March 14, 2023 
 
Bank Closures and Credit Union Security
 
In light of recent bank failures in California and New York, we realize you may have questions about the money you have deposited with O Bee. First, your deposits are insured by the National Credit Union Administration (NCUA) for up to $250,000 per share owner through the National Credit Unions Share Insurance Fund (NCUSIF) which is, in turn, guaranteed by the full faith of the US Government. This is similar to the FDIC insurance that banks have. 
 
The institutions currently experiencing problems have three common characteristics. First, they have an extensive portfolio of long-term investments which have lost considerable value due to recent rate increases. Secondly, they hold a large amount of institutional or corporate deposits, which are uninsured. Finally, each institution lacked diversification, thus increasing its risk. 
  
It's important to understand that O Bee Credit Union does not share those characteristics. We have zero long-term investments on our balance sheet. Also, 95% of our deposited funds are within the NCUA insurance limits (compared to just 3% for Silicon Valley Bank). Finally, we are a community organization whose simple mission is to use local deposits for local loans to local people. 
 
O Bee is a cooperative, not-for-profit financial institution. The structure of credit unions inherently holds us accountable to you and to other members. We do not have stockholders. We do not engage in risky practices to meet stockholders' profit demands. O Bee does not trade in cryptocurrency. Additionally, as a not-for-profit cooperative, member deposits are invested back into our membership in the form of better rates and lower fees.  
 
You may also review our financials. While we are currently finalizing our 2022 Annual Report, you can review our 2021 financials here or you can review our quarterly financials through the NCUA at their Research a Credit Union (our charter number is 60059)  
O Bee has a strong team of employees dedicated to serving you and ensuring the safety and soundness of the credit union. Our employees are well-trained and knowledgeable about our products and services, and they are always ready to assist you with your financial needs. 
 
The NCUA (a regulator and provider of deposit insurance like the FDIC, but for credit unions) provides insurance coverage of up to $250,000 for each person per credit union, per account ownership category. This means that if a member has deposits in multiple accounts at a single credit union, their deposits are added together and insured up to $250,000. If a member and a spouse together have multiple accounts at a single credit union, they will have up to $500,000 in deposit insurance together.  
 
A great way to understand your insurance coverage is to use tools like the NCUA's Share Insurance Estimator. To try it, go here. It offers a simple step-by-step process that will help you know your current level of NCUA insurance. The estimator can provide calculations for insurance coverage on personal accounts, business accounts, and government accounts. Personal accounts include single accounts, joint accounts, revocable trust accounts, payable on death/in trust for (POD/ITF) accounts and living trust accounts, and individual retirement accounts (IRAs). Business accounts are shares held by corporations, partnerships, and for-profit and not-for-profit organizations.  
 
O Bee Credit Union is strong and stable. We are well-positioned to weather any financial storm and continue to provide our members with the high-quality financial services you know and trust. We will continue to monitor the financial markets closely and take appropriate measures to protect the interests of our members and the credit union. 
 
A few notes about credit unions: 

• Unlike for-profit financial institutions, your credit union is a not-for-profit cooperative, owned by you and the other members using our services.  
• All decisions about the products and services offered are made in your best interests.  
• Our cooperative, not-for-profit structure inherently holds us accountable to you and the other members.
• We do not have stockholders, and we do not engage in risky practices to meet stockholders' profit demands.  
• Our portfolio is diverse and not dependent on a sole industry. Our services are diverse. 
• We are here for Main Street, not Wall Street.  
• We live and work in the communities that we serve, taking local deposits and making local loans. 
• We are healthy, strong, safe, local, and focused on building thriving communities.  

O Bee is safe and sound. We meet (or exceed) the financial standards regulators require for a credit union to be considered well-capitalized.  
 
If you have questions, please don't hesitate to contact our call center at 800-642-4014.  And as always, if you do find yourself in a financial emergency, reach out, so we can work towards a solution.  
   
Let us know if you have any questions or need additional support. 
 
O Bee Credit Union