Transcription
Our Journey Local Government Federal Credit UnionTwo Thousand and Seven Annual Report
Throughout this annual report, you willnotice a theme—Journey. Journey is a40-foot wide by 12-foot-high muralin the lobby of The Quorum Center, home ofLGFCU’s administrative offices. Journey encompasses dozens of silhouettes depicting images associated with North Carolina. Twelve ofthe strongest images ventured across the stateto be photographed with LGFCU members.These images and people represent the journeyour membership has taken to this point in time.These 12 details of the large mural will find final homes in the local government buildingsassociated with these members. Why did wechoose these images? Read on Copyright 2008 Local Government Federal Credit Union
ChurchRacing TireHeronMicroscopeBeach HouseLighthouse BeaconCast Iron WheelBlacksmithing Table and HammerPine TreeNorth Carolina has a long tradition of having a strong religious community. Today, thestate’s culturally diverse population makesus home to a number of religious affiliations,making the church a symbol of community inmore ways than ever before. For this shoot, wechose Christ Episcopal Church in New Bern.The grounds—dotted with Spanish mossdraped trees—made for a beautiful setting.Representing the Research Triangle’s commitment to digging deeper, learning more andadvancing science and technology, the microscope was placed in photographs taken at anNC State University research lab. This is oneof many facilities in the region dedicated tocutting-edge sciences, such as biotechnology,research in environmental and life sciencesand pharmacology.Having many uses on 19th- and 20th-centuryNorth Carolina farms, the cast iron wheelcould be found as part of a well pulley system, a grinder or even a homemade ice creammachine’s crank. To present this symbol ofhard work, we chose Rocky Mount’s Imperial Centre, a rehabilitated historic tobaccofactory where hard work was a way of life, asour location.GuitarThe North Carolina mountains have long beena fertile ground for guitar playing, whether it’sfolksy back porch music on a warm summernight or lively bluegrass at the local generalstore. Photographs were taken at Clay’s Corner, a general store in Brasstown. On Fridaynights, the store comes alive when localsgather to jam on guitars and fiddles, while thecommunity gathers to enjoy the festivity.Say the words “stock car racing capital ofthe world” and any racing fan will know you’retalking about North Carolina. With morethan one million people attending motorsports events at dozens of race tracks eachyear, it’s no wonder the image of a racing tireis one of the 12 images chosen to representNorth Carolina. For these photos, we shot atHickory Motor Speedway in Newton, one ofthe birthplaces of American motorsports.While a house built on stilts offers panoramicviews, this type of construction serves a greater purpose. Because our coast can expect tobear the brunt of a tropical storm or hurricaneat least once every four years, homes are builton stilts to have a better chance of resistingfloods. Shot on and alongside Johnny Mercer’s Pier in Wrightsville Beach, these photosrepresent the state’s vulnerability to tropicalstorms, as well as people’s determination toprotect their future.Blacksmithing has a rich history in NorthCarolina, as shoeing horses and repairing cannons was an important trade practiced duringthe Civil War. The blacksmith was also instrumental in the settlement of new communities,as they were the only ones skilled at heatingiron and forging useful tools, like axes, shovelsand saws. Fittingly, we found a working blacksmith forge in Spruce Pine that was the perfectbackdrop for these photos.ChairThere’s no better image to symbolize NorthCarolina’s Piedmont Triad region than theladderback chair. After all, the state is hometo the Furniture Capital of the World—HighPoint. For this shoot, we couldn’t resist thepicturesque Pisgah Covered Bridge in Asheboro, another great symbol of North Carolinacraftsmanship, just like the chair.Often seen wading through inland tidal flatsand salt marshes foraging for fish, the heron isan unmistakable symbol of the North Carolina coast. With its slender s-shaped neck andlong, thin legs, this bird exhibits a gracefulbeauty. We chose the Sylvan Heights Waterfowl Park & Eco-Center in Scotland Neckas the backdrop of these photos. It holds theworld’s largest collection of waterfowl, including many rare and endangered species.Lighthouses played a significant role in theearly development of eastern North Carolina,as their bright beacons helped ships navigatetheir ways through a maze of changing inletsand shoals en route to land. Although theunmistakable look of our most notable, CapeHatteras, is more recognizable, we chose toshoot at the Roanoke Marshes Lighthousein Manteo. This 1877 replica of a screwpilelighthouse was chosen because of its uniquehistory and attributes.The most common tree found in North Carolina, the pine has an important history in ourstate. Not only is it the Official