2016 Annual Report

Your Local Government Federal Credit Union has a mission it takes seriously:
to improve the lives of our members.

In 2016, we introduced more people to LGFCU and helped more members than ever in our 33-year history. And since each LGFCU member touches a family, a community and a region, our impact resonates across North Carolina.

With ripples that crest and push toward the far reaches of our state, LGFCU creates financial possibilities that enrich the lives of our members and the communities we serve, and helps them achieve their goals.

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Chairman's Letter

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Dr. Aaron P. Noble Jr.


To Our Members/Owners:

It is my pleasure to present the 2016 Annual Report to the Local Government Federal Credit Union membership. This is an opportunity to showcase the performance and accomplishments of your Credit Union. Moreover, this is a demonstration of financial democracy in action.

A Credit Union in great financial shape

LGFCU is not an ordinary, run-of-the-mill financial institution. As a cooperative, your Credit Union operates differently. The basic tenets of an institution exclusively owned by its members shape our policies and approach to service. Cooperative principles such as equality among members, open participation and not-for-profit service are fundamental to our governance.

I am proud to share that the state of your Credit Union is strong. By federal regulatory standards, LGFCU is well-capitalized. This is important because it shows sufficient reserves for the risks we face today. You should notice in the financial statements and illustrations that the growth rate for your Credit Union continues in a positive way. This tells us you and your fellow members find that the Credit Union services meet your basic everyday needs.

While financial statistics are important measurements for the success of a credit union, we submit there’s more to the story. The success of a credit union should not be measured by its institutional achievements alone. After all, LGFCU is more than the sum of its parts. Your Credit Union consists of over 290,000 members whose individual circumstances create a composition of stories that should be considered in every decision we make.

No year is without its challenges. Last year was no different. The specter of rising interest rates hovered over the Credit Union just as it did your family. The cost of money, credit and household necessities are at risk of increasing when money gets more expensive. Threats from cyber acts causes us all to double down on ways to protect our private information. New entrants to the financial industry are not all trustworthy or capable of serving members as well as we do. These are just a few of the issues your Credit Union grapples with every day.

You should judge the success of LGFCU based on your experience with us. You should be able to bear witness that your Credit Union treats you with dignity and respect every time. Your testimony should affirm that Credit Union services are competitively priced and have fewer fees to complicate your life. Your experience should reflect that you trust LGFCU to place your best interest as its highest priority.

Securing a strong financial future

As your Credit Union focuses on the challenges of the future, we hold a few important promises in mind. First, LGFCU will offer only financial services that we believe will truly make your life better. This intention causes us to reassess our services to make sure they continue to benefit you.

Second, we understand that you face changes in your lives. For this reason, LGFCU must be willing to change. You should expect us to invest in new products, delivery systems and technology to make our services more convenient and informative for you. We want to remain relevant to you as your needs for financial services change.

Finally, LGFCU will remain committed to the local government community. We believe it is a strategic strength to know one’s members. We are you, and you are LGFCU. Furthermore, we are honored to serve our hometown heroes and public servants.

On behalf of the Board of Directors, we are grateful for your membership and support. We are proud to share the Credit Union with you. We look forward to another year of improving the lives of all our members.


Aaron P. Noble Jr., Ed. D.
Chairman, Board of Directors

Defining Moments

Our members’ stories are the LGFCU story. For nearly 34 years, we’ve been there to help you with childhood savings, home purchases and car financing. We’ve also loaned a hand when you struggled to pay bills and get out of debt.

When things change in your life, these are the moments that make us proud to serve you.

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Residence: New Bern, NC

Member Since: 1997

Tharesa Lee

If I’m going to recommend something or someplace it’s because I know first-hand that it works. I can say with my whole heart that LGFCU has consistently been there for me.”

In her nearly 20 years of membership, Tharesa Lee has turned to LGFCU for every major life event.

Watch Tharesa’s story.

David Reynolds

In 2016, David Reynolds was drowning in $18,000 worth of credit card debt.

He fought to keep up with payments on credit cards, and home and auto loans. After a series of late payments, the Credit Union took notice and stepped in with a lifeline.

After the divorce, things went south very quickly. I knew what was wrong. I was spending more money than I should’ve. They knew I was struggling.”

LGFCU helped David create a budget and consolidated his credit card debt with a low-interest, Unsecured Personal Loan to make his overall monthly payments more affordable.

Since then, David has focused on staying true to his budget. He has changed his spending habits and can see the light of day.

I’m not covered in debt I can’t afford to pay. This is a place where your money will be safe and you’ll be treated well.”

