Message from the President/CEO 

I am happy to report that Oxford Federal Credit Union had another successful year.  The Fiscal Year ending December 31, 2008 showed the Credit Union with a very strong and stable financial position, once again.  The Credit Union continued to grow, ending the year with over $123 million in assets, a 6.6% growth over the prior year and Net Income of over $948,000. 

Our continued growth and success can be attributed to our members understanding the Credit Union difference.  Credit Unions are different than Banks.  We are member-owned, not-for-profit financial cooperatives and are directed by our all volunteer Board of Directors.  Each member of a Credit Union is entitled to an equal vote at each annual meeting and determines the make up of their Board of Directors.  These Board members in turn, set the policy and direction of your Credit Union.

Despite the downturn in the economy and the current recession that we are experiencing, credit union members continue to rely on their Credit Unions.  A recent Wall Street Journal article (3/09) states that, “big banks have become wards of the government while smaller banks are failing at a rate of about one a week…… more and more savers and borrowers are finding a safe harbor in the sleepiest, most unexciting corner of the financial world: credit unions.”  At Oxford Federal Credit Union, we are proud to be a safe and secure financial institution during theses troubling times and we are confident that we will remain so for years to come.  

It has always been Oxford Federal Credit Union’s policy to write mortgages to the highest standards and to do so both fairly and ethically for our members.  I am happy to report that Oxford Federal has never participated in any sub-prime lending and that our deposits are federally insured through NCUA and that not one penny of insured savings has ever been lost by a member of a federally insured CU.  Members should feel confident in the Credit Union Share Insurance Fund (NCUSIF), which insures each members’ deposits for up to $250,000.  In addition to this insurance coverage, OFCU also carries (at no cost to its members) Excess Share Insurance which provides coverage for an additional $250,000.

This is not to say that the Credit Union industry has not experienced some challenges during these recessionary times, and although our nation's credit unions did not contribute to the cause of the economic times we are in, we, too, were impacted by it.  Some may have heard or read about the NCUA’s plan to stabilize the Corporate Credit Union Network.  This stabilization plan has a cost and this cost will be spread out among all the credit unions throughout the country.  Fortunately for Oxford Federal Credit Union, we have a strong Capital base and we will be able to assist the Corporate network in getting back on their feet in FY 2009.  This corporate credit union assistance will most likely eliminate a significant majority of our profits for this upcoming year, but rest assured that Oxford Federal is in a position to weather this downturn in the economy.

Once again this year, I am happy to report that Oxford Federal Credit Union received a 5-star rating (highest possible) from the Bauer rating service.  Bauer Financial is an independent service that rates the financial condition of banks and credit unions throughout the country.  Oxford has received their highest rating for 74 consecutive quarters, dating back to 1990 and this places us in the prestigious “Sustained Superiority” category which is earned by fewer than 10 % of the Credit Unions nation-wide.

Another great reason to belong to a Credit Union is the money that consumers save.  According to a recent study conducted by the research firm, Planning Decisions, “Maine’s credit unions provide financial  benefits to their members of approximately $73 million and are an important part of Maine’s economy.”

The Credit Union staff had another very active year, both in serving our members and our community.  I am proud to announce that the Staff and Board Members of Oxford Federal Credit Union performed nearly 1,000 volunteer man-hours in our communities over the past year, which once again supports our Credit Union motto of “People Helping People”.  Some of those hours included our work in our local School Districts helping to educate our youth on financial literacy through our Financial Fitness Fairs.

Some of our other community efforts supported such worthwhile causes as:  Ending Hunger in Maine, Maine Special Olympics, the March of Dimes, and the American Cancer Society’s Relay for Life.    

On behalf of the Board of Directors and our entire staff, I would like to thank all of our members for your continued support and trust in your Credit Union.

Respectfully submitted,

Matthew Kaubris

President/CEO

April 15, 2009