News & Press Releases

PAC FCU in Great Financial Condition

October 2008

There is so much uncertainty in the economy and some are calling it a crisis. What effect is this having on our credit union?

Frankly it's had the opposite effect of what's been happening to banks throughout the country. Our deposits have increased dramatically. Individuals who have investments in stocks are seeing their portfolios drop in value as our economy as well as the global economy is sinking. Many have been taking their money out of stocks and depositing it into our credit union where it's safe. So from a year ago this time, our member deposits have gone up by more than $9.5 million, which is a 13.6% increase.

When you say it's safe, exactly what do you mean?
Everyone knows that there have been a few banks that have recently merged because of losses on their mortgage securities. One large bank was even closed down recently. These are not necessarily mortgages where the banks have loaned money to their customers for the purchase of homes, but where the banks as well as the investment banks, have purchased securities which were supposed to be backed by home mortgages. As some people couldn't keep up their payments on those mortgages, and as the value of real estate declined, these securities have lost much of their value. As a result this caused losses to the banks.

We never entered that market and didn't purchase those investments. We instead, invested in our members and gave them loans directly, and even though some of our members are struggling, the credit union remains profitable.

And the member's money is insured by the US Government?
Yes, as a matter of fact as of Friday, October 3rd, the insurance for all Federally insured credit unions was increased to $250,000 per member account. So if a member has one, individual account, that account is insured up to $250,000. If the situation is one where there is a husband and wife, and they maintain separate accounts, each one of them has accounts that are separately insured up to $250,000. And if they have a third account that's joint, that account is insured for an additional $500,000. The insurance can be increased even higher if there are children in the family who can be added to the accounts as either joint owners or beneficiaries.

That's good news.
Yes, it allows many members to sleep a little better knowing that the money they've save over their lifetimes will be safe.

You mentioned that the credit union remains profitable?
Yes. Among some of the differences between credit unions and banks is that we are required by our regulator to post a statement of our financial condition every month in all of our branches for our members to see. When was the last time you walked into a local bank and saw their financial results on display? The truth is that many banks are struggling and have losses.

What does that mean to the bank's customers?
When large depositors and investors see a bank start to lose money, they get a little nervous and start to take out their deposits. That's why you see some banks offering some high interest rates on some certificate deposits. They're trying to get some of those deposits back that they have lost. Before you put you money into one of those banks, try asking them if their year-to-date bottom line is positive. When a bank merges, and you have a deposit there, you may get your money back, but the new bank may not honor the interest rate of that certificate that you just opened there.

So what's the bottom line?
The bottom line is this – First, PAC in a growing, health financial institution. Secondly, we are a Polish institution that puts the interest of our members before anything else. And last, we care about the Polish community here in the Metropolitan Detroit area and support many organizations that make our Polish community strong.

Always remember, at PAC, we put our Members first – other financial institutions put their bottom line first.

John Swidwinski
Chief Financial Officer

PAC Federal Credit Union

United Polonia - special promotion sponsored by PAC FCU

May 2008

PAC Federal Credit Union, Detroit Polonia's bank, has been serving the Metropolitan Detroit areas for more than thirty years now. In that time PAC has supported the Polish community through the good years and the rough years. It has not only been witness to but has endured, the changes that have occurred among our people, our institutions, our organizations and our businesses. Only by working together we'll be able to achieve success as proud Polish individuals, as successful Polish businesses, and as vibrant Polish organizations.

In order to help our Members face the challenges that exist in our world today, such as changing immigration laws, the state of our economy, raising families in these times - (and as Members we mean all three types private individuals, business and organizations) PAC Federal Credit Union is introducing the promotion “Polonia Solidarna”, United Polonia to address these needs. It's our way of expressing to the Polonia of greater Detroit this sentiment: if we are to prosper and grow, we must do it together. Individuals, organizations and business must unite and support each other now more that ever before. As a Credit Union, this is our mission, to care about the financial well being of our Members.

There are many talents among our people and our organizations. Our aim will be to provide a forum for these talents and these resources so that they may be shared with all of Polonia so that we may all benefit. PAC Federal Credit Union will offer free air time on this program to our existing Business and Organization members, we would also encourage those Polish Businesses and Organizations who have not yet joined PAC Federal Credit Union to do so. New Members will be able to benefit from promoting their products or services or organization on the air.

This special promotion is targeted do three groups of Polonia:

Existing PAC Members (both Business and Organization accounts)
New Business accounts
And a special Bonus for those private individuals who belong to a Polish Organization.

Existing Members - for those business owners and Polish organizations who are existing PAC Credit Union members, PAC would like to extend an invitation to you to speak about your business or services on our program "People Helping People" on the Polskie Rozmajtosci radio broadcast heard every Saturday at 8:30 am. PAC Federal Credit Union would like to be the catalyst for supporting Polish businesses and enterprises in the Metro-Detroit area.

New Business accounts - for those businesses which are run by Metropolitan Detroit's Polish Americans, we would like to extend an invitation to all of you to become Members of PAC Federal Credit Union. One of the benefits of joining PAC will also be the opportunity to "advertise" your business services, at no cost to you, on the morning talk show with People Helping People.

And a special Bonus for those private individuals who belong to a Polish Organization: Polish organizations - PAC FCU is pleased to announce a promotion to support Polish organizations such as dance groups, choirs, youth organizations or any other Polish groups... If your group's individual members become a Member of PAC FCU by opening up a savings account together with a checking account, or together with a high interest certificate or a low interest car or personal loan, - PAC Credit Union will contribute up to $25 per member to your organization. It's a great way to raise funds for your organization and at the same time a great way for your members to benefit financially by utilizing our credit union's great services.

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