A Message on our Financial Strength…
Subprime mortgages, the housing crisis, record gas prices, stock market volatility – in a world filled with economic uncertainty, you can have confidence in the safety, soundness, and financial strength of your credit union. Corning Credit Union wants to assure our 73,000 members that we remain safe, strong, and viable for the long-term.
First, we have not engaged in any form of subprime mortgage lending. This type of lending is not consistent with our philosophy of offering products and services that help our members prosper and protect their long-term financial well-being.
This philosophy also protects our long-term safety and soundness. Our loan portfolio is of high quality and we maintain one of the lowest delinquency rates of any credit union or bank in the United States. We maintain loan loss reserves well above the regulatory requirement.
Second, we have not invested in any form of mortgage-backed securities. Our investment practices are very conservative and are of the highest integrity; they meet or exceed all legal and regulatory requirements. Our investments are in triple A rated U.S. Government backed securities and certificates of deposit. Our investment strategy is simple – we focus on safety first, liquidity second, and yield third.
Next, we continue to receive the highest possible ratings from our federal regulatory agency (The NCUA) and our independent auditing firm for financial strength, safety, soundness, liquidity, and overall management. These agencies continue to commend us for our success in building capital (our reserves) which allows us to remain strong and viable under all economic conditions. Our regulator ranks us in their top category for capital adequacy with over $76 million in reserves.
Lastly, in 2008 we are confident that we will complete our 29th consecutive year of growth and profitability regardless of external economic conditions. Our Board of Directors, Management, and Credit Union team all remain firmly committed to our time-tested, ultra-conservative business practices that have led us to this current position of strength. We also want to thank you, our members, for your continued support of Corning Credit Union. Your confidence in us directly impacts our success and we are grateful for each of our members. We will continue to work hard to maintain your trust and your business in 2008 and beyond.
Gary Grinnell
President and CEO
