2011 Annual Report - OE Federal Credit Union

2011 Annual Report
Mission Statement
“To build lifelong financial partnerships with our union members
and their families through affordable financial products and exceptional personal service,
while assuring our long-term financial strength.”
Executive Team
Mike Donohue, Chief Executive Officer
Jeff Hampton, Executive Vice President
Cyndi Guerzon, SVP Lending
Ronald Poff, SVP Business Development
Leslie Ramirez, VP Organizational Development
Mike Miller, VP Information Technology
Credit Committee
Manuel Ramirez
Caan Nguyen
Kim Sandelin
Judy Allen
Dana Mierkey
Kathy Rasmussen
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Board of Directors
Russ Burns, Chairman
Fred Herschbach, Vice Chairman
James Sullivan, Secretary/Financial Officer
Carl Goff
Dan Reding
Pete Figueiredo
2
Bradley Parres
Stanley Green
Mark Fitzgerald
Jim Graham
James Spain
Larry Watson
Andrew Lagosh
Phillip Herring
Dennis Dorton
Glenn Smith
Michael Johnson
Michael Brandt III
Ronald “Gus” McClain
Luther Slack
Supervisory
Committee
Mariano Gonzalez, Chairman
Steve Bentivoglio, Secretary
Ken Oku
CEO’s Message
In January of 2011, I had the privilege of
regulator, the National Credit Union
succeeding Leon Lanfri (retired) as President/
Administration (NCUA), reported that
CEO of Operating Engineers Federal Credit
OEFCU continues to be one of the strongest
Union (OEFCU). It is truly an honor to lead a
capitalized credit unions in the country and
credit union with a unique history of serving
awarded us our best annual exam results in
labor union groups and their membership.
several years. We continue to position our
Our organization has certainly grown since
credit union for ongoing success; for example,
its inception in 1964, yet we continue to be
in response to a member survey, we recently
defined by our mission to help hard-working
introduced a mobile-banking suite of services
union members and their families attain
and an electronic signature feature that
their financial goals. This commitment is
put greater convenience at our members’
best expressed in our Mission Statement:
fingertips. These mobile services complement
OEFCU exists…
To build lifelong financial partnerships
with our union members and their
families through affordable financial
products and exceptional personal
service, while assuring our long-term
financial strength.
the traditional, one-on-one member service
that will always be at our core.
As a thank-you to our loyal members,
OEFCU and the Board of Directors posted
a “loyalty dividend” to member accounts.
The dividend, based on 1% of interest paid
on applicable loans in 2011, was paid at the
end of 2011. OEFCU has always been member-
Throughout OEFCU’s history, we have
owned and member-driven, and by keeping
persevered through challenging economic
our members’ interests at the forefront of all
times to maintain this financial strength,
we do, we will remain strong through the
and 2011 has been no exception. Our federal
changes and challenges to come.
Mike Donohue
President/CEO
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Chairman’s
Message
Even in a slow-growing economy, your credit
Additionally, it is a privilege for OEFCU
union found ways in 2011 to return value back
management and staff to serve you. They
to you, our members. We achieved this as our
are prepared to be your guide, no matter
financial position continued to strengthen, which
what your situation entails.
allows us to stay competitive as we keep looking
for ways to grow our relationship with you.
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Your financial well-being remains our utmost
priority as we plan for the challenges and
OEFCU’s goal remains steadfast: providing you
opportunities of 2012. The accomplishments
with the tools needed to prosper. Members
your credit union reached over the past year
are taking advantage of favorable rates on a
helped us secure an even healthier future,
wide variety of loans and savings accounts, not
which we always try to share with you through
to mention other products created for their
better rates. Bank Transfer Day (Nov. 5, 2011)
financial success. In 2011 we introduced our
spotlighted credit unions as trusted financial
MEMBERS Auto and Homeowners Insurance
institutions to do business with as the
Program to provide the quality protection
movement swept our nation. Many consumers
you deserve while minimizing your cost.
discovered the value of financial cooperation
It’s another premier option to accommodate
as they moved $4.5 billion from their for-profit
your needs in addition to our Mechanical
banks into not-for-profit credit unions and
Breakdown, Term Life, Debt Protection,
discovered the same cooperative principles
and other enhanced insurance offerings.
that have guided OEFCU from its beginnings.
Your credit union’s board is honored to serve
With the economy showing some noticeable
you and grateful for the confidence you place
improvement and your continued loyalty, OEFCU
in us. While we are always considering how
remains safe, secure, and positioned for success.
to provide the best service and products,
it’s your commitment to this cooperative
institution that encourages us to aim
even higher.