Residence: Hayesville, NC

Member Since: 2013

Residence: Durham, NC

Member Since: 2004

Tanner Morrison

Tanner Morrison grew up with LGFCU.

I opened my first account when I got my first job making pizzas in high school.

But coming out of college and entering the workforce is a scary time. Not knowing how to make a budget and save money for the rainy days can make things tough.”

A friend recommended he get help from the Credit Union to organize his finances.

Tanner received financial counseling and assistance with setting up his Compass by LGFCU money management account to help him budget his money.

You think you’ve got it all worked out. Then you find out you don’t.”

Today, Tanner continues to track his spending and budget his money.

I can now save a little each month. I even contribute to my 401(k)! Back then I never could do that.”

For Tanner, Credit Union membership is, “Simply a better way to … manage your growth as a young professional.

Jayne Calhoun

It’s been nearly two years since Jayne Calhoun’s personal life fell to pieces, causing damage to her finances. Looking back now, she can laugh at her misery.

I was a hot mess.

I had a messy break up from a difficult relationship. I was nearly homeless, my car wouldn’t go in reverse, and my credit score was absolutely terrible. I was destitute.”

A friend told her LGFCU could help her turn her financial life around.

After hearing Jayne’s story, the Credit Union created a structured debt repayment plan. She was also approved for an Unsecured Personal Loan to bridge the gap in her cash flow, as well as a much-needed Used Auto Loan.

Now, Jayne’s credit score has improved 200 points.

It’s amazing how different things are now. It helps to know the Credit Union is there for you.”

Residence: Cedar Point, NC

Member Since: 2012

Community Impact

In addition to serving the traditional financial needs of our nearly 300,000 members in 2016, LGFCU engaged, educated, enriched and improved the lives of thousands of others.

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Member and Industry Connections

Visited 7,879

local governments agencies,

departments and hospitals

Participated in 295

orientations, benefits and
wellness fairs

Attended 63

partner events, such as book drives, 5k races, and National Night Out

Met about 17,000

members and prospective members at conferences

Sponsoring Education

Awarded nearly


in professional and student scholarships

Out in the Community

we sponsored, volunteered
or vended at

Protecting the Environment

Hosted 25

shred events with county

and municipal partners

Nearly 2,000
community members
recycled more than


pounds of paper

That's Roughly equivalent to

saving nearly

1,000 trees

more than


gallons of oil

160 cubic yards

of landfill space

213,000 kilowatts

of energy

Nearly 374,000

gallons of water

Helping Communities Thrive


Member volunteers from across the state play a crucial role in the success of LGFCU. Volunteers serve on our Board of Directors and on committees, including the Supervisory and Loan Review Committees, as well as on the Advisory Council. LGFCU relies on volunteers to be the liaisons between existing and potential Credit Union members and LGFCU management, and to perform various audit and decision-making functions.

Our volunteers demonstrate leadership by example, and exemplify the cooperative foundation on which credit unions are based.

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Board of Directors


Dr. Aaron P. Noble Jr.


Vice Chairman

Willie Best

Chapel Hill


Kellie Blue



David Dear



Ruth Barnes

Atlantic Beach


Jeanne Erwin



Lin Jones



Paul Miller

Snow Hill


Ken Noland


Directors Emeriti

  • Frances Efird – Cary
  • Al Richardson – Black Mountain
  • Jack Scoville – Cary

Supervisory Committee

  • Ryan Draughn – Sanford
  • Patty Gravinese – Raleigh
  • Emily Lucas – Wake Forest
  • Michelle Price – Cary
  • Lee Smiley – Apex

Loan Review Committee

  • Jim Baker – Retired, Chapel Hill
  • Nancy Held – Retired, Clayton
  • Pam Hurdle – Hertford
  • Dale Johnson – Retired, Raleigh
  • Tony King – Louisburg
  • Caroline Lee – Raleigh
  • Wilbert McAdoo – Retired, Efland
  • Nancy Medlin – Garner
  • Charles Murray – Louisburg
  • Cheryl Perry – Cary
  • Jean Stowers – Pine Level
  • Sam Tingler – Pittsboro
  • Charles Weber – Retired, Olympia, WA
  • Mark Williams – Retired, Wake Forest

Advisory Council

The Advisory Council members serve as advocates in their communities, acting as ambassadors to potential members and a source of information to existing members. As of December 31, 2016, there were 477 members.

