BHFCU is safe, sound, and secure!
The recent headline news has many keenly aware of the banking system’s health and how it relates to their lives. This provides an opportunity to remind our members about the unique characteristics of BHFCU as a credit union.
When Black Hills Federal Credit Union started in 1941, our mission was simple, to improve lives. Now, over 80 years and 18 locations later, we serve nearly 100,000 members in South Dakota, Wyoming, and Montana. We support our local communities with loans and savings products by focusing on consumers, small businesses, and local farmers and ranchers. Our primary investment is in our members, putting roughly 88% of our deposits back into loans to fit their needs. Simply put, we exist to benefit the financial well-being of those we serve.
As a credit union, BHFCU is federally insured by the National Credit Union Administration (NCUA) up to $250,000 per individual, just as the FDIC insures bank deposits. To put this into perspective, over 94% of the funds deposited at the banks that closed last month were uninsured, meaning depositors had more than $250,000 in their accounts. This is not the case for BHFCU and other local financials with far fewer high-dollar accounts, making us naturally safe, sound, and secure.
What occurred last month was a unique situation of high-dollar accounts making up a large portion of deposits, leaving banks exposed when they were withdrawn. BHFCU and other community-based financials are structured much differently than these financial institutions. Even so, our leadership team regularly discusses these types of scenarios while focusing on being the best stewards of member money.
While this situation was unfortunate, we are thankful for the opportunity to focus on what sets credit unions and other local financial institutions apart. To all BHFCU members, thank you for your loyalty and trust.
For more information on credit union insurance, visit mycreditunion.gov/share-insurance.