2012 - Community Choice Credit Union

2012
Annual Report
Hand in Hand — Giving Big
Table of Contents
2012 Annual Meeting Agenda..................................................................... 1
Minutes of the 76th Annual Membership Meeting - April 26, 2012.............. 2
2012 Annual Report from the Chairman...................................................... 3
2012 Annual Report from the Treasurer...................................................... 4
2012 Annual Report from the President & CEO.......................................... 5
2012 Consolidated Statements of Financial Condition ............................... 6
2012 Consolidated Statements of Earnings ............................................... 7
2012 Financial Information Charts.............................................................. 8
2012 Community Choice Credit Union Give Big Summary and Photos����� 9
2012 Volunteer of the Year Award and Community Impact Report........... 10
2013 ANNUAL MEETING AGENDA
Farmington Hills Main Office
April 25, 2013 6:30 p.m.
1.
2.
3.
4.
5.
6.
1
Establish Quorum
7. Announcements & Questions
Approve Minutes of the 2012 Annual Meeting
Official Reports
•Bylaw Article III Announcement
A. Chairperson’s Report
B. Treasurer’s Report
8.Adjournment
C. President’s Report
Thank you for your Membership!
Old Business - None
New Business
Election of Board of Directors
Per Bylaw Article V, Section 5, a unanimous ballot shall be cast for the following candidates as approved by
the nominating committee:
On the cover, Team Member Candice
• Tom Cook
Furlong and her two children walk for
• Gary Klotz
the American Diabetes Association during
Each candidate is elected to serve a three year term.
Give Big Weekend.
76th Annual Membership Meeting Minutes
April 26th, 2012
Roll Call – Meeting took place at the Farmington Hills Administration Building. Meeting called to order at
6:34 p.m. by Chairperson Klotz. Present were: Klotz, Cook, Biga, Wilson, Miko, Bonutti, Bava, Cooper and
Wisner. A total of 23 employees and members were present.
Motion to accept the minutes of the 75th Annual Meeting of April 21, 2011, by CEO, Rob Bava; seconded
by Director, Tom Cook and approved unanimously.
Official Reports
A) Chairperson’s Report, presented by Chairperson Gary Klotz
B) Treasurer Report, presented by Treasurer, Martha Schultz
Financial Position
Lending Activity
Comprehensive Audit Results
C) President’s Report, presented by CEO, Robert Bava
Old Business – None
New Business
Member, Linda Blain, addressed the membership with the following complaint:
— Member dissatisfied with the Credit Union using FICO score to determine interest rate
on VISA accounts;
— Member expressed desire to see overdraft line of credit reinstated;
— Member also shared various personal stories and information regarding her account.
The CEO, Robert Bava, thanked member, Linda Blain, for attending the meeting and expressing her concerns.
Election of Board of Directors
A) Certification by Chairperson Gary Klotz to Nominating Committee Chair, Brian Wilson, of at least one
candidate nominated by the Nominating Committee for each vacancy. Per Article V, Section 5,
Nominating Committee Chair, Wilson, cast a unanimous ballot for the following candidates as approved by the nominating committee:
Robert Biga (Incumbent)
Mary Miko (Incumbent)
A motion to elect each candidate to serve a three-year term was made by Director, Martha Schultz; seconded by Team Member, Barb Babington and approved unanimously.
Announcement & Questions
A) Adoption of revised Bylaw Article III – Presented by Robert Bava
Motion was made by Team Member Judi Hudak; seconded by CEO, Robert Bava to adjourn the meeting at 6:55pm. Motion carried.
______________________________
__________________________________
Chairman – Gary Klotz Secretary – Robert Biga
2
2012 Chairman’s Report by Gary Klotz, Chairman of the Board
I
n 2012, Community Choice Credit Union continued serving our members by
providing total financial care, while also giving back to our communities. In many
ways, 2012 demonstrated the Give Big charitable spirit of our members, team
members, and our Credit Union. Through the Community Choice Foundation,
we continued an annual tradition started in 2009 by providing $100,000 in scholarship assistance to
20 local students who pledged to use their education to give back to Michigan. These students and the
investment the Credit Union has made in them will provide value to our communities and our state in
the future.
A previous scholarship winner, Alexis Brady, wrote to us during the summer of 2012 describing how her
Community Choice scholarship has helped her.
