Baltimore County Employees Federal Credit Union

Baltimore County Employees
Federal Credit Union
2014 Annual Report
Federally Insured By NCUA
Equal Housing Lender
Welcome to our 52nd
Dear Fellow Members,
We are pleased to report the accomplishments of your Credit Union
for the year 2014.
Buoyed by increases in consumer spending, gross domestic product and
housing prices, the Credit Union realized a significant increase in total
loans to members. Led by a strong demand for automobile financing,
we originated more than $26 million in new and used automobile loans.
We are also pleased with the results of the real estate lending programs.
For the year, we originated over $20 million in home equity and first
mortgage loans. Much of this success can be attributed of our
knowledgeable and experienced Loan Counselors who can guide you
through the loan process. We know this can be an intimidating
experience for many members, but our Loan Counselors are always
available to answer your questions, help you select the right loan for
your financial situation and make you feel comfortable with the process
from application through settlement.
Our Visa credit card program continues to provide positive results as
well, thanks to the popularity of the balance transfer program, with an
introductory APR of 1.9% for the first six months, and our recent
double reward point offer during the holiday shopping period. For the
year, we processed more than $30 million in credit card sales and earned
more than a half a million in income from the merchants.
In addition to the positive results from the lending programs, our
deposit programs also showed improvement. Led by growth in savings,
money market and checking account balances, total member deposits
exceeded $306 million at year-end as our dividend rates continue to
exceed that of our credit union peers and our reliance on fee income is
well below the national average.
Annual Meeting
We are grateful for the confidence you continue to show in us.
According to a 2014 member survey, over eighty percent (80%) of you
would recommend our services to a family member or colleague. We
appreciate those of you who took the time to complete the survey and
we look forward to making continued improvements in our products
and services as we strive to exceed your expectations.
Our newest service enhancement is Mobile Deposit. Mobile Deposit
allows you to deposit paper checks using your smartphone saving you
time and a trip to the Credit Union. In the first three months this
service was available more than 1,600 members had enrolled in the
program. By year-end, over 8,000 members enjoy the convenience of
internet banking, mobile banking or electronic bill pay.
One of the many strengths of the Credit Union is the selflessness of our
volunteers who make significant contributions of their time and talents
to us. In August 2014, we lost two such volunteers, D. Kent Parker and
R. Alonzo “Lon” Childress. With more than eighty (80) years of
combined service, Kent and Lon exemplified the Credit Union motto
“People Helping People”. We owe a great debt of gratitude to Kent, Lon
and their families. May Kent and Lon rest in peace!
On behalf of all of our dedicated and wonderful volunteers and
employees, we thank you for your continued support of the Credit
Union and we invite your family members and colleagues to enjoy the
benefits of credit union membership.
Douglas L. Burgess
Board Chair
April 14, 2015
David P. Hagar
President
Financial Report of 2014
The annual audit of the accounts and financial records of the Baltimore
County Employees Federal Credit Union as of December 31, 2014, was
conducted by the firm of Rowles & Company, LLP, Certified Public
Accountants. The year-end financial statements, as of December 31, 2014,
were also audited by Rowles & Company, LLP.
In addition, the records of the Credit Union were evaluated for compliance
with regulations and laws by the Federal examiners employed by the
NCUA (National Credit Union Administration).
A Supervisory Committee meets monthly to test and verify various
financial records of the Credit Union. The Committee is proud to report
that all records and accounts are kept in a satisfactory manner by the
personnel at the Credit Union.
The Supervisory Committee also serves as a membership representative.
If members have an unresolved financial matter with the Credit Union,
they are encouraged to contact the committee confidentially by writing to:
Supervisory Committee
Baltimore County Employees Federal Credit Union
P.O. Box 6785
Towson, Maryland 21285-6785
Supervisory Committee
Baltimore County Employees Federal Credit Union
Towson, Maryland
Report of Independent Auditors on Summary Financial Statements
The accompanying summary financial statements, which comprise the summary balance sheets
as of December 31, 2014 and 2013, the summary income statements, summary statements of
changes in members' equity, and summary cash flows statements for the years then ended, are
derived from the audited financial statements of Baltimore County Employees Federal Credit
Union as of and for the years ended December 31, 2014 and 2013. We expressed an unmodified
audit opinion on those audited financial statements in our report dated March 21, 2015.
The summary financial statements do not contain the statements of comprehensive income and
all the disclosures required by accounting principles generally accepted in the United States of
America. Reading the summary financial statements, therefore, is not a substitute for reading the
audited financial statements of Baltimore County Employees Federal Credit Union.
Management's Responsibility for the Summary Financial Statements
Management is responsible for the preparation of the summary financial statements on the
basis described in Note 1 of Baltimore County Employees Federal Credit Union’s audited
financial statements.
