You may have heard that on Friday, September 24, the National Credit Union Administration (NCUA) took over control of three “wholesale” credit unions: Members United Corporate CU in Illinois, Southwest Corporate Federal CU in Texas and Constitution Corporate Federal CU in Connecticut. I understand that, in the wake of this news, some of our members may be concerned about the security of Salal Credit Union. I’d like to take a moment to address your concerns.

 Let me stress immediately that Salal Credit Union is safe and secure. We are very well-capitalized; our cautious and prudent approach to investing has served us extremely well in these troubled times, as our recent excellent audits and examinations demonstrate. Our members can continue to place their trust in Salal Credit Union, just as they have for over 60 years.  And of course all our member deposits are insured by the NCUA up to $250,000. 

It’s important to understand the difference between the credit unions that were taken over and a credit union like Salal. Salal is a “natural person” credit union; our business is to provide products and services to our members. The three credit unions subject to government action are “corporate” or “wholesale” credit unions. The business of corporate credit unions consists largely of providing services such as check clearing to natural person credit unions. Salal Credit Union had only a limited relationship with one of these three corporate credit unions, and there will be no impact to our safety or member service. 

We here at Salal Credit Union are happy to answer any questions you may have about the takeover of these corporate credit unions or about Salal’s soundness. Please feel free to visit a branch or give us a call at 800-562-5515. We thank you for continuing to have faith in Salal, just as we continue to strive to earn it.

John D. Iglesias
President & CEO

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