2015 Annual Report - 1st MidAmerica Credit Union

2015 Annual Report
Credit Union
Message from the Chairman
Your credit union has enjoyed another resoundingly successful year. In
2015, the credit union continued its strong financial position, expanded
its branch network, and extended services to a growing membership.
1st MidAmerica Credit Union continues to maintain a stable, secure
foundation. Our credit union grew 10.9% to end the year with $649 million
in assets. Over 59,000 members turn to 1st MidAmerica for market-leading
deposit and lending rates.
Through a merger with School District #9 Credit Union in 2015, we
expanded our branch network to include a new location in Granite City,
Illinois. We also extended our full menu of financial services, value, and
mission to an additional 880 members through the merger.
To better serve our growing membership base in Decatur, IL, we
purchased a new location and moved in June of 2015. The branch is
located on a busy intersection at 202 E. Ash and offers a full service
lobby along with drive-up access, including an ATM.
Ted Klasner
Chairman of the Board
We ended 2015 with a strong capital-asset ratio of 10.33% and ROA of .62%, both of which reflect our
strong strategic leadership, solid foundation, and dedicated staff. 1st MidAmerica is a trusted and stable
financial leader, and that would not be possible without excellent guidance from our Board of Directors,
decisive management, and the daily efforts of 1st MidAmerica employees. Thank you for your continued
loyalty and membership.
Assets (in millions)
$585.9
$497.4
$474.5
2011
$482.4
2012
Grow
$649.3
2013
2014
2015
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Message from the President
1st MidAmerica Credit Union continues a strong, vibrant, and successful
path of growth. During 2015, we expanded our menu of services,
increased our digital footprint, and provided more value. Members are
increasingly adopting digital services and discovering that 1st MidAmerica
positively impacts their monthly budgets as they switch and save more
with our lending programs and earn more with our deposit accounts.
Our 1st MidAmerica Investment Services program continues to expand.
We’re proud to say that our program is performing well, is ranked
nationally, and continues to broaden services to members. We also
expanded our mortgage program to include VA and FHA options,
increasing the number of members eligible for home loans. Our new
Right Track checking program provides members with a fresh start on
their finances after times of trouble. And our newly added property
and casualty insurance services through CUIA are bringing more
value to members in the form of lower insurance premiums and
greater coverage.
Alan Meyer
President & CEO
Each and every accomplishment through 2015 is credited to the hard work of our
volunteer board, employees, and the support of our membership.
As we recognize the accomplishments of 2015, we look forward to working together to improve
the lives of our members and our community in 2016. We are proud to remain a truly local financial
institution for you, our loyal and supportive membership. Thank you for your continued trust in
1st MidAmerica.
owth
Loans and Shares (in millions)
$407
$380
2011
$426
$505
$553 $549
$492
$438
$426
$398
2012
-3-
Loans
Shares
2013
2014
2015
Supervisory Report
The Supervisory Committee of 1st MidAmerica Credit Union contracted with Scheffel Boyle
to perform verification of member accounts and an external audit as required by The Illinois
Department of Financial and Professional Regulation. The Supervisory Committee reviews
all results and provides formal reports to the Board of Directors.
Val
As part of the annual examination, two percent of accounts were verified as of September
30, 2015. There were no discrepancies reported in the accounts verified. Scheffel Boyle was
also contracted to perform periodic, agreed upon procedural audits. The audits verify that
credit union transactions are performed in accordance with Board approved policies. All
findings are reported directly to the Supervisory Committee. The Supervisory Committee
forwards all findings to the Board.
Membership Report
1st MidAmerica Credit Union ended 2015 strong with 59,588 members. Our overall
membership grew 3.33% . In addition to the 880 members gained through the merger with
School District #9 Credit Union in Granite City, Illinois, we also added 8,543 members
through our branch network and indirect lending program. Of those that joined in the
branches, 850 were direct referrals from existing members. Thank you for sharing the credit
union with your family, friends, and coworkers.
Our mission is to exceed member expectations
by focusing on providing members with quality
products, exceptional service, and convenient
access options. We hope that you continue
to recognize our dedication and continue to
make referrals so that more local residents can
experience the value, convenience, and service
provided by 1st MidAmerica.
Total Members
57,667
43,058
2011
-4-
59,588
44,943
2012
45,488
2013
2014
2015
Lending Report
1st MidAmerica is committed to serving members with relevant solutions when they need
credit or assistance in managing their debts. 2015 was another great year of loan growth
for the credit union. Through car loans, home equity loans, mortgages, and member business
loans, members realized the value of the financial solutions that we provide. In addition to
these lending products, more than 1,400 additional members opened a Platinum Visa Credit
Card, bringing total credit card balances to $35,010,760.
alue
We maintain a well-balanced and financially sound mix within the loan portfolio, while losses
and delinquency continue to be well below financial institutions of similar size.
