FINANCIAL SAFETY

Dear Valued Member,

With headlines about IndyMac Bank's failure and other seemingly solid companies virtually collapsing in the wake of the mortgage meltdown, I'd like to again assure you that your money is safe with LFCU. Simply put, LFCU remains one of the strongest financial institutions in the country, and has never reported a loss in our 71 years in business.

As an example of that strength, LFCU's net worth (or capital) is at 15.5% of assets, more than double the amount required by regulators, and more than two times the bank average. This capital provides a cushion of more than $430 million to protect member deposits, in addition to the federal insurance guarantee of at least $250,000 per individual vesting ($250,000 for IRAs). Click here to learn more about your insurance coverage, and how to structure your accounts to secure coverage on amounts well over $250,000.

Another indication of LFCU's excellent financial position is our track record of earning top ratings from independent analysts of U.S. financial institutions. LFCU was awarded a 5-Star rating - the highest possible - from Bauer Financial. Our audited financial statements are posted online for all members to review.

As for our loan portfolio, LFCU's total delinquency (mortgage, commercial and consumer portfolios combined) is a very low 0.84% of loan balances, an excellent result attributed to quality underwriting and the fact that we have never participated in sub-prime lending. This ratio compares to delinquency of 2.08% for banks and 0.90% for credit unions (June '08 data). We have money to lend, and every home loan is backed by a 100% Satisfaction Guarantee.

In short, your Credit Union is well-positioned to withstand any foreseeable economic turmoil. We are absolutely committed to earning and keeping your trust. I invite you to share your thoughts by joining our Inner Circle advisory group at www.lfcu.com/innercircle. You can also write to me directly by sending an email to dstyler@lfcu.com.

Sincerely,

Dave Styler
President/CEO

Read more about how your money is insured

Learn how you can secure federal insurance coverage on amounts well over $250,000

Compare LFCU's financial strength

Your Insured Funds - Overview

Your Insured Funds - Comprehensive brochure

LFCU is extremely safe and strong. Chart compares LFCU's capital ratio (retained earnings divided by assets) to banks and credit unions with $1 billion or more in assets. LFCU data current as of September 2008. Bank and credit union data current as of June 2008. Source: NCUA.gov and FDIC.gov.