As a pandemic challenged our world,
the leadership team at LGFCU focused on finding financial solutions to support members in crisis. Credit Union programs that helped extend payment plans or refinance existing debt were activated for members impacted by COVID-19.
LGFCU also rallied behind communities, giving more than $100,000 to the Carolinas Credit Union Foundation, which allocated funds for a COVID-19 relief fund. Our Membership Development teams donated meals and supplies to staff at local business units and more.
As the public health crisis wore on, we remained grateful to essential workers and first responders, critical personnel in the fight against COVID-19. Their commitment to neighbors kept North Carolinians safe or helped them get the care they needed.
What has become evident over the past year is that we are one Credit Union family, members who share a common bond. Despite the challenges we’ve faced, we are stronger together, even when we’re apart.
Chairman, Board of Directors
Dear fellow members:
This is not a conventional Chairman’s letter. These are not ordinary times. Our state and local communities have undergone changes in the way we do business, educate our children and move about. The year 2020 is in the record books for what happened and what did not occur. This Chairman’s letter is our opportunity to take stock of how your Credit Union fared. More importantly, we want to assure you of our aim to help you move forward.
I chose to address last year from more than just the perspective of how COVID-19 has affected your Credit Union. In summary, our financial performance was very good. But as a cooperative, we are more than the sum of our parts. The Credit Union is a family of members. Membership means more than just accounts and products.
Last year, we were reminded of a thing or two about ourselves. The simple act of giving one another a hug or a handshake are gestures we took for granted. The communal privilege of assembly took on new meanings. Gathering to worship, be entertained, socialize and cheer were paused. It seems so long ago our livelihood was ordinary.
There are a few other reminders we were forced to face. Some consumers live with financial fragility every day. A disruption in widespread employment wreaks havoc in industries on which some local governments depend. Consumer confidence, a sense of security and social welfare are intertwined.
The ramifications of a pandemic-driven recession are complex. It seems we all are affected by the disruptions in our public patterns, family involvements and occupations. If this was happening in one industry, region or area, we might have a better opportunity to process the effects. But this has confronted all of us at one time.
It would be understandable to look upon the new year with some skepticism. After all, we are still dealing with a pervasive coronavirus contagion. But there is a good news story here. The good news comes in the sense that we are resilient and determined to recover.
Our optimism is grounded in the realization that we have been through this before. Well, perhaps not a pandemic of this magnitude in our lifetimes. But we have seen challenging times before.
We are in a recession. But we’ve made it through recessions before. We have high unemployment. We have returned to full employment after previous downturns. Our business sectors are strained. Businesses have shown they can rebound and grow commerce. We have seen tough times before.
The ingenuity, determination and spirit we showed in the past gives me absolute confidence that we shall rebound again. There is one ingredient that helped us in the past: the spirit of working together. This is one of the underlying principles of a cooperative like LGFCU. We are stronger together.
I can’t think of a better example of being stronger together than to honor the essential public servants in local government. You are the first responders, elected officials, administrative employees, volunteers and public service workers who glue our communities together. Some of you have visible roles. We see you every day. Most of you work behind the scenes serving our citizens in crucial ways.
Just as you do your parts, your Credit Union is determined in its unwavering commitment to serve you. Our services are delivered one conversation at a time. We hear you when you ask for help financing a dream. We are focused on your requests for assistance when misfortune arises. There is no substitute for a welcoming voice.
We look toward the future with high hopes and confidence. We draw a line in the sand when it comes to the welfare of our members. Nothing short of your success will satisfy your Credit Union. We will rise together.
On behalf of the Board of Directors for Local Government Federal Credit Union, we are so very honored to represent you. You make us proud with your contributions to the community in whatever capacity you serve. We are resilient and strong because of you.
Lin Jones, CPA
Chairman, Board of Directors
Local Government Federal Credit Union
Together we are strong
2020 was a year like no other in the history of LGFCU and the lives of its many members. But we stuck together, and we kept moving.
As 2020 threatened the dreams of so many people, Anthony James remembered the times his own dreams seemed out of reach. He now shares his bounty with others.
And for Ellen Walston, who witnessed firsthand the impact of 2020 on her patients, the year meant digging even deeper to find new ways to offer hope to her community.
We’re proud to introduce you to these LGFCU members. They’re determined and resilient people. And together with their Credit Union they keep moving forward, with the confidence to face any challenge.
Anthony James’ Credit Union membership is as close to his heart as is his organic garden. After being denied for a home loan by several commercial banks in years past, he turned to LGFCU for help. It took months of work before Anthony’s finances improved. He then qualified for a mortgage to buy his first and forever home with enough land to grow food he shares with his community.
"My membership with LGFCU makes me stronger because it has given me opportunities I didn't have before. I feel like I gained a partner … someone who believes in me."
Watch the video to hear more of how Anthony and LGFCU are stronger together.
Ellen Walston believes in hope, and she’s working hard to provide it to her community.
In her practice as a licensed clinical social worker at CareNet Counseling in Greenville, Ellen specializes in helping people cope with grief, manage stress, parent effectively and more. And though she’s counseled patients for years, no year has been quite like this past one.
