Without question, the last two years, and 2011 continue to be years
of a challenging economy. Challenging for not only our members, but
also for your credit union. High unemployment, downsizing at
companies, an unstable economy, all continue to be issues everyone
deals with on a daily basis, not only personally but in their businesses or places of
employment as well. When other financial institutions have 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.
While we remain well capitalized, that does not mean that we are not changing our
processes to become more efficient, changing service providers for more favorable
terms, or favorable terms of delivery of services. We are in the midst of examining
all our of services, processes looking for duplications of services, and how to trim the
costs of duplication or excesses.
An example of this is recently you were notified that the credit union would no longer
deliver statements both by mail and electronically. Those members who were currently
receiving statements both electronically or by mail were notified that we would
begin delivering statements only one way, electronically in order to stop duplication of
services, and at the most cost effective means for the credit union. Electronic delivery
of statements is not only more economical for the credit union, it is more convenient
for those members who receive their statements electronically. Those members receive
their statements at the close of business each month. Those statements are in our
electronic member’s hands the first day of business of the following month, meaning
those members have their statements on the 1st day of the month. Those members
are able to balance their accounts faster, be more accurate, and view their transactions
online as they occur. Additionally, those electronic members are able to receive
electronic notification, called e-Alerts, on their cell phone or by email when they have
a deposit made to their account, if the balance on their account falls below a specified
amount (e.g. $100). If these members receive their pay by direct deposit this is
important as they are able to know immediately by an e-Alert that their payroll was
received on their account, all by a text to their cell phone.
Another upcoming change will be how we conduct our Annual Meetings in the
future. We have traditionally held a bar-b-que meal and meeting. As years have
passed the attendance has declined and the costs to hold the meeting and bar-b-que
have increased. We will still have our annual meeting, but next year’s location will
be changing, as well as the refreshments will change from a bar-b-que meal to light
refreshments, again to help curtail the cost of the meeting.
While these are just two of the very visible changes we are making to curtail expenses,
internally we are busy adjusting so that the credit union remains profitable. A profitable,
healthy credit union is our boards fiduciary responsibility to the membership.
While we understand that some of these changes are new, your Board and Management
team of the credit union must make very tough decisions to ensure your credit
union is here for another 82 years of outstanding service.
Thank you for your continued support of your credit union. Your membership is important.
Nancy M. Croix Stroud
President/CEO
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