Strength & Security
Recent bank closures and other turmoil in the banking and brokerage industry have caused a great deal of concern in our country. In light of these recent developments, you may have questions concerning the security of your funds and the overall strength of our credit union. You can be confident that Palmetto Citizens is well-capitalized and continues to operate in a safe and secure manner.
NCUA Insured Funds
$250,000 coverage by NCUSIF Approved – The October 3rd passage of The Emergency Economic Stabilization Act of 2008 ensures an immediate increase to $250,000 in the standard share and deposit coverage limit of the National Credit Union Share Insurance Fund – ensuring equality for federal deposit insurance for credit unions and banks.
Funds deposited in our credit union are federally insured by a fund that is backed by the full faith and credit of the U.S. government. As the FDIC does for banks, the National Credit Union Share Insurance Fund (NCUSIF) insures savings of at least up to $250,000 per account.* The NCUSIF is administered by the National Credit Union Administration (NCUA), an agency of the federal government. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.
For more information on federal share insurance, view the NCUA brochure.
To determine your insurance coverage, you can use the NCUA’s Insurance Estimator.
Palmetto Citizens is safe, secure and well-capitalized.
Following are some key financial ratios denoting our superior strength compared to banks and even other credit unions. We have maintained a strong balance sheet and will continue our strength during and after this economic uncertainty because of our sound financial practices.
| Ratio | Palmetto Citizens | Other Credit Unions | Banks |
|---|---|---|---|
| Net Worth Ratio | 12.16% | 11.51% | 10.16% |
| Loan Delinquency Ratio | 0.57% | 1.03% | 2.04% |
| Loan Loss Ratio | 0.34% | 0.62% | 1.32% |
As information, a higher Net Worth Ratio is better than a lower one, and it is better to have lower Loan Delinquency and Loan Loss Ratios (than higher ones).
Sub-prime Mortgage
At Palmetto Citizens, we continue to lend responsibly. We, as well as credit unions as a whole, steered clear of the sub-prime mortgage fiasco. While participation in this type of lending has forced many lenders to scale back or close their doors entirely, Palmetto Citizens continues to grow in mortgage loans.
We are also a member-owned institution and a not-for-profit cooperative. We exist to serve our members, not profit from them. As a credit union, we operate more conservatively. Unlike the banks and brokers, we do not have to return profits to stockholders and are not out to force loans on our members just to make a quick profit.
A Safe Place to Save
We help members save by offering higher savings rates, lower loan rates and fewer fees. Overall, consumers saved $10.9 billion last year by using credit unions rather than banks. That works out to be about $126 per credit union member.
In today’s economy, many people are increasing their savings in response to concerns about their economic future. In seeking to put their money in a stable source offering good rates, Palmetto Citizens continues to be a wise choice.
If you have any questions, please do not hesitate to contact us at (803) 732-5000 or visit any one of our eleven convenient locations.
*Federal Government increased the insurance coverage on all share (deposit) accounts up to $250,000 until 12/31/09.