Letter to Credit Union Members
October 2008

I know many members are concerned about the recent headlines concerning Financial Institutions stability. Let me reassure you that the Cincinnati Ohio Police Federal Credit Union is a very safe, stable and sound financial institution. The credit union's financials are very strong. The Cincinnati Ohio Police FCU is regulated and supervised by NCUA (National Credit Union Administration) www.ncua.gov. The credit union was recently examined by NCUA and once again has maintained the highest ranking given to a Credit Union. In addition, the Federal Credit Union regulations limit the type of investments we can purchase and as such we have avoided the riskier parts of the market that have caused other institutions problems (mortgage backed securities). The credit union also hires an independent audit firm on an annual basis to delve into the credit union's financials and give an "Official Opinion". The credit union once again received a positive affirmation on our financial position.

Many financial institutions are struggling today because of the sub-prime mortgage lending debacle. Financial Institutions are facing huge loan losses due to poor lending standards (lending to individuals without proof of income, taking on credit risk, and lacking collateral). The Cincinnati Ohio Police FCU has been virtually insulated from the adverse impact of the mortgage situation. The credit union requires full documentation for a mortgage loan, we have stricter underwriting standards and we do not offer exotic mortgages (i.e. Interest only mortgages, reverse mortgages, or no documentation loans). The credit union also holds our member's mortgages in our loan portfolio. We do not sell our member's mortgages to the secondary market.

The Cincinnati Ohio Police FCU member's deposits are insured up to at least $250,000 through the NCUSIF (National Credit Union Share Insurance Fund). The NCUSIF is backed by the full faith and credit of the government, just like FDIC. You may be insured for more than $250,000 depending upon how your account is set up (individual, joint, trust, payable-upon-death and other types of accounts). There is also separate insurance coverage up to $250,000 for Individual Retirement Accounts. To determine insurance coverage, see NCUA's insurance estimator at webapps.ncua.gov/ins/

The Cincinnati Ohio Police FCU is very well capitalized. The National Credit Union Administration requires a credit union's capital ratio to be at least 7%. The Cincinnati Ohio Police FCU current capital ratio is 13.5%, almost twice NCUA's requirement. What this means to you is that the credit union is well cushioned financially, if turbulent times should ever arise. The credit union's current assets are 65.9 million. The credit union's current outstanding loan portfolio is 45.5 million. Our delinquent loan ratio is only .26% well below peer average (delinquent loans/total loans). Please visit www.ncua.gov for more information on the Cincinnati Ohio Police Federal Credit Union's financial soundness.

Tina M Wocher