Erie FCU - 2023 Spring Newsletter

The Credit Union Difference Makes Us Stronger

Happy spring, everyone!

Finally, spring is here, a time to look forward to increased daylight, warmer weather, time spent outside, and making memories with family and friends.

It is also a time where many of us find ourselves reviewing personal finances to ensure we are on the right track. In light of the recent and unfortunate news surrounding stability within the American banking system, it becomes relevant to understand and appreciate how credit unions differentiate from banks, and why credit unions remain a stable, necessary, and popular choice for over 130 million Americans. An important point to remember is that credit union members have never lost a penny of insured savings at a federally insured credit union.

Erie Federal Credit Union was officially chartered in 1936, and since then, has survived not only establishing itself in the middle of the great depression, but has continuously survived 11 more recessions over the course of its 87-year existence. We are grateful to the almost 73,000 individuals who trust and have chosen membership with Erie FCU. Our savings and loan products, and diverse financial literacy efforts, are available to assist members in developing healthy money habits. No matter the age, we are here to provide financial solutions to ensure our members’ financial stability.

The Credit Union Difference

• Not-for-profit. Credit unions are not-for-profit financial cooperatives that exist to serve their members. Unlike banks, they do not issue stock or pay dividends to stockholders. Credit union profits are returned to their members in the form of lower fees and better loan and deposit rates. Credit unions are not a threat to the market share of banks. In fact, banks control over 92% of financial institution assets and reported $263 billion in profit in 2022.

• Ownership. Credit unions are owned by their members. Coming from diverse socioeconomic backgrounds, every credit union member has equal ownership. A credit union is governed by a volunteer Board of Directors, elected by and from its membership.

• Eligibility. People can qualify for credit union membership through their employer, as well as through organizational affiliations like religious institutions and social groups. In addition, people can qualify to join a community-based credit union, like Erie Federal Credit Union.

• Insured. Like banks, credit union deposits up to $250,000 per depositor are federally insured by the National Credit Union Share Insurance Fund (NCUSIF), a fund that is backed by the full faith and credit of the U.S. government. Higher insurance levels are available to certain types of accounts like joint accounts and trusts. A relatively small number of credit unions opt for private deposit insurance, which is regulated by state financial regulators. For example, Erie FCU maintains Excess Share Insurance (ESI), which provides additional coverage beyond primary NCUA coverage up to an additional $250,000, essentially extending combined coverage up to $500,000 per individual/joint depositor.

• Different. Unlike recently closed banks like Silicon Valley and Signature, more than 91% of deposits in unions nationwide are insured. The remaining percentage includes deposits that exceed the maximum federal deposit insurance amount.

• Safe. The current average credit union net worth ratio is 11%, a signal that credit unions are healthy and stable. Erie FCU maintains a net worth ratio of 9.73% at the time of this writing. This remains well above the ‘well-capitalized’ threshold of 7.00% established by the National Credit Union Administration (NCUA).

• Regulated. The National Credit Union Administration (NCUA), as well as state financial regulators, provide thorough oversight, examination, and supervision of America’s 4,912 credit unions.

• Taxed. Credit unions pay taxes (~$25 billion annually) in payroll, sales, property, and other taxes. In 1937, Congress exempted credit unions from the federal income tax. In return, credit unions provide financial benefits back to their communities in the form of more affordable financial services. In fact, credit unions are two times more likely than banks to offer free checking accounts. Taxing credit unions would be an immediate tax increase on 130 million credit union members, threaten credit union member benefits, and limit consumer financial choices.

• Stable. Credit union management does not face stockholder pressure for maximum short-term profits. They also do not have compensation packages that encourage risky market behavior. Thus, credit union management avoid high-risk, higher return business practices. Credit unions provide responsible loans and stable financial products to members.

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“At the end of the day, financial stability is not a dream, it’s a RESPONSIBILITY!”

~Dolores G. Hirschman

• Responsible. As in past crises, credit unions worked around the clock during the pandemic to provide their members with necessary resources to stay in their homes with the lights on and food on the table. Nearly all their members had access to loan modifications and waived fees. Credit unions provided more than 200,000 Paycheck Protection Program loans to local small businesses during the pandemic, with an average loan size of $47,600. During government shutdowns, many credit unions extend low or no-interest bridge loans to government employees.

