Dear Members:

In light of the recent Bank failures I am writing this letter to assure you that your funds on deposit with the STAR Community Credit Union are safe and secure.

All members' deposits in the Credit Union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA), which is an agency of the Federal Government. Deposits are insured up to $250,000 and Individual Retirement Accounts (Roth and Traditional) are insured up to $250,000 per member. Read more information on the insurance fund that protects your STAR savings.

STAR maintains a Capital Ratio of 11.51%, which is nearly 64% higher than the 7% level required to be considered a ‘Well Capitalized' Institution, the government's highest rating. This Capital level is an indicator of STAR's financial strength, stability and ability to weather adverse economic conditions.

Furthermore, STAR Community Credit Union has not originated sub-prime real estate loans. The average loan-to-value of our real estate and equity loan portfolio is less than 50%, which greatly reduces the potential for the kinds of real estate related loan losses which have been the root cause for recent bank failures.

A very small percentage of STAR Community Credit Union members may have acquired sub-prime or ‘non-traditional' loans elsewhere, which may impact their financial responsibility with STAR. Therefore, we have increased our efforts to limit the exposure of the Credit Union through increased collection efforts and close monitoring of all real estate secured loans in our portfolio. We are also conservatively funding the allowance for loan losses as needed.

The Credit Union does not place any of its investments in the stock market. Our investments are placed solely in US Government backed securities and insured deposits of Banks and Credit Unions. The balance of our assets is comprised of loans to members of the Credit Union--members who are principally residents of Butte County, which we have served for over 50 years.

If you would like more information, please don't hesitate to contact us.

Sincerely,
Joseph Kelly,
President, CEO