See members

Albemarle Sound
Brenda Algood
Darlene Carter
Monica Cole
Anthony Dickinson
Philip Donahue
Katherine Felton
Jay Fortenbery
Jackie Frierson
Mary Hunnicutt
Pam Hurdle
Stephanie Jackson
Chuck Jones, Jr.
Clarann Mansfield
Barry Overman
Amy Powers
Debbie Reed
Fred Spruill, Sr.
Keith Throckmorton
Tammy Woodley
Dan Barron
Bob Boyette
Brian Franklin
Tonia Hampton
Joshua Harrold
Rickey Hensley
Steve Jones
Dean Luebbe
Ray McDaniel
Joe McKinney
Kate O'Hara
Kevin Owenby
Anthony Penland
Sheila Pike
Jason Robinson
Stefan Stackhouse
Danna Stansbury
Joey Webb
John Wilson
Central Coast
Michael Avery
Grace Barbour
Rosie Brinson
Dorothy Brown
Amy Burdulis
Jayne Calhoun
Leigh Ann Cook
David Cox
Shirley Gabbert
Natalie Gibble
Thurman Hardison
Antuan Hawkins
Wendy Jenkins
Karla Johnson
Valeria Johnson
Tharesa Lee
Jaime Long
Susan Nixon
Vickie Phillips
Denise Powell
Sherry Riggs
Tony Sears
Garland Terry
Lee Tillman
Harvey Walker
Ed Weigl
Mary Weigl
Central Mountain
Ellie Avery
Sheila Blalock
Tommy Burleson
Darlene Butler
Richard Canipe
Jackie Cornette
Angie Eggers
Scott Hurley
Amy Shook
Jordan Steady
Cindy Turbyfill
Central Piedmont
Nancy Boyden
Richard Cooke
Ken Deal
Ti Farmer
Carol File
John Gallimore
Michelle Hepler
Robin Howard
Hilda Keeney
David Ketner
Wayne Krimminger, Jr.
Melody Moxley
Patti Price
Jessica Reid
Chad Ritchie
Loran Schulte
Kim Stine
Nick Turner
Sylvia Turnmire
Josh Watkins
Mark Wilkinson
Sarah Wilkinson
Angel Wright-Lanier
Chowan River
Joleatha Chestnutt
David Clary
Bill Early
Bobby Eure
Troy Fitzhugh, Sr.
Earnest Howard
Evelyn Howard
Alvin Lewis
James Peele
Scott Sauer
Stephanie Simpson
Belinda Smith
Mike Stalls
Kathleen Wright
Donna Zube
Coastal Plain
Susan Baptist
Pamela Brame
Audrey Bryant
Sharon Cooper
Amy Davis
Kathy Hubbard
Sandra Janssen
Hans Kalwitz
Brian Kelly
Jackie Nicholson
Brenda Reece
Chris Roberson
Kathy Wallace
Anna West
Marina Williams
Deep River
Stacy Griffin
Krista Lowe
Alice Lloyd
Greg Patton
Mike Roberson
Amelia Varner
Thomas Wassack
Eastern Carolina
Tammy Blake
Delbert Bryant
Theresa Cieslinski
Denise Dale
Vivian Davis
Wanda Dixon
Debra Dunn
Scott Godefroy
Rosalie Grimes
Sherry Howell
Barbara Lipscomb
Alice Manuel
Brandyn Smith
Jasman Smith
Eastern Sandhills
Melissa Adams
Michelle Babson
Laticia Black
Annette Bryant
Cathy Buie
Therman Cherry
Debbie Disbrow
Lemark Harris
Jody Jernigan
Angela Jones
Kayla Lee
O'Ryan Lowry
Michael McNeill
Ti Morrill
Marion Morrisey
John Rankins
Katrina Tatum
Annie Williams
Larry Williams
Eastern Triangle
Veloris Allen
Gordon Joyner
Tim Kerigan
Amy McClain
Melanie Proctor
Connie Sorrell
Jennifer Turner
Ernie Wilkinson, Jr.
Amy Abernathy
Chris Beddingfield
Heather Black
Jeff Brittain
Rich Chuvala
Jeff Clevenger
Vontella Dabbs
Gary Foster
Laura Hamilton
Chuck Moore
Bryant Morehead
Judy Smith
Judy Toney
Lisa Wassen
Barry Webb
Charlene Allen
Ellen Bell
Becky Breiholz
Gary Britt
Melody Clopton
Mike Eubank
Fred Featherstone
Bonita Hurdle
Karen Krafft
Lynn Morris
Elizabeth Reilly
Kermit Skinner
Kevin Zorc
Lake Hickory
Winfield Abee
Laura Anderson
Sherri Bradshaw
Seth Eckard
Brandon Elrod
Tamara Faulkner
Patricia Gabriel
Carson Hendrix
Danny Hester
Louise Humphrey
Charles Ingold
Debbie Jones
Teresa Laffon
Claudia Main
Johnny Overby
Wayne Rash
Crystal Smith
Betty Jean Stinson
Michael Willis
Heather Birch
Bill Blackwelder, Jr.
Aaliyah Cupil
Chanyne Cupil
Craig Cupil
Anna Ellis
Charvetta Ford
Brian Gott
Nyki Hardy
Barbara Lansche
Roger McCoy
Mike McLaurin
Laura Wasson
Nantahala Forest
David Adams
Terry Ashe
Elise Bryson