Over the course of 2015, 17,025 loans were approved and $267,013,565 in loans were
extended to members.
Loan
Number of
Type Loans Approved
Total
Loans
% of Total
Loan Activity
irect Loans
D
(in branches)
4,793
$49,420,731
18.5%
Home Equity
624
$17,414,647
6.6%
Indirect Auto
10,977
$159,930,932
59.9%
Mortgage
538
$28,113,634
10.5%
Member
Business
93
$12,133,620
4.5%
Total 17,025
Loans
$267,013,565100%
-5-
Statement of Financial Condition
Assets
2015
Cash and Cash Equivalents
Investments
Loans to Members, Net
Accrued Interest Receivable
Property and Equipment
$
38,601,328
$
19,039,688
17,602,612
548,307,457
501,204,554
1,466,864
1,342,740
22,902,332
22,739,229
5,254,163
Liabilities and Members’ Equity
Liabilities:
Member Shares
13,741,273
Reserves
Total Liabilities and Members’ Equity
11,300,673
$
$
549,298,367
492,309,617
20,000,000
6,165,070
10,778,524
$582,463,437
$523,088,141
66,849,668
$649,313,105
-6-
$585,921,567
27,000,000
Total Liabilities
4,995,450
$649,313,105
Notes Payable
Accrued Expenses and
Other Liabilities
Members’ Equity:
26,736,309
Stabi
NCUSIF and Share
Insurance Deposits
Other Assets
Total Assets
2014
62,833,426
$585,921,567
Statement of Income
Income Statement
Year Ended December 31
2015
2014
Interest Income
Interest on Loans
Interest on Investments
$
349,903
229,196
Total Interest Income
$24,764,121
$21,933,147
$2,909,954
$2,596,420
196,054
Total Interest Expense
$3,106,008
$2,650,231
Net Interest Income
Provision for Loan Loss
$
21,658,113
$
19,282,916
2,684,000
2,487,000
24,414,218
bility
$
21,703,951
Interest Expense
Dividends on Members’ Shares
Interest on Borrowed Funds
Net Interest Income after Provision
for Loan Loss
$18,974,113
53,811
$16,795,916
Non-Interest Income
Service Charges, Fees, and Other
Operating Income
$
Gain on Bargain Purchase
Net Gains (Losses) on Sale of Assets Total Non-Interest Income
9,176,533
(12,061)
$9,164,472
Non-Interest Expense
Operational Expenses
$
Amort FV Core Deposit Intangible
$7,919,619
2,291,480
(5,145)
$10,205,954
150,251
21,092,535
87,647
Total Non-Interest Expense
$24,080,971
$21,180,182
Net Income
$4,057,614
$5,821,688
-7-
23,930,720
$
Comm
Community Support
1st MidAmerica understands the unique challenges our communities face and we remain
steadfast in our commitment to serving and supporting the communities where our members
live and work. Improving the overall health and vitality of our local areas by supporting dozens
of organizations, schools, and local programs is done with great pride. 1st MidAmerica is
committed to giving, increasing our dedication each year, to help those in need through our
various financial contributions and through the many hours that our employees volunteer.
Over $120,000
3,000
donations and sponsorships
in 2015
employee volunteerism
in 2015
in Community
Hours
2015 Volunteer Events
Big Brother Big Sister Bowling • Bucket Brigade • Veterans Day Parade • American Diabetes Walk
Community Christmas • United Way Campaign • March of Dimes Walk • Godfrey Fall Festival
Memorial Day Parade • SIUE Merchant Days • Adopt a Soldier • Shriners Circus • MS Walk
Bark in the Park • Route 66 Festival • Blue Springs Parade • Wood River Triathlon
Christmas Wonderland • Halloween Parades • Bark in the Park • Duck Pluckers Ball
Serving breakfast to triathlon participants
Ringing bells for Salvation Army
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munity
Financial Education
1st MidAmerica continues to focus on financial education, designing programs that empower
members to make informed financial decisions and improve their financial well being. The
credit union was recognized at the state level by the Illinois Credit Union League for several
awards, specifically for community support and financial education, including first place for
the Desjardins Adult Financial Education Award for its 2014 - 2015 seminar series on various
financial topics and its partnerships with area organizations that support adults in need of
financial guidance. The seminar series included a workshop on Resume Building, for which the
credit union received the Louise Herring Award for putting the credit union philosophy of
people helping people into action. More than 150 members attended our seminar series in 2015,
covering a range of topics that included:
Improving Credit
Retirement Planning
How to Attack Taxes
First Time Homebuyers
Women & Investing
Identity Theft
The credit union also received a second place award for the Desjardins Youth Financial
Education Award. We continued our Mad City budget simulation at local high schools in 2015,
presenting to more than 600 students through the year. During this popular reality fair, students
are assigned incomes and families. Based upon their assignments, they visit various booths to
create budgets that include housing, entertainment, transportation, and utilities.