C h e c k i n g A cc o u n t s
Russ Burns
Chairman
Financial Officer
Report
As we closed the door on 2011, your credit
to provide excellent service. They understand
union’s cautious management of loans,
our members’ individual situations and are
deposits, and expenses ensured we ended
committed to helping resolve the challenges
on a firm foundation. OEFCU remains
you face. OEFCU is dedicated to walking
financially sound and prepared to meet
members through this challenging economic
your needs as it looks toward the future.
period, leading them to successful results.
Member loan originations rose 5 percent to
As the economy improves, your credit union
more than $128 million in 2011, which means
is optimistic about your future. We are here
your credit union has loaned more than
to serve, here to stay, and remain true to the
$3.44 billion since its founding in 1964.
reason we were created: to help you thrive.
There were 74,640 member accounts as
Our sole mission is your financial progress,
of Dec. 31, and total deposits grew almost
and we anticipate fulfilling this for many years
3 percent to $661.95 million. We were pleased
to come. In fact, we are hopeful 2012 will be a
to pay out $5.85 million in dividends, and we
positive year for many of you. Thank you for
reported $5.38 million in earnings for the year,
your unwavering involvement in OEFCU—
a nearly 25 percent increase compared to
we couldn’t do it without your support.
the year prior. OEFCU’s success is due to our
devoted members who continue making this
institution their financial destination for loans,
savings accounts, and insurance products.
We also want to thank our experienced
management and staff who continue
Mortgage Loans
James Sullivan
Secretary/Financial Officer
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Supervisory
Committee
On behalf of the Supervisory Committee,
The National Credit Union Administration
I am pleased to report that your credit union
(NCUA), the agency that oversees the
has operated in a safe and responsible
financial strength of credit unions, conducted
manner. The Supervisory Committee is a
a review in March 2011, also with excellent
dedicated group of volunteers who play an
results. In fact, OEFCU not only meets
important role at OEFCU; we are appointed by
the NCUA’s requirements but goes above
the Board of Directors to monitor operations,
and beyond those requirements in many
ensuring compliance with federal regulatory
instances. With these results, you can rest
requirements and internal policies and
assured that OEFCU will handle your financial
procedures. It’s our duty to work continuously
needs safely and securely.
with the external auditors and regulatory
examiners to ensure compliance with the
Federal Credit Union Act, the rules and
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regulations of the National Credit Union
Administration (NCUA), and our bylaws.
The credit union’s 2011 financial records
The Supervisory Committee thanks the
Board of Directors, the management, and
the staff of OEFCU for their continued support
of our mission to maintain fiscal soundness.
It is our pleasure to serve you and your fellow
OEFCU members.
were reviewed by Turner, Warren, Hwang &
Conrad, AC, Certified Public Accountants &
Consultants and received an excellent
audit, determining that the books
and records accurately reflect the
healthy financial condition
of the credit union and
are in accordance with
generally accepted
accounting principles.
Auto Loans
Mariano Gonzalez
Chairman, Supervisory Committee
Financial Statements
as of December 31
Assets
Loans to Members
Allowance for Loan Losses
Investments:
Cash:
Land & Building:
Furniture & Equipment:
Other Assets:
Total Assets:
Liabilities & Capital
Share Accounts:
Borrowings
Accts Payable/Other Liabilities:
Regular Reserve:
Undivided Earnings:
Accum. Gain/Loss on Investments:
Unrealized Gain/Loss on RE Sales:
Total Liabilities & Capital:
Income & Expense
Income
Income from Loans:
Income from Investments:
Other Income:
Total Income:
Expenses
Employee Compensation/Benefits:
