SF Fire Credit Union

How Your Accounts are Insured at SF Fire Credit Union

SF Fire Credit Union’s deposits have been privately insured since 1996 by American Share Insurance (ASI), a non-profit corporation that provides primary and excess share or deposit insurance exclusively to Credit Unions. At that time, federal insurance covered $100,000 per depositor, and the members of SF Fire Credit Union voted to obtain the higher levels of coverage per account offered by ASI.

Up to $500,000 Per Account

Each and every SF Fire Credit Union account of an individual member is insured up to $500,000 – without limitation to the the number or nature of accounts held. This coverage is comprised of $250,000 in “Primary Share” insurance with an additional $250,000 in “Excess Share” insurance. An example of how deposits are covered is illustrated in the table below:

Member Holding	ASI Coverage
Regular Savings	$500,000
Checking	$500,000
Money Market	$500,000
Holiday Savings	$500,000
6-Month Term Certificate	$500,000
1-Year Term Certificate	$500,000
Total Insured	$3,000,000

Importance of Being an Informed Consumer

SF Fire Credit Union understands the importance of deposit insurance, but believes what is of more value is that members of Credit Unions (and customers of banks) be well informed of the capital levels, earnings, and risk profile of the financial institutions that they do business with. Institutions that have failed had high mortgage and consumer loan risk and losses, leveraged balance sheets with borrowings, stressed earnings, and an inability to increase their capital ratios through earnings (or in the case of banks, through stock offerings).

Safety & Soundness of SF Fire Credit Union

• SF Fire Credit Union has nearly 8% capital. Federal regulators consider 6% well capitalized, and banks on average hold 5%.
• SF Fire Credit Union never entered into risky loans or investments.
• SF Fire Credit Union has sustained some credit losses given the downturn in the real estate market and the high unemployment rate in California – but our losses are minimal in comparison to most other institutions.
• SF Fire Credit Union continues to provide high value to members in the form of great rates and low fees – and we see no change to that in our future.

Implications of SF Fire Credit Union Not Being Federally Insured

• The deposits of SF Fire Credit Union are not backed by the federal government, however the government guarantee on federal insurance occurs only when (1) the insurance fund has no funds and (2) the federally insured institutions as a group can no longer support the premiums necessary to bring the insurance fund back to required operating levels – meaning a virtual collapse of the entire Credit Union system. Since the beginning of 2008, the U.S. Government has not contributed to the insurance funds to cover any losses that have occurred.
• While federal insurance has been temporarily increased to $250,000 to give consumers an added sense of security during this current economic downturn, it’s important to note that federal coverage is per depositor – and not per individual deposit account.

About American Share Insurance

• ASI has been providing deposit insurance to Credit Unions since 1974 – and no Credit Union member has ever lost money in an ASI insured Credit Union.
• ASI is owned by Credit Unions and only insures Credit Unions. Currently, over 1.5 million individual consumers belong to Credit Unions insured by ASI.
• ASI is selective as to who it insures. Not all Credit Unions that apply for coverage are accepted due to ASI’s strict underwriting standards.
• ASI’s balance sheet exhibits solid characteristics with 25% invested in cash and cash equivalents, 70% in U.S. government-guaranteed agency bonds and US Treasuries, and 5% in other assets (certificates of deposit, accounts receivable, building and other fixed assets).
• ASI does not hold any collateralized mortgage obligations (CMOs) or any of the types of exotic investments that created the need for the bailout of AIG, Goldman Sachs and other investment firms, nor does it insure or guarantee the performance of such securities to any parties.
• ASI is regulated by both the Ohio Department of Insurance and the Ohio Department of Commerce. In addition, credit union examiners from each state in which ASI operates are invited to participate in thorough annual exams of the company conducted by the Ohio Department of Commerce. The Ohio Department of Insurance also conducts a cyclical statutory examination of ASI and a “big four” auditing firm annually certifies ASI’s financial statements.
• Learn more about ASI by visiting American Share Insurance (ASI). ASI’s audited financial statements are available upon request by calling 800.521.6342. You can also submit your questions to them via e-mail at mail@americanshare.com.