Your Money is Safe at LFCU

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 71 years in business.

As an example of that strength, LFCU's net worth (or capital) is at 15.4% 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 $420 million to protect member deposits, in addition to the federal insurance guarantee of at least $100,000 per individual vesting ($250,000 for IRAs).

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 0.67% 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 1.73% for banks and 0.91% for credit unions (March ’08 data). We have money to lend, and every home loan is backed by a 100% Satisfaction Guarantee.

Your Credit Union is well-positioned to withstand any foreseeable economic turmoil. If you have any questions, please give us a call at (800) 328-LFCU.

Sincerely,

Dave Styler
President & CEO

P.S. You can secure federal insurance coverage on amounts over $100,000. Click here to learn how.