Mike Decker
Kyra Doster
Sheila Jenkins
Pam Ledford
Chuck Norris
Dustin Pendergrass
Ruth Sitton
Danielle Wittekind
Chuck Young
Northern Mountain
Connie Bauguess
Breanna Creed
Bill Hancock
Carol Hermann
Steve Hutchens
Stephen Mahaffey
Denise Monahan
Lizabeth Roupe
Josh Smith
Sandra Snow
Vic Spencer
Monroe Wagoner
Susan White
Northern Piedmont
Carla Banks
Joseph Brady
Debra Bronson
Tommy Cole
John Dean
Stacy Farlow
Valarie Halvorsen
Matthew Johnson
Brenda Jones Fox
Karen Lawrence
Jimmy Marley
Tim McKinney
Ben Neal
Carolyn Nimmons
Eric Olmedo
David Parrish
Chris Phillips
Teri Sentiff
Keith Volz
Melinda Ward
Jason Wood
Janice Wyrick
Northern Triangle
Angelia Alston
Sandra Catherwood
Elton Daniels
Marisol Diaz
Joyce Dickerson
Kelly Faulkner
Jon Franklin
Cheryl Hart
Joyce Howard-Fritz
Argretta Johen
Holt Kornegay
Donna Lee
Jordan McMillen
Donna Stearns
Curtis Tyndall
Dianne White
Research Triangle
Brian Andrews
Kendra Beard
Germaine Brewington
Deborah Craig-Ray
Tara Fikes
Reginald Johnson
Kevin Locklear
Lenora Minion
Daniel Oguin
Craig Page
Alice Sharpe
Diane Shepherd
Deborah Taylor
Lee Worsley
Roanoke River
Mary Anderson-Faison
Christie Avens
James Avens, Jr.
Starlin Beatty
Tony Brown
Wanda Clark
Barbara Davis
Heather Joyner
Mark Macon
Ginny Orvedahl
Marcenda Rogers
Robin Williams
Southern Coast
Regina Alexander
Ken Bogan
Micki Bozeman
Russell Conway
Marty Cooke
Joy Easley
Bob Grant
Rachel Johnson
Warren Lee
Teresa Parker
Avril Pinder
Gregory Sibbett
Shannon Slocum
Lynnine Webb
Justin Whiteside
Southern Mountain
Sheila Cozart
Kelley Craig
Johnny Duncan
Jim Fatland
Susan Frady
Ken Garrett
Wallace Hollis
Rocky Hyder
Rick Livingston
Heather McGaha
David Nicholson
David Reid
Glenda Sansosti
Southern Piedmont
Ben Bailey
Crystal Crump
Gloria Haney
Scott Hopkins
Bonnie Huntley
Brian Matthews
Franco McGee
Shawn Oke
Kimberly Parker
Michael Sandy
Mark Watson
Tar River
Tim Bilderback
Gordon Deno
Sarah Edwards
Grant Goings
John Hunt
Cynthia Jenkins
Anison Kirkland
Elgin Lane
Troy Lewis
Wendy Moody
Nancy Nixon
Robbin Pridgen
Cynthia Richardson
Wendy Rose
Pat Saunders
Jessica Smith
Andy Williams
Bryan Alexander II
Jason Cannon
T J Cawley
Shonda Corbett
Michelle Daniels
Marchell David
Sandra Dixon
Michael Edmonds
Gregge Efird
Cecelia Farrell
Felex Gathings
Hannah Gathings
Cheryl Gay
Celeste Goddard
Eleanor Green
Dan Greenhaus
Petra Hales
Diana Harris
Randall Heath
David Huffman
Dale Johnson
Forrest Jones
Kim Kenny
Eric Keravuori
John Kuhls
Mike Latta
Seth Lawless
Laura McLaughlin
Donald Monah
Carla Morgan
Tanner Morrison
Betty Pearce
Geoffrey Pearson
Erika Phillips
Jason Pleasant
Judy Rhyne
Sherry Scoggins
Aileen Staples
Ike Wheeler
Kenneth Wilkins
Chandra Wright
Todd Wright
Western Mountain
Victor Davis
Daphne Dockery
Andy Williams
Western Piedmont
Scott Buffkin
Gray Cassell
Kimberly Dennings
Martha Hancock
Matti House
Dolly Hulin
Tony Jarrett
Fontae Kilpatrick
James McKinnie
Lynn McKinnie
Dora Moore
Susan O'Brien
Jean Thompson
Western Sandhills
Bob Bridwell
Denise Brook
Dena Cook
Jamie Dockery
Amanda Hart
Brandon Holland
Angie Kantor
Meta McCune
Joyce McGehee
Dee Ann Purvis
Melanie Rodgers
Regina Rosy
Marian Savage
Theresa Thomas
Sheila Trotter
Western Triangle
Michael Adkins
Shelton Burnette
Katherine Cathey
Lindsey Davidson
Bill Davis
Carol Dorsey
Lisa Edwards
Diana Harris
Tamara Hayes
Sylvia Johnson
Anita Jones-McNair
Frankie Maness
Ernest Mangum
Wilbert McAdoo
Todd Norman
Dale Norris
Shari Porterfield
Angela Satterfield
Steven Stewart
Sean Tencer
Shannon Watkins
Philip Nowlin

