Lockheed Federal Credit Union Offers Peace of Mind

San Fernando Valley-Based Financial Institution Earns Highest Award for Strength -- 55 Consecutive Quarters

BURBANK, CA--(Marketwire - April 2, 2009) - These days, it's difficult to find anything positive to say about financial institutions or the economy. However, Lockheed Federal Credit Union (LFCU), headquartered in the San Fernando Valley, is bucking the trend by remaining one of the strongest financial institutions in the country. In fact, the credit union has never reported a loss in its 72-year history.

Just last month, in a time when banks are losing credibility and stability, independent analyst BauerFinancial, Inc. again awarded LFCU a 5-star rating -- the highest possible -- for financial strength. BauerFinancial has been analyzing and reporting on the financial condition of the nation's banking industry since 1983.

"Our credit union is very fortunate to be among the most solid financial institutions in America," said Dave Styler, President and CEO. "That's a great comfort to our members, who have no need to worry whether their financial institution will continue to be in business."

Extremely well-capitalized. LFCU is one of the strongest financial institutions in the country. LFCU's net worth (or capital) is more than 15 percent of assets, more than double the amount regulators consider "well-capitalized," and almost twice the bank average. This capital provides a cushion of nearly $420 million to protect member deposits, in addition to the newly-increased federal insurance guarantee of at least $250,000 per individual vesting (and another $250,000 for IRAs).

Consumer choice. Many consumers are switching their accounts to credit unions, which, like banks, are federally insured -- but typically offer better rates. LFCU is no exception; the credit union is experiencing considerable growth from consumers who have concerns about the safety of their money. LFCU offers many ways for interested consumers to qualify for membership.

Assets performing. The total delinquency in LFCU's mortgage, commercial and consumer portfolios is only 1.15 percent of loan balances. In fact, as of February 28, only 76 loans of more than 12,000 residential mortgages and home equity loans on its books were delinquent. LFCU's low delinquency is attributed to quality underwriting and the fact that it has never participated in sub-prime lending or offered risky "option ARM" loans.

No risky investments. The credit union has invested 100 percent of member deposits in member loans. Any liquidity surplus from earnings (above loan requirements) is primarily invested in government agency securities. Agency securities held in LFCU's portfolio are guaranteed and performing well.

High-performing credit union. LFCU was recently selected by Raddon Financial Group (RFG), a strategic business unit of Open Solutions, Inc.®, to receive its Crystal Performance Award. This award recognizes credit unions for achieving a top-10 ranking based on the RFG Performance Index, a balanced scorecard measure of growth, income, efficiency and margin management.

LFCU is well-positioned to withstand any foreseeable economic turmoil. It is a not-for-profit cooperative owned by the 100,000 members it serves. For more information, contact LFCU at (800) 328-LFCU or visit www.lfcu.com. LFCU audited financial statements are posted online for all members to review.


Lockheed Federal Credit Union has more than 100,000 members and more than $2.8 billion in assets. Chartered in 1937, LFCU offers members preferred rates on savings and loan accounts, surcharge-free access to 25,000 ATMs, and access to a nationwide network of branches. Today, LFCU is the largest financial institution headquartered in the San Fernando Valley.

LFCU operates branches in the San Fernando, San Gabriel, Santa Clarita and Antelope valleys, as well as eastern Ventura County. Membership is open to Southern California residents of more than 600 sponsor companies. Deposits in LFCU are federally insured by the National Credit Union Administration, a U.S. Government Agency. LFCU is an equal housing lender.

For more information on BauerFinancial, visit www.bauerfinancial.com, and Raddon Financial Group, visit www.raddon.com.

Contact Information: Media Contact: Alethia Calagias Lockheed Federal Credit Union www.lfcu.com