Blogging with the CEO

Dear Members,

I can't help but hear that you are tired of low rates on savings, money market accounts and certificates. Some experts are saying that the Federal Reserve's current policy to drive down interest rates to a 50-year low could not come at a worse time for many aging "Baby Boomers" reaching retirement. They find it very difficult to receive any kind of return on their money. What a perplexing decision to have to make! Should I rely on the safety and soundness of my credit union where my savings are guaranteed? Should I risk it in the stock market? Some say "yes" to the stock market, but many people still remember what happened over two years ago. Perhaps I should invest in real estate? Others don't think so.

The Federal Reserve claims they are trying to keep mortgage rates low in order to continue to help the housing industry. And there is some truth to that. The truth is if the Federal Reserve lets interest rates rise, the government would not be able to pay the interest on its crushing debt and deficits would soar. Many economic models are now predicting interest rates lower than they are today, all the way through 2012 and possibly beyond. What is a "saver" to do in the face of historically low rates and of rising inflation? Meanwhile, back at the credit union, we watch these events unfold.

Many companies (and credit unions!) have taken the opportunity of the recent down market to reinvest in their business. NorthPark Community Credit Union is no exception. NPCCU has doubled its membership and assets during the worst of times. We have spent hundreds of dollars in technology investments that drive new and improved member services, as well as delivery systems to better serve our local and long distance members. We expect that these improvements will not only increase productivity, but in time will keep the cost of doing business lower. As we continue to learn more about our new technology, more news is coming. Mobile web banking is coming in May 2011. Perhaps by the end of the year, Mobile Text and Mobile App banking will arrive. NPCCU's past three-year plan, devised during the height of the economic crisis, set lofty goals that dramatically enhanced efficiencies, sought to improve service quality, and guaranteed the continued safety and soundness of its members' money.

The year 2010 was a challenging year for the financial services industry, and for NPCCU. With the onslaught of scores of expensive new rules and regulations handed down by Congress, much of our productive time was spent on compliance issues. A lot of time was spent on our core processing and technology conversions and improvements to our phone system. We had a lot of members in financial trouble who needed our help. It was a very busy year. 2011 looks to be even busier!

Despite these obstacles, our employees accomplished a lot. We are especially proud to report to you that although we were facing a poor economy, we grew our membership dramatically, while maintaining a "well capitalized" position. We would like to thank you for your comments, support and trust as we move our membership forward. It is an honor to serve as President and Chief Executive Officer of this superb financial institution. By the way, we need you to tell your friends and family about us!

Sincerely,

Dan Robbins, President/CEO

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