Our members may have heard about the sudden closure of California-based Silicon Valley Bank (“SVB”) and New York-based Signature Bank. My goal is to provide you with an added level of assurance regarding the strength and security of your credit union and our capacity to preserve and protect your funds.
Linn Area is not involved in heavy tech funding, crypto currency assets, and international investments. Our modest investments are primarily mortgage pools in the Midwest and loans to our membership. Linn Area has less than 10% of total assets in investments to ensure we are investing in our members and their lending needs. As a result of our member-owned and well-managed structure, Linn Area maintains a highly diversified funding base that serves to insulate from significant liquidity challenges. In fact, if you have funds elsewhere, consider bringing them to Linn Area Credit Union where you can feel confident in securely growing your assets.
Strength, Security, and Stability:
- Since 1935, Linn Area CU has served our community by investing in the financial well-being of members like you while also protecting your trust and funds through the application of strong risk management practices.
- Linn Area is very well-capitalized with just over 10% in net capital (our regulators require at least 7% net capital). This capital serves to protect our members while providing Linn Area with the capacity to absorb severe shocks in our USA market.
- All deposits at Linn Area Credit Union are federally insured up to $250,000 by the National Credit Union Administration. The NCUA is an independent agency of the United States government that regulates, charters, and supervises credit unions, all while closely monitoring their financial resources and fiduciary management. In the entire history of credit unions, members of federally insured credit unions have never lost insured deposits.
Our members can feel safe in banking with us and trusting their deposits with Linn Area. Unlike the financial crisis of the Great Depression or the 2008 mortgage bubble, these recent bank closures are not a systemic banking problem and certainly not related to how we manage this credit union. Rest assured, there is no problem with the credit or debit systems or with the financial security of Linn Area Credit Union.
Take comfort in knowing that Linn Area Credit Union is strong, secure and growing for you and your family for generations to come. As a community of members/owners united in service to each other, we will continue to build and secure a strong future for Iowans.
Sincerely,
Paula O’Rourke
President and CEO
Linn Area Credit Union