A Message From Our CEO
In the last week, financial markets in the United States have seen great turbulence following the failures of Silvergate Bank, Silicon Valley Bank, and Signature Bank, the latter two represent the second and third largest bank failures in U.S. History. The U.S. Treasury Department, the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve Bank have all taken great measures to ensure that depositors in each of these institutions, as well as other banks which may fail, are fully insured. I want to take a moment to tell you about what the Board of Directors and Senior Management of PAHO/WHO Federal Credit Union do to ensure that your deposits and Credit Union are safely managed.
In our 74-year history, through prudent planning and actively managing risks, the Credit Union has weathered many turbulent financial markets. We have sustained a strong financial position through building and maintaining one of the strongest capital positions of financial institutions in the country. As of the end of December 2022, our capital ratio (or Net Worth), as published in our public financials through our regulatory filings, was 15.88%. This is more than double the 7.00% requirement to be deemed “Well Capitalized” by our regulator, the National Credit Union Administration (NCUA). PAHO/WHO FCU could double its assets without raising additional capital or risking failure. This is not a statement that can be made by most financial institutions. Our strong capital position helps the Credit Union to protect against losses of value from credit defaults, the movement of interest rates, or other challenges.
We also maintain tight monitoring on our liquidity and our ability to meet members’ needs to move money. This is done through ensuring that our cash positions, investment strategies, and our lending provides ample cashflow to exceed even the most illiquid markets. In addition to our strong cash position, the Credit Union also maintains lines of credit for emergency purposes with other financial institutions including the ability to borrow from the Federal Reserve as a lender of last resort. These other financial institution partners are vetted for their safety and soundness as well as verifying their own liquidity is sufficient during a financial crisis.
As a team, our Board of Directors and Senior Management meet regularly to monitor and mitigate various risks while also working to provide Member Value. Our Board of Directors maintains policies that are stricter than regulatory standards to ensure the long-term viability and success of our Credit Union. If for any reason you find yourself uncertain about other institutions, please consider bringing your deposits to us. Not only do we provide safety and soundness, but we also provide phenomenal member value with short-term Certificate of Deposit (CD) rates between 4.07% and 4.96% Annual Percentage Yield (APY) depending on the term and the amount of the CD. An added value of maintaining more of your deposits and loans at PAHO/WHO FCU is our annual year-end bonus dividend.
As always, we thank you for your continued confidence and trust. We look forward to helping you live a better, healthier financial life.
Miguel Boluda, Jr.
Chief Executive Officer