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About Us

President's Message

ACU...SMOOTH ROADS AND STRONG BRIDGES

Many government officials look to the nation's infrastructure as a potential means of job creation - renovating our nation's roads and bridges.

However, the term "infrastructure" can refer not only to public structures like roads and bridges but to a financial institution's loan and investment portfolios.

Beginning in late 2008, excessive losses rose from the faulty infrastructure of some financial institutions. Even when published data may have shown strong capitalization, their portfolios contained high-risk real estate loans combined with investments in mortgage-backed securities and collateralized mortgage obligations which carry, among other risks, excessive prepayment, sub-prime and interest rate risks.

We have always stated ACU remains, through crisis and prosperity, one of the highest capitalized financial institutions in the nation.

But what about ACU's infrastructure -  its loan and investment portfolios?

Of over $110 million in loans, 95% is categorized as low risk. ACU loans are backed by approximately $400,000 set aside for loan losses. Supporting this is over $24.7 million in equity contributing to ACU's high capital ratio exceeding 13%.

Our loans are low-risk for several reasons: (1) we originate all loans at the credit union. (We do not purchase loans from second parties); (2) we do not lend to the general public; and (3) we do not hold any sub-prime or otherwise risky real estate loans. Our delinquency ratio and net charge-off ratios are below the national average of other CUs.

ACU has a conservative investment policy. Of approximately $70 million currently invested, over 90% is insured by the federal government.

In summary, your deposits are safe and secure because of ACU's high capital position, money set aside for loan losses, its infrastructure (solid loan and investment portfolios), and insurance (up to $250,000 on your deposits plus an additional $250,000 on your IRA accounts) through the National Credit Union Administration (NCUA), an agency of the federal government.

Your credit union's infrastructure? Its roads are smooth, bridges strong.

 

Rebecca McCoy
President and CEO