Through our history the people of the Commonwealth of Massachusetts have sought out institutions to safekeep their wealth. It was 100 years ago that the first Credit Union Legislation in the nation was passed right here in Massachusetts. Historically, in times of turmoil, consumers have shifted their savings to fully insured community based financial institutions.

In the midst of a 100-year financial crisis, consumers are now more than ever seeking financial protection in insured credit unions. Since 1961 The Massachusetts Credit Union Share Insurance Corporation (MSIC), a non-profit financial organization owned by its 98 member credit unions, has answered this call.

“No consumer has ever lost a penny of their savings in an MSIC insured credit union,” says President and CEO Michael Hanson, who is also a former Massachusetts Commissioner of Banks.

When banking giant IndyMac Bank failed in 2008, “we got a lot of calls,” added Hanson. “MSIC member credit unions were trying to respond to their members’ concerns about the safety of their deposits.”

MSIC member credit unions have experienced a significant increase to their insured deposits over the past two years, as a direct result of uncertainty in the current financial services marketplace. “In times of uncertainty, MSIC insurance is important to calm consumers’ fears and thereby add stability to the credit union industry,” said Hanson.

Many Massachusetts consumers are concentrating on the safety of their retirement accounts. With massive losses in the stock market over the past year, the security of a fully insured Individual Retirement Account (IRA) is very important to savers of all ages. By fully-insuring interest-bearing IRA Deposit Accounts – MSIC has created a safe haven in today’s unstable financial climate. MSIC member credit union IRA accounts are growing at an annualized rate of 22 percent, based on March 2009 data released by the NCUA, compared to 14 percent growth for Non MSIC members in Massachusetts.

Chartered in 1961 by Massachusetts statute, MSIC was created to provide share and deposit insurance, years before the NCUA would create a national deposit insurance fund.

In 1991, MSIC converted from a primary insurer to exclusively an insurer of excess shares and deposits. Today, it insures 76 state chartered and 22 federally chartered credit unions doing business in Massachusetts.

“Our member credit unions have avoided the problems which caused the current financial crisis. As true community based financial institutions that are focused on the needs of their members, MSIC credit unions are part of the solution to the current financial mess,” said Hanson. “Their lending continues to grow, thereby helping Massachusetts consumers and small businesses get the credit they need to help improve the local economy,” he added.

To support its member credit unions, MSIC has developed many tools for credit unions to utilize in their operations. MSIC has developed performance-measuring, strategic and business planning tools. Their Custom Performance Reports (CPR) are utilized by more than 600 credit unions nationwide, 200 of which are here in Massachusetts. CPR Reports compare credit unions’ financial results to a variety of peer groups, and play an important part in helping credit union management evaluate their institution’s performance.

Mr. Hanson also authored MSIC’s Handbook for Credit Union Directors: A Job Description. This 32-page best-practices guidebook for credit union board members explains rules of conduct, risks and liabilities, regulatory demands, and other timely issues.

“We are now seeing some signs of stability in the economy, and MSIC insured credit unions will continue to be part of the solution for Massachusetts citizens,” Hanson noted.