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.