march 21, 2015 ceo/president`s report

CEO/PRESIDENT’S REPORT
Dear CFCU Members,
Our goal is to provide you, our members, with the finest experience
to be found within the financial services industry. We have an
exceptional workforce that believes putting the Member first is our
top priority and that working to continuously improve member
value is a continuous journey. Our employees are focused, dedicated,
and work hard each day to make a difference both personally and
professionally. Thus, we would like to sincerely thank them for their
commitment to our members and the credit union.
We aim to provide the highest quality financial services to all
federal government employees, retirees, and family members in the
Washington, DC metro area. Our operational efficiency and strong
financial position enable us to consistently offer low service fees
and charges. Unlike other financial institutions, we offer the same
low rates for new and used auto loans. In addition, we have a very
efficient mortgage process that avoids charging our members any
mortgage origination fees other than third party fees. Lastly, we
continue to provide you with innovative products and competitive
pricing on savings and loan products.
Our merger with Taylor Model Basin FCU resulted in an additional
full-service branch location at the TMB facility in Carderock, MD.
We are also very proud to announce that we have an active
agreement secured with the DOD to operate a branch in Bethesda’s
former NGA facility. We expect to have this branch fully functional by
the fall of this year.
We thank you and your family for being a part of Constellation
Federal Credit Union’s long history of success. We encourage
you to share your Constellation experience with your family,
relatives, friends and all other federal government employees in the
Washington, DC metro area, who are now eligible for membership
under our new charter. I would also like to thank our dedicated
Volunteers, Board of Directors, and Management for their continuous
commitment to serving you.
Respectfully submitted,
bobby josephson
71st annual meeting agenda
march 21, 2015
board of directors
mel wagner, chairman
kermit sande, vice chair
karen moe, treasurer
constellation fcu
larry buel, secretary
1810 samuel morse drive
john koslin, director
reston, va
michael o’leary, director
john luibl, director
supervisory committee
mel wagner, chairman call to order /introductions
reading of minutes
mel wagner,
chairman
AMBER BEALL, chair
CINDY TAYLOR
WALLACE BEAUCHAMP
SHEILA ALLEN
PAUL ZOCCOLA
2015 cfcu board nominees (cfcu news, web)
kermit sande
larry luibl
john luibl
bobby josephson,
ceo/president
ceo report
/introduction of staff
office staff
bobby josephson, ceo
reading of reports
mel wagner,
patty dawson, vp of finance
chairman
communications
larry buel,
secretary
awarding of door prizes
john koslin,
director
recognitions of mel wagner,
annual meeting chairman
committee
adjournment
audrey abelson
tammy ellis, vp of operations
latoya joaquin
franz sotomayor, vp of info tech
tamara hoerner
robin crawford, ach/eft manager
anthony maldonado
audrey hastings-spaine, lending manager
steve addison
amadou n’diaye, collections manager
collin peterman
milton martin, dp manager
samantha tucker
dee munday, msr manager
giovanny robinson
anne katzer, marcom manager
ladonna outlaw
deanna peterman, accounting manager
lola ogunfolu
angella williams
victor jovel
sabera alam
patricia mendieta
cruz ballesteros
chief executive officer/president
reading of nominations
nadine channer
larry buel,
nominating
committee
chairman
mel wagner,
chairman
refreshments
2015
CHAIRMAN OF THE BOARD REPORT
SUPERVISORY COMMITTEE REPORT
TREASURER’S REPORT
Dear CFCU Members,
Supervisory Committee Report
Constellation FCU experienced another good year in 2014. Our
financial institution remains strong; every credit union needs growth
to remain strong. Although we had modest asset growth over recent
years, our membership was shrinking. Total assets at the end of
2014 were approximately $208 Million, up almost 16% from 2013.
This is primarily due to our successful merger in 2014 with Taylor
Model Basin Federal Credit Union (TMB). We also increased our
membership by 1,700 plus members (total membership is once
again near 10,000). We are very happy to have merged with TMB and
welcome their Carderock members and staff.
The Supervisory Committee (SC) ensures the safe, secure, and sound
operations of Constellation Federal Credit Union (CFCU) through
a series of checks and balances. The SC ensures that the Board
of Directors and Management of CFCU meet required financial
reporting objectives and create and follow practices and procedures
sufficient to safeguard members’ assets. This is achieved through
SC audits, verification of members’ accounts, and review of policies
and control procedures. The SC’s obligation is not to the Board
of Directors or management but to the people who are CFCU
members, including our newly acquired members from Taylor Model
Basin Federal Credit Union.
