3rd Quarter 2019 Message

October 1, 2019
Dear Members:
We hear it a lot in advertisements; “save more and spend less.” Well, now UCU can make that claim. In September the Federal Reserve board voted to reduce the Prime interest rate by 0.25%, effective October 1st. That means those with Kwik Cash loans and/or Home Equity Lines of Credit (HELOC) will see an equal interest rate reduction, as those loan products are indexed to the Prime rate. Additionally, the Board of Director’s Rate Strategy Committee did a comprehensive review of our collateral loan rates and found them to be often lower than or equal to the best rates offered by local financial institutions. Couple these rates with the convenience of payroll deduction and we feel it’s a winning combination for the membership.
As a result of the Board’s decision to increase dividend rates for the 3rd quarter, you’ll save more. As I reported last quarter the increase in loan volume coupled with higher yields we’re seeing from our invested funds has generated an increased amount of income to the credit union. The Board has again voted to pass on to you the members higher quarterly dividend rates. This makes the fourth consecutive quarter the dividend rate has increased.  This latest increase will be effective on both the 3rd quarter dividend and is also prospected to be paid in the 4th quarter, baring any unforeseen changes to our net income. Again, I need to stress that unlike banks that serve shareholders, the credit union is member owned. It’s our money.
Other news of importance includes a significant investment UCU will make in the 4th quarter of this year. The computer system we use has become quite old. As a result, our vendor will no longer support our version. So, for the past year the staff has been investigating new alternatives. It was found that our current vendor, AMI Information Systems offers an upgrade which best fits our needs. The upgrade includes new computer equipment, licensed software and a maintenance contract. While the cost ($18,000+) represents one of the largest expenses the credit union has encountered, the much needed project will improve efficiency and incorporate the many new changes in industry practices. System implementation will be seamless to members and the costs will have no adverse impact on the level of dividend payments, as they have already been set aside over the past few quarters.  To accommodate the new system, we had to upgrade our internet service provider. Therefore, effective immediately, our new email address is myucu@myucu.org.
Also, last quarter the Examining Committee, chaired by John Roffler, completed their semi-annual audit of the credit union books. As usual, he reported no issues with the financial records and found the credit union in great shape.
Finally, October 17th is International Credit Union Day. Credit union members and potential members can stop by our table located outside the Employee room at Skypark for some treats and information about credit unions.
Sincerely,
John R. Ness,
Chairman, Board of Directors

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