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It is hard to miss the media barrage that we are all facing difficult economic times. While there may be problems in some segments of the U.S. mortgage market, it is important to know Patelco's financial picture remains strong and our position within mortgage lending solid.
"People helping people" is one of our core beliefs and as a financial cooperative, the members that support our savings programs help fund the mortgage and loan products that we offer. Because we don't depend on selling loans or borrow money from capital markets to fund our loans, we are protected from the current secondary market crisis.
Patelco has never participated in sub-prime mortgage lending, negative amortization loans, interest only first mortgages or stated income mortgage loans, and has always refused to offer speculative mortgages.
Today, Patelco's mortgage loans represent 25% of total assets. 90% of our mortgage loans were originated with 80% loan-to-value or less.
Patelco is thriving:
- assets have reached $4.2 billion
- net income for this year is $11.9 million
- net worth to asset (a reliable measure of safety) ratio is 9.8%
- share growth is 7.5% annualized
Members should take comfort in knowing Patelco is growing, membership is prospering, and the loan portfolio is performing as expected without any secondary exposure to sub prime lending issues.
Patelco is all about meeting member demand for quick adoption of emerging innovative financial services, better rates and expanded delivery of services at the ATM, in the branches, online and by phone. We take seriously our responsibility to drive the development and deployment of expanding benefits to the membership.
Andrew Hunter
President and CEO
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Equal Housing Lender