2023 Annual Report
Year in review
Last year was big and busy at LGFCU as we continued our work toward becoming an independent Credit Union in 2025, to serve you better. We traveled statewide to hear and learn from our members, and celebrated big and small wins along the way. And as you’ll see in this report, we once again proved that together we are strong, creating a bright future for all of North Carolina.
Ken Noland
Letter from our Chair
We find ourselves in an unprecedented time in financial services and in our evolution as a credit union. Financial services are changing quickly with new technology. Because of this change, we see banks leaving towns or closing branches, especially in rural communities. This change impacts the future of financial services for North Carolinians. But because any good organization thinks of and plans for the future, we’ve set into motion a thoughtful path, focused on our members who work in and support our local governments. Out of this plan, Civic was created.
Ken Noland
Letter from our Chair
All Members,
We find ourselves in an unprecedented time in financial services and in our evolution as a credit union. Financial services are changing quickly with new technology. Because of this change, we see banks leaving towns or closing branches, especially in rural communities. This change impacts the future of financial services for North Carolinians. But because any good organization thinks of and plans for the future, we’ve set into motion a thoughtful path, focused on our members who work in and support our local governments. Out of this plan, Civic was created.
In 2023, our Board leadership and staff had the pleasure of traveling the state to meet with members, listening to them and getting their feedback. This dialogue gave us a focused understanding of the needs of members, and of how the organization we are leading can continue to make decisions that consistently and meaningfully improve the lives of our members.
The one question most members asked during these meetings is, “Why? Why is it necessary for LGFCU to become an independent Credit Union, to become Civic?”
Successes come from making choices and decisions that meet the needs and wants of members. Our members. Based on our hearing what they tell us.
Our transition to independence increases access to services. We’ll be agile, ready to assist at any point in your life’s journey. This means we’ll quickly provide answers and create products and services faster to address your needs, such as financial know-how, affordably and responsibly owning your home, access to and options for affordable lending — going well beyond the basics of checking and savings.
We’re ahead of the game in changing the way our members do business. We are well-positioned for significant growth. We will be the organization that people will look to in North Carolina and beyond. We are the people serving the North Carolina local government community, and we will never lose this focus.
As we continue our journey to becoming independent in June 2025, we need your support. We ask for your steadfastness and your continued trust in us. We’ve got your back, and we’ll continue to be your financial partner.
This is — and always will be — your Credit Union. Trust that we’ll be here for you today and into the future, working together to ensure your financial security and prosperity.
Best regards,
Ken Noland, Chair, Board of Directors
Local Government Federal Credit Union
2024 Annual Meeting
Watch this year's meeting
Take a closer look at your Credit Union’s stability through monthly financial and audit reports.
Dwayne Naylor
CEO Report
We are more excited than ever about the future of your Credit Union, and it is with that excitement I bring you the 2023 CEO Report for LGFCU. It is among my highest privileges to serve such a committed and selfless membership — the local government employees and their families who make North Carolina great. Thank you for all you do, and for your membership in your Credit Union.
Dwayne Naylor
CEO Report
To all LGFCU members,
We are more excited than ever about the future of your Credit Union, and it is with that excitement I bring you the 2023 CEO Report for LGFCU. It is among my highest privileges to serve such a committed and selfless membership — the local government employees and their families who make North Carolina great. Thank you for all you do, and for your membership in your Credit Union.
At LGFCU, our Board has set the foundational principles that govern our business decisions and ground us in service, which are driven by our “triple bottom line” approach. Our measure of success is not just money — it’s People, Planet and Prosperity.
We focus on all the people who contribute to the success of our cooperative, including our members, volunteers, partners and staff, inviting all voices to be heard. Our dedication to the planet means working to lessen our environmental impact, learning from our members and following the lead of North Carolina governments. And our focus on prosperity is about working to better all who touch our organization.
At LGFCU, your voice matters. When you asked for more hands-on, in-person connections, we hosted dozens of town hall-style events across the state in 2023 to meet with you and our partners face to face, to share our vision and plans for the future of our Credit Union.
During these in-person meetings, you told us we must maintain products with competitive interest rates, and a plan for branches and in-person engagement to discuss your financial needs. As a result, we continued to offer record-setting deposit rates that are among the highest in the nation, launched a plan to open 11 Civic branches in 2024, and created co-locations within local government buildings, so you can connect with us in person across the state.
Every day we work to make things better, do things faster, and provide services to you cheaper — putting money back in your pocket.
Better means we will give you more options to get and use your money. We’re committed to responding faster to your needs and requests and have added staff in the field to engage with you in more ways.
Our commitment to cheaper means we make business decisions designed to increase profits for your household, because when we save money, you make money. And as we invest in the big, bold future of your Credit Union, we know that ultimately means providing better experiences for our members.
Together, we’re creating a bright future for North Carolina. Always local. All ways.
Sincerely,
Dwayne Naylor
President and CEO
Impact Report
Serving you and your communities
Our mission, “To improve the lives of our members,” means we provide favorable rates on financial products for you and other members. But we’re also working to build stronger North Carolina communities while using finance to do good in our world.
Browse through our 2023 Impact Report to see how your membership has helped us to achieve these objectives.
see the impactvolunteers
Leadership
Demonstrating leadership in keeping with the Cooperative Principles, each member of the LGFCU Board of Directors, the Supervisory and Loan Committees, and the Advisory Council is a volunteer. Together, they are dedicated to building and promoting the work of our Credit Union to improve lives across North Carolina.
