CCU40372 AnnualReport2012_VMECH.indd

ANNUAL
REPORT
About Us
As the largest credit union in Western New
surcharge-free ATMs, free checking, free
York with over 46,000 members, we’re
online banking and free mobile banking.
focused on offering better rates and lower
And our five branches, including our newest
fees than traditional banks. Our members
branch in Lewiston, are conveniently located
benefit from no-fee debit cards, 43,000+
to better serve our community.
Cornerstone in the Community
Being a part of the community is important
of a Deadman, 54-40, George Thorogood
to us. That’s why we participate in commu-
and the Destroyers, Kenny Wayne Shepherd
nity events through sponsorships. For the
and The Tea Party.
fifth year in a row, we were the presenting
sponsor of the 2012 Canal Concert Series
Great events we continued to sponsor in
at the Ulrich City Centre in Lockport. The
2012 included the Taste of Lockport, the
series featured Gov’t Mule, Eddie Money,
Canal Fest Golf Tournament and Lockport
Ed Kowalczyk of LIVE, Big Wreck, Theory
Monday Night Cruise Night. We also
participated in Niagara County Fair, NT
Women’s Expo and Hunter’s Hope Every
Step Walk-a-Thon.
Sponsorships are a way to show how much
our neighbors mean to us so we added
even more events. We sponsored Niagara
River Rocks concert in Gratwick Park, North
Tonawanda, featuring Fuel and Buckcherry;
the Lewiston Jazz Festival and the Lewiston
Tour of Homes.
On January 23, we held a successful grand
opening for our newest Cornerstone CFCU
branch located at 721 Center Street in
Lewiston. Our Lewiston staff looks forward
to meeting you so stop by to do your
banking and say hello if you’re in the area.
2
|
Annual Report 2012
President’s Report
Ann M. Brittin
Our members rate better at
Cornerstone, and you are the
reason we continue to grow
and become stronger year
after year. While we are proud
of our past accomplishments,
we are always looking for ways
to expand our portfolio and
make it easier for you to manage your finances.
We spent the last several months of 2012
preparing for the grand opening of our new
branch at 721 Center Street in Lewiston. We have
more than 2,000 members in the immediate
Lewiston area, and this new location will allow us
to offer them the same personalized attention
our members have enjoyed for years in Lockport,
Middleport and North Tonawanda.
We added a number of new online services last
year that make it easier for you to focus on
your finances when it’s convenient for you. Our
Mobile Money service grew in popularity among
members looking to view their accounts, transfer
funds and pay bills on their smartphones. We also
launched a mobile-friendly version of our website
so you can quickly find no-fee ATMs, view our
branch hours and locations, and see up-to-date
rate information.
To help you get the financing you need for a new
home or a college education, we have enhanced
our loan offerings and made it easier for you
to apply for and manage them online. The
comprehensive Mortgage Center on our website
enables you to research programs and rates,
review options, apply for pre-approval and
review the status of your application.
When federally guaranteed student loans are not
enough to cover the costs of higher education,
our private student lending program can help you
bridge the gap through an easy online application
process, competitive interest rates, a 30-day nofee return policy and zero origination fees for all
qualified student borrowers.
More and more members are turning to the 24hour online convenience of OASIS to track all their
activities, including VISA® statements. In 2012
we introduced eDocuments, which allows you to
go green with the electronic delivery of monthly
or quarterly statements, notices and tax forms.
eDocuments take the place of the mailed paper
versions, and they are available as soon as they
are posted to give you up-to-the-minute access to
these important forms.
We have also continued to invest in our branches
and elevate the already high standard of service
you expect from Cornerstone. We added more
than 100 safe deposit boxes to our main office on
South Transit Road in Lockport, and we will also
offer over 200 safe deposit boxes at the Lewiston
branch by the end of this year.
Here in Niagara County, we have seen a lot of
buying and selling of bank branches, and many
do not know who their bank will be from week
to week. As a credit union with strong ties to
the community, Cornerstone has been proud
to provide a solid financial foundation for our
members since 1957, and you can count on us
being here year after year to help you reach your
personal and business goals. To learn more,
call or stop by one of our branches, or visit our
website at CornerstoneCommunityFCU.org.
Ann M. Brittin
President & CEO
You Rate Better Here
|
3
Chairman’s Report
David M. Nemi
At Cornerstone, we’re proud
to play a key role in the
community by providing
the financial resources you
need to buy homes, send
children to college, start
your own businesses and
save for retirement.
As a member-owned credit union, though,
we believe that our commitment to this area
extends far beyond the financial services we
offer, and we feel an obligation to support the
many activities that improve the quality of our
members’ lives. After all, we live, work, worship,
attend school and volunteer here too.
