1^st Valley CU is Safe and Secure

On January 28, 2009, the National Credit Union Association (NCUA) approved the biggest rescue in the history of credit unions with a $1 billion cash infusion into U.S. Central Federal Credit Union, the central bank for credit unions, to cover a $1.1 billion loss experienced in 2008. This was followed up by an article in the January 29^th Wall Street Journal: “U.S. Moves to Bail Out Credit Union Network.”

As we understand this could create some concern, we wanted to provide you with some information regarding how this affects 1^st Valley Credit Union.

• The announcement is related primarily to the U.S. Central Federal Credit Union which posted an unexpected $1.1 billion loss for 2008. The $1 billion infusion is dedicated to covering that loss. U.S. Central serves as the main clearinghouse for wholesale credit unions.

• 1st Valley CU is not a wholesale credit union and although we have investments with wholesale credit unions, we have not experienced any losses through those relationships.

• We felt it important to let members know that 1st Valley CU is not responsible for U.S. Central or its investment policies, nor are we designated to receive any bailout funds.

• 1st Valley CU is safe, sound and secure. We have always maintained prudent, conservative fiscal policies which have resulted in our ability to achieve strong levels of capital.

1st Valley CU would like to reassure you that your assets with us are safe, sound and secure.

Please click here to read the message from our Board of Directors regarding our financial statements for March 2009.