To the Members of Charter Oak Federal Credit Union:
As you read the headlines in the financial press, I am sure you are wondering what all this news means to Charter Oak. I want to assure you that your credit union is performing well and is in a sound financial position to succeed. Here are the facts:
1) Charter Oak is stronger financially than ever before. With over $69 million in net worth and a net worth ratio above 11%, Charter Oak significantly exceeds the net worth requirements of our regulator, the NCUA. We have never had as much net worth as we have today.
2) Charter Oak remains profitable during this difficult financial time. We are ahead of our budgeted profit levels as of August 31, 2008.
3) We have no financial exposure that will cause losses due to Fannie Mae, Freddie Mac, AIG, Lehman or any other name that has been recently mentioned in the financial press.
4) Charter Oak does not and never will invest in common or preferred stocks. Therefore, we have no direct exposure to an uncertain stock market.
5) Charter Oak has no sub-prime mortgages or any other sub-prime loan products in its portfolio.
Charter Oak is a member-owned, locally managed, safe and sound financial institution. If you have any questions concerning the financial health of your credit union, please feel free to call me at (860) 446-3279 or our Chief Financial Officer Brad Sullivan at (860) 446-3268.
