March 22, 2009

Dear Member,

I want to provide an update to a situation that you may or may not have heard in the media.  I feel it is important as a credit union member that you have an accurate description of the events involving the credit union industry.

This past Friday, the National Credit Union Administration (NCUA), a federal government agency, decided to place two wholesale corporate credit unions into conservatorship.  These two corporate credit unions are US Central Federal Credit Union and Western Corporate Credit Union.  I want to assure you that FORUM Credit Union remains safe, sound and strong and that these actions do not impact you as a FORUM member.

Corporate credit unions do not serve consumers. They are chartered to provide services and products to other credit unions.  These services will continue uninterrupted.  There are 26 such organizations within the credit union system.  It is important to note that conservatorship by the NCUA only means that the NCUA has replaced the board and management and assumed the day to day operations of the corporate credit union.  I want to assure you that these actions have no impact on you as a member of FORUM Credit Union.  FORUM remains financially sound.

Corporate credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF) and therefore these actions will not be a cost to taxpayers.  All credit unions insured by the NCUSIF contribute to this fund and in over 100 years of credit union history no taxpayer dollars have ever been used.  It is important to note that FORUM has been in existence for nearly 70 years and has been through several economic cycles.  Our strong capital position of $90 million dollars that has been built over time provides us with the financial stability during these economic times.

We continue to focus our efforts on providing the best possible services, helping our members who are having difficult financial times and meeting the lending needs of our members.  That is our founding principle and one we have continued to follow for nearly 70 years.  Your funds in your credit union are insured up to $250,000 and backed by the full faith and credit of the United States government.

Our commitment to you as a member of FORUM Credit Union is to continue to operate in a financially sound manner.  We will continue to serve your needs and help you during your own challenging times.  FORUM remains a safe, sound and strong credit union.

Sincerely,
Gary Irvin
President/CEO