Financial Updates from CFO
Blake Sobolewski, Chief Financial Officer
Meadville Area Federal Credit Union has experienced many hurdles over the last three years. To put it lightly the whole industry has been put through the ringer, some deserving of this, some not. Our credit union has been forced to pay government impairment costs of more than $300 thousand, endure new regulations that are costing our industry revenue and increasing operating expenses, and an upside down economy with the largest number of charged off loans we have ever witnessed. Over the last two years we have funded our Allowance accounts over one million dollars to make up for our members that have walked away from their obligations.
With that in mind, I ask you to reassess your current position with MAFCU. The more our members utilize all of our services the more they get back. The CU movement is running at a fast pace and we want to help all of the potential members who will decide to give our credit union a try. We live in a rapidly changing, and highly regulated environment. There are already talks trying to eliminate some of the burdening rules that have been installed as punishment, but fuel must be added to this fire. More now than ever, our government is realizing that credit unions are very different than banks and must be treated accordingly. Please, keep your eye out for what is going on and contact your representative’s to let them know how you feel about our industry. Mention the fact that you don’t feel it is fair that banks can raise capital but credit unions cannot. Ask your representative, “Why are you punishing them both equally for the deterioration of the credit market that was created only by a handful of the largest financial institutions?” Either way, we are here for the long haul, but a change today could make a big difference to all of us.
Yet, through all of this we continue to be moving in the right direction and growing our products and services, without pushing additional fees and restrictions. We stand by the credit union philosophy of “people helping people.” 2011 has proven to be a much better year than 2010, and this trend will continue through 2012. We have cut many costs and developed some new products that we feel will catapult us out of this stagnate environment. I am very excited about the future of this organization, and the continuation of additional benefits we strive to bring the members. I wish all of you the best in 2012.
Financial Statitics:
As of December 31st, 2011
- Assests: $54,576,142
- Deposits: $50,484,282
- Loans: $38,917,981
- Members: 10,804