"I’m so thankful for the opportunity to walk alongside people, and do life together," Ellen says.
There are many ways to describe the year that 2020 was — confusing, difficult, sad. At LGFCU, our hearts ached with our members, and as individuals, we too feared the unknown of the unprecedented times that we were in. When reflecting on 2020 and the tough memory that it now is in our collective histories, we felt there were three different words that better described the year we had as a cooperative — purposeful, impactful and hopeful.
As a member-owned, not-for-profit cooperative, we support each other in our lows and celebrate each other in our highs. As a provider of financial services, we anticipate members’ needs and strive to provide the resources necessary to fulfill them.
If looking back at the Credit Union’s impact on members in 2020 taught us anything, it’s that together, we can weather any storm.
Over the course of 2020, members paid
32% less in interest expenses
by financing through LGFCU instead of other financial institutions.
How much is that, you ask?
Creating this significant amount of member savings is what we love to do. Saving members with affordable loans and financial assistance, though, is why we love what we do.
LGFCU began offering COVID-19-specific loan extensions which, at their peak, held nearly $149 million from 8,209 loans in deferment up to six months.†
didn’t have to weigh the options of buying groceries or making their loan payments.
* Based on external benchmarking, interest rates were computed for LGFCU members who opened a loan in 2020. The total interest they would have paid with another financial institution was compared to the interest they paid with LGFCU (as of December 31, 2020). The total estimated savings was about $11 million.
† Numbers provided as of December 31, 2020.
While the COVID-19 pandemic seemed to steal the spotlight in 2020, LGFCU couldn’t be deterred from enhancing communities across the state. We’re proud of the contributions made — including awarding scholarships, creating positive economic impact, giving support to local governments — as well as, and above all, the members at the center of it all.
Promoting LGFCU and the benefits of membership remained a high priority. Our staff quickly adjusted to new ways of "doing business" in 2020 and successfully performed nearly 8,000 unit visits with contacts across the state. Through emails, virtual meetings, phone calls and safely performed in-person visits, our team shared the LGFCU message by:
Representing LGFCU at 55 conferences, benefit fairs, community events and related meetings
Attending 73 separate orientations
Sponsoring 9 secure Shred Events for community members
In support of our members' own professional development, $125,000 in scholarships was awarded to 100 members in 57 North Carolina counties.
Among members preparing for college or trade school, $120,000 in scholarships was awarded to 120 members attending schools in 49 North Carolina counties and 5 out-of-state schools.
LGFCU supports the Development Finance Initiative (DFI) at the UNC School of Government, a program that partners with communities across the state to perform revitalization, redevelopments and other planned development projects. In 2020 alone, the DFI performed 18 revitalization projects, including nine within severely distressed communities. These projects are part of 163 overall projects the DFI economic development program has performed since its start in 2011, with $1 million in seed money coming from LGFCU.
LGFCU Fellows are a select group of local government leaders dedicated to public service in their communities. Each year, 15 cohorts participate in the UNC School of Government's Leading for Results program, and graduate with a deeper understanding of their individual leadership strengths, skills for improving their organizations and a renewed passion for public service. Since the program’s inception, 381 alumni across 77 counties have earned the distinction of "LGFCU Fellow."
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.
To lead is to honor the trust bestowed upon us by our fellow members.
Chair | Durham
Vice Chair | Wilkesboro
Treasurer | Cary
Secretary | Atlantic Beach
Dr. Aaron P. Noble Jr.
The Advisory Council members serve as advocates in their communities and regions, acting as ambassadors to potential members and a source of information to existing members. As of December 31, 2020, there were 594 members.
|Cash & Investments||$464,999,694||$198,170,754|
|Member Business Loans||$115,068,163||$115,765,214|
|Home Equity Loans||$104,089,674||$105,796,944|
|Credit Card Loans||$100,057,349||$99,966,927|
|Allowance for Loan Losses||($24,515,068)||($21,929,469)|
|National Share Insurance||$22,894,650||$19,312,952|
|Share Draft Accounts||$566,724,751||$358,473,346|
|Money Market Accounts||$793,244,055||$640,535,996|
|Individual Retirement Accounts||$218,367,921||$204,071,361|
|Total Reserves and Undivided Earnings||$239,968,288||$210,500,778|
|Total Liabilities & Equity||$2,846,656,463||$2,234,264,385|
|Home Equity Loans||$4,068,593||$4,931,531|
|Credit Card Loans||$9,251,342||$10,717,267|
|Member Business Loans||$3,717,537||$3,458,335|
|Total Loan Income||$108,364,520||$104,039,266|
|Other Operating Income||$48,173,427||$44,789,220|
|Interest on Borrowed Funds||$41,260||$111,499|
|Share Draft Accounts||$577,990||$506,186|
|Money Market Accounts||$4,180,668||$8,587,674|
|Individual Retirement Accounts||$2,458,588||$4,681,737|
|Total Deposit Expense||$15,580,477||$21,833,062|
|Net Operating Income||$28,416,826||$15,276,200|
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 more than 1,000 ATMs in all of North Carolina’s 100 counties. The Credit Union’s primary source of revenue is its loan portfolio.
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, 2020 and June 30, 2019, 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.