How has the current financial crisis impacted our local credit unions?

Rick Hoffman, Inland Empire Credit Union: The current financial crisis has had little impact on Inland Empire Credit Union.

We have policy guidelines for approving loans and we follow them. We have never done sub-prime lending or non-traditional mortgage loans, which have been part of the problem for institutions that have gotten into financial difficulty. Further the investments that we have made do not have the sub-prime lending or non-traditional mortgage loans supporting them.

The Net Worth position of the Credit Union, the key measure of safety and soundness, places Inland Empire Credit Union in the top tier of safety and soundness.

Besides the NCUA deposit insurance of $100,000 per account and $250,000 for IRA accounts, Inland Empire Credit Union has added an additional $250,000 per account of excess share insurance. Therefore, we have deposit insurance of $350,000 per account and $500,000 for IRA accounts.

Elizabeth L. Lipke, Bourns Employees FCU: We are reaping some of the benefits of bank failures and seizures. Members are consolidating savings balances and leaving the stock market in favor of safety. We're NCUA insured, and that means the members savings balances are insured and backed by the full faith of the U.S. government.

We're also still lending money. We're a real estate portfolio lender and where members have favorable equity positions, we are able to help them. Those members taking advantage of low prices are also coming to us to borrow funds. Even those sold on the secondary market still get their loans serviced by Bourns EFCU. That gives members peace of mind. We have always been a more conservative lender so we haven't changed our lending criteria much at all with the changing real estate market. We don't do sub-prime loans.

Josh Troesh, Service Plus Credit Union: The financial crisis has had a significant impact on all the financial institutions in the Inland Empire. The counties of Riverside and San Bernardino were some of the hardest hit in the region when it comes to home values and sub-prime mortgages. Fortunately Service Plus, as well as most credit unions, did not get involved in sub-prime mortgage loans. As a result, we currently do not have any delinquent first mortgages. We have, however, felt the effects of the economy with our loan delinquency increasing in other loan categories, as some people are having trouble managing ever-increasing mortgage payments with other lenders.

Debra Grisamer, Alta Vista Credit Union: Alta Vista Credit Union, along with other local credit unions, did not make, hold or sell any of the "problem" sub-prime mortgages that have causes much of the current financial crisis. Our portfolio has not been directly impacted by the inability of mortgagees to pay their mortgages nor do we have a portfolio riddled with non-performing mortgage loans. However, our members may have a sub-prime loan from another lender which is impacting their ability to pay other types of Alta Vista Credit Union loans (such as auto loans, VISA credit cards, etc.). Or our member may have experienced being laid off or having their employer go out of business due to the economic strain we are experiencing today in our communities; that, too, can impact their ability to remain current on their obligations, including credit union loans. We have seen an increase in delinquencies and charge offs, but we are heavily capitalized to be able to easily weather the current economic conditions.

Are you attracting new members who are turning away from traditional banks?

Rick Hoffman, Inland Empire Credit Union: Since August, we have seen a steady increase in deposits into the Share Certificate (CD) product, a number from new members. Our membership includes persons who live, work, worship or go to school in nine cities throughout the Inland Empire. Because we are a cooperative, we are able to return higher rates on savings, lower rates on loans and a better fee structure for the membership.

Josh Troesh, Service Plus Credit Union: We have seen an increase in members coming from larger banks. Many of these members are specifically asking about how the credit union is doing compared to banks. For the first time we have had members ask if we are a member of the FDIC and be happy when we say we are not. Credit unions are federally insured by a different government agency, the NCUA, which has a stronger insurance fund. The fact that we have federal insurance, but we're not part of the problems related to the FDIC, has been a huge benefit for members.

Debra Grisamer, Alta Vista Credit Union: Yes, we have seen an increase of former WaMu and Wachovia customers come through our doors to open accounts. Alta Vista Credit Union carries deposit insurance to cover up to $350,000 per account--as far as I know, we are the ONLY financial institution in the Inland Empire to do so. This, combined with our competitive rates and financial stability, has made us a very attractive option for those living or working in Riverside or San Bernardino counties.

Has it changed how you do business?

Rick Hoffman, Inland Empire Credit Union: Recently, we volunteered to participate with the non-profit Center for Educational Leadership to be part of their Entrepreneurship Training, starting in October. This training supports aspiring entrepreneurs in the Pomona area. By successfully completing this program, attendees become eligible to receive grants or micro-loans to expand their small businesses.

Josh Troesh, Service Plus Credit Union: As with all institutions, we've re-evaluated our lending criteria and placed more resources toward helping people who are behind on their loans. Unlike many institutions, though, we continue to lend money to our members, and we continue to focus our collections efforts on helping people out of their problems rather than solely focusing on the money. We have also shifted marketing resources to address the economic trouble, with a new campaign designed specifically for people who are having trouble making their loan payments. Targeted toward our members with delinquent loans, this campaign provides hope for them to get out of their situation and encourages them to contact the credit union so that we can help them get back on track with a series of specially designed products and services.

Debra Grisamer, Alta Vista Credit Union: We welcome the growth, and value the new relationships this financial crisis has brought us. It has also brought a new awareness that we need to do a much better job of telling our story. We are a great option for consumers--we are financially sound, we have great products and services delivered with top-notch service, and we offer our members the peace of mind knowing that their accounts are insured up to $350,000.