By The Numbers

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Membership total

Graph: LGFCU's 2016 Total membership numbers

Investment Portfolio Mix

Chart: LGFCU's 2016 Loan Portfolio Mix

Loan Portfolio Mix

Chart: LGFCU's 2016 Inverstment Portfolio Mix

Assets Total

Chart: LGFCU's 2016 Total Assets

Statements of Financial Condition

Assets2016 2015
Cash and Investments $288,140,146$343,333,764
Mortgage Loans $486,771,023$425,655,819
Personal Loans $161,239,904$126,410,828
Member Business Loans $71,064,338$61,216,750
Home Equity Loans $67,885,023$57,789,874
Auto Loans $478,014,160$403,968,705
Credit Card Loans $83,456,328$71,419,149
Allowance for Loan Losses ($10,257,352)($7,621,825)
Net Loans $1,338,173,425$1,138,839,300
National Share Insurance $15,119,597$13,503,243
Other Assets $110,032,533$92,955,143
Total Assets $1,751,465,701$1,588,631,450
Liabilities 2016 2015
Payables $5,932,178$11,718,872
Share Accounts $384,476,769$334,592,813
Share Draft Accounts $295,963,065$261,522,041
Money Market Accounts $445,744,658$407,678,155
Individual Retirement Accounts $180,269,386$165,824,597
Share Certificates$279,335,995$263,437,848
Total Deposits $1,585,789,873$1,433,055,454
Total Reserves &
Undivided Earnings
Total Liabilities & Equity $1,751,465,701$1,588,631,450

Statement of income

Operating Income 20162015
Investment Income $3,636,093$4,963,290
Mortgage Loans $17,828,640$16,530,321
Personal Loans $15,455,698$11,964,965
Home Equity Loans $2,309,679$2,806,919
Auto Loans $19,092,667$15,349,325
Credit Card Loans $7,207,407$5,929,802
Member Business Loans $2,073,125$1,736,468
Total Loan Income $63,967,215$54,317,800
Other Operating Income $33,961,935$30,014,878
Total Income $101,565,243$89,295,968
Operating Expenses20162015
Operating Expenses $80,132,881$65,522,678
Interest on Borrowed Funds $0$0
Share Accounts $998,298$837,092
Share Draft Accounts $366,997$325,877
Money Market Accounts $1,500,093$1,384,104
Individual Retirement Accounts $1,865,887$1,738,079
Share Certificates$3,003,038$3,118,050
Total Deposit Expense $7,734,313$7,403,202
Total Expenses $87,867,195$72,925,880
Net Operating Income $13,698,049$16,370,088

Nature of Operations

Local Government Federal Credit Union (the “Credit Union”) is a not-for-profit cooperative that serves employees of local government units. The Credit Union is organized under the laws of the Federal Credit Union Act and is exempt, by statute, from federal and state income and sales taxes. The Credit Union serves its members through the State Employees’ Credit Union (SECU) network. This network includes more than 250 branches and nearly 1,100 ATMs in all of North Carolina’s 100 counties. The Credit Union’s primary source of revenue is its loan portfolio.

Audited Financial Statements

The financial reports provided here have not been audited. The Credit Union’s accounting firm, CliftonLarsonAllen LLP, has audited financial statements for the annual periods ending June 30, 2016 and June 30, 2015, which are posted on the Credit Union’s website at www.lgfcu.org. These financial statements include a more in-depth financial analysis and extensive footnote disclosures that provide additional information on the results of the Credit Union for the respective period ends as noted above.