Is my money safe with GEFCU?

With the recent failure of IndyMac Bank and with more failures likely, you may be asking yourself “Is my money safe with GEFCU?”

The answer to that question is, “YES. It is”.  We are quite healthy.  We do not make nor invest in 1^st mortgage loans or mortgage backed securities.  We make only consumer loans to our local members who qualify and can afford to pay back the loans.  In addition, we do not engage in some of the riskier areas of consumer lending such as indirect lending through car dealerships nor have we ventured into the risky area of business lending.  Thus, our loan delinquency remains at an all time low and well below the national average for a credit union our size.  On the investment side of the balance sheet, GEFCU only invests in Jumbo CD’s which are federally insured.

Our net income is healthy but not as high as it could be.  This is because we are a non-profit financial cooperative and we do not charge as many fees as some other institutions, and we have consistently low loan rates.  We feel that we would rather let our members keep their money than charge more fees and higher loan rates.  This is in keeping with the credit union philosophy that has guided GEFCU since its founding in 1931.  Your money is safe with GEFCU, and we remain committed to helping our members weather this latest national financial crisis, just as we did in the Savings and Loan bust of the 1990’s and the high tech bust of 2000.

Tim Rhoades, CEO