Chairman's Report for Year 2010
2010 was a challenging year. There were bail outs, bankruptcies, drops in property value, home foreclosures, unemployment levels not seen in decades, unprecedented low interest rates, consumer spending down and significant increases in savings. All pretty scary stuff for the hard working people that make up our membership. The credit union industry, while it has been reasonably strong and steady, has not been immune to the waves caused by the investments in the real estate markets and related debt securities. As such, the industry as a whole has incurred high write-offs and we shouldered our fair share. While this had a significant impact on our financial results for 2010, because of our financial health and sound risk profile, your credit union remains strong.
In 2010, we had to dramatically reduce the interest rates of our deposits. We had to do this because we could not find the investments (such as loans to members or investments in securities) that would generate the appropriate level of returns to adequately and sustainably support the dividend rate on the deposit balances we held. We've also had to make other tough, sometimes unpopular decisions, but all with the mindset and purpose of ensuring your credit union is in the best possible position to continue to stay financially strong, capture the benefits of a rebounding economy and deliver long term success for the credit union. We are starting to see light at the end of the tunnel…a bit of flickering, but certain it's not a train. Our loan activity is stabilizing but interest rates remain low and we do not anticipate any meaningful rise in these rates for the near term. With our balance sheet stable, we are diligently focused on the income and expenses. Providing goods and services tailored to meet the financial needs of our membership while ensuring the financial health of our credit union is our primary goal. Day in and day out, your credit union professionals are focused primarily on one key and essential thing. That is ensuring that the financial needs of our membership are being met.
As we look ahead to 2011 and beyond, we will continue to be tested and face the challenges that this economy deals to each of us. Yet I am confident that we have in place the strategies, tools, people and systems to continue to deliver our promise to you, our membership. One by one, we provide financial solutions for your needs from your perspective, while continuing to build on the financially sound institution that you have come to trust.
In closing, I want to thank my fellow board members for their time, commitment and dedication to guiding our credit union on a path of steadiness and soundness. I want to thank our CEO and the staff of the credit union for concluding another solid year while managing all of the challenges we faced. And last, but certainly not least, I thank you our members for entrusting the credit union with your savings and investments and allowing us to partner with you to achieve your financial success.
Sincerely,
Don Wilcox, Chairman
Health Facilities Federal Credit Union
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Chairman of the Board Message
Chairman's Report for Year 2010
2010 was a challenging year. There were bail outs, bankruptcies, drops in property value, home foreclosures, unemployment levels not seen in decades, unprecedented low interest rates, consumer spending down and significant increases in savings. All pretty scary stuff for the hard working people that make up our membership. The credit union industry, while it has been reasonably strong and steady, has not been immune to the waves caused by the investments in the real estate markets and related debt securities. As such, the industry as a whole has incurred high write-offs and we shouldered our fair share. While this had a significant impact on our financial results for 2010, because of our financial health and sound risk profile, your credit union remains strong.
In 2010, we had to dramatically reduce the interest rates of our deposits. We had to do this because we could not find the investments (such as loans to members or investments in securities) that would generate the appropriate level of returns to adequately and sustainably support the dividend rate on the deposit balances we held. We've also had to make other tough, sometimes unpopular decisions, but all with the mindset and purpose of ensuring your credit union is in the best possible position to continue to stay financially strong, capture the benefits of a rebounding economy and deliver long term success for the credit union. We are starting to see light at the end of the tunnel…a bit of flickering, but certain it's not a train. Our loan activity is stabilizing but interest rates remain low and we do not anticipate any meaningful rise in these rates for the near term. With our balance sheet stable, we are diligently focused on the income and expenses. Providing goods and services tailored to meet the financial needs of our membership while ensuring the financial health of our credit union is our primary goal. Day in and day out, your credit union professionals are focused primarily on one key and essential thing. That is ensuring that the financial needs of our membership are being met.
As we look ahead to 2011 and beyond, we will continue to be tested and face the challenges that this economy deals to each of us. Yet I am confident that we have in place the strategies, tools, people and systems to continue to deliver our promise to you, our membership. One by one, we provide financial solutions for your needs from your perspective, while continuing to build on the financially sound institution that you have come to trust.
In closing, I want to thank my fellow board members for their time, commitment and dedication to guiding our credit union on a path of steadiness and soundness. I want to thank our CEO and the staff of the credit union for concluding another solid year while managing all of the challenges we faced. And last, but certainly not least, I thank you our members for entrusting the credit union with your savings and investments and allowing us to partner with you to achieve your financial success.
Sincerely,
Don Wilcox, Chairman
Health Facilities Federal Credit Union
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