend on us to deliver the best in financial products and excellent member service. We’re a strong, healthy credit union, and we look forward to serving you for years to come.