As we listen to the financial news it is important to understand the soundness of NBA Credit Union and to set the record straight on your deposit insurance.

Soundness:
NBA Credit Union has never participated in sub-prime mortgage lending and remains a safe and secure place for depositors and borrowers. As a nonprofit institution owned by the members, NBACU makes solid business decisions based on what is best for the membership. In contrast, Banks, owned by stockholders, make decisions benefiting stockholders, not their customers.

Our largest holdings are loans to members just like you. We are proud to report that our members continue to repay their loans at record rates in spite of a challenging economy. The quality of our consumer loan portfolio is largely measured by our overall delinquency. With only 0.26% of our loans delinquent, this means 99.74% are current.

As a federally insured credit union, NBACU’s surplus cash investments are restricted to federally insured or federally backed instruments. These investments are considered the most secure of all. We have always been strongly committed to following the SLY principals – Safety 1st, Liquidity 2nd and then Yield.

From a liquidity perspective, NBA Credit Union has lines of credit in place to make sure we meet our members liquidity needs.

As of this writing we have a capitalization ratio in excess of 20% which is one of the highest in the industry. This ratio measures net worth in relation to total assets. Net worth cushions fluctuations in earnings, supports growth and provides protection against insolvency.

Insurance:
NBA Credit Union deposit insurance is administered by the National Credit Union Administration (NCUA). The National Credit Union Share Insurance Fund (NCUSIF) insures savings, checking, money market accounts and certificates of deposit up to $250,000. A joint owner on an account has an additional $250,000 of coverage. Individual Retirement Accounts (IRA’s) are now insured up to $250,000. This coverage is in addition to the $250,000 coverage for regular deposits. For more information, visit the NCUA Share Insurance Estimator at http://webapps.ncua.gov/ins.

We are highly regulated by both the Pennsylvania Department of Banking and the National Credit Union Administration. In addition, we have annual opinion audits performed by Certified Public Accounts as well as internal audit reviews. We have consistently received the highest rankings.

In conclusion, we take our obligation to our members very seriously and are proud to be your banking partner. We are members also. This is a challenging time and is likely to get more serious in the months ahead. The good news for our members is that we remain strong and are very capable of navigating these difficult waters.