A Letter from NTFCU's President

An important message from E.R. Uhrik, President, New Trier Federal Credit Union

Your Funds are Safe at New Trier Federal Credit Union

With the well-publicized turmoil in the financial services industry, you hear of failures, mergers, takeovers and bailouts. It certainly sounds like "the perfect storm!" It's natural for you to have questions and concerns about your investments and your financial institution (NTFCU).

So let's ask:

Is my money safe?

YES! NTFCU is a federally chartered, federally examined and federally insured financial institution.

What does that mean?

It means that 50 years ago, the charter members of NTFCU chose to operate under federal rules rather than those of the State of Illinois. A federal charter guarantees that members' deposits are insured up to $100,000.00. The federal agency that regulates NTFCU is the National Credit Union Administration. This agency also manages the National Credit Union Share Insurance Fund (NCUSIF), which operates like the FDIC for banks. Along with this insurance guaranty comes federal examinations, with more strict and tougher rules. In fact, federal credit unions are one of the most highly regulated financial institutions in the United States.

Where does NTFCU invest my money?

"Main Street" not "Wall Street"! We invest in our members. As of 8/31/08, 86% of our deposits are invested in loans to our members. The other 14% is invested in the Illinois Credit Union system and our corporate credit union (a credit union for credit unions), Members United Corporate Federal Credit Union. NTFCU has no investments in sub-prime loans or the failing investment firms, banks and insurance companies in the news today. NTFCU has never made a sub-prime mortgage loan.

What are they saying about credit unions?

According to Daniel D. Plauda, President/CEO, Illinois Credit Union League and Dan Mica, President, Credit Union National Association:

The financial market shakeup is a Wall Street phenomenon, not yet a Main Street phenomenon. Since credit unions are connected to Main Street, they have been insulated from the worst impact of the financial meltdown. In Washington, credit unions still wear the white hats.

CREDIT UNIONS ARE SAFE AND SOUND AND THEY ARE NOT PART OF THE PROBLEM, BUT AN IMPORTANT PART OF THE SOLUTION.

Overall, credit unions are strong, with near record capital of 11%, and credit unions are still actively lending, and doing so responsibly. Not only are consumers' federally insured share deposits in credit unions safe, credit unions are probably the safest depository institutions in the country right now.

On 9/19/08, CNN reporter Susan Lisovicz interviewed Neil Weinberg, senior editor of Forbes Magazine. Following are some of his comments:

"Credit unions are a safe harbor."
"You want to jump on board."
"They tend to be conservatively managed and federally insured, which in this day and age is what you want."

When asked what is it about credit unions that doesn't lead to the same kind of forecast for other commercial institutions, Weinberg said "credit unions haven't got into the same trouble as commercial banks that specialized in mortgages and made risky home loans." Credit unions are operated as a "stable and profitable business, taking deposits from you and me through our savings and checking accounts, and lending out money for car loans, which earn a spread that is profitable. Typically, credit unions have federal charters and federal inspectors, with strict, tougher rules. Because they began as agricultural cooperatives, they are run conservatively. You want to go for those credit unions". "I got the message," said Lisovicz. "You want to go for a credit union. Grab them while you can."

How can I verify all this?

The National Credit Union Administration (NCUA) has an insurance call center operating from 8:00 am to 6:30 pm EDT, Monday through Friday. You can call 1-800-755-1030, ext. 1, and speak to one of their share insurance experts. The NCUA website is www.ncua.gov.

The Credit Union National Association (CUNA) can be reached at 1-800-356-9655. Their website is www.cuna.org. Currently there is a video on their site explaining the $100,000.00 NCUSIF insurance by CUNA President, Dan Mica.

Your Board of Directors, President Ed Uhrik and your entire credit union staff would like to remind you that NTFCU is currently celebrating 50 years of service to its members. NTFCU is a viable institution that has always placed care of member funds above profits. As you know, years ago NTFCU adopted the slogan "where members are worth more than money". Throughout the years from charter forward, the mission has always been to invest in you, our members, not in out-of-market speculative deals common in many bank collapses.

Your choice of a financial institution is an important one. Everyone at NTFCU truly believes that you, our members, are our most valued asset. We have gained your trust and will never violate that! Rest assured, NTFCU is well capitalized and is committed to another 50+ years of service.

TODAY -- IT'S STILL BUSINESS AS USUAL!

Written 9/29/08 by E.R. Uhrik, President, New Trier Federal Credit Union

You can contact him at 847-256-8411, or e-mail him at President@NTFCU.org