State Tree, butit supplies us with high-quality timber. Pinetrees are most commonly found in the Foothills, and as a Tree City USA, Laurinburg wasan easy pick for these photos. Shots were takenat St. Andrews Presbyterian College, as wellas alongside a country road where a beautifulstand of pines grew.Oak Leaf with LadderThe oak is a slow-growing tree that yieldsnearly indestructible wood and has leaves sotough they hang on while others change colorand fall to the ground. Here, the oak leaf issuperimposed with a ladder to illustrate a workethic of strength and perseverance. Taken atthe old Erwin Cotton Mill in Cooleemee, andin a partially dry riverbed of the Yadkin, theseshots demonstrate times of days gone by, butwhose memories still live on today. to improve the lives of our members
2 into LGFCU’s 25th year4Kermit SkinnerMyers Johnson814 as a credit union20Tony BrownJohn Gallimore2632 supporting education38Craig HoneycuttDaphne Dockery4248 fostering partnerships54Tharesa LeeRichard Canipe5864 advocating the credit union difference70Emily LucasRobbin Pridgen7480 in 200786Wayne RashAlycia Mintz9096 as of December 31, 2007102 of financial progress106 with volunteers112Table ofContents3
D4Frances EfirdChairmanBoard of Directors into LGFCU’s 25th yearear members,It has been my privilege to serve you as the Chairman of theBoard of Directors for Local Government Federal CreditUnion (LGFCU). After concluding my second consecutive one-yearterm as Board Chair, I will be stepping down from this responsibility.My decision follows a long-standing practice to rotate the chairmanship among Board members. This rotation makes way for the development of new leadership, which enhances the entire Board.As one of my final official duties, I present this Chairman’s Reportas we enter 2008. The purpose of the Chairman’s Report is to commenton the financial performance of LGFCU, speak on the issues thataffect LGFCU and offer a preview of what will shape future services.First and foremost, I am pleased to report LGFCU is safe andsound. This is especially relevant during unsettling economic times.LGFCU had a strong financial year in every measurement taken.When you read the accompanying financial statements, you will seethat LGFCU is in good shape.The success of a financial institution hinges on several factors. Acredit union must operate efficiently, manage its risks and produce balanced economic performance. Last year, LGFCU received the highest ratings for its regulatory examination, had a clean independentfinancial audit report and met its internal scrutiny for risk management. When ranked among peer financial institutions, LGFCU oftenstands in the highest tiers for service, value and productivity.While fiscal performance is important for any organization, werecognize that LGFCU is no ordinary financial institution. This is because the Credit Union is a cooperative. Members own their CreditUnion. When members thrive, so does their Credit Union. The reverseis also true. So to this end, I believe LGFCU’s financial performance isdirectly tied to member success.To help members succeed, LGFCU is committed to offering financial services that make a positive difference. To further this objective, it is important that your Board and management team addressthe relevant concerns of the day. Offering customized solutions tocombat predatory lending practices that impair members’ ability tobuild and grow wealth is how LGFCU is tackling matters such as therecent subprime mortgage crisis.5
6Much has been learned about thesubprime mortgage market in recent months.Subprime mortgage lending in and of itself isnot a bad idea. Helping low-wealth membersget needed financing for home purchases isa good endeavor. However, when mortgageproviders take advantage of borrowersfor selfish purposes, a clear line has beencrossed. LGFCU did not create the subprimemortgage situation. Nonetheless, we havetaken steps to help members escape fromaggressive predatory practices.In 2007, LGFCU sent appeals to members who may have had mortgage loans withexploding adjustable rates, interest-onlyterms, high interest rates and excessive fees.LGFCU offered to refinance these loansinto an affordable mortgage with responsibleterms. Many members refinanced millions inmortgages with the Credit Union. The offerstill stands. For members who find themselves facing a predatory loan, the welcomemat is out and our doors are open.I believe members need LGFCU morethan ever. To help members improve theirlives, the Board and staff remain committedto strong financial principles. First, LGFCUwill offer affordable services to members.Secondly, LGFCU will provide educationto help members become better financialconsumers. Finally, LGFCU will operate in aresponsible, ethical way.In 2008, LGFCU celebrates its 25th Anniversary. This is an event indeed worth noting.For 25 years, LGFCU has been helping members improve their lives. This improvement canbe in the form of a new home, college educa-tion or building a solid financial plan towardretirement. Whatever