“Although my parents are working hard to provide me with the opportunity to attend
college, I realize I have to take responsibility for my future,” said Brady. “This scholarship
has helped me with my tuition and is greatly appreciated. Your scholarship has given me
a great start in achieving my dreams of becoming a teacher. Please accept my continued
thanks and appreciation.” — Alexis Brady
While we continue to invest in the future of Michigan, we also focused on Giving Big to our
communities. In 2012, the Credit Union invested a total of $211,180 in charitable causes, including
the Credit Union’s direct donations, team members’ financial and volunteer contributions, members’
donations, and the Community Choice Foundation’s scholarships. In December, we partnered with
95.5’s Mojo in the Morning Radio Show to make holiday wishes come true for two families who
experienced extreme personal hardships. This was a very rewarding experience for everyone involved.
In 2012, our growing financial products and services continued to serve the best interests of our
members. That is why our Credit Union experienced new member growth as more and more
Michiganders recognized that Community Choice is a premier, not-for-profit, financial institution. Our
growth and our continued success are a direct reflection of your loyalty to and trust in Community
Choice Credit Union.
Your Board of Directors is committed to looking out for your best interests, to ensuring you receive the
best possible value for being a member, and to Giving Big to our communities. On behalf of the Board
of Directors, thank you for being a member owner of Community Choice Credit Union.
Sincerely,
3
2012 Annual Report from Martha Schultz, Treasurer
M
embers actively supported our Credit Union in 2012 by increasing
their product and service holdings over 2011. As a result, member’s
equity grew from $40.4 million to $48.5 million. Our Net Worth Ratio,
which represents members equity as a percentage of assets grew
accordingly from 8.74% to 10.16%. The Board of Directors identified an ideal operating range
of 9% to 10.25%, to cover identified risk. During the recent recession, Community Choice experienced a
prolonged period of losses due to member loan charge offs, which brought our Net Worth Ratio below our ideal
operating range. With earnings growing again strongly since 2010, our Net Worth Ratio is back above 9%. Credit Union earnings continued to be strong throughout 2012 and early 2013.
Our financial outlook remains positive as the local economy improves and the unemployment rate drops. As
with most businesses, when the car companies do well, we do well as our member’s ability to repay loans is a
primary driver of our success.
As our Net Worth Ratio approaches the high end of the ideal operating range, we have committed to
aggressively improve our electronic delivery channels to meet your demands for world class virtual service.
A three year roadmap is under development, which entails enhancements to our Branch Network, e-Banking,
e-Payment and other electronic services.
Some noteworthy 2012 financial highlights include:
● We funded over $113 million in new loans to members and local businesses.
● Assets grew by $16.7 million.
● Members were paid over $1 million in
dividends on their deposits.
● We welcomed 5,664 new members to the Community Choice family.
See the graph for our trend over the past 5 years.
Community Choice Credit Union continues to focus
on strategic growth in order to offer our membership
the financial expertise, convenience and service
they deserve.
We thank you, our members, for your continued
support.
*Doeren Mayhew has audited the financial statements as of December 31, 2012 and 2011.
4
2012 Annual Report from Rob Bava, President and CEO
C
ommunity Choice Credit Union enjoyed a strong year in 2012 as we
welcomed 5,664 new members to Community Choice. With our focus
on personal service and a strong commitment to our communities, new
members recognized that we offer a great value with our variety of financial
products and services. As we move into 2013, the Credit Union has
identified some opportunities to enhance the member experience and give back to our
most important stakeholder- YOU! That’s why I am happy to share with you details about
our new relationship benefits program as well as enhancements
to the Credit Union which will create additional conveniences to
improve your experience.
Beginning on June 1, the Credit Union will start its new member
benefits program called GetBigReward$. The rewards system will
give members monthly credits based on their number of active
products and services with the Credit Union. Those credits will
be used to cover any fees, such as over drafting on a checking
account. At the end of the year any unused credits will be deposited
into members’ share accounts; available to withdraw as cash or to
keep for savings in your share account. In addition to the monthly
rewards credits, members will be eligible to receive up to 10% back
of the total interest paid on consumer loans and credit cards.
While we are excited to give you bigger rewards for your
relationship with Community Choice, we are equally as excited to
offer you added conveniences that will improve your experience.