Constellation Federal Credit Union has increased its safety and
soundness in 2014 by merging our credit union with Taylor Model
Basin Federal Credit Union. At the end of 2013, Constellation Federal
Credit Union had assets of over $179 million. By the end of 2014,
our assets increased to over $208 million. This is primarily due to
our merger with Taylor Model Basin Federal Credit Union. However,
we have also seen overall increases in share deposits to member’s
accounts.
We are continuing to work on our 2014 goals of maintaining a strong
financial position while improving the quality and convenience of our
products and services. The recent merger goes a long way towards
achieving our growth strategy. Other goals include the expansion of
our mortgage and auto loan programs, as well as improvements in
the organizational structure (our integration of staff from both credit
unions is still in progress). We are also working to better respond to
changes in technology and our member demographics.
We added two new Directors to our Board this year: Jack Luibl (a
New Campus East employee) and Mike O’leary (a long-time Board
of Director from TMB). We appreciate both of their contributions
to our credit union. We also appreciate the contributions from the
Supervisory Committee, who made great strides this year to increase
their participation and improve their effectiveness.
In closing, we, your Board of Directors, believe that CFCU will
continue to thrive and look forward to serving you, our members,
over the next year.
Respectfully submitted,
mel wagner
chairman, cfcu board of directors
Your Supervisory Committee is composed of volunteers who are
members of the Constellation Federal Credit Union. Supervisory
Committee members are appointed by the Board of Directors and
serve two-year terms. The current Supervisory Committee members
are:
Amber Beall, SC chair
Cindy Taylor
Wally Beauchamp
Sheila Allen
Paul Zoccola
An audit was completed for calendar year 2013. The Supervisory
Committee is pleased to report that the financial position of CFCU
is strong and the credit union is being operated in compliance
with applicable laws and regulations. The National Credit Union
Administration (NCUA) is the regulatory agency responsible for
enforcing the laws and oversight of nationally chartered credit unions.
Management is currently taking proper action to comply with the
improvement recommendations made from our Fall 2014 NCUA
Examination.
If any member finds an error in transactions, experiences a problem
with financial statements or with any services provided by CFCU,
please contact the SC immediately at the following email address:
Supervisory Committee
Email: [email protected]
Respectfully submitted,
constellation fcu supervisory committee
The merger benefits both credit unions by increasing our capital from
$25 million to $29 million. This increase in capital is well above that of
our peer group in the credit union industry and further solidifies our
financial safety. It will allow the credit union to grow its products and
services. The increased capital also allows the credit union to maintain
its competitive pricing. We will continue to offer some of the lowest
loan rates, service fees, and high dividend rates in the Washington, DC
metro area.
For those of you who are new to Constellation FCU, I would
suggest taking a look at our service fees and rates to see how you
can save money. The credit union offers a wide variety of loans and
savings products; I would especially like to point out our mortgage
loans. Members are not always aware that CFCU offers some great
mortgage products that has saved members hundreds of dollars in
fees and interest.
CFCU will continue to offer our members the best products and
services for the best value possible. We will also strive to grow
and uphold the strong and sound financial position that we have
maintained for years.
Respectfully submitted,
karen moe
treasurer, cfcu board of directors
STATEMENT OF FINANCIAL CONDITION
assets
12-31-14
12-31-13
Net Loans
$130,661,788
$126,560,170
Cash & Dem Dep Acct.
$15,196,790
$6,091,894
U.S. Gov’t & Agcy.Sec.
$22,182,795
$10,027,108
Corporate CU
$10,469,891
$3,914,505
Inst. Money Market
-
$4,000,000
$21,218,569
$21,433,130
$184,800
$212,300
Bld., Equip., Furn & Fix
$4,932,520
$4,969,786
Other Assets
$3,010,240
$2,185,588
$207,857,393
$179,394,481
12-31-14
12-31-13
$873,349
$711,222
Bank Cert. of Deposits
FHLB Shares
total assets
liabilities
& equity
Accts Payable
Dividends Payable
$190,637
$200,619
Regular Shares
$58,012,573
$46,483,057
Share Drafts
$21,514,169
$17,493,995
Share Certificates
$35,898,835
$31,811,383
IRA Shares
$2,693,848
$2,416,447
IRA Share Certificates
$7,944,950
$6,686,030
Mappers Management
Shares
$51,489,015
$48,099,113
Total Reserve
$29,240,017
$25,492,615
$207,857,393
$179,394,481
total
liability
& equity