In difficult economic times, it really gets back to the levels of personal trust and connection that you as a member have with your financial institution. Today, more than ever before the “trust factor” supersedes “rate” as a primary factor in the placement of savings and investment dollars. I am pleased to share with you that LAFCU has taken in an additional approximate $5 million dollars over the past week that underscores that issue. I hear from our members on a daily basis about the high level of trust in LAFCU and am so pleased to share with you that it is that “trust factor” that has and always will guide our decision making on behalf of our “Fire Family.”

To the question of why LAFCU chose American Share Insurance, a private insurance company vs. Federal insurance: LAFCU members are quite frankly better savers and more responsible in their budgeting than the vast majority of credit union members. To that end, our savings per member ratio is approximately $28,000 and is around 4 times the national average. It was our intention to provide members a much higher level of insurance to match up with those much higher savings balances consistent with a safe and well run share insurance company. ASI provides up to $500,000 per account type.

We work closely with ASI and, in fact, I am on their advisory council and interact with their senior management team and CEO fairly regularly in order to ensure that their strategic direction and financial condition remains healthy. Please click on the attached pdf to view their financials.

On another note, a member asked what LAFCU’s specific level of delinquency was. As of June 30, 2008, LAFCU’s delinquency ratio for loans 2 months and over stood at .20% and although it fluctuates from month to month, it has not exceeded .56% in 2008. We have expensed more in 2008 for “potential loan loss expense” to be conservative in a challenging economic environment. Another excellent measure of the Credit Union’s financial condition is the year to date and projected net income for full year 2008. To that end, LAFCU has generated over $2 million in net income through June and currently projects a $5 million dollar plus net income for year-end 2008.

I would think that with the C.U.’s expansion of membership to include many people that do not have a real civil service protected job with the City of Los Angeles, the C.U. would be experiencing an increase in defaults do to the widespread downturn in the economy. The popularity of House Flipping seems likely to involve the LAFCU.

I would like to know the numbers on real estate delinquencies as well as other loan defaults, on a comparative basis, encompassing the more recent quarters of the “Sub-prime meltdown”, and the pre-Fire Family era, before you expanded the field of membership.

Thank you

I want to thank you for taking the time to speak with me over the phone, regarding the troubling financial times we are now faced with. Your comments and explanations instilled great confidence in me of the financial position and secure standing of the Los Angeles Firemen’s Credit Union.

I also wish to commend you of the fine news letter you sent, titled Safe,Sound and Secure. This will ease the minds of other investors who are troubled by the recent ongoing uncertainties of financial institutions.

That said – - my wife and I have just put everything we have into our Credit Union.

Question – - Why is our Credit Union $$ insured by a private company and not a public company ?? How can anyone check to see how sound American Share Insurance Co. is ??

I needed that. So very assuring to know my money, small as it is, is safe with you.

I am a new member to the Los Angeles Firemen’s Credit Union from Alameda County Fire Department in Northern California.

I just discontinued business with my old credit union after 20 plus years to join LAFCU. I cannot begin to tell you how impressed I am with the service and help that your representatives Yanet Cureto and Jack Edelman have provided. Keep up the good work…