KENSINGTON, Md. — At a time when credit union savings overall have been generally increasing, shares at the $314 million Lafayette Federal Credit Union have been in freefall.
According to NCUA's records, since June of 2006 total shares and deposits in the credit union have dropped from $276.4 million in June of 2006 to $250.7 million this past June, a move downward of over $25 million or just over 9%.
Of that, $5.5 million has come from a drop in share accounts and almost $8 million from a drop in share drafts, and this even though share accounts ticked up from March of this year to June by $1.2 million.
At the same time, CUNA reports that year-to-date savings growth at credit unions has been is 4.7%, up from 2.8% for the first half of 2006.
Members who opposed the credit union's move to a mutual bank charter and subsequent handling of the controversy have estimated that the drop in shares may represent members' lack of confidence in the credit union and its leadership. Lafayette has not yet responded to questions about the share drop or persistent rumors that CEO Mike Hearne will not be coming back from administrative leave.
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