3rd Quarter 2020 Message

October 1, 2020
Dear Members:

I hope this letter finds you and your loved ones healthy and well. Not much has changed from my last update in July. We continue to feel the impact of the coronavirus pandemic and the everyday difficulties of social distancing requirements. Our host company, Xcel Energy, is keeping its doors closed and is requiring employees that can work from home to do so. Our UCU office remains closed to walk in traffic. We were able to get more of the staff into the office in an effort to move towards a more normal work environment, but we’re far from normal operations.
However, on a financial basis we continue to process your share deposits and withdrawals, payroll deductions, loan applications and loan disbursals in the same timely manner as we always have. Additionally, last quarter we had a comprehensive periodic audit performed by the State of Wisconsin, Division of Financial Institutions. While we had hoped for some consideration of the extraordinary circumstances we are in, that was not to be the case. Our audit was more all-encompassing and extensive as it has ever been. We members owe a debt of gratitude to the Staff and our Examining Committee, specifically John Roffler and Jeff Scholze for their yeoman efforts to successfully complete the audit and maintain our premier credit union rating.
Another financial impact the Board is dealing with is the loss of loan interest revenue primarily resulting from the Fed’s continued lowering of the Prime interest rate. As you know, both our Home Equity Lines of Credit (HELOC) and our Kwik Cash unsecured loans are directly tied to that rate. While these low rates are great for our borrowers, it reduces the funds available to pay quarterly dividends on share savings accounts. One way to compensate for this short coming is to increase the level of collateral loans we have in the portfolio. This is something our Marketing and Education Committee will be working on in the 4th quarter.
The Board has also been in recent, lengthy discussions about the overall challenges we’re experiencing that are either being caused by, or exacerbated by the coronavirus pandemic and how we can continue to serve the membership in the future. Those talks involve the overall financial markets, staffing and leadership issues. We’ll keep the membership apprised of the results of those discussions and their effects on the future of UCU through future communications.
Finally, Carol Lueke retired this summer after having given the credit union a multi-year notice. We just couldn’t persuade her to stay any longer. When we are able to have walk-in traffic in the office again, the first thing we’ll miss is Carol’s smiling face and infectious energy. All will miss her and we wish her the very best in her well-deserved retirement.
Remember, we are always available to members by phone at (715) 737-2467, U.S. mail, email: myucu@myucu.org and the website at myucu.org. Until we can meet in person again, stay safe and be well.

Sincerely,
John R. Ness,
Chairman, Board of Directors

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