MESSAGE FROM THE CEO
Tamara Denysenko

     2008 will be remembered as one of the most challenging years for Ukrainian Federal Credit Union, our nation and for many countries around the world.     

      Our credit union’s road to 2008 began in 2000.  At the turn of the millennium, Rochester Ukrainian Federal Credit Union began its transformation from a one branch $62 million credit union into a six-branch dynamic coast-to-coast financial institution with almost $135.7 million in assets, membership exceeding 16,500 and net equity of  $14.648 million or 10.79% of assets as of December 2008. In just eight years, UFCU more than doubled in assets, tripled in membership and currently has over 60 employees.

      The period, from 2008 through at least 2010 will be remembered for major economic, political and social turning points for broad sectors in our financial, banking, investment, insurance, retail, manufacturing and real estate economies. The unprecedented multi-billion economic upheavals and the financial meltdowns will test our country’s leadership and moral fortitude. It will determine the strength, resiliency and economic sustainability of our banking and cooperative financial systems, our private and corporate business models as well as our federal and state governments’ leadership, social responsibility and sound fiscal management.

      Much of the current “toxic” financial and real estate markets negatively impacting millions of Americans coast-to-coast were caused by corporate and to a degree, consumer imprudent behavior.  Our Ukrainian Federal Credit Union felt some repercussion from these events as many of our members experienced job losses, devaluation of home values, business closings and subsequent bankruptcies.  The steep decline in national financial and economic solvency was especially hard felt in our Sacramento branch.  

      As part of our responsibility to safeguard credit union assets, we transferred a large portion of our income, over $2.9 million to our loan loss reserves. Effective December 2008, in support of our National Credit Union Share Insurance Fund (NCUSIF) we had to incur an additional expense of $533,828. Even after these charges, UFCU continues to be well capitalized. Our reserves are well above the 7% capital threshold to be considered a strong and well capitalized financial cooperative. We will continue to focus on the safety and soundness of our operations for the good and welfare of our membership.

      In 2009 we planned to achieve a break-even budget. However, the on-going economic problems exacerbated the underlying financial difficulties for our corporate credit union system across the country. Again in support of the credit union system, UFCU participated in a NCUA sponsored Security Investment Program (SIP) and purchased a $10 million government-secured guaranteed investment that will temporarily increase our assets by $10 million till the end of 2009.

      In 2009 in further support of the credit union system, our federal regulatory agency, NCUA, requires all credit unions to write-down an additional 18% of our Capital Share Insurance Fund for a total of 69%. There will also be an increase in NCUA operating fees and other corporate credit union investment write-downs, which will negatively impact our net earnings for 2009. However, because of our sound management practices and overall cost-containment measures, we will be able to absorb these unanticipated mandated expenses and continue to maintain our strong capital base.

      Our UFCU Board of Directors, management team and employees are very cognizant of our responsibilities to sustain sound operating practices during these turbulent times. We are totally committed and dedicated to our credit union’s mission of continuing to be a “safe and sound member-oriented cooperative financial institution” for many years to come.

      We will continue to work together –

to maintain our credit union safety and soundness during these distressed economic times

to grow strong and maintain our commitment in support of our communities

to expand and improve our many loan, saving, transaction and convenience services.

       Working together, we will continue to build our Ukrainian Federal Credit Union, a unique financial cooperative that was, is and will continue to be dedicated to providing “prosperity for generations”.

Tamara Denysenko