• Empowerment. Credit unions exist to help people meet their financial goals, making their members fiercely loyal. Sixty-one percent of credit union members have incomes between $25,000 and $100,000, and nearly 60% of credit union branches are in low and moderate-income neighborhoods. Members know that their credit union will be there for them in good times and bad. Credit unions assist their members in becoming better educated consumers of financial services. Credit union members benefit from lower fees, lower loan rates, and higher deposit yields. The credit union difference is about improving the financial well-being of our members and advancing the communities we serve.

On behalf of all of us here at Erie Federal Credit Union, we wish you a most enjoyable spring!

Brian J. Waugaman, CEO

PS - We want to CU you! Our Annual Meeting will be held virtually and in-person on May 8, 2023. Join us for the State of the Credit Union and a preview of what’s to come.This is a great opportunity to “see” your fellow members and friends. Annual Meeting details can be found later in this newsletter!

“The mission of Erie Federal Credit Union is to responsibly deliver financial solutions that meet the needs of our community.”

#TeamAOK Out and About in the Community!

As part of Erie FCU’s commitment to providing superior service to our members, we are making enhancements to our credit card program. Due to the upcoming changes, current business and consumer cardholders will receive a *new Mastercard credit card in early May.

One thing you will notice right off the bat is that we’ve flipped the card! Our card design is now vertical to reflect the way we use our credit cards today such as inserting them into card machines in a portrait orientation or tapping them to make a contactless payment.

*Please note that your new (Consumer and/or Business) credit card will be issued with a new number. If more than one credit card is associated with your personal account, each card will now have its own number. Upon receiving your new card, remember to update your payment address and card number for any recurring payments currently charged to your current credit card.

April is National Credit Union Youth Month!

April is National Credit Union Youth Month and our goal at Erie FCU is to inspire our young members to learn the importance of saving. Together, we’re encouraging young members to set a financial path early in life to develop solid saving goals for their future.

To reward good saving habits, all qualifying Treasure Club Kids Accounts opened in April will receive:

4 A piggy bank to help your child save for their future

4 One (1) free admission to the Erie Zoo

4 With a deposit of $10 or more, your child can pick a treasure from the Treasure Club Treasure Box

4 All accounts opened in April will be entered for a chance to win one (1) of four (4) $50 gift cards*.

As an added bonus, present the coupon below and Erie FCU will make the initial $5.00 required membership deposit to your child’s account to get them started on the road to saving for their future. Visit www.eriefcu.org or stop by any branch for details.

*Random drawing from all entries will be made May 1, 2023. One account per member/social security for children age 0-12 yrs of age. Membership eligibility required.

(2nd lien, fixed rate, closed end loan)

Use

With rates as low as 5.50% APR* and flexible terms, why wait?

*APR = Annual Percentage Rate. Loans subject to credit approval. Rates, terms and conditions vary based on creditworthiness, qualifications and collateral conditions and are subject to change. 1 Special offer of 1.00% rate reduction applies to New Home Equity loans with a minimum amount borrowed of $5,000 new money, 2nd position liens. Lowest rate available after rate reduction is 5.50% APR. Maximum Loan to Value (LTV) 80%. Property insurance required. Certain restrictions apply. See your credit union mortgage loan officer for details. Membership eligibility required.

NMLS# 414454

We’ll Be With You Every Step of the Way.

Chuck Molloy LPL Financial Advisor

Whether you’re saving for your children’s education, planning for your retirement or securing your family’s financial future, you can depend on Erie Advisors to help you find strategies to address your long-term financial objectives. Unlike some financial companies, our focus is on investment strategies and service. You can feel confident that you’ll receive the same level of personal service together with the knowledge you need to make sound financial decisions.

Dave Garres LPL Financial Advisor

Through LPL Financial, Erie Advisors offers a vast array of exceptional wealth management products and services including:

• Comprehensive financial guidance

• Retirement planning and income strategies

• 401(K) transition assistance

• Investment management

• Insurance needs analysis

To learn more, call 814-897-2500 or contact Erie Advisors online at https://www.eriefcu.org/invest/appointment-request to schedule a complimentary consultation.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Erie Federal Credit Union and Erie Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Erie Advisors, and may also be employees of Erie Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Erie Federal Credit Union or Erie Advisors. Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value

What Does it Take to Retire?