Beyond the marquee events everyone
knows about, we also support dozens of
other organizations and fundraisers that
make Niagara County a better place to live.
Last year we contributed to nearly 100
community initiatives in Lockport, Middleport,
North Tonawanda, Lewiston and everywhere
in between.
While banks have come and gone over the
years, Cornerstone has always been and will
remain a constant force in improving the lives
of our members. I join the more than 130
employees, board members and volunteers at
Cornerstone who thank you for choosing us to
help you achieve your dreams, and we welcome
the opportunity to work with you again in 2013.
David M. Nemi
Chairman of the Board
4
|
Annual Report 2012
Report from the Supervisory Committee
Wm. Keith McNall
The Supervisory Committee
for Cornerstone is an
independent watchdog that
oversees the credit union on
behalf of our members. We
have a responsibility to ensure
that management meets
its obligations for financial
reporting and follows any necessary practices and
procedures required to safeguard member assets.
We continually examine Cornerstone’s
internal controls, accounting records, financial
reports, and other plans, policies and control
procedures. As an advocate for our members,
we also review complaints to ensure that they
are addressed impartially and fairly.
Based on our observations, Cornerstone met
all the requirements of the National Credit
Union Administration throughout 2012, and
we are pleased to report that Cornerstone is
in excellent condition based on the findings
of an independent audit by the certified public
accounting firm Philip Bleier and Associates.
We commend the Board of Directors,
management and staff of Cornerstone for
their fiscal integrity, regulatory diligence and
relentless efforts to meet the financial needs
of our more than 46,000 members.
Wm. Keith McNall
Chairperson, Supervisory Committee
You Rate Better Here
|
5
Treasurer’s Report
Edward P. Sandell
In 2012, Cornerstone
demonstrated solid, stable
financial performance that
continues to make us the
premier choice for all your
banking needs.
Our total member shares
increased 8% to $293,128,395, while our total
investments grew by 23% to $119,199,283.
Cornerstone’s total equity also rose approximately 7% to $26,992,845, and we added
1,055 new members, up 2.3% from the start
of the year.
The combination of our charge-offs and
recoveries decreased nearly 8% in 2012, which
demonstrates the ongoing recovery of the local
economy and a focused effort by Cornerstone to
work with our members. And despite lingering
hesitation in the market, our total loans climbed
by just under 1% to $182,736,458.
With a net income of $1,633,828 for the year,
Cornerstone paid a bonus dividend in December
of 0.5% on all regular shares and money
markets. We finished the year with a sound
prompt corrective action (PCA) net worth ratio
of 8.275%, which reflects our continued status
as a well-capitalized credit union.
We attribute our success in 2012 to our
judicious investment approach and focus on
keeping our operational costs low, and we will
persist with this strategy in 2013 to maintain
our position as a dependable resource for
helping our members achieve their goals.
Edward P. Sandell
Treasurer
6
|
Annual Report 2012
Financial Highlights
Assets
Loans to Members
(Less) Allowance for Loan Losses
$182,736,458
($1,983,774)
Net Loans
Cash and Net Investments
Other Assets
Total Assets
$180,752,684
$124,932,983
$15,945,907
$321,631,574
Liabilities and Equity
Total Liabilities
Total Member Shares
Regular Reserve
Contingency Reserve
Undivided Earnings
Acc Gain/Loss on AFS Securities
Total Liabilities and Equity
$1,510,334
$293,128,395
$5,526,467
$7,119,882
$13,969,897
$376,599
$321,631,574
Operating Income
Net Loan Interest
Income from Investments
Other Operating Income
Total Income
$11,316,774
$1,356,010
$4,710,204
$17,382,988
Operating Expenses
Staff Salary and Benefits
Office Occupancy and Operation
Provision for Loan Losses
Marketing and Promotional
Loan Servicing
Professional and Outside Services
NCUA Federal Operating Fees
NCUA Stabilization Fund
All Other Expenses
Total Expenses
$6,742,018
$2,402,303
$924,994
$715,516
$782,183
$1,911,708
$66,953
$303,057
$206,838
$14,055,569
Net Operating Income
Dividends Paid On Shares
Gain or Loss Disp. Assets
Net Income
Financial Highlights
Assets
Shares
Loans
Members
$3,327,419
$1,693,591
$0
$1,633,828
2012
$321,631,574
$293,128,395
$182,736,458
46,040
2011
$297,684,433
$270,246,557
$181,529,028
44,985
%
8.04%
8.47%
0.67%
2.35%
You Rate Better Here
|
7
Board of Directors
8
|
David M. Nemi
A. Angelo DiMillo
Edwin Rosier
Edward P. Sandell
Sally J. Moore
