Message from PSECU’s President - PSECU is Healthy
As you watch or read the financial news of the past few days, it would be understandable to question the soundness of all financial institutions. As I have written earlier this year, the financial news from PSECU is very positive. While some other institutions are being severely tested, PSECU is reporting record earnings and core financial strength. Our financials reflect this good news. (We post our financial statements each month.)
PSECU's largest holdings are in loans to members like you. Nearly $2 billion of our $3 billion in assets is in consumer loans to members. I'm proud to report that our members continue to repay their loans at record rates in spite of a challenging economy. The quality of a consumer loan portfolio like PSECU's is largely measured by its overall delinquency. With only 0.60% of our loans in technical delinquency, that means that 99.4% of all loans are in a current status. By comparison, the national average delinquency rate for bank credit cards was recently reported at 4.5%, fully 7.5 times higher than the delinquency ratios at PSECU. Thanks to all of our members for honoring their borrowing agreements with us.
As a federally insured credit union, PSECU is restricted to federally insured or backed investments. Federally backed securities are considered the most secure of all investments. Our federal insurance is provided by the National Credit Union Administration (NCUA) and is equal in every respect to the federal deposit insurance provided to banks. Every member is insured up to $100,000 of deposits held with PSECU. Retirement accounts like IRAs are separately insured up to $250,000.
To learn more about the soundness of the NCUA, click here.
Finally, we recently completed our state and federal examinations and again received the highest ratings from our regulators. The Pennsylvania State Department of Banking and the National Credit Union Administration monitor our operations on an ongoing basis and conduct intense reviews of our operations each year. This is in addition to our annual CPA audit and internal audit reviews.
This is certainly a challenging time and is likely to get more challenging in the months ahead. The good news for PSECU's members is that we remain strong and very capable of navigating these difficult waters.
Sincerely,
Gregory A. Smith
President