We have started working towards implementing short-term and
long-term enhancements which you will begin noticing this year
including:
•
•
•
•
•
•
An improved website;
Enhanced e-Pay;
Rob Bava volunteering at
Remodeling of existing branch locations to provide a more
Forgotten Harvest warehouse.
consultative atmosphere with our personal advisors;
New branch locations;
Remote Deposit Capture which allows you to deposit checks by taking a picture with your smartphone;
A personal financial management tool that will allow you to monitor all your loan, deposit, share, and
investment accounts from one website.
These exciting improvements are a direct reflection of our mission which is to Maximize Stakeholder Value.
While we had many successes in 2012, I am confident that 2013 will be even more successful and rewarding
for all of our members. On behalf of the entire Credit Union, I want to thank you for the opportunity to serve
you and for your continued loyalty to Community Choice Credit Union.
Respectfully submitted,
5
Community Choice Credit Union and Subsidiary
Consolidated Statements of Financial Condition
December 31, 2012
December 31, 2011
ASSETS
Cash and Cash Equivalents
CenCorp High Yield Deposits
Total Cash and Cash Equivalents
CenCorp and Other CDs
AFS Investment Securities
Fair Value Option Securitiies
Investment in CUSOs
FHLB Stock
Loans to Members
Allowance for Loan Losses
Net Loans
Accrued Interest Receivable
Property and Equipment
NCUSIF Deposit
CenCorp Capital Share Deposit
CenCorp Perpetual Capital Deposit
Other Assets
TOTAL ASSETS
LIABILITIES AND MEMBERS’ EQUITY
Liabilities
Members’ Shares and Savings Accounts
Other Borrowed Funds
Accounts Payable and Other Accrued Liabilities
Accrued Interest and Dividends Payable
TOTAL LIABILITIES
Members’ Equity
Reserves
Capital Acquired from Merger
Undivided Earnings
Net Income/(Loss)
Unrealized Gains/(Losses)
TOTAL EQUITY
TOTAL LIABILITIES AND MEMBERS’ EQUITY
$
4,998,884
7,101,432
12,100,316
7,392,000
64,774,279
4,806,046
1,663,400
$6,446,990
1,480,210
7,927,200
9,327,000
63,605,726
3,941,000
1,663,400
345,469,662
(6,271,090)
339,198,572
334,878,871
(8,163,367)
326,715,504
1,658,837
17,879,858
4,110,405
1,614,344
18,943,804
3,951,307
600,000
11,710,667
465,894,380
600,000
10,650,699
$448,939,984
413,878,235
3,507,595
16,659
417,402,489
$ 403,651,708
1,088,359
3,772,214
33,357
408,545,638
8,938,451
405,903
30,029,452
8,101,220
1,016,865
48,491,891
465,894,380
8,938,451
405,903
25,385,401
4,644,050
1,020,541
40,394,346
$448,939,984
6
Community Choice Credit Union and Subsidiary
Consolidated Statements of Earnings
Twelve Months Ended
December 31
December 31
2012
2011
Interest Income
Loan Interest
Interest on CenCorp High Yield Account
Investment Securities Interest
Total Interest Income
$19,320,870
5,911
1,140,058
20,466,839
$19,355,590
13,733
1,256,006
20,625,329
1,025,395
31,474
1,056,869
1,701,652
38,108
1,739,760
19,409,970
18,885,569
2,181,836
3,242,743
Net Interest Income After Provision For
Loan Losses
17,228,134
15,642,826
Earnings from CUSOs
Gains/(Losses) on Sale of Investments
Gains/(Losses) on Sale of Assets
Fees and Charges
Total Non-Interest Income
989,899
9,250,171
10,240,070
342,170
9,150,839
9,493,009
Compensation and Benefits
Office Operations
Occupancy
Operating Expenses
Non-Operating Expenses
NCUA Premium Assessment
Total Non-Interest Expense
9,342,367
3,683.344
1,607,150
4,289,956
53,679
390,488
19,366,984
$8,101,220
8,983,841
3,459,589
1,651,044
5,138,043
271,442
987,827
20,491,786
$4,644,049
Interest Expense
Interest and Dividends Members’
Shares and Savings Accounts
Interest on Borrowed Money
Total Interest Expense
Net Interest Income
Provision for Loan
Losses
Non-Interest Income
Non-Interest Expenses
Net Earnings
7
2012 Financial Information Charts
The following chart shows increased Used Auto
lending to members through 2012:
The following chart demonstrates how the credit union
provides diversified lending products to members:
Used Auto Loans
Loan Portfolio in Millions
$70
$62
Dollars In Millions
$60
$50
$40
$106
Unsecured
$42
$40
$39
$8
$81
$52
Auto Loans
$31
First Mortgage
$49
$30
Other RE Loans
$20
Other Loans
$99
$10
$0
2007
2008
2009
2010
2011
2012
Used Auto Loans
Loan Portfolio in Millions
