When the bailout bill went into law Friday, it increased to $250,000 the amount the Federal Deposit Insurance Corp. will insure a bank depositor. Perhaps less known, the bill also raised to $250,000 the amount the National Credit Union Share Insurance Fund will insure a depositor at a credit union.

The fund is overseen by the National Credit Union Administration, an independent federal agency that regulates the nation’s more than 8,000 credit unions, 97 percent of which are federally insured.

While bank failures and mergers have made plenty of headlines this year, credit unions have largely escaped the news, although 10 credit unions have failed in 2008, according to the NCUA. The latest one was the Interfaith Federal Credit Union of East Orange, N.J., which had just 370 members and $388,000 in assets when the NCUA liquidated it last month.

Credit union officials in Oregon, though, say their institutions are sound and weathering the current financial storm well. Some, like Bend-based Mid Oregon Credit Union, are seeing a surge in new accounts, driven by individuals seeking an alternative to traditional banks, said Bill Anderson, Mid Oregon president.

“New checking accounts per week have doubled in the last two months,” Anderson said Friday.

There are 83 credit unions in Oregon, all federally insured, with 1.4 million members, meaning roughly 39 percent of the state’s population belongs to a credit union, according to the Credit Union Association of Oregon. In Washington, nearly 38 percent of the population belongs to a credit union, and it’s nearly 28 percent in California, CUAO says.

Credit unions differ from banks in that they are member-owned, not-for-profit financial cooperatives. Any profits a credit union makes are sown back into the credit union in the form of lower borrowing fees, higher interest rates on savings accounts and less expensive fees, according to the CUAO.

Credit unions do not issue stock and lend only to their members. Anyone can become a member of a credit union by opening an account, which is equivalent to owning a share in the credit union.

Troy Stang, president and CEO of the state credit union association, said he’s heard anecdotally that new accounts are “skyrocketing.”

Asked why, Stang said, “This time has allowed credit unions to stand strong on the fact that we are not-for-profit, member-owned and offer a different way to do business, and that’s extremely interesting to consumers in an economic downturn.”

Stang said credit unions might not be as intriguing as big banking institutions, but they’re often a community’s best-kept secret.

Still, the market’s recent turmoil has caused confusion in the financial world, and Stang wants credit union members to know their money is safe, thanks to the National Credit Union Share Insurance Fund.

“The strong message to have is that we are federally regulated and federally insured, and credit union members can have well beyond $250,000 in deposit insurance if they structure their accounts properly,” Stang said.

The FDIC and the NCUSIF now ensure depositors for up to $250,000. Additional deposits in properly structured retirement accounts also are protected.

The Oregon Banking Association was unable to comment for this story, but it did reference a press release from NCUA Chairman Michael Fryzel that said credit unions should discontinue any advertising or remarks that imply banks are not safe.

Confidence

Anderson said he has a lot of confidence in banks and credit unions. Both have weathered storms before, and the bailout bill signed Friday that raises insurance amounts goes a long way to “enhance calm,” he said.

At Mid Oregon — which has branches in Bend, Redmond and Prineville, and is building a new branch in Madras — the credit union makes most of its loans for autos and RVs, Anderson said. Mid Oregon also originates residential mortgage loans for its members, but it sells most of them on the secondary mortgage market, he said.

The rest of its loan portfolio centers on consumer lending, and includes personal loans, credit cards and home equity lines of credit. Anderson said Mid Oregon has not backed off its lending due to the ongoing credit crisis.

The credit union has roughly 17,500 members and more than $113 million in assets, Anderson said.

Credit unions are community-oriented and don’t have to impress Wall Street analysts and shareholders, but they can’t sell stock to raise capital, Anderson said. Credit unions have to grow organically, which can be a slow but rewarding process, he said.

“The only way to grow the organization is through a positive bottom line, so it’s very slow growth but that turns into very conservative growth, which seems to be serving us very well right now,” Anderson said.

Central Oregon Credit Unions

• Mid Oregon Credit Union, headquartered in Bend, has branches in Bend, Redmond and Prineville, and plans to open a Madras branch in spring 2009.

• Northwest Community Credit Union, headquartered in Springfield, has branches in Bend and Redmond.

• Oregonians Credit Union, headquartered in Portland, has a branch in Prineville.

• SELCO Community Credit Union, headquartered in Eugene, has branches in Bend and Redmond.

• SOFCU Community Credit Union, headquartered in Grants Pass, has a branch in Bend.