Think of those days when you can sleep in and spend the day doing whatever you want. To get there you need to plan how much money you’ll need to live on when you retire.

There isn’t a “one size fits all” method for calculating this amount; there are many factors to consider. For example, how much have you saved thus far? At what age do you wish to retire? Do you want to maintain your current lifestyle or are you planning to spend less? How much financial risk are you willing to take with your investments? You’ve also got to factor in the rate of inflation at the time of your retirement — it generally runs between 2% to 3%, but unexpected events, like a war and a pandemic, can obviously affect that figure.

There are many personal finance calculators available online to help you estimate your retirement goal and how to much you’ll need to save each year. They are usually set up so you can modify the assumptions to suit your circumstances and run different scenarios. Calculator.net offers a free simple calculator, but there are many others to choose from. The calculators allow you to enter different figures for different scenarios and decide how comfortable you are with each path.

But let’s run one scenario to give you a general idea of how much you will need to save by retirement age. Say you are 40 and want to retire at 67. Your current income is $60,000 and you want to maintain 75% of your current lifestyle. At retirement, you’ll need approximately $650,000 to support yourself for your remaining years.

That’s a lot of money, but remember, you don’t have to figure out how to get there by yourself. We can help you. Talk to one of our branch professionals for information about your retirement saving options.

How is My Credit Score Calculated?

How Is My Credit Score Calculated?

Erie FCU 2023 Annual Meeting!

As a not-for-profit, member-owned credit union, we all benefit from the engagement and participation of our members. That’s why we’re inviting you to our 2023 Erie FCU Annual Meeting! Hear all about how the credit union is performing and about all the exciting things happening through the rest of 2023!

Register now

This year, members will have the option to join the meeting virtually online or in-person. The meeting will be held at the Erie FCU Community Room at 3503 Peach Street, Erie, PA. Members may attend from the comfort of their home online or via phone.

Date/Time:  Monday, May 8, 2023 at 5:30PM.

Location:  Glenwood branch - Community Room at 3505 Peach Street, Erie PA.

Streamed:  Live via GoToMeeting.

Registration is required. You can register anytime from now until May 8.

After registering, you will receive a confirmation email containing information about joining the webinar. The event will be recorded and made available post Annual Meeting.

In-person registration: https://mbr411.com/q1qec Virtual registration: https://attendee.gotowebinar. com/register/8602093420315553109

Every SeaWolves’ Sunday home game, Erie FCU members can present an Erie FCU Mastercard, debit card or member ID (when purchasing tickets) at the UPMC Park ticket office to receive a free Smith’s Hot Dog and fountain drink with the purchase of a regularly priced Sunday ticket. Limit 4 hot dog/drink vouchers per member.

Learn more: www.eriefcu.org/sunday-fun-day

Office Locations & Hours of Operation

Important Information

Routing Number: 243380927

Website: eriefcu.org

E-mail: memberservices@eriefcu.org

E-Z Phone: 814.825.2436, Option 9

Toll Free: 800.480.0494

Debit Mastercard® or STAR Card®: 800.523.4175 (After Hours)

Mastercard® Credit Card Lost/Stolen: 866.604.0381 (After Hours)

Erie FCU NMLS #414454

Privacy Policy Notice - The Erie FCU privacy policy has not changed. You may obtain a copy at www.eriefcu.org/pp or contact us at (814)-825-2436 or (800)-480-0494.

Holiday Hours & Closings

Memorial Day

Monday, May 29, 2023 All offices will be closed

Juneteenth

Monday, June 19, 2023 All offices will be closed

Erie FCU No Surcharge & No Fee ATMs

As an Erie FCU member, you can make withdrawals and deposits at our ATMs or Fast Branch/ATMs using your Erie FCU Debit Mastercard® or STAR® Card and you will not be charged a surcharge or Out-of-Network Fee. For a current listing of all ERIE FCU ATMs, visit www.eriefcu.org/atms