2014 Annual Report - VyStar Credit Union

BOARD OF DIRECTORS
AUDIT COMMITTEE
George R. Berry
Eric Hatfield
CHAIRMAN
CHAIRMAN
P.E. (Ted) Hewitt
Russell F. Misner
VICE CHAIRMAN
VICE CHAIRMAN
P. Kem Siddons
Victor Blackshear
TREASURER
Michael Cascone
SECRETARY/FOUNDER
EXECUTIVE OFFICERS
Terry R. West
Eric Hatfield
PRESIDENT & CHIEF
EXECUTIVE OFFICER
Larry D. Myers
Richard G. Alfirevic
Brian Roche
Ralph R. Story
William C. Vivian
EVP/CHIEF OPERATIONS
OFFICER
John H. Turpish
EVP/ CHIEF FINANCIAL
OFFICER
Safety, Soundness and Security Report
From VyStar Credit Union’s Audit Committee
It is the opinion of the Audit Committee of VyStar Credit Union
that the current financial operation, established internal controls and
procedures of VyStar are absolutely sound. This opinion is based
on the results of the audits performed by Nearman, Maynard,
Vallez, CPAs, and by our Internal Audit Department as well as
examinations performed by our State and Federal Examiners.
Eric Hatfield
AUDIT COMMITTEE CHAIRMAN
P.O. Box 45085
Jacksonville, Florida 32232-5085
(904) 777-6000 • (800) 445-6289
www.vystarcu.org
©2015 VyStar Credit Union
VyStar had another exceptional year during 2014 because of you, our valued
members. As the national, state and local economies continued to improve, your credit
5.0
500
4.5
450
4.0
4.0
400
3.5
3.0
2.5
2.0
1.5
Net income for 2014 was $43.5 million, which was 51.25% higher than our planned
projections and was topped only by 2013’s near record net income of $50.2 million.
As of the end of 2014, VyStar was serving almost 478,000 members with assets
of almost $5.3 billion and managed investments of $450 million through VyStar
Investment Services. We opened three new full-service branches during 2014 –
Callahan, Ponte Vedra and Murabella – bringing our total number of full-service
branches to 34 and ATMs to 178. VyStar is the nineteenth largest credit union in size
out of the almost 6,500 credit unions nationwide.
Our net worth at year-end was 9.28%, which is considered strong by the National
Credit Union Administration (NCUA). Credit unions must have at least 7% net worth to
be considered well-capitalized.
The VyStar Money Makeover program, which helps families and individuals
looking to improve their financial situation, completed its sixth successful year during
2014 and will be continued in 2015. Our Sandtastics Kid’s Club program has grown
to almost 15,000 accounts and continues to be a key component in helping younger
members learn more about money at an early age.
Our successful high school branch program continued its growth as we expanded
to Putnam and Flagler counties with the addition of the Palatka and Matanzas High
School branches. VyStar now has a total of eight high school branches with two each
in Clay (Fleming Island and Orange Park High Schools), Duval (Ribault and Wolfson
High Schools) and St. Johns (Bartram Trail and Pedro Menendez High Schools) counties.
VyStar will be expanding to Nassau County during 2015 with the addition of a branch
in West Nassau High School. These high school operations continue to offer internship
opportunities for high school students and also have served as a means to provide
financial awareness and education for the students.
VyStar has always been a strong supporter of the communities we serve and raised
$408,016 for United Way; $102,601 for March of Dimes; $92,636 for Light the Night;
and $44,735 for the Heart Walk. In all, VyStar is active and highly visible in over 200
local and community events throughout our field of membership.
We appreciate the work of our volunteers and management to ensure VyStar
offers value to our members at every point of contact. It is our goal to never forget that
it is your money.
George R. Berry
Chairman of the Board
Terry R. West
President/CEO
2.5
2.0
1.5
1.0
0.5
0.5
0.0
0.0
2011
2012
2013
ASSETS
union has continued its strong deposit, membership, and earnings growth.
3.5
3.0
1.0
2010
2014
DOLLARS (MILLIONS)
5.0
4.5
DOLLARS (BILLIONS)
Thank you for being a valued
member of VyStar Credit Union.
DOLLARS (BILLIONS)
REPORT TO MEMBERS
350
300
250
200
150
100
50
0
2010
2011
2012
2013
2014
2010
2011
MEMBERS’ DEPOSITS
AND GROSS LOANS
2012
2013
NET WORTH
Consolidated Statements of Financial Condition
December 31, 2014 and 2013 (Dollars in Thousands)
ASSETS
Cash and cash equivalents
Investments
Available-for-sale
Other
Loans to members, net Accrued interest receivable
Other real estate owned
Property and equipment
National Credit Union Share Insurance Fund deposit
Other assets
Total Assets
LIABILITIES AND MEMBERS’ EQUITY
Liabilities
Accrued expenses and other liabilities
Borrowed funds
Total Liabilities
Members’ Equity
Members’ deposits
Retained earnings
Accumulated other comprehensive income
Total Members’ Equity
Total Liabilities and Members’ Equity
2014
$294,876
2013
$222,650
1,202,598
32,077
3,557,089
11,455
3,195
111,702
39,385
13,864
$5,266,241
1,456,104
30,040
3,064,080
12,286
4,879
106,090
37,973
14,002
$4,948,104
$48,149
525,710
573,859
$44,574
460,494
505,068
4,192,794
488,877
10,711
4,692,382
$5,266,241
3,991,643
445,360
6,033
4,443,036
$4,948,104
$141,163
23,196
164,359
$138,739
25,445
164,184
15,070
23,286
38,356
6,581
119,422
14,542
24,981
39,523
2,650
122,011
75,860
1,794
119
(235)
(9)
77,529
72,917
1,050
30
(786)
122
73,333
67,366
700
14,213
51,242
63,555
574
13,049
48,752
0
4,388
6,608
6,271
470
32
2,144
153,434
$43,517
3,038
3,889
3,309
6,318
450
0
2,217
145,151
$50,193
Consolidated Statements of Operations
Years Ended December 31, 2014 and 2013
(Dollars in Thousands)
Interest Income:
Interest on Loans
Interest on Investments
Total Interest Income
Interest Expense:
Interest Expense on Borrowings
Interest Expense on Members’ Deposits
Total Interest Expense
Loan Loss Provision
Net Interest Income after Loan Loss Provision
Non-Interest Income:
Other Operating Income
Income from Sold Loans
Non-Trading Gains
Losses from Foreclosed Real Estate
(Loss)/Gain from Disposal of Assets
Total Non-Interest Income
Non-Interest Expenses:
Employee Compensation and Benefits
Training, Travel and Conference Expenses
Office Occupancy Expenses
Office Operations Expenses
Member Insurance Expenses
(National Credit Union Share Insurance Fund)
Marketing Expenses
Loan Program Expenses
Professional and Outside Services
State of Florida Assessments
Lobbying Contributions
Miscellaneous Operating Expenses
Total Non-Interest Expenses
Net Income
2014