A Message to Members

Dear Commercial Metals Federal Credit Union Member:

In the past few months you have no doubt heard or read news reports about financial institutions, some large and some small closing their doors. Many consumers were left with questions and worries surrounding their own funds in other financial institutions as well.

The Commercial Metals Federal Credit Union (CMFCU) Board of Directors would like to reassure our members that your shares (savings) are safe and secure with CMFCU. Your shares are insured by the National Credit Union Share Insurance Fund (NCUSIF), a fund maintained by the U.S. Treasury. The NCUSIF is administered by the National Credit Union Administration (NCUA) an agency of the federal government that charters and supervises federal credit unions, which insures your savings up to at least $250,000.00. Backed by the full faith and credit of the U.S. Government, NCUSIF insures the accounts of millions of account holders in all federal credit unions. Share insurance coverage, offered through the NCUSIF, protects members against losses if a federally insured credit union should fail. You can confidently join and conduct business with federally insured credit unions because no member has ever lost money insured by the NCUSIF. Failures of federally insured credit unions are rare because only those with sound operational standards qualify to receive NCUSIF coverage. While there are isolated instances of credit unions encountering difficulties, on the whole the credit union industry is healthy. Member shares are also protected by a number of provisions in the Federal Credit Union Act and the standard Bylaws. Some of these protections are:

1. All persons handling or having custody of credit union funds must be bonded (staff and Board of Directors)
2. The affairs of the credit union and the records of the Treasurer are audited
3. The Federal Credit Union Act and Bylaws require fund reserves for uncollectible loans
4. Credit unions may invest surplus funds only in specified investments

The NCUA regularly reviews the operations of all federal credit unions. CMFCU is audited by the NCUA every eighteen (18) months and we also obtain the services of an outside auditor for a yearly Supervisory Committee Audit. This audit is a comprehensive review of all areas of the credit union. Both audit reviews are presented to the CMFCU Board of Directors.

The basic purpose of a credit union is to encourage savings while promoting prudent borrowing for reasons such as a big purchase item, an emergency, or for educational needs. Whether large or small, the amount is secondary to developing the habit of saving regularly. CMFCU is proud to provide employees of Commercial Metals Company the ability to save and borrow with the added confidence of knowing that your money and information are secure.