Special Message Regarding the Safety and Soundness of Your Insured Funds

The recent news headlines with the proposed government bail out of investment banks and other financial institutions have prompted numerous phone calls inquiring about our safety and soundness.

You should be assured that your funds with Oklahoma Central are safe and secure. As I reported earlier in the year, Oklahoma Central has not participated in subprime lending that has lead to this current debacle nor have we purchased investments tied to the current financial crisis. Our financial position is healthy with strong earnings and a high level of capital. We are safe and sound.

The National Credit Union Administration (NCUA – www.ncua.gov/ShareInsurance/Index.htm) is the independent federal agency that regulates charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 89 million accounts in all federal credit unions and the overwhelming majority of state-chartered credit unions.  Oklahoma Central is insured through this fund.  Coverage is dependant upon account structure but is a minimum of $250,000 (temporarily increased from $100,000 through 12-31-2009 as part of the Emergency Economic Stabilization Act) on regular funds and $250,000 on retirement funds.

NCUA just this week has opened a call center and has posted an electronic tool kit to help credit union members better understand their insurance protection with NCUA. Experts are available to answer questions about share insurance coverage. You can call the NCUA Insurance Call Center which operates from 7:00 a.m. to 5:30 p.m. (CDT) Monday through Friday to get your questions answered. The toll-free number is 1-800-755-1030, extension 1.

In addition to the NCUA insurance coverage, the credit union also has additional coverage for members that hold funds in excess of the NCUA insurance limits. Oklahoma Central uses a company (ESI – http://www.excessshare.com/Public/Home.aspx) that is the nation’s largest provider. This allows our members to maintain higher balances and still have the security of funds being protected.

We are keeping your funds safe and ensuring that they are available when you need them.