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Message to Our Members
April 2009

Our financial performance the first quarter of the year has been more positive than projected in the budgeting and planning done last fall.  Mortgage operations are strong with many new and existing members taking advantage of the refinance opportunities afforded by historically low interest rates.  We also continue to attract new deposits as members turn to the safety of insured savings accounts. Our earnings are higher than forecasted which is driven, in part, by our rapid asset growth.  In all respects, the first quarter of 2009 would be exceptional except for the negative impact of the NCUA Corporate Stabilization Plan.

In March we recorded the expense of our contribution to the recapitalization of the corporate credit union system, the National Credit Union Share Insurance Fund: $4.1 million.  (Prior messages below here will provide additional details of these industry issues.)  The credit union industry is working diligently to influence a change in how this accounting entry is recorded in hopes that the expense can be spread out over time to alleviate the dramatic impact of this expense.  That has yet to be approved by Congress and there is no certainty that it will. Meanwhile, we stay focused on doing what we do best – meeting the financial needs of our members. We do so with a strong capital position to support us during these unprecedented times and the deposit insurance backing of the US Government.

In March we held our 62nd Annual Meeting and for the first time in over 40 years, we did not meet the 1% quorum requirement.  Therefore, the meeting was adjourned and reconvened on April 15 to conduct the official business of the 62nd Annual Meeting.  In accordance with our Bylaws the number of members attending the reconvened Annual Meeting constituted the required quorum and the annual meeting was held. The following members were elected to serve the VSECU membership:

Board of Directors
M. Jerome Diamond, Judy Rosenstreich,
Robert Morgan and Todd Bailey

Credit Committee
Helen Weed

We are now gearing up for the auto buying season.  While we do not expect a particularly robust buying season, for those members in need of a new vehicle we are ready with favorable terms for your auto loan. 

As the financial and economic drama continues to unfold, VSECU is here for you, your family and friends.  I hope you’ll share the credit union difference with others.  If you or someone you know could benefit from our products and business philosophy, please send them our way. It’s a good time for more Vermonters to rely on a local, reliable and trustworthy financial institution that puts people ahead of profits. 

Best,
Steve Post, CEO