On Friday, March 20th, NCUA announced that they had placed 2 corporate credit unions, US Central (KS) and WesCorp (CA) into conservatorship.  We understand that as a member-owner of Three Rivers, you might have some questions. Below, we have attempted to provide you with as many answers as possible. If you have additional questions, please feel free to contact any Three Rivers representative.

Is my money safe?

• Yes, your money is safe at 3 Rivers. Your 3 Rivers deposits are insured with both federal and private supplemental insurance coverage. Our deposits are federally insured by NCUA (to $250,000 per qualifying account), backed by the full faith and credit of the U.S. government. 3 Rivers members also qualify for private deposit insurance that covers up to an additional $250,000 per qualifying account.  And, unlike banks and thrifts insured by FDIC, credit unions have never cost the taxpayer a single dollar due to failures in the industry.

Is 3 Rivers FCU in trouble?

• Absolutely not – we remain profitable and well capitalized.
• 3 Rivers is financially sound. We have set aside our earnings over the last 74 years – it’s called credit union capital. Capital has been built just for times like this – for a challenging economic climate or to have “rainy day” funds.
• 3 Rivers has never invested in the types of securities that have created the economic crisis in our country and the world today.

What’s the impact to 3 Rivers?  Will that make the credit union less profitable?

• 3 Rivers will show lower earnings in 2008 and 2009 because we, along with the rest of the credit union industry, are building back up the credit union share insurance fund to appropriate levels.
• In essence, the credit union industry is helping to assist other credit unions in need, rather than relying on federal “bailout” funds.

What does that mean to 3 Rivers in the future?

• We will continue to operate with conservative decision-making and sound fiscal responsibility as we always have. We don’t need to make drastic changes because of the core values we rely on and will continue to aspire to.
• We will continue to respond appropriately to turbulent conditions and manage with the flexibility needed during these challenging times.
• We will continue to create a prosperous and dynamic future for the individuals and communities we serve. 70,000+ members strong…and growing….. We are still actively making loans while many other financial institutions are not.

I read in the paper that the 2 largest credit unions were put into conservatorship by the government.  What does that mean?

• These two corporate credit unions were taken over by our credit union regulatory agency, the National Credit Union Administration (NCUA).
• US Central and WesCorp are similar to “bankers banks” and don’t serve individuals – unlike 3 Rivers.  These corporate credit unions were put “under new management”. They will continue to operate under the direction of the NCUA as on-going, viable institutions.
• Our corporate credit union is Corporate One FCU which remains safe, secure, and sound.
• TAKE OVER does not mean BAIL OUT. The credit union industry is solving their own problems, rather than relying on federal “bailout” funds.