A Message from Carrie L. Birkhofer, President and CEO

It is hard to escape the negative news regarding our economy. Within the last month, a large bank failed and two giant mortgage lenders, Fannie Mae and Freddie Mac, reported a sharp decline in stock value. On a more personal level, we are all feeling the effects of rising gas prices and tighter budgets.

Understandably, members have inquired how all of these challenges are affecting Bay Federal. I want to assure you that your Credit Union was not involved in the negative amortization or payment option mortgage loans you hear about so often.

However, we have not been immune from the downturn in the economy.  Some of our members are confronting personal financial challenges due to increasing payments on mortgage loans they obtained through other financial institutions, or due to other challenges such as job loss, sickness or inflationary pressures on their already tight monthly budget. We encourage members to openly communicate with us about their challenges; then, if possible, we will work with them to restructure their debt.

Your Credit Union remains steadfast in both its financial strength and its commitment to the community.  Our Senior Management Team and Board of Directors closely monitor our financial statements, and the Credit Union is rated as “well-capitalized”; according to the National Credit Union Association (NCUA). As a part of our diligence, we continue to analyze ways to be more efficient without sacrificing the high quality level of service you have come to expect. In addition, our members’ deposits are insured for at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF). Similar to the FDIC, the NCUSIF is a federal fund that is backed by the full faith and credit of the United States government.

We appreciate our members’ support and I want to thank each one of you for investing in your community. Your deposits are invested back into the economy of the Central Coast in the form of quality loans to your neighbors and friends. We also employ 210 local people and have many valued local business relationships.

As a member of Bay Federal, you are participating in a not-for-profit financial cooperative where local people help local people. Bay Federal has been here for 51 years, through floods, earthquakes and past economic recessions, and we plan to be here for you well into the future.

Sincerely,

Carrie L. Birkhofer
President and CEO

The National Credit Union Association is an independent agency of the United States Government. The NCUA regulates, charters and insures the national federal credit unions. In addition, NCUA insures state-chartered credit unions that desire and qualify for federal insurance.

Your shares in Bay Federal Credit Union are insured by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the United States Government. Established by Congress in 1970 to insure share accounts at federally insured Credit Unions, the NCUSIF is managed by NCUA. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation, or FDIC.

Not one penny of insured savings has ever been lost by a member of a federally insured credit union.

Most properly established share accounts in federally insured credit unions are insured to at least $250,000. Recent legislation has increased the insurance coverage on certain retirement accounts, such as IRAs and Keoghs, up to $250,000. You may obtain additional separate coverage on multiple accounts depending on account ownership. Please refer to a Member Service Representative or “Your Insured Funds” brochure for additional details.