Auditor's Responsibility
Our responsibility is to express an opinion about whether the summary financial statements are
consistent, in all material respects, with the audited financial statements based on our procedures,
which were conducted in accordance with auditing standards generally accepted in the United
States of America. The procedures consisted principally of comparing the summary financial
statements with the related information in the audited financial statements from which the
summary financial statements have been derived, and evaluating whether the summary financial
statements are prepared in accordance with the basis described in Note 1. We did not perform
any audit procedures regarding the audited financial statements after the date of our report on
those financial statements.
Opinion
In our opinion, the summary financial statements of Baltimore County Employees Federal
Credit Union as of and for the years ended December 31, 2014 and 2013, referred to above are
consistent, in all material respects, with the audited financial statements from which they have
been derived, on the basis described in Note 1 of the audited financial statements.
Baltimore, Maryland
March 21, 2015
8100 Sandpiper Circle, Suite 308, Baltimore, Maryland 21236
443-725-5395 FAX 443-725-5074
Website: www.Rowles.com
Summary Balance Sheets
Summary Statements of Income
BALTIMORE COUNTY EMPLOYEES FEDERAL CREDIT UNION
As of December 31, 2014 and 2013
BALTIMORE COUNTY EMPLOYEES FEDERAL CREDIT UNION
Years Ended December 31, 2014 and 2013
2014
Assets
Cash and cash equivalents
Loans to members, net
Investment securities available for sale
Investment securities held to maturity
Certificates of deposit in other financial institutions
National Credit Union Share Insurance Fund deposit
Loans held for sale
Accrued interest receivable
Property and equipment
Prepaid expenses and other assets
$
2013
15,099,982
157,602,550
24,714,365
118,523,030
12,236,000
2,976,262
975,988
3,968,695
1,163,267
$ 13,886,044
147,277,657
21,874,483
123,614,436
11,893,000
2,944,094
475,343
1,083,678
4,183,328
1,262,073
$ 337,260,139
$ 328,494,136
Interest income
Interest on loans
Interest on investments
Interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Total assets
Liabilities and Members’ Equity
Members’ share accounts
Official checks payable
Accrued expenses and other liabilities
Total liabilities
Members’ equity
Regular reserve
Undivided earnings
Accumulated other comprehensive income
Funded status of defined benefit plan
Unrealized gain on investment securities available for sale
Total members’ equity
$ 306,955,495
174,559
2,054,719
$ 299,262,501
227,085
1,152,841
309,184,773
300,642,427
3,458,704
27,149,747
3,458,704
26,102,448
(2,634,035)
100,950
(1,837,913)
128,470
28,075,366
27,851,709
$ 337,260,139
$ 328,494,136
Noninterest income
Card services
Share draft fees
Rental income
Gain (loss) on disposition of property and equipment
Other
Noninterest expenses
Compensation and benefits
Office occupancy
Office operations
Education and promotion
ATM operating expense
NCUSIF stabilization
Other
Net income
Total liabilities and members’ equity
These summary financial statements do not constitute a complete presentation. The complete set of audited financial statements,
including the statements of comprehensive income and the notes to the financial statements, are available at the Credit Union
office during normal hours of operation.
2014
2013
$ 7,250,996
2,293,641
9,544,637
$ 7,206,291
2,232,589
9,438,880
1,784,028
2,065,982
7,760,609
7,372,898
844,500
662,000
6,916,109
6,710,898
1,409,233
650,426
93,935
219,286
2,372,880
1,392,648
683,336
106,960
(944)
517,485
2,699,485
3,913,232
630,697
2,266,437
165,698
857,795
407,831
8,241,690
3,868,377
649,771
2,093,866
184,508
819,427
235,527
659,017
8,510,493
$ 1,047,299
$
899,890
These summary financial statements do not constitute a complete presentation. The complete set of audited financial statements,
including the statements of comprehensive income and the notes to the financial statements, are available at the Credit Union
office during normal hours of operation.
