2016Annual Report - Primeway Federal Credit Union

2016 Annual Report
Walk into the Future
Chairman’s
Report
I would like to express my gratitude to all of our PrimeWay Federal Credit Union
members, employees, volunteers and community. You helped to make PrimeWay
the healthy thriving organization, it is today, and because of you, this credit union
had a great year last year. So great in fact, that PrimeWay was recognized as
one of the 101 Best and Brightest Places to Work in Houston and in the nation.
It is no wonder that our member satisfaction rating improved in 2015. Creating a
positive working environment better equips our staff to provide superior service to
you, our members and that is our ultimate goal.
In 2015, the Houston economy was an anomaly within the United States as declining oil prices began to negatively
impact companies throughout our city. Despite this challenge, your credit union was still able to increase financial
strength and build capital, guaranteeing the ability to lend and develop convenient delivery options for you to access
and manage your money. We are excited to report that while the
National Credit Union Administration (NCUA), considers 7 percent
well capitalized, your credit union increased its capital to 8.58
percent.
As your Board of Directors it is our goal, and a great honor,
to serve you by ensuring the ongoing financial health of this
organization, so that we can continue to offer you the best,
most advanced banking options available. One of our largest
expenditures in 2015 was for security. As you saw in the news,
data security was a major issue across all industries last year.
PrimeWay continues to implement security enhancements to
protect your money, identity and way of life. We were also able to
use our resources to lend more, pay competitive interest rates and
offer tools and services to make managing your finances easier.
We are looking forward to doing even more in 2016.
We have your best financial interests at heart and feel our duty is to help you maintain and build the lifestyle you so
deserve. We are constantly monitoring your money with the latest technology, so that you have peace of mind knowing
your identity and personal savings are secure.
Looking toward the future, we are confident we will have another strong year and continue to deliver the quality of
service you have grown accustomed to. So, on behalf of your Board of Directors, thank you.
Ernest Luker
Chairman
President’s
Report
To expand our efforts to better serve you, the executive team and board approved
a new five-year growth plan that includes new branches and replacement
branches. We have already purchased land for our first replacement branch in
Missouri City; this location is right off the Southwest Freeway, which will mean
better access and more convenience. Planning and designing the new branches
allowed us the opportunity to refresh our logo to ensure it represents with our
values.
Last year, we told you that we were working on bringing you an electronic wallet
specific to your needs that would offer you more value than Apple or Samsung Pay, and now that wallet is complete
and rolling out soon. The new CU Wallet will have all of your
PrimeWay cards automatically populated, so there will be
no need to worry about the pesky scanning and saving of
cards. Updated balances of your PrimeWay cards, along with
location specific, real time coupons and deals are also some
features designed with your needs in mind. This is only the
first generation of the wallet, and we are the first credit union
in Texas to introduce it, so the possibilities for the future of CU
Wallet are virtually endless.
Through a new initiative with Gallagher, we have created an
insurance portal, offering a full suite of health care benefits;
we are the first credit union to do this. With this update we
will be able to offer you all types of insurances, even medical
insurance on the Affordable Care Act Marketplace. Individuals
receiving Medicaid and Medicare can also learn about and
sign up for supplemental insurance through our website. The
online portal will be interactive and offer educational videos about available insurance options, allowing you to shop for
insurance with ease and convenience.
Our goal as a credit union is to help you by providing quality
services that help make your life easier. We are excited about
all of our new technology and future capabilities because we
will be able offer even more security and convenience. How
well we serve you is not just our measure for success at the
credit union, it is our passion. We enjoy going home at the end
of the day knowing that we spent the day working to make
improvements that are in the best interest of our members, and it gives us energy and fuels new ideas for what we can
do tomorrow.
Thank you for your trust and your membership. We will always do our best to serve you.
Annette Zimmerman
CEO
Treasurer’s
Report
PrimeWay remains well capitalized at 8.58 percent. The National Credit Union Administration
(NCUA) –the federal agency overseeing credit unions - considers
anything above 7 percent as well capitalized. The credit union
posted a net income of $ 2,350,000 for 2015. Loans increased in
2015 to $359,182,000 at year-end for the combined organization.
Delinquency increased due to the impact of the reduced price of
oil on Houston during the same period to 0.77 percent overall for
the year in 2015. This is still considered very high loan quality.
at year-end for the organization.
Loans increased
in 2015 to
$359,182,000
The credit union assets were $458,853,000 with deposits increasing to $418,424,000. The credit
union closed 2014 serving 51,469 members.
PrimeWay is committed to remaining a strong and stable organization. We will continue to work
hard in order to offer you the best possible products, services, and pricing while maintaining a strong
capital position.
Evelyn Smith
Secretary/Treasurer
Balance Sheet (in thousands)
Assets
Cash
Investments
Net Loans
Fixed Assets
Other Assets
Total Assets
Liabilities & Equity
Other Liabilities
Savings/Deposit Accounts
Equity
Total Liabilities & Equity
2014
2015
$16,765
$73,151
$309,281
$10,358
$33,507
$7,379
$65,713
$359,182
$11,005
$15,574
$443,062
$458,853
$7,446
$403,979
$31,637
$9,930
$418,424
$30,499
$443,062
$458,853
Income Statement (in thousands)
2014
2015
Income from Investments
Interest on Loans
Cost of Funds
ALLL
Net Interest Margin
Non-Interest Income
Non-Interest Expense
$2,065
$14,638
$1,717
$2,007
$12,979
$7,967
$18,522
$1,042
$15,690
$979
$2,651
$13,102
$9,140
$19,892
Net Income
$2,424
$2,350
Supervisory Committee’s
Report
In today’s environment ensuring your credit union is operated with security and soundness upper
most in mind is more important than ever. You can rest assured that your Supervisory Committee is
dedicated to protecting your interest and the credit union organization.
The Supervisory Committee, a group of appointed volunteers, is primarily responsible for overseeing
the overall safety and soundness of PrimeWay Federal Credit Union, as well as the credit union’s
adherence to operating policies and procedures. Each year, we reaffirm our commitment to
ensuring that your credit union is financially stable and operating in accordance with all laws and
regulations.
Each year, in addition to numerous internal audits, the committee engages a third party, independent
certified public accounting and consulting firm for additional scrutiny. For the fiscal year ending
March 31, 2015, Orth, Chakler, Murnane and Company (OCM) issued an “unqualified opinion” that
the financial statements presented by management are a fair and accurate representation of the
credit union’s financial position.
On behalf of your Supervisory Committee, I am proud to say your credit union remains a well
capitalized, strong and stable organization. As we close our books March 31, 2016, we will again
seek an objective, third party audit and we have every reason to expect the same strong unqualified
findings as in past years.
The supervisory committee is working for the best interest of all credit union members. If you have
a question relating to the financial soundness or management of this organization, please do not
hesitate to contact a supervisory committee member for assistance.
Tom Whitworth
Supervisory Committee Chair
From the Board Members
and the entire PrimeWay Staff,
Thank You for another great year!
Board Members
Ernest LukerChairman
Jerry Cheatham
Vice-Chair
Evelyn SmithSecretary/Treasurer
Cecil BrewerDirector
Dolores Hernandez
Director
Antony KiltyDirector
Dr. Vern Swisher Director
Supervisory Committee
Thomas Whitworth
Chairman
Hank Smith
Vice Chair
Cookie CookVolunteer
Gary MoselyVolunteer
Katie SwickVolunteer
P.O. Box 53088
Houston, Texas 77052-3088
713.799.6200
www.primewayfcu.com