Visiting a Granite City High School
football game with Kirby
Painting pumpkins at the Godfrey Fall
Family Festival
-9-
Serving Our Community
The Madison County Child Advocacy Center
(CAC) was chosen by 1st MidAmerica as the
recipient of funds from the Annual Charity Golf
Outing held in September. This is the third year
in a row that the CAC has been the charity of
choice for the golf outing. Through sponsorships,
donations, and registrations, the 2015 Charity Golf
Outing raised $32,314. This was a record high for
the tournament, bringing the total raised for this
organization to $76, 551.
$32,314
Total Funds Raised
for the Madison County Child
Advocacy Center in 2015
Serv
This event helped support an organization that
helps children and families facing the trials of child
abuse.
1st MidAmerica was recognized with the Dora
Maxwell Award from the Illinois Credit Union
League in 2015 for this outstanding social
responsibility project. The award also recognized
the credit union’s overall community support.
Golf teams enjoy a perfect day
on the course.
Representatives from the CAC
volunteer at the golf outing.
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History of Trust, Service, & Growth
Since 1934, 1st MidAmerica Credit Union has expanded from a desk drawer to serving
members across 22 counties in Illinois and Missouri. With a mission of Exceeding Member
Expectations, employees of the credit union continue to focus on building relationships with
each member on a foundation of trust and outstanding service. This commitment has resulted
in a progressive history of expansion and growth, creating greater value for more members.
vice
1934 – Received state charter and opened as Western Cartridge Company
Employees Credit Union
1954 – Name became Olin Employees Credit Union
1965 – Built first stand-alone facility in East Alton, IL outside the Olin gates
1987 – Opened office to serve employees in Independence, MO at
the Lake City Army Ammunition plant
1992 – Opened a location in Godfrey, Illinois
1998 – Merged with Alt-Wood Credit Union, expanded field of membership
to a s even county area and acquired branch in Alton, IL
2002 – Opened headquarters in Bethalto, IL
2004 – Opened newly built Godfrey branch to replace State Street location
2006 – Opened branch in Jerseyville, IL
2008 – Opened branch in Independence, MO
2010 – Changed name from Olin Community Credit Union to
1st MidAmerica Credit Union
2010 – Merged with RECO Credit Union
2010 – Opened membership to an additional seven counties in IL
2011 – Merged with Alton Area Employees Credit Union and MADCO
Postal Credit Union
2011 – Opened branches in Wood River, IL and Edwardsville, IL
2014 – Merged with Laclede Community Credit Union, adding two locations
2014 – Merged with Macon County School Employees FCU and acquired
location in Decatur, IL
2015 – Merged with School District #9 Credit Union and acquired location in
Granite City, IL
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Branch Locations
3553 College Avenue
Alton, IL 62002
300 W. County Road
Jerseyville, IL 62052
419 N. Shamrock
East Alton, IL 62024
Access
3401 E. Broadway
Alton, IL 62002
301 Mechanical Lane
East Alton, IL 62024
1795 E. Edwardsville Road
Wood River, IL 62095
731 E. Bethalto Drive
Bethalto, IL 62010
1611 Troy Road
Edwardsville, IL 62025
Coming Soon:
202 E. Ash Avenue
Decatur, IL 62526
5301 Godfrey Road
Godfrey, IL 62035
3361 Fehling Road, Suite 7
19301 E.Valley View Parkway
Independence, MO 64055
Granite City, IL 62040
To serve members who do not live near a
1st MidAmerica branch or are traveling, we are affiliated
with the Shared Branching network that allows members
to conduct transactions at over 5,000 locations
in 50 states.Visit us online to find a branch
near you.
Board of Directors
Ted Klasner - Chairman of the Board
Rose Gibson - Vice Chair
Chris Greer - Treasurer
Dex Paddock - Secretary
Andy Macias
Tim Kallal
Becky Alexander
Hank Vize
Bill Meyers, Associate Director
802 W. Union Ave.
Litchfield, IL 62056
Contact Us
Member Support Center
618-258-3168
800-345-4216
www.1stMidAmerica.org
1st MidAmerica Credit Union has many convenient ATM
locations and provides easy access to cash with surcharge
free withdrawals at over 28,000 CO-OP ATMs nationwide.
CO-OP surcharge free ATMs are located at all of
our branches, CO-OP credit union branches,
and select stand alone locations.
Executive Management and Officers
Alan Meyer - President and CEO
Bob Blacklock - Senior Vice President, Finance/CFO
Greg Worthen - Senior Vice President, Operations/COO
Perry Withers - Senior Vice President, Lending/CLO
Federally insured
by NCUA.
Your savings federally insured to at least $250,000
and backed by the full faith and credit of the United States Government
NCUA
National Credit Union Administration,a U.S. Government Agency