A Message from FORUM's CEO - June 12, 2009

A Letter to our Members
Gary Irvin
President/CEO

About twelve months ago I wrote to you regarding the tumultuous times that in retrospect was just the beginning not the climax of the troubled economic crisis we as a nation are facing.  In that letter I expressed to you the growing concern for our members who were struggling in these financial times and the impact those struggles would have on FORUM, your credit union.  This past March I updated you again on the continued economic situation, FORUM’s current condition and the impact the Corporate Credit Union network bailout would have upon FORUM. 

I am writing to you today to provide an update to our current financial status and to address changes and decisions we are making in the coming months that perhaps could have some impact upon you.  First, FORUM continues to be very well capitalized with a ratio that is well above what is required by our regulators.  Having said that, given the current economic conditions, the corporate stabilization expenses we will incur and higher than normal loan provision expenses, we feel compelled to implement our expense reduction contingency plans.  Our priority is to maintain our financial stability and trust that our members have placed in us.  We feel our actions are prudent given the current circumstances.

These expense reduction plans are primarily focused on employee related expenses and benefits.  Only a couple of these items are truly impacting the membership in any manner.  We will be reducing the Wayne branch to an ATM only branch at this time.  The low number of transactions and its close proximity to other branch options including shared branch outlet locations and our Avon branch are the primary reasons this action is being taken.  The other member facing initiative is the changing of hours in our remaining branch locations.  Traffic patterns and our membership’s reliance on electronic delivery methods are the primary reasons we are enacting new lobby and drive-up hours.  Our branch staff has always been and will continue to be available by appointment for times that are outside our normal hours.

Our call center and online chat services will not have any changes.  Our call center representatives are available 8:00 am to 6:00 pm Monday – Friday and Saturday 9:00 am to Noon.  Our online secure chat service is available 8:00 am to 8:00 pm Monday – Friday and 9:00 am to Noon on Saturday.  We continue to be a part of the shared branching network that provides transaction access to your account at over 200 Indiana locations and over 4,000 locations nationwide. 

We are continuing our emphasis on helping our credit union members who are struggling financially.  Our “We Can Help” program is being utilized by hundreds of members -giving them a hand up instead of a handout.  Our mission of providing loans to members and offering a competitive return on deposits has not wavered.  The credit union staff is more engaged than ever in furthering the cooperative spirit of our organization.  Your continued support of the credit union is critical to our continued success.  We have a nearly seventy year history of responding to and overcoming challenging times and conditions.  This situation will be no different.  Yes it will be difficult and yet when we emerge from these times your credit union will only be stronger and more relevant than ever before.

We will continue to operate in a manner to provide you the utmost in service and deliver the products required to meet your financial needs.  We are still in the business of lending money for cars, homes and home improvement projects.  We will continue to provide unique and attractive alternatives for your deposit and checking account needs.  Further, we will press forward with our initiatives to meet the needs of our members requiring small business services. 

Above all though, we will fulfill our duty to maintain the financial stability of the credit union regardless of the economic realities we face without sacrificing our core mission of helping our members through the troubled financial times they are experiencing.  The board, management and staff of your credit union are completely committed to making your financial experience with FORUM the very best it can be. 


Read a message from our CEO regarding Corporate Credit Unions - March 22, 2009

Your Credit Union Funds Are Safe

Due to recent events, some members have expressed concern about the financial stability of FORUM and have asked whether their funds are insured.  We want to assure our members that FORUM is financially sound and that members' funds are insured by the National Credit Union Administration.

Read a message from our CEO

Temporary Federal Deposit Insurance Increase

• The Helping Families Save Their Homes Act of 2009, signed into law May 20, 2009, includes a provision extending $250,000 share insurance coverage provided by the National Credit Union Share Insurance Fund through December 31, 2013.
• On Oct. 3, federal deposit insurance increased from $100,000 to $250,000 until December 31, 2009 through legislation passed in Congress and signed into law by the President.  All other details associated with federal deposit insurance for credit unions through the National Credit Union Administration (NCUA) remain the same, with the only change being the amount of coverage.
• Deposit insurance at federally insured credit unions through the NCUA has the full backing of the United States Government.
• The already existing $250,000 federal deposit insurance amount for retirement accounts remains the same.
• Federal deposit insurance applies in a number of ways. For example, each individual is insured up to $250,000 for accounts titled in his or her name only. Additionally, a husband and wife each have another $250,000 in coverage on accounts titled jointly, using both of their names.
  

Your Credit Union Is Financially Sound

FORUM’s capital ratio and net worth ratio continue to be at the levels expected which are considerably above the regulator required minimums with current capital over $100 million.

As a financial cooperative, FORUM believes that deposits are best “invested” in the form of making loans to other members of the cooperative. Because of this philosophy, deposits are not invested in stocks, mutual funds, or money markets. FORUM does have a very small amount of deposits invested in seasoned federal agency securities that are performing well and have been on our books for several years.  Any other surplus funds FORUM has remain in our overnight settlement accounts at Members United Corporate Federal Credit Union.

Your Funds Are Insured

 
Click the video screen above to hear about
federal insurance for your savings at credit
unions.

The shares (deposits) in credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF), where not one penny of insured savings has ever been lost by a member of a federally insured credit union. This fund is backed by the full faith and credit of the United States government. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by the National Credit Union Administration (NCUA).

• Insurance is at least $250,000 through NCUSIF.
• Traditional and Roth IRAs and KEOGH retirement accounts are insured up to $250,000 by the NCUSIF.
• There is even more share insurance for joint ownership accounts and certain, qualified, named beneficiaries of accounts.

The NCUA fund is secured by the U.S. Treasury. In the unlikely event that this insurance fund would be paid out across the country the U.S. Treasury is required by federal law to discontinue funding other federal programs in order to pay all depositors the full amount of money they have on deposit with their credit union.

Contact NCUA's Consumer Assistance Center between 8 a.m. and 6 p.m. (EDT) at 800.755.1030, press 1 for share insurance questions.

Credit Unions Are Different

With the current focus on financial institutions, it is important to understand the fundamental differences between credit unions and banks.  Below are a few points explaining the principles credit unions are founded on.

• Credit Unions are financial cooperatives owned by members rather than shareholders. 
• Profits are returned to members through higher savings rates and lower loan rates.
• Credit Unions are run by a volunteer, rather than paid, board of directors.
• Because they are not publicly traded, credit unions do not rely on the stock market.
• Credit Unions have sound lending practices and service oriented policies.