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Your Money Is Safe at Mazuma
November 2008
Dear Members:
Media coverage of the Washington Mutual, AIG, Lehman Brothers and Merrill Lynch fallouts have caused many people to take a closer look at their financial institutions.
Currently, the federal government is taking actions to stabilize the economy and limit the disruption to citizens’ personal finances.
We want to assure you that Mazuma Credit Union is a strong and sound financial institution. For nearly 60 years, we have been thorough and cautious with how we have managed your funds. We have maintained a strong position by putting the needs of our Members first. For example, Mazuma did not participate in sub-prime mortgage lending, which led to a record number of home foreclosures around the country. The risks associated with this type of management are not something the Credit Union has ever been willing to do with your money.
The Credit Union is in a stable situation, and we are continuing to make safe loans to the majority of applicants, just as before.
On the deposit side, Member accounts are insured by the NCUA (National Credit Union Administration) up to $250,000, and an additional $250,000 by ESI (Excess Share Insurance). The amount of coverage may be greater for certain accounts such as IRAs.
While we are required to have deposit insurance for your accounts, the Mazuma team works hard to ensure the Credit Union will never have to call upon these organizations to fulfill this obligation.
Currently the Credit Union has more than 10% capital, which is more than you’ll find at many large national and international financial institutions. You can think of it this way: If the Credit Union were to close its services, every Member would receive all of their insured funds deposited at the Credit Union, plus his/her share of the excess 10% of the Credit Union’s worth.
Insurance is a safety net, but your funds are so safe in the Mazuma Credit Union basket that the safety net doesn’t need to be used. If you are using other financial institutions that do not have the same strong position and capital that Mazuma has, why not bring more of your eggs to the Mazuma basket?
We appreciate your support of the Credit Union over the years. It is your support teamed with proper management of your funds that makes Mazuma strong. Below, we have provided more detailed information about insurance coverage.
If you have any questions regarding the state of the Credit Union or your insurance coverage, you may contact us at 816-361-4194, toll-free 888-361-4194.
Thank you,
Rob Givens, President/CEO
Thomas Reck, Chairman of the Board
NCUA
- All credit unions in Missouri are federally insured by the National Credit Union Share Insurance Fund (NCUSIF) that, like the FDIC, is backed by the full faith and credit of the U.S. government.
- The NCUSIF is administered by the National Credit Union Administration (NCUA), an agency of the federal government.
- As the FDIC does for banks, the NCUA provides all Members of federally insured credit unions with $250,000 in coverage for their individual accounts.
- The NCUA recently reported that the NCUSIF at mid-year remained strong, with an equity-to-insured deposits ratio estimated at 1.24% as of June 30 and projected to rise to 1.28% by year end.
- For more information on federal share insurance, see the NCUA brochure “Your Insured Funds,” available at the link here: http://www.ncua.gov/Publications/brochures/insured_funds/funds.pdf
ESI
- The Excess Share Insurance Corporation is a wholly owned subsidiary of American Share Insurance, the nation’s largest private deposit insurer for credit unions.
- ESI offers additional coverage up to $250,000 per deposit account and up to $500,000 for IRAs.
- For more information about ESI, you may visit their Web site at www.excessshare.com.