2022
Annual Report
Growth &
opportunity
Step back and look at 2022, and we can all agree it was a BIG year at LGFCU!
In 2022 we marked a transition to new leadership, when Dwayne Naylor was named our new Chief Executive Officer to succeed retiring CEO Maurice Smith.
And our Board of Directors began exploring an end to our longtime service agreement with State Employees' Credit Union, so that LGFCU can operate independently and better serve our local government community. (That exploration is now moving full steam ahead!)
For all that's changed and changing, one thing remains the same:
LGFCU is here to stay — prepared for the future, and growing stronger to serve you better.
Chairman's letter
Ken Noland, Chair, LGFCU Board of Directors
Dear fellow LGFCU members:
In presenting this 2022 Chairman’s Report for Local Government Federal Credit Union, it’s my honor to represent the full Board and our Committees, each comprised of dedicated volunteers, and the employees of our Credit Union. Together, we work to serve you as our valued members across North Carolina.
Each year, the LGFCU Annual Report provides information on how your Credit Union performed during the previous year. It also offers insights on our plans and strategies to ensure a successful future for our organization.
Chairman's letter
Ken Noland, Chair, LGFCU Board of Directors
Dear fellow LGFCU members:
In presenting this 2022 Chairman’s Report for Local Government Federal Credit Union, it’s my honor to represent the full Board and our Committees, each comprised of dedicated volunteers, and the employees of our Credit Union. Together, we work to serve you as our valued members across North Carolina.
Each year, the LGFCU Annual Report provides information on how your Credit Union performed during the previous year. It also offers insights on our plans and strategies to ensure a successful future for our organization.
Having personally been a member of LGFCU since 1996, and member of the Board since 2014, I’ve watched our membership and assets grow year after year. 2022 was no exception, yet stands out as a year of significant change.
In 2022 the LGFCU Board, after careful consideration, began work to explore operational independence from State Employees’ Credit Union. We took on this challenge for one reason: to better serve you.
In your role within local government, you serve our communities in countless ways. As an independent Credit Union, we will focus solely on our local government members, creating products for your specific needs and introducing new technologies for your convenience.
This independence decision is a celebration of our decades of growth, and our longtime partnership with SECU. It’s also a strategic step into a bright future for your Credit Union.
While we look to the future, we celebrate the successes of 2022 with continued investment in members’ communities through our affinity debit cards, student and professional development scholarships, and community grants. You’ll find the details within this report. Beneath the data, what remains the same year after year is the philosophy that your success is the best measurement of the Credit Union’s success.
LGFCU exists to serve you, the people who work in and support local government across our great state. That makes us more than a financial institution. Together with you, we are improving lives and communities each day.
Thank you for the work you do, and for your membership.
As Board Chair, I can confidently say that LGFCU is ready and able to meet the challenges of the coming year, and we are optimistic about the future of LGFCU. We are proud to represent you. On behalf of the Board, know that we pledge to continue serving and supporting the crucial work you do, and will continue to partner with you in achieving your financial goals.
Best regards,
Ken Noland
Chairman, Board of Directors
Local Government Federal Credit Union
Thank you, Maurice
Chief Executive Officer, 2017-2023
President, 1999-2017
Executive Vice President, 1992-1999
Chief Executive Officer Maurice Smith retired in January 2023, after 30 years at LGFCU. During his tenure, LGFCU grew to nearly 400,000 members and $3.6 billion in assets, as a Credit Union intentionally built to help members achieve financial stability and to spur economic development in North Carolina communities.
Maurice was instrumental in the creation of Civic as the first digital-only Credit Union in our state, to address members’ evolving needs for financial services and technologies. He also led in the launch of Civic Local Foundation, which provides funds to aid the work of community nonprofits.
And of course, he began a journey to independence for LGFCU that results in a Credit Union solely dedicated to meeting the needs of local government. For Maurice’s service and his legacy of improved lives, we say, Thank you.
Thank you, Maurice
Chief Executive Officer, 2017-2023
President, 1999-2017
Executive Vice President, 1992-1999
Chief Executive Officer Maurice Smith retired in January 2023, after 30 years at LGFCU. When he arrived as the Credit Union's fifth employee in 1992, LGFCU was just nine years old.
During Maurice's tenure, LGFCU grew to nearly 400,000 members and $3.6 billion in assets. Most importantly, through these years he led in building a Credit Union that helps build members' financial stability and spurs economic development in North Carolina communities.
Among his many accomplishments are:
- Asset and membership growth every year of LGFCU existence
- LGFCU partnerships with statewide organizations that serve and benefit our membership
- LGFCU national designations of Community Development Financial Institution and Low-Income Credit Union, for our support of underserved communities
- Authorship of the 8th Cooperative Principle on Diversity, Equity and Inclusion (DEI), formally adopted by the Credit Union National Association (CUNA)
- Creation of Civic as the first digital-only Credit Union in North Carolina, to address members' evolving needs for financial services and technologies
- The launch of Civic Local Foundation, providing funds to aid the work of North Carolina nonprofits
And lastly, the start of a journey to independence for LGFCU that ends its service agreement with State Employees' Credit Union and results in a Credit Union solely dedicated to meeting the needs of local government.
