Informational Meeting of Members TOPICS FOR DISCUSSION
of the Polish & Slavic Federal Credit Union
Informational Meeting of Members
TOPICS FOR DISCUSSIONOur Credit Union’s mission is to provide financial services to our members, particularly those with modest income. As we follow that mission, we ask ourselves a question: what is more important – the highest possible interest rates on deposits or the best possible service provided to our members?
It is worth noting that, on the average, our members’ average deposit is approximately $16.5 thousand per person. In comparison, an average deposit at the Ukrainian credit union (Self Reliance NY) exceeds $44 thousand. Persons with higher savings deposits place more importance on deposit interest rates, whereas those whose savings are lower, pay more attention to professional service, the number and locations of the branches as well as their hours of operation.
For many years, the Board of Directors has been applying the golden rule of common sense and compromise. For example, our Credit Union strives to keep the interest rates on our financial products at the level similar to that of neighboring banks, at the same time extending the business hours at a majority of branches. We do care to provide our services to as many people as possible, including those with limited savings.
The dynamic development of our Credit Union, which occurred in the past decade, coupled with a significant increase in the number of members, assets and loan portfolio seems to indicate that this strategy is correct and should be continued.
In 2010, despite the prolonged crisis in the financial market, our Credit Union posted $2.2 million gross profit. The Board of Directors decided to pay an additional dividend in the amount of $2.5 million which, de facto, resulted in the net loss of $300 thousand at the end of the fiscal year. However, this amount can hardly be regarded as a loss since PSFCU co-owners received an additional dividend for the first time in the history of our Credit Union – at the time of economic turmoil, when this dividend was welcome by many members.
It is worth remembering that our Credit Union is not only a modern financial institution but also a community of over 72 thousand members, who are both its customers and its co-owners.
Banks extend preferential treatment to those who take out multi-million dollar loans or possess huge savings. At our Credit Union, we devote the same amount of attention to every member and we do not classify them as better or worse customers, even though there is a group of members who possess high loans or savings balances.
Should we change that? Due to the concentration of risk factors, granting one two-million-dollar loan is more risky than granting five loans of $400 thousand each to members with similar credit profile.
Do you think that we should impose higher interest on large loans? We would like to discuss with you this issue and other issues mentioned herein.
Therefore, I cordially invite you to an Informational Meeting:
Sunday, May 15 at 2:00 PM
at the St. Stanisław Kostka School
10 Newell Street
Brooklyn (Greenpoint), NY 11222
Dr. Tomasz Bortnik
Chairman of the PSFCU Board of Directors
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