Board of Directors
Each Board Director is elected by and from among the Credit Union's membership. These men and women perform key audit and decision-making functions, set policies for LGFCU, and appoint its CEO and members of the Supervisory and Loan Committees.
To read about the professional backgrounds of each Board Director, visit the LGFCU Board of Directors page.
Ken Noland | Chair
Wilkesboro
David Dear | Vice Chair
Shelby
Ruth Barnes | Secretary
Atlantic Beach
Jeanne Erwin | Treasurer
Cary
Lin Jones
Durham
Dr. Aaron P. Noble Jr.
Burlington
Tony Brown
Halifax County
Al Richardson | Director Emeritus
Black MountainSupervisory Committee
The duty of this committee is to inspect the Credit Union's records for accuracy, its assets for security, and its procedures for the proper handling and use of funds.
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Emily Lucas
Wake Forest -
Amy Bason
Raleigh -
Ryan Draughn
Sanford -
Justin Merritt
Shelby -
Shawn Purvis
Apex
Loan Review Committee
When LGFCU members exercise their right to appeal a loan decision, this committee has the authority to review that decision and choose to uphold it or approve the loan.
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Wilbert McAdoo, Chair
Efland -
Nancy Held
Raleigh -
Nancy Medlin
Garner -
Jean Stowers
Surf City -
Charles Weber
Washington State -
Diana Harris
Cary -
Jim Baker
Chapel Hill -
Pam Hurdle
Hertford -
Charles Murray
Louisburg -
Sam Tingler
Holly Springs -
Mark Williams
Wake Forest -
Mike Eubank
Kill Devil Hills -
Dale Johnson
Raleigh
Advisory Council
LGFCU Advisory Council members serve as Credit Union advocates in their communities and regions, sharing information with their fellow LGFCU members and as ambassadors to potential members. As of December 31, 2023, there were 613 Council members statewide.
by the numbers
2023 Report
Membership total
1% increase in membership
Assets total
in millions
Loan portfolio mix
-
Mortgage loans 55%
-
Auto loans 17%
-
Personal loans 11%
-
Home equity loans 8%
-
Member business loans 5%
-
Credit card loans 4%
Investment portfolio mix
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U.S. government agency securities 31.52%
-
Overnight funds and member capital 64.91%
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Federal Home Loan Bank stock 3.51%
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Corporate credit union capital 0.06%
Statements of financial condition
| 2023 | 2022 | |
|---|---|---|
| Cash and Investments | $343,631,929 | $245,434,205 |
| Mortgage Loans | $1,957,039,536 | $2,065,191,928 |
| Personal Loans | $396,161,703 | $341,963,254 |
| Member Business Loans | $176,241,879 | $137,024,908 |
| Home Equity Loans | $267,974,309 | $175,919,760 |
| Auto Loans | $622,325,465 | $623,472,161 |
| Credit Card Loans | $151,765,193 | $139,006,111 |
| Allowance for Loan Losses | ($44,213,255) | ($29,830,390) |
| Net Loans | $3,527,294,830 | $3,452,747,733 |
| National Share Insurance | $30,528,958 | $30,826,070 |
| Other Assets | $129,264,446 | $133,055,184 |
| Total Assets | $4,030,720,162 | $3,862,063,192 |
| 2023 | 2022 | |
|---|---|---|
| Payables | $416,956,836 | $361,498,217 |
| Share Accounts | $819,345,368 | $997,542,017 |
| Share Draft Accounts | $572,566,335 | $621,559,668 |
| Money Market Accounts | $792,534,164 | $1,044,517,336 |
| Individual Retirement Accounts | $213,051,779 | $238,368,033 |
| Share Certificates | $920,026,672 | $283,538,443 |
| Total Deposits | $3,317,524,318 | $3,185,525,497 |
| Total Reserves & Undivided Earnings | $296,239,008 | $315,039,477 |
| Total Liabilities & Equity | $4,030,720,162 | $3,862,063,192 |
Statements of income
| 2023 | 2022 | |
|---|---|---|
| Investment Income | $13,417,823 | $4,486,208 |
| Mortgage Loans | $78,477,375 | $66,047,571 |
| Personal Loans | $39,646,411 | $33,303,479 |
| Home Equity Loans | $12,084,840 | $4,751,625 |
| Auto Loans | $33,793,508 | $26,254,284 |
| Credit Card Loans | $20,137,343 | $13,052,830 |
| Member Business Loans | $5,255,299 | $3,809,296 |
| Total Loan Income | $189,394,775 | $147,219,085 |
| Other Operating Income | $57,552,428 | $63,439,492 |
| Total Income | $260,365,027 | $215,144,785 |
| 2023 | 2022 | |
|---|---|---|
| Operating Expenses | $200,856,264 | $161, 817,203 |
| Interest on Borrowed Funds | $24,591,247 | $1,529,814 |
| Share Accounts | $6,635,637 | $3,027,826 |
| Share Draft Accounts | $808,047 | $493,687 |
| Money Market Accounts | $16,975,946 | $6,006,752 |
| Individual Retirement Accounts | $4,828,519 | $2,103,061 |
| Share Certificates | $21,960,620 | $3,736,514 |
| Total Deposit Expense | $51,208,769 | $15,367,840 |
| Total Expenses | $276,656,280 | $178,714,856 |
| Net Operating Income | ($16,291,253) | $36,429,928 |
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 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.
Audited financial statements
The financial reports provided here have not been audited. You can review audited financial statements for the annual period ending June 30, 2023 from the Credit Union's accounting firm, CliftonLarsonAllen LLP, posted in the Audit Report section. 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. Open and view this current Audit Report in a separate tab outside of this document.