Your Money Is Safe At LZECU!

Troubling stories questioning the safety and soundness of financial institutions have been the focal point of many news reports.  These reports highlight several issues that have contributed to the negative earnings, write-offs, failures, and in turn have caused consumers to be concerned about their own personal funds.  It is important for you, our member and owner, to know where LZECU stands on these issues:

• Much of the current economic challenges are due to the challenging real estate market and sub-prime mortgages.  The sub-prime market, unlike some financial institutions, has not affected LZECU, as we do not offer these type of products.

• Since we do not fund mortgage loans, we do not have sub-prime, option ARMs, interest-only or other loans with negative amortization on our books.   These type mortgage loans have been the primary cause of recent problems for many of the financial institutions in the headlines.

• Not having mortgage loans as part of our investment portfolio, eliminates our exposure and reinforces our conservative lending policies.

• Our investment portfolio practices are also very conservative in nature which mitigates risk to members.  We monitor the safety and soundness of our depository financial institutions on a regular basis.

• LZECU is well capitalized.  As defined by the NCUA (National Credit Union Administration) a well-capitalized credit union has at least 7% net worth—LZECU’s capital ratio is 16%.

•  Through the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA), your accounts are protected by federal deposit insurance up to $100,000 and IRAs are separately insured for up to $250,000.  Similar to banks Federal Deposit Insurance Corporation (FDIC), NCUA is an independent agency of the United States government.    Structured correctly, it’s possible for members to significantly increase insurance coverage on accounts.  Click here to learn how to MAXIMIZE YOUR NCUA INSURANCE COVERAGE!

Bottom line—Your Money Is Safe at LZECU!  Please know that your Credit Union is a very safe place to place your money and your trust.  Remember—LZECU is YOUR credit union and as such we focus on providing excellent service, great rates, and stability to YOU, not a return to some unknown person who owns 1,000 shares of stock.