Year
2008
2009
2010
2011
2012
Unsecured
Auto Loans
First Mortgage
Other RE Loans
Other Loans
Dollars
$39,226,573
$39,782,759
$42,009,192
$51,914,198
$62,129,264
$8,339,604
$106.314,200
$98.919,694
$48,703,672
$81,429,136
The following chart illustrates our total Share
Balance growth through 2012:
The following chart illustrates our Asset Size in
millions of dollars through 2012:
Total Shares
Total Assets
$380
$404
Dollars in Millions
Dollars in Millions
$397
$400
$436
$440
$414
$420
$392
$368
$360
$420
$449
$467
$433
$410
$400
$380
$340
2008
2009
2010
2011
2008
2012
2009
2010
2011
2012
Total Assets
Total Shares
Year
2008
2009
2010
2011
2012
Year
2008
2009
2010
2011
2012
Dollars
$368,046,026
$396,941,599
$392,229,941
$403,651,708
$413,878,235
Dollars
$409,863,474
$435,556,899
$433,074,951
$448,939,984
$467,451,001
Historical Data is a combination of 5300 Call Report data combined with audited consolidated financial statements.
8
9
2012 Volunteer of the Year is Judy Linzner
Judy Linzner, a Credit
Union team member for 7½
years, received an award
for her volunteerism. Give
Big Committee Leaders,
Jessie Sinno-White and Brett
Shiemke, pictured in the
center photo presented Judy
her award.
G
iving Big is a core component of Community Choice Credit Union. In
2012, the Credit Union supported charities and local organizations by
providing $211,180. This includes the Credit Union’s direct donations
to charity, the Community Choice Foundation’s scholarships, team
member financial and volunteer contributions, and member donations.
As we move forward in 2013, team members continue to work with organizations in our communities to improve
Michigan. The Credit Union believes so strongly in community service that team members receive up
to 24 hours of paid volunteer time every year! Community Choice team member, Judy Linzner, was our
top volunteer in 2012 committing 84 hours of service to community organizations. In March, Judy received
recognition from the Credit Union for her commitment to our communities. We celebrate and congratulate Judy
for all of her hard work!
2012 Community Impact Report
Community Choice Credit Union is dedicated to improving the quality of life for Southeast Michigan communities.
As a charitable partner, we are proud to support those institutions that share our philosophy of giving back and
making an impact.
Giving Big
We believe in the value of our work as a socially responsible, community minded financial institution and our
GIVE BIG philosophy permeates everything we do. We GIVE BIG by showing through our actions, and the
philanthropic investment of time and money, just how committed we are to our members, team members, and to
the communities where we live and work.
Team Member Volunteer Program Our strong philanthropic commitment, coupled with the enthusiasm and generosity of our team members, has
helped fuel the continued growth of our Team Member Volunteer Program, encouraging team members to share
their time and talents.
Community Choice Foundation
Community Choice Credit Union has supported families and businesses throughout metro Detroit for more than
75 years, and we created the Community Choice Foundation to provide a concrete example of our long-term
commitment to Southeast Michigan and the entire state. We recognize that Michigan is struggling to keep its best
and brightest students and that’s why Community Choice Credit Union has designated $100,000 in scholarships
each year for students committed to sharing their talents with local Michigan communities after college.
Scholarship Awards
From inception in 2009 through 2012 the Foundation has awarded $405,000 in scholarships to a total of 81
local students from Genesee, Lapeer, Livingston, Macomb, Oakland, St. Clair, Washtenaw or Wayne Counties. 10
Farmington Hills
31155 Northwestern Highway
Farmington Hills, MI 48334
Livonia
15420 Farmington Road
Livonia, MI 48154
Livonia South
34930 Ann Arbor Trail
Livonia, MI 48150
Lyon Towne Center
30564 Lyon Center Drive E.
New Hudson, MI 48165
Milford
180 S. Milford Road
Milford, MI 48381
Redford
25447 W. Five Mile Road
Redford, MI 48239
Warren
7415 Chicago Road
Warren, MI 48092
Member Contact Center
877.243.2528
CommunityChoiceCU.com|877.243.2528