Message from CEO

Without question, 2010 presented us with some unique challenges. 

An unstable economy put fiscal distress on governments and

industries across the nation.  Fortunately, your credit union, and the

credit union movement was not impacted as negatively as other

industries.

 

In fact, when other financial institutions struggled to maintain

positive capital adequacy – the benchmark is 7 percent – your credit

union continues to maintain well above 7% and is considered a well

capitalized credit union.  Our capital level as of December 31^st is

7.75%.

 

What does this mean to you?  It means your credit union operates in

a safe and sound manner.  It means when other financial institutions

pulled back on making loans, First Class American Credit Union

continued to make solid loans to our members.

 

It means, when other financial institutions assessed more fees or

compromised service in order to improve their bottom line, First

Class American Credit Union not only paid dividends, but was  also

able to offer additional services, which I will touch on later.

 

What does this tell us?  Savings at credit unions, and at First Class

American Credit Union, our members put their trust in us.  By

making your money work harder for you, you put your trust in your

credit union. 

 

I, as well as our staff, and your Board of Directors, take very seriously the trust you have put

in us to lead this institution, and I assure you that we are guiding

First Class American Credit Union with integrity and a heartfelt

commitment to you, the member/owner.  Your credit union is operated in a safe and sound manner, and receives excellent reports from not only our regulators, Texas Credit Union Department and National Credit Union Administration, but also from our internal auditors.

 

Without your confidence and support, and without the diligent work of our staff; the guidance of our board of directors, 2010 would have been just another year.  But thanks to all of us working together, cooperatively, for a common cause, we had an amazing year.  And I say amazing because let’s face it, 2010 was a tough year!

We adapted.  We overcame.

 

Our accomplishments in 2010 serve as a clear reflection on where we are today, and who we strive to become in the future.

 

As your President and CEO, it has been my distinct privilege to serve you and work with you in accomplishing our many significant milestones throughout the past year.

Please allow me to highlight some of the milestones:

1. 1.   A profitable credit union, earning an income of .76%, before NCUSIF assessments.  One of the highest earnings CU in our city.
2. 2.   New products/ services;   Remove deposit, mobile banking,
3. 3.    New Select Employee Groups – Recaro was a group added during 2010, and Sara Lee was added this month, bringing 600 employees credit union services.

 

As a credit union, and the rapid changes coming out of

Washington, making demanding changes on financial institutions,

your credit union is not exempt from those changes, some of

which threaten the ability to offer services.

 

In the past several years you have heard from us many times on

what we call Interchange Fees.  You have also heard from

retailers concerning Interchange. 

 

Interchange is what retailers pay financial institutions for

accepting payment by either a debit card, or a credit card.  The

interchange fee gives the merchant immediate payment, without

worry of an insufficient check, fraud, defaulted payments on a

credit card.  All of this risk is born by the issuer of the debit card

or credit card.  In this case, your credit union.

 

Last November Washington passed the Financial Services Bill,

which included new rules concerning Interchange Fees.  Those

new rules include limiting the amount of Interchange paid for

 

acceptance of debit or credit cards to either 7 cents or 12 cents

per transaction.  This greatly impacts your credit union and its

ability to offer these services in a profitable manner.  Your credit

union has been working to lobby members of Congress and your

Senators to STOP this new interchange rule.  This rule is harmful

to your credit union, and as a consumer will require us to pass on

additional fees to you, the consumer, to offer these products.  I

would urge you to visit the blog.

www.StopTheNewDebitCardRule.com

 

This bill would pass $20 BILLION back to the retailers, yet not

ONE retailer would promise that this additional savings would be

passed back to you the consumer in the form of lower prices.

 

I urge you to write Congress, and your Senator, tell them you

want them to support stopping the Interchange Rule.  Tell them

you want them to stop the rule, study the issue, and discuss it with

the financial community. 

 

Credit unions are like no other financial institution. We are more

than just a place for people to conduct their financial business. We

are truly “people helping people,” reaching out to you, our members

with a true desire to improve our community.

 

When you walk through the doors of First Class American  Credit

Union, you aren’t just a customer. You are part of a member-owned

financial cooperative. You are part of our credit union family, and

we are committed to serving your financial needs.

 

And as we embark on a new year, you can have faith that your

credit union is committed to meeting all of your financial service

needs. Your future financial well-being is a priority for us.

 

Thank you for your continued loyalty to First Class American Credit Union.  Without you, we would not be here for our membership.

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