your need, LGFCU celebrates its history of helping you live better.As for the next 25 years, there are manythings in store. LGFCU has committed resources to helping youth understand finances.The transition to adulthood requires an awareness of financial services. LGFCU wants tohelp young members make sensible choicesfor depository and credit services.LGFCU is firmly committed to helpingmembers explore comprehensive financial services. As new products are developed and offered,members will have greater choices of tools to helpmanage investments, risks and credit needs.Looking ahead, it is certain that economic swings will continue, the cost of living willincrease and consumers will be faced with anincreasing array of options. After all is saidand done, LGFCU will remain a constant formembers—a constant resource, member advocate and trusted partner.On behalf of the Board and staff, thankyou all for your membership and support ofLGFCU. Your membership enables us to offer great services to you, as well as your coworkers, neighbors and family. We are all acommunity of members working to help eachother. I believe our member community has abright future of improving lives.Sincerely,Frances EfirdChairman, Board of Directors into LGFCU’s 25th year7
8Kermit SkinnerTown ManagerTown of Manteo19-year memberI’ve been with the Credit Union for nearly 20 years; almost theentire time I’ve been employed with the Town of Manteo. Ijoined the Credit Union for the same reason most people join—because I saw it was a better deal. I felt it had lower interest rates andmore personal service. The banks in this area had, at that time, allincorporated into national banks and I was looking for an opportunity to have more of that personal service; to have a relationship witha financial institution. Also, the concept that monies return to support the institution was attractive to me as opposed to monies goingto corporate shareholders with whom I have nothing in common;or to where I have no idea how those funds are spent. At the CreditUnion, monies go back toward assisting members and their financialneeds—and that parallels my value system.When I first joined, I was familiar with the credit unionconcept, but frankly I didn’t know one existed for local government. I remember very vividly when the Credit Union first gota presence down here. The branch was in a little strip mall downhere called Chesley Mall, and the Credit Union rented a spacein there and operated out of there for a number of years before itbuilt the building where it operates out of today. I’ve really seenit go through phenomenal growth. That’s probably the thing I’ve9
10been most pleased with: seeing it grow from a place with a fairlylimited amount of services to having the full menu of services thatthey have today.One of the things I really enjoy is the outreach the CreditUnion provides. We’ve had a number of presentations here in whichI bring all my staff from town hall and we do a “lunch-and-learn”where a representative of the Credit Union will come down and talkabout the services. I encourage all my employees to attend these sothey can learn and have a relationship with the Credit Union.I’ve served on the Advisory Council for about a decade. Ijoined because it gives you the opportunity to have a voice. And,going back to what I was saying about member services, if you’rebanking with a national bank, you feel totally disconnected fromthe management and operation of the institution. It appears theyhave more of a “take it or leave it” attitude. The Credit Union doesnot operate that way. They listen to what the members and theAdvisory Council have to say, and in turn I’ve felt that I can better serve the financial interests of the people that work with mebecause I can have some say in the policies and procedures of theCredit Union and so can they.Facing pageTop: Roanoke MarshesLighthouse with detail ofJourneyBelow: Kermit Skinnerwith the lighthouse lensFollowing pagesMain: Close-up ofRoanoke MarshesLighthouseInset top: A gull perchedon a pilingInset below: A boardwalkon Manteo’s waterfront11
They listen to what the members and theAdvisory Council have to say 1213
14Myers JohnsonHuman Resources DirectorCity of AsheboroNew memberI’ve been a Credit Union member for 18 years. Even thoughI’ve just recently switched to LGFCU, I have seen the CreditUnion become much more member-oriented. Also, I’ve seenan increase in the outreach. There wasn’t much publicized about ityears ago. You were an insider if you knew about the Credit Union.But now, everybody in the community is jealous. They know if youhave a particular job, you can be a member of the Credit Union. It’sthe only place where you can be a shareholder. At any other bankor financial institution, the stockholders and the board of directorsmake the profits. But at the Credit Union, you as a member sharein the profits.I love Chrome Carbook. Looking for a car couldn’t be easier.I love the fact that if I have my loan through the Credit Union andI have it taken straight out of my paycheck, the interest rate is evenlower. Usually, the Credit Union is the lowest in town anyway, butthen I get half a percent lower, so that’s just icing on the cake.I love being on the Advisory Council because I learn about allthe new initiatives that are coming before everybody else knows. Ialso like that it puts me in the position to share information withmy fellow employees. Whenever we have any new employees, Ishow them the video and then I discuss it with them and tell themmy own personal story about getting car loans and such. Then I tellthem they can get home loans and car loans because they can be amember by virtue of their employment with the City.15