Chairman of the Board
First Vice Chairman
Second Vice Chairman
Treasurer
Secretary
James Budde
Lawrence C. Pease
Robert S. Santarsiero
Barry Goodin
Director
Director
Director
Director
Annual Report 2012
Management Team
Ann M. Brittin – President/CEO
Paul R. Feidner – VP of Marketing and Business Development
Constance L. Kelkenberg – VP of Auditing and Compliance
Mark R. Kennedy – VP of Information Systems
Mary E. Scheib – VP of Operations
Mark Szafranski – VP of Finance
Gregory P. Thrun – VP of Labor Relations
Ellen Zastrow – VP of Lending
William A.C. Coder – Network Administrator
Cynthia A. Culverwell – Employee Relations Manager
Kathryn A. Currie – Lending Manager
Suzanne English – Marketing Director
Daniel Martin – Collections Manager
Denise Salmons – Operations Manager
Lisa Whittaker – Indirect Lending Manager
Cornerstone Volunteers
We would like to thank the following volunteers
for their dedication and support in the past year:
Nathaniel Bolt
Dan Napoleone
Irene Bull
Robert Nemi
Sam D’Agostino
Frank Oakes
Patricia Degan
John Santarsiero
Al Ferrante
Gary Smith
Barbara Garey
John Tolli
Todd McNall
Jeremy Verratti
Wm. Keith McNall
You Rate Better Here
|
9
Products and Services
- Savings and Checking Accounts
- Health Savings Accounts
- IRAs and Money Market Accounts
- Business Accounts
- Online Banking and Bill Payment
- VISA® Credit Card Accounts
- Auto, Truck and Recreational
Vehicle Loans
- Discount Darien Lake and Martin’s
Fantasy Island Tickets
- Scholarship Programs
- Money Orders
- Notary Public and Signature Guarantee
Services
- Safe Deposit Boxes
- Mobile Website
- Home Equity and Mortgage Loans
- Business Loans
- Online Lending and Loans-by-Phone/
24-Hour Lending
For more information on our products
and services, visit our website at
CornerstoneCommunityFCU.org
- VISA® Gift Cards and Travel Money Cards
Scan with your
smartphone to
visit our website
10
|
Annual Report 2012
MEMBERS Financial Services
Q. W
hat is the MEMBERS Financial Services
Program?
Q. Can the MEMBERS Financial Services
Program help me with retirement planning?
A. The MEMBERS Financial Services Program
is a full-service financial advisory program
located at Cornerstone CFCU offering
members retirement, insurance and
investment services. Our goal is to help
our members achieve their financial goals
for themselves and their families.
A. Yes, whether you are already retired,
getting ready to do so or are just beginning
to save for retirement, our program has
sophisticated planning software and a wide
array of investment products to help you
fund the retirement lifestyle you’re seeking.
We believe everybody has a unique vision
of their retirement years and we help you
manage your money to support that vision.
Q. H
ow does the MEMBERS Financial Services
Program work?
Q. How do I get started?
A. Full-time MEMBERS Financial Services
Representatives are available to meet with
you to evaluate your financial needs, offer
recommendations, and coordinate your
investment and insurance choices.
They can help you:
- Roll-over your PSP, 401(k), 403(b) or pension
plan if you’ve changed jobs.
- Develop a savings and investment plan.
- Create a retirement income plan to approach
those years with confidence.
- Manage your investments better.
- Protect your family with life insurance or longterm care insurance.
- Save for college education costs.
A. To set a no-cost, no-obligation appointment,
simply call David Goldpenny, Stewart Conover
or Judy Roszman, the MEMBERS Financial
Services Representatives, located right at the
credit union. You may reach them by calling
(716) 434-2290, extension 3050, today. Be
sure to bring any documentation that will
help Stewart, David and Judy understand your
situation better such as account statements,
tax forms and benefit information. If married,
it’s best that both you and your spouse
attend. Lastly, always bring an open mind
and a willingness to discuss the details of
your situation.
Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI),
member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 5126109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are
not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial
services program, to make securities available to members. B2MM-1205-E092
You Rate Better Here
|
11
Main Office
6485 S. Transit Rd.
Lockport
716.434.2290
1.800.488.6481
Lockport
Middleport
North Tonawanda Lewiston
55 Stevens St. 5 State St.
107 Main St.
721 Center St.
716.434.2290 716.735.7004 716.694.0295
716.754.2950
CornerstoneCommunityFCU.org
Cornerstone Community Federal Credit Union is an affirmative action/equal
opportunity employer.
© Cornerstone Community Federal Credit Union 2013
4/13