Financial Strength of LCU

These are scary times in the financial services industry.  Bear Stearns got into trouble and had to be bought out several months ago.  IndyMac Bank was taken over by the government regulators just the other day. Fannie Mae and Freddie Mac are being bailed out by the government as well.  Other banks are hemorrhaging red ink and are desperately looking for money to shore up their loan losses.

So, what’s the status of Leyden Credit Union?  The status of LCU is that we’re conducting business as usual.  Our delinquencies are below 1%.  Our total assets are near the highest levels that they have ever been.  We remain well capitalized.  Your money is safe at LCU.

Loan volume is somewhat muted, but that is understandable in these uncertain times.  Members are reluctant to take on more debt unless absolutely necessary.  Auto purchases are being put off.  Home improvement projects are being delayed. 

That’s understandable and actually good news.  Members are being smarter with their money and the financial choices that they’re making every day.  With $4.30/gal. gas prices, we all have to be smarter with our money and prioritize our wants and needs. 

LCU has never been out to make a quick dollar on anybody.  We take our member deposits and lend them out to our members at the best rates that we can, but still give our savers a fair return on their money.  We haven’t been involved in any risky mortgage lending.  The money we’re lending out is your money, its my money, and we make sure that we lend it out as safely as possible.  Our current delinquency and loss rates aren’t any greater than they have been in the last year, five years, or even ten years.

LCU remains strong and we will continue being strong.  Being a credit union member has its privileges.  It means that you’re an owner of your financial institution.  You get to vote for your Board of Directors.  Being a part of a not-for-profit institution also has its privileges.  As a not-for-profit, we don’t have to look for maximum return and therefore don’t have to take on maximum risk.  We remain conservative with our lending policies as well as our investment strategies.  Being safe and giving back a conservative return to our members is more important than being able to pay higher dividends and taking on riskier loans or riskier investments.  Rest assured that your deposits are safe and will remain safe at LCU.