Member Insurance:
Loan Servicing Expense:
Educ. And Promotional Expense:
Office Occupancy Expense:
Office Operations Expense:
Proffesional & Outside Services:
Provision for Investment Loss:
Provision for Loan Losses:
Interest on Borrowed Money:
Misc Operating Expense:
Total Operating Expense:
Net Gain Before Dividends:
Dividends:
Non-Operating Inc (Exp):
Net to Reserve & Undivided Earnings:
2011
2010
$350,708,219
$(16,726,444)
$375,651,406
$36,350,511
$20,892,983
$446,274
$10,519,081
$373,153,245
$(19,804,717)
$326,284,803
$41,080,729
$21,250,372
$246,465
$12,122,126
$777,842,030
$754,333,022
$661,950,284
$13,248,217
$4,857,464
$644,165,499
$10,775,378
$6,366,133
$18,030,137
$82,741,760
$(2,985,832)
$-
$18,030,137
$77,358,815
$(2,362,939)
$-
$777,842,030
$754,333,022
$23,178,665
$7,149,191
$5,421,117
$26,677,036
$7,641,222
$5,472,515
$35,748,973
$39,790,773
$10,776,341
$999,344
$482,591
$295,602
$1,585,550
$4,131,691
$456,515
$$5,335,626
$208,785
$362,448
$10,924,244
$1,967,667
$598,536
$217,521
$1,661,578
$4,080,416
$527,653
$$6,662,035
$409,633
$470,494
$24,634,492
$27,519,776
$11,114,480
$(5,847,781)
$116,245
$12,270,997
$(7,626,961)
$(329,801)
$5,382,945
$4,314,235
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2011
2010
$406,740,254
$400,892,473
$5,847,781
$7,626,961
281,230
276,792
$3,438,825,140
$3,310,770,367
Number of Member Accounts:
74,640
77,210
Avg. Savings Balance:
$8,176
$7,752
$13,259
$13,485
Financial Highlights
Financial Statements
as of December 31
continued
Earnings Paid to Members since 1964:
Earnings Paid to Members:
Number of Loans since 1964:
Loan Amount since 1964:
Avg. Loan Balance:
Distribution of Loans, Income & Growth
Loans
Number of Loans Granted:
4,438
4,183
Amount of Loans Granted:
$128,054,773
$121,907,992
Employee Comp & Benefits:
$10,776,341
$10,924,244
Other Expenses:
$9,028,714
$11,128,555
Dividends/Interest:
$5,847,781
$7,626,961
$10,718,570
$10,976,270
Assets:
$777.84 million
$754.33 million
Savings:
$661.95 million
$644.17 million
Loans:
$350.71 million
$373.15 million
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Reserve & Retained Earnings:
Y o u t h A cc o u n t s
Branch Locations
California
Alameda
1620 South Loop Road
Alameda, CA 94502
Auburn
1915 Grass Valley Hwy, Suite 400
Auburn, CA 95603
Burlingame
828 Mahler Rd., Suite A
Burlingame, CA 94010
Dublin
7300 Amador Plaza Road Suite A
Dublin, CA 94568
Eureka
1213 5th Street
Eureka, CA 95501
Fairfield
2540 N. Watney Way
Fairfield, CA 94533
Fresno
4860 N. Cedar Ave
Fresno, CA 93726
Modesto
538 McHenry Avenue
Modesto, CA 95354
Stockton (Off Highway 99)
1916 N. Broadway
Stockton, CA 95205
Morgan Hill
325 Digital Drive, Suite B
Morgan Hill, CA 95037
West Stockton (Off Highway 5)
1818 Grand Canal Blvd., Suite 1
Stockton, CA 95207
Redding
20308 Engineers Lane
Redding, CA 96002
Yuba City
468 Century Park Dr., Suite B
Yuba City, CA 95991
Rohnert Park (Sonoma County)
6225 State Farm Drive, Suite 102
Rohnert Park, CA 94928
Sacramento (Off Highway 80)
3920 Lennane Drive, Suite 110
Sacramento, CA 95834
Sacramento (Off Highway 50)
9806 Old Winery Place, Suite 5
Sacramento, CA 95827
San Jose
798 N. First St.
San Jose, CA 95112
Telephone
(925) 454-4000 • 1-800-877-4444
Web Address
www.oefcu.org
Gladstone
805 E. Berkeley St.
Gladstone, OR 97027
Utah
Salt Lake City
1958 W. North Temple, Suite B
Salt Lake City, UT 84116
Hawaii
Kapolei
2181 Lauwiliwili St., Suite 120
Kapolei, HI 96707
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Nevada
Elko
1720 Mountain City Highway
Elko, NV 89801
Reno
1290 Corporate Blvd.
Reno, NV 89502
Reach Us
Mailing Address
PO Box 5073
Livermore, CA 94551
Oregon
M o b i l e Ba n k i n g
eBranch Banking
www.oefcu.org
Text Banking
Text 40293
Telephone Banking
925-454-4040 • 800-499-6328
Mobile Banking
oefcu.mobi
e B r a n c h Ba n k i n g
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OEFCU offers you and your
family the personal service
of a small Credit Union, with
the convenience of a large
establishment.
P.O. Box 5073 Livermore, Ca 94551 • (800) 877-4444 • www.oefcu.org