Summary Statements of
Changes in Members’ Equity
Summary Statements of Cash Flows
BALTIMORE COUNTY EMPLOYEES FEDERAL CREDIT UNION
Years Ended December 31, 2014 and 2013
BALTIMORE COUNTY EMPLOYEES FEDERAL CREDIT UNION
Years Ended December 31, 2014 and 2013
2013
2014
Balance, December 31, 2012
Regular
reserve
Undivided
earnings
$ 3,458,704
$ 25,202,558
Accumulated
other
comprehensive
income
$ (2,197,987)
Net income
-
899,890
-
Defined benefit plan adjustment
-
-
660,861
Unrealized loss on investments
available for sale
-
-
(172,317)
Cash flows from operating activities
Net income
Items not requiring (providing) cash
Depreciation
Provision for loan losses
Amortization of loan origination costs
Amortization of premiums and accretion of discounts, net
(Gain) loss on disposition of property and equipment
Loans originated for sale
Cash from loans sold
(Increase) decrease in accrued interest and other assets
Increase (decrease) in accrued expenses and other liabilities
26,102,448
Net income
-
1,047,299
Defined benefit plan adjustment
-
-
(796,122)
Unrealized loss on investments
available for sale
-
-
(27,520)
Balance, December 31, 2014
$ 3,458,704
$ 27,149,747
$
899,890
301,763
844,500
38,195
1,215,007
(5,074,962)
5,550,305
206,496
53,230
280,636
662,000
447
1,302,908
944
(4,719,585)
4,244,242
369,845
(437,335)
4,181,833
2,603,992
(11,207,588)
(6,096,177)
3,000,000
(26,458,452)
30,563,626
(343,000)
(87,130)
(32,168)
(808,952)
(7,516,417)
1,000,000
(33,602,567)
27,120,016
1,586,000
(223,627)
(99,656)
(10,660,889)
(12,545,203)
Cash flows from financing activities
Increase in members’ share accounts
7,692,994
4,484,782
Net increase (decrease) in cash and cash equivalents
1,213,938
(5,456,429)
13,886,044
19,342,473
$ 15,099,982
$ 13,886,044
Net cash provided by operating activities
3,458,704
Balance, December 31, 2013
$ 1,047,299
(1,709,443)
-
Cash flows from investing activities
Loans made, net of principal collected
Purchase of investments available for sale
Proceeds from maturity or call of investments available for sale
Purchase of investments held to maturity
Proceeds from maturity or call of investments held to maturity
Net (increase) decrease in certificates of deposit
Purchase of property and equipment
Increase in NCUSIF fund
$ (2,533,085)
Net cash applied to investing activities
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
These summary financial statements do not constitute a complete presentation. The complete set of audited financial statements,
including the statements of comprehensive income and the notes to the financial statements, are available at the Credit Union
office during normal hours of operation.
These summary financial statements do not constitute a complete presentation. The complete set of audited financial statements,
including the statements of comprehensive income and the notes to the financial statements, are available at the Credit Union
office during normal hours of operation.
Member Products and Services
Convenience Services
Savings Products
• Savings ATM Card
• Share Savings
• Holiday, Personal, and
Vacation Clubs
• Premier Money Market
• IRA Savings
• Share Certificates
• IRA Share Certificates
• Youth Accounts
• Teen Checking
• Special Baby Account
New and Used Vehicle Loans
Auto-Related Services:
• AutoSMART
• UBS – United Buying Service
• MVCP – Motor Vehicle Certification Program
• Enterprise Car Sales
• GAP (Guaranteed Auto Protection)
• Mechanical Breakdown Protection
Home Equity Loans
Mortgage Loans
• Variable rate and
Fixed rate options with
“no closing costs”
• For the purchase or
refinance of a home
• Checking Services
• Statement Express
• Overdraft Protection with line of credit
• Courtesy Pay protection coverage
• SmartCash VISA Check Card
• QuickTeller – Audio Response, On-Line
Account Access, and Bill Payment
• Mobile Banking/Mobile Deposit
• Credit Union ATMs – Towson and Perry Hall
• ATM Network Affiliations featuring over
55,000 no-surcharge Allpoint ATMs
• Direct Deposit /Payroll Deduction
• Automatic Transfer – payroll deduction for
our non-county government members
• ACH – Automated Clearing House –
electronic transfer of funds for example:
payrolls, mortgage payments,
insurance premiums
• VISA Platinum Credit Card with
CU Rewards and no annual fee
Additional Lending Services
• On-Line Loan applications
• Pre-qualification Counseling
• Loan Payment Calculators
Convenience
Services
• Disability and Credit
Life Insurance
• Home Cash
• Auto Cash
• Education/Computer
• Personal/Preferred
Credit
• Share Secured
• Recreational Vehicle
• Vacation, Holiday,
and more
Special Services
Specialty Loans
• Money Orders
• Notary Public
• Postage Stamps
• VISA Gift Cards
• CU Succeed Teen Network
• Coin Counting Machine
• Discounted Movie Passes
• Discounted Theme Park Tickets
• Scholarship Program
• Special Events
www.bcefcu.com
410-828-4730 • 1-800-234-4730
TOWSON
23 W. Susquehanna Avenue
Towson, Maryland 21204
PERRY HALL
8640 Ridgely’s Choice Drive
Baltimore, Maryland 21236
$250,000
$250,000
EQUAL HOUSING
LENDER
EQUAL HOUSING
LENDER