To Our Members/Owners,
It is my pleasure to present this Chairman’s Letter and 2019 Annual Report for Local Government Federal Credit Union. Our Credit Union Annual Report serves a two-fold purpose. First, we want you to understand the financial performance results of your cooperative. Secondly, we want to be intentional about emphasizing the unique value proposition LGFCU offers its members.
By most accounts, 2019 was a good year for LGFCU.
The Credit Union succeeded in accomplishing its fiscal and market targets. Assets exceeded $2.2 billion. Your Credit Union is now the ninth largest depository financial institution in North Carolina. This distinction includes a count of all banks and credit unions statewide. Membership has grown to over 356,000 owners. It is important to restate that all members are owners of LGFCU. Statistically speaking, one in every 30 North Carolinians is a member of LGFCU. More often, you share a common bond with a growing population of folks who consider your Credit Union their financial home.
Throughout the past year, your Credit Union financed over 6,200 mortgages for nearly $500 million in lending. When we think about home loans, we imagine the lives we’ve helped to change. Children have safe backyards in which to play. New homes are purchased to provide expanded living spaces. Homeownership is often a path to building wealth through equity. This is all made possible with home lending services that feature low rates and affordable terms.
We focus on growth because this is an important barometer of how we are doing. Growth tells us how well we are meeting your needs for financial services. Too much growth can be a challenge. Too little growth could signal a lack of confidence. Growth for a financial institution should be planned and manageable. We must ensure the Credit Union has adequate reserves and funding, and the ability to meet the growing needs of our membership.
Growth is not the only measure of success for your Credit Union. As a member-owned cooperative, we take our commitment to improve your lives personally. We recognize the connection between financial success and social well-being. We know you want the best for your family and community. We share these dreams for our families as well.
When you judge our performance, we encourage you to look beyond the numbers. Ask yourself how well you are doing. After all, a financial partner should help you live better. You deserve to have the expectation that your Credit Union will provide respectful and responsible services.
As Credit Union members, we sometimes take for granted that all financial service providers treat their customers with fair dealings. Some of your testimonies convince us this is not always so. Many of you have asked us to refinance, trade and unwind bad services you have received elsewhere. We regret the challenges you occasionally deal with. We are happy to have the opportunity to save you money.
It is particularly relevant to find that Credit Union membership is supposed to mean something special. Our core philosophy of democratic control is in sync with our basic societal norms. Our principles of diversity and inclusion convince us to regard all members as equals. Our not-for-profit mandate steers our primary attention to members.
For the reasons stated above, doing business with your Credit Union is more than an ordinary transaction. Your choice of LGFCU as your financial provider signals that you enjoy being recognized for the individual you are.
Finally, I have been the Chairman of your Board of Directors for the past two years. It has been my honor and pleasure to serve you in this capacity. It is our long-standing custom to rotate the Chairman’s seat every so often. As a result, I will step down from the chair position at the Annual Meeting to give other directors an opportunity to lead. However, I look forward to remaining on the Board and working on your behalf.
I serve alongside a team of dedicated volunteers who share a deep commitment to the membership. Speaking on behalf of the entire Board, thank you for your membership. We greatly appreciate the trust you place in us. We look forward to a future of helping you fulfill your dreams.
With best regards,
Chairman, Board of Directors