Recent newspaper articles and internet posts are educating consumers about the safety of their financial institution.  Non-performing loans, poor investments and low net worth ratios all combine for real concerns about the financial services sector. 

KaiPerm’s Board of Directors and management want to assure its members that your credit union is doing well.  Sure, there are challenges in this economy.  And,  in some ways, KaiPerm mirrors what our members are doing to survive this difficult economy. The credit union is watching expenses, limiting capital expenditures to a minimum and keeping excess cash working with a conservative and prudent investment strategy.  At the same time, KaiPerm is making loans.  In fact, our philosophy has always been to look for ways to make loans to our members.

How safe is KaiPerm NW Federal Credit Union

KaiPerm is a well capitalized federally insured credit union.  Your funds are safe and insured up to $250,000 for individuals by an agency of the federal government, the National Credit Union Administration.  Deposits can be structured to be federally insured up to $1 million for a family of four.  In addition, your retirement funds are also federally insured to up $250,000.

Why are some credit unions discouraging deposits?

A recent Oregonian newspaper article cited a local credit union which asked members to take “investment money” elsewhere. Why would any financial institution do such a thing?  Some credit unions are employing a “withdrawal strategy” to reduce the amount of deposits.  Frequently, higher paying certificate of deposits are used to fund loan requests.  In a turbulent environment, demand for loans is low – so there is not a need to keep high paying certificates or other member deposits to fund loans.

Another primary reason for reducing deposits is to improve the financial institution’s net worth ratio.  Net worth is the ratio of reserves (numerator) to assets (denominator).  By lowering assets, the financial institution improves its net worth ratio. Net worth is a key ratio used by bank and credit union regulators to determine the soundness of a financial institution.

Is KaiPerm making loans?

Yes, the credit union is actively making loans.  That’s what we do (along with taking in member deposits).  KaiPerm’s loan service levels are excellent.  The credit union has not had to cut back employee hours, furlough employees or lay off anyone.  Loan rates are very competitive and we provide one-day service for consumer loans and two week service for real estate transactions.


Another benefit of KaiPerm membership is that our loans are priced the same for all members for Direct Advantage (DA) members.  There are no “risk rated” interest rates because of a low credit score!  Your credit union is a not-for-profit financial cooperative so members all receive the value of low rate loans.