Credit Union News

Peace of Mind During Volatile Market Conditions

As our country and the globe weathers this historical economic downturn, it's natural to become concerned about your own financial well being. Randolph-Brooks members are taking a close look at every financial institution where they do business. The great news for our members is Randolph-Brooks' financial position remains steady and strong, even in the current global economic environment. Here are a few answers you may be looking for about your accounts, our lending policies, and our overall financial strength.

Deposits Are Insured

Your accounts are backed by the National Credit Union Share Insurance Fund (NCUSIF), a fund maintained by the U.S. Treasury and administered by the National Credit Union Administration (NCUA). Federal insurance protects your money in Randolph-Brooks savings, checking, money market, certificates, and retirement accounts.

NCUA coverage serves the same purpose for credit unions as FDIC, or Federal Deposit Insurance Corporation, coverage does for banks. Both funds are backed by the full faith and credit of the U.S. government.

With the passage of the Emergency Economic Stabilization Act of 2008, NCUA coverage increased from at least $100,000 to $250,000 per account. The increase is in effect from October 3, 2008 through December 31, 2009. IRA accounts are separately insured up to an additional $250,000. Why do we say "at least?" Because your money can easily be insured for even more than $250,000, depending on how you structure your accounts. For example, a family of four can structure their accounts to be covered up to $4 million! For more information on how, click here.

Loans

While some financial institutions may not have the liquidity or available funds to respond to their customers' needs, Randolph-Brooks' superb financial health allows us to continue to respond to our members' need for all types of loans including business, auto, and mortgage loans.

Mortgage Lending

We remain the top credit union mortgage lender in three counties, and we have never participated in a sub-prime mortgage program. We grant mortgages to members who have demonstrated the ability to take on the responsibility and have worked towards home-ownership by saving their money and planning for the future. We believe in being responsible lenders to our members, and have never placed members in lending situations they are not in a position to handle.

Our Financial Strength

You can rest easy knowing the Randolph-Brooks financial picture is solid, and you don't have to take our word for it. As a gauge of our success, our regulator consistently gives us the highest marks possible for the management of the credit union. IDC, a top financial services research firm, has given Randolph-Brooks a "Superior" rating – the highest level – for 48 consecutive six-month periods since December 1984. The analyst firm Bauer Financial has awarded us its five-star superior rating for 73 consecutive quarters.

For years, Randolph-Brooks has told members about the importance of saving. And we practice what we preach. Over the years, we have consciously added money to our reserves because we know you cannot always precisely define risks. This approach allows us to be prepared for whatever comes – even global market turmoil. We are well prepared to weather the storm.

The federal government considers a credit union in very solid financial condition when their savings account equals at least 7% of their total asset value (our capital ratio). The Randolph-Brooks capital ratio is actually almost twice that level at 12.72%. Simply put, we are one of the strongest financial services institutions in the country.

In real terms, what this means is if a catastrophic event occurred and we lost every branch we own (29), we could rebuild every single structure and still be considered "well-capitalized." This is the financial strength that allows our volunteer board of directors and our employees to sleep well at night... and should provide you with peace-of-mind that your credit union will be here to help you and your family for generations to come.