To Our Members,

Recently, you may have read in the press that two large corporate credit unions in the United States were taken over by the National Credit Union Administration (NCUA), a department of the federal government, on Friday March 20th. These two credit unions (U.S. Central Federal Credit Union in Kansas and WesCorp Federal Credit Union in California) are not regular credit unions like ours that serve consumers; they provide liquidity, investment and payments services to credit unions like ours. These two corporate credit unions have seen the value of their investments decline in the current economic downturn, resulting in some actual losses. In the case of these two corporate credit unions that were written about in the press, the losses were significant enough so that the government had to step in. It was these two “corporate” credit unions that were placed into ‘conservatorship’, which means they are still operating normally but the NCUA is operating them.

For those of you who may have seen the news reports, we wanted to put your mind at ease; Louisiana FCU remains safe, strong and secure. Louisiana FCU has adequate capital reserves – above what is required by the NCUA. Your funds remain federally insured up to $250,000 per account ownership by the National Credit Union Share Insurance Fund and backed by the full faith and credit of the U.S. Government, just as the FDIC does for bank deposits. No credit union member has ever lost a dime of federally insured funds.

What does all this mean for members of our credit union? It’s business as usual. Your deposits in Louisiana FCU are safe, secure and strong. The same level of quality service you receive from our credit union will continue. Our service to you is not affected by these government actions.

Credit unions have been serving members in the U.S. for 100 years, through good times and bad. We are well positioned to remain strong. Your money is perfectly safe here at the credit union and your accounts will work like they always have.