(3 Minute Read) – As a member of Unitus Community Credit Union, you are part of a strong and growing financial cooperative. In fact, 2.3 million Oregonians are credit union members, representing 55% of the state’s population. According to a recent EconNorthwest report, your membership does more than give you access to local funds and lower loan rates; it also contributes $3.8 billion to our state’s economy.
Last year, Oregon’s credit union members received $203 million in direct member benefits. Those are the funds returned to you in the form of lower account fees and better interest rates on loans. Those member benefits resulted in additional household buying power of $279 million. Simply put: your money goes further when you’re a credit union member.
This week, we’ve learned about the federal seizure and sale of First Republic Bank to JP Morgan Chase. Let me be clear: Unitus Community Credit Union is strong and is not in any danger of facing a crisis like we’ve seen with First Republic Bank, Silicon Valley Bank, and Signature Bank.
While banks and credit unions share the same types of risk—interest rate risk, liquidity risk, concentration risk, credit risk, and others; the way we manage and mitigate these risks are very different. All deposits at Unitus are insured by the National Credit Union Administration (NCUA) Share Insurance Fund to a minimum of $250,000. Additional beneficiaries can increase that insurance limit to $1,250,000. In the U.S. credit union system, there has never been a failure which resulted in depositors losing money.
One of the measures of financial strength is how well-capitalized the credit union is. Essentially, well-capitalized means that there’s enough money on hand to operate without any major financial constraints. The standard for a well-capitalized credit union is 7.0%—Unitus has a capital ratio of 9.56%, with $166 million in capital as of March 31, 2023. We also maintain multiple lines of credit, exceeding $303 million on a total deposit base of $1.5 billion.
Unitus also has a well-diversified member loan portfolio in the following categories: consumer, including credit cards, personal, and auto loans; mortgage and home equity loans; and commercial/business loans. Loans are fully amortizing, and delinquency of the portfolio stands at .25%, which is a strong indication of excellent credit quality. We also maintain $16.0 million or 1.18% of loans as reserves against credit losses. The net results of these measurements and on-going risk management practices ensure that we maintain a strong credit union to serve the needs of our membership and community.
I invite you to learn more about our financial strength, including a report from our auditors, in our 2022 Annual Report.
President and CEO
Unitus Community Credit Union