Throughout these 30 years, even through economic recessions, a fire at LGFCU headquarters and a global pandemic, Maurice led both LGFCU and Civic with intention. He leaves a legacy of service and improved lives across North Carolina, and for that we say,
Thank you.
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 Mountain
Remembering Willie Best
1954-2022
Throughout his career, Willie Best was a dedicated servant-leader, in roles within local government and in his volunteer positions at LGFCU. He served on the LGFCU Board of Directors from 1993 through 2019, and prior to those years provided his fellow Credit Union members with second-chance reviews of their loan applications, as a member of the LGFCU Loan Review Committee.
In 2019, Mr. Best became founding Chair of the Civic Federal Credit Union Board of Directors, where he served until his passing. He was the first official member of Civic and made the first-ever Civic debit card purchase: bottled water and chips from our employee lunchroom.
Mr. Best's career also included work as a local government leader in communities across North Carolina, including Wilson, Robeson, Guilford and Orange counties, and as a Town Councilman in Garysburg.
In each place of service, he never compromised on his commitment to local government employees and their families, and was a steadfast advocate for their access to affordable financial services.
Our Credit Unions, and the state of North Carolina, are forever impacted by the work of Mr. Best, and we are grateful for his years of service.
Supervisory 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.
- Emily Lucas, Chair
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.
- 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
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, 2022, there were 613 Council members statewide.
By the numbers
Membership total
3% increase in membership
Assets total
in millions
Loan portfolio mix
-
Mortgage loans 59%
-
Auto loans 18%
-
Personal loans 10%
-
Home equity loans 5%
-
Member business loans 4%
-
Credit card loans 4%
Investment portfolio mix
-
U.S. government agency securities 47.90%
-
Overnight funds and member capital 46.37%
-
Federal Home Loan Bank stock 5.64%
-
Corporate credit union capital 0.08%
Statements of financial condition
| 2022 | 2021 | |
|---|---|---|
| Cash and Investments | $245,434,205 | $407,044,034 |
| Mortgage Loans | $2,065,191,928 | $1,523,260,139 |
| Personal Loans | $341,963,254 | $285,681,993 |
| Member Business Loans | $137,024,908 | $123,758,860 |
| Home Equity Loans | $175,919,760 | $113,614,828 |
| Auto Loans | $623,472,161 | $564,535,243 |
| Credit Card Loans | $139,006,111 | $114,350,337 |
| Allowance for Loan Losses | ($29,830,390) | ($23,167,551 |
| Net Loans | $3,452,747,733 | $2,702,033,849 |
| National Share Insurance | $30,826,070 | $27,480,771 |
| Other Assets | $133,055,184 | $145,141,025 |
| Total Assets | $3,862,063,192 | $3,281,699,678 |
| 2022 | 2021 | |
|---|---|---|
| Payables | $361,498,217 | $15,751,729 |
| Share Accounts | $997,542,017 | $915,506,546 |
| Share Draft Accounts | $621,559,668 | $586,435,555 |
| Money Market Accounts | $1,044,517,336 | $932,354,379 |
| Individual Retirement Accounts | $238,368,033 | $227,350,664 |
| Share Certificates | $283,538,443 | $310,482,991 |
| Total Deposits | $3,185,525,497 | $2,972,130,135 |
| Total Reserves & Undivided Earnings | $315,039,477 | $293,817,815 |
| Total Liabilities & Equity | $3,862,063,192 | $3,281,699,678 |
Statements of income
| 2022 | 2021 | |
|---|---|---|
| Investment Income | $4,486,208 | $1,794,907 |
| Mortgage Loans | $66,047,571 | $49,063,754 |
| Personal Loans | $33,303,479 | $29,075,871 |
| Home Equity Loans | $4,751,625 | $3,125,646 |
| Auto Loans | $26,254,284 | $25,131,739 |
| Credit Card Loans | $13,052,830 | $9,197,097 |
| Member Business Loans | $3,809,296 | $3,775,575 |
| Total Loan Income | $147,219,085 | $119,369,682 |
| Other Operating Income | $63,439,492 | $63,978,930 |
| Total Income | $215,144,785 | $185,143,519 |
| 2022 | 2021 | |
|---|---|---|
| Operating Expenses | $163,320,797 | $122,181,287 |
| Interest on Borrowed Funds | $26,219 | $42,370 |
| Share Accounts | $3,027,826 | $1,137.007 |
| Share Draft Accounts | $493,687 | $412,844 |
| Money Market Accounts | $6,006,752 | $1,555,607 |
| Individual Retirement Accounts | $2,103,061 | $1,012,911 |
| Share Certificates | $3,736,514 | $24,406,512 |
| Total Deposit Expense | $15,367,840 | $8,524,881 |
| Total Expenses | $178,714,856 | $130,748,538 |
| Net Operating Income | $36,429,928 | $54,394,981 |
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, 2021 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.
2022 Impact Report
ONE PURPOSE. ENDLESS IMPACT.
Did you know? In 2022, we awarded 10 community grants totaling $250,000 to support North Carolina nonprofits addressing critical needs in health care, housing, human services and hunger. And we provided $250,000 in scholarships to members statewide!
Read the full 2022 Impact Report, including our latest achievements in sustainability, at Civic Local Foundation!
