March 16, 2023
Dear Valued Member,
As you know, the news of the recent bank failures has captured the attention of everyone. After all, Silicon Valley Bank and Signature Bank represent the second and third largest bank failures in history. There are many reasons why a bank fails. Perhaps the most prevalent reason is because it is a bank, and not a credit union. Banks exist to pay their stockholders first; mostly from the income derived from their customers. Some banks may also choose to engage in riskier investment practices to quickly grow their balance sheet and meet shareholders’ profit demands.
Unlike banks, Space Age Credit Union – like all credit unions – is a financial cooperative owned by its members. We do not have stockholders, but rather exist to meet the financial needs and well-being of our membership. Space Age is dedicated to safeguarding your money, while remaining a safe and viable financial institution for future generations. Our strategic business philosophy is intended to follow financial practices that both mitigate risk and help to maintain a conservative, diversified balance sheet. Because of this, Space Age’s investment portfolio is both diverse and short-term, with no investments having a maturity of longer than 26 months.
Since 1952, Space Age has grown to $180 million in assets, and is proudly serving 17,000 members - like you. Space Age is considered well-capitalized by the National Credit Union Administration, an independent federal agency whose sole responsibility is to regulate credit unions and insure their members’ deposits. Space Age deposit accounts, like all Colorado credit unions, are insured through the National Credit Union Share Insurance Fund (NCUSIF), up to $250,000 per individual depositor. The NCUSIF is 100% backed by the full faith and credit of the United States. Credit union members have never lost a penny of insured savings at a federally insured credit union. Your money is safe at Space Age Credit Union.
Looking back, it is hard to imagine but in the 1930’s during the Great Depression, a total of 9,000 banks failed. Ironically, this was also one of the biggest growth periods for credit unions; people sought out financial institutions that served them, not shareholders. In light of everything that has happened recently, perhaps once again existing bank customers will seek to find a better, member-centric financial institution to trust their money with – such as a credit union like Space Age.
We are grateful for your membership, trust, and confidence in Space Age Credit Union. As always, if you have any questions or concerns, please do not hesitate to give us a call at (303) 369-7666 or (800) 666-6928. As YOUR credit union, we are here to serve YOU!
John R. Uchida