16I hear about the Credit Union helping people all the time. Iknow several people that probably would not have gotten a homeloan if they had not gone to the Credit Union and went insteadto a regular bank. We have people that work in positions that mayonly make 18,000- 20,000 a year. So, if they go to a bank, they’renot likely going to pay them a bit of attention. But with the CreditUnion, they take them seriously. They look at not only how muchmoney they make, but whether the job is stable and those kind offactors. I’ve known countless people that went to get a home loanand were approved. And what’s better than that—realizing thedream of owning a home?I know several people that probably would nothave gotten a home loan if they had not gone to theCredit Union Facing page: PisgahCovered Bridge inAsheboroFollowing pagesMain: Myers Johnsoninside the bridgeInsets: Myers and aladderback chair17
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A20The Quorum CenterLGFCU AdministrativeOffices, Raleigh NC as a credit unions we celebrate during our 25th year as a credit union, it’s atime to reflect on the past and gear up for the future, and tothank those who have helped get us this far. It was a groupof about a dozen volunteers that worked tirelessly for more thantwo years to convince the National Credit Union Administration(NCUA) to approve LGFCU’s charter in March of 1983. By theend of that year, LGFCU operated part-time out of 225-square-feetof office space, administering to 5,119 members with assets totalingmore than 3.8 million.In true credit union fashion, the LGFCU Board of Directorsimmediately appointed a panel of volunteers to serve as a Supervisory Committee with the first volunteer Loan Review Committeeappointed four years later. In its fifth year, the Board approved theconcept of establishing nine regional Advisory Councils in an effort to have more people involved in the statewide promotion of theCredit Union, to have more people informed about its value and affairs, and as a way to encourage feedback on products and services.Thanks to the dedication and spirit of LGFCU volunteers, theCredit Union today employs 38 people in a 15,000-square-foot facility in The Quorum Center in downtown Raleigh, with anotherthree employees operating out of a regional office in Charlotte. Assets surpass 750 million and membership nears 160,000.As for the volunteers themselves, more than 250 serve on theBoard, committees and 19 Advisory Councils throughout the state,with an average of five new appointees each month. And when ourvolunteer base grows, we grow. We would not be where we are todaywere it not for our volunteers, and our future depends on them. Volunteers truly make the difference!Board of DirectorsGuiding general policies and procedures to serve the members’ bestinterests is the primary duty of LGFCU’s Board of Directors. Everymember of this nine-person group has a tie to North Carolina localgovernment, meaning they are representative of the membership sothey can best advocate for it. 21
2223LGFCU Board of DirectorsAbove:Ruth Barnes, Secretary, Atlantic BeachBill Coward, Vice Chairman, New BernPaul Miller, Treasurer, Snow HillFrances Efird, Chairman, High PointTop:Jack Scoville, CaryAnn R. Suggs, RaleighBelow:Willie Best, Chapel HillAl Richardson, Black MountainLin Jones, Durham
24All Board members are elected fromthe LGFCU field of membership eachApril at the Annual Meeting. As volunteers, they contribute their time and effortwithout compensation.Supervisory CommitteeAppointed by the Board, the three-memberSupervisory Committee is a group of volunteers that oversees auditing of the CreditUnion’s operations, records, assets and handling of funds. Because of its diligence inhandling these responsibilities, a CertifiedPublic Accountant and other outside personnel assist the Committee in these functions.Loan Review CommitteeIf a loan doesn’t get approved at LGFCU,the applicant has the right to appeal the decision to the Loan Review Committee. Aminimum of three of the 15 volunteer Committee members are required to review a loanto determine if it’s in the best interest of
LGFCU’s administrative offices. Journey en-compasses dozens of silhouettes depicting im-ages associated with North Carolina. Twelve of the strongest images ventured across the state to be photographed with LGFCU members. These images and people represent th
