FINANCIAL STRENGTH COMPARISONS

With headlines about bank failures and other seemingly solid companies virtually collapsing in the wake of the mortgage meltdown, we'd like to assure you that your money is safe with LFCU. The information and charts below illustrate LFCU's financial performance and strength compared to that of other financial institutions. If you have any questions, please give us a call at (800) 328-LFCU (5328).

Capital Ratio

LFCU's capital ratio (also known as net worth or retained earnings) is at 15.1% of assets, more than double the amount required by regulators, and significantly higher than the bank and credit union average.* LFCU's capital provides a cushion of more than $432 million to protect member deposits, in addition to the federal insurance guarantee of at least $250,000 per individual vesting.

Return on Assets

Another indicator of LFCU's financial health is the fact that LFCU generates earnings every month. In fact, we have never reported a loss in our 72-year history. By comparison, many other institutions are reporting multi-million dollar financial losses, and are forced to layoff staff or even shut down operations. LFCU's annualized Return on Assets ratio of 1.04%, based on annualized net income divided by average assets, is significantly higher than that of banks and LFCU's peer credit unions.*

Annualized Net Charge-offs

LFCU's annualized net charge-off ratio is 1.03%, which means only a fraction of the loans we make results in a loss to the Credit Union. LFCU has never participated in sub-prime mortgage lending, never originated negative amortizing loans, and never used brokers or third parties to generate mortgages.

Loan Delinquency

History shows that delinquency is an indication of future loan losses or charge-offs. We carefully review and underwrite all loan requests, and our lending policies remain conservative. As a result, our current loan delinquency ratio is 1.92%. In fact, as of 11/09, only 172 of nearly 12,000 residential mortgages and home equity loans on our books are delinquent.*

*Note: LFCU's financial results are current as of 11/30/09. Average credit union and bank data is current as of 9/30/09 (the most recent period available) and is based on institutions with $1 billion or more in assets. Q3 Peer results for ROA and Capital Ratio include extraordinary changes due to Corporate CU Stabilization Act.