2015 Annual Report - CDC Federal Credit Union

2015 Annual Report
Building lifelong relationships
one member at a time.
CONTENTS
Chair’s Report
2
Treasurer’s Report
6
President’s Report
3
Statement of Financial Condition
7
Supervisory Committee Report
5
Statement of Income
8
Nominating Committee Report
5
Branch Hours & Locations
9
Board of Directors, Supervisory Committee,
Executive & Branch Management
10
CHAIR’S REPORT
The significance of financial health on the physical
and mental well-being of people is undeniably real
and well-documented. My membership with the CDC
Federal Credit Union and serving as the Chair of the
Board of Directors completes my understanding of
fiscal stewardship as well as the relationship between
good health and financial wellness. I believe this is
the underlying philosophy that existed when the
employees of CDC founded the credit union in 1949.
Today, we still stand beside the founders’ intent to
provide people with a safe and sound place to deposit
their money and we remain focused on the core
meaning of being a financial cooperative by lending
those funds to others for a fair return on savings and
an affordable rate on loans. It is not always easy to
maintain a cooperative philosophy in a world where
profits are so often the only goal, but we do it, and
we remain committed to striking that balance well
into the future. It’s a tradition worth preserving!
Offering membership to people outside of the
CDC is a source of pride for us. We know our
same core values of trust, respect for others and,
above all, integrity are shared by many in our
community and the health sciences profession.
The associates at CDC Federal Credit Union
truly embrace community service through our
“Because We Care” initiatives and the credit
union’s mission to “Build Lifelong Relationships
One Member at a Time.” We all work together
as we strive to go beyond excellence in the
delivery of service to every member, every
time. It is an honor to be of service through my
service as the Chair of the Board of Directors.
Shelia Humphrey
Chair
2
PRESIDENT’S REPORT
Not often do you find financial institutions advertising
healthy choices, but they are at the core of the services
you receive from CDC Federal Credit Union. We have
been serving professionals in the health sciences fields
for 67 years and have discovered the true meaning
of “well-being” involves more than the physical and
emotional health of people. Financial well-being is a
critical component of a person’s general health, and
that is the principle that drives our products and service
delivery to our members throughout the stages of
their lifetime. We have a genuine respect for providing
financial services that help people afford life! We
deliver those services in a spectrum broad enough to
include face-to-face meetings, telephone interactions,
worldwide ATMs, and Internet and mobile banking.
3
Originally founded by employees of the Centers for
Disease Control and Prevention, our membership is
now open to people from over 100 other employers
including CDC contractors, Children’s Healthcare of
Atlanta and the American Cancer Society. As a not-forprofit financial cooperative, we welcome new members,
while also maintaining a very high level of satisfaction
with members who long ago made the choice to be
financially fit! Members own the credit union and
benefit from fair pricing on the services they use.
Moreover, all dividends are paid back to the owners.
The credit union provides a safe and sound place
for savers to deposit their money and a trustworthy
alliance of lending services to benefit anyone with a
need to borrow. We take a great deal of pride in being
honest, respectful and forthcoming in all that we do!
Our mission — to Build Lifelong Relationships One
Member at a Time — is a clear and true reflection
of how we do business at CDC Federal Credit Union.
Within the walls of the credit union is a culture that
simply says, “We are a people credit union; we are
4
people; we serve people; and people choose us as a
trusted source for financial services.” We believe it is
an honor to serve people. We take pride in the manner
by which we serve our members and in our unwavering
quest to improve upon all we do. We are committed
to the highest level of integrity and respect for our
members and each other. We accept and own the
results of our efforts and recognize our responsibilities
as opportunities to excel and make a positive
difference in the lives of our members. We consistently
treat people the way we want to be treated, and
we lead by example within our community. Because
we care, credit union associates proudly volunteer
in a variety of community service projects including
Children’s Miracle Network, Habitat for Humanity,
March of Dimes, the American Cancer Society and
the CDC Foundation. Hours of time are volunteered
and several fundraising events are held to ensure our
communities know we are here and we support them!
We are “making a difference to those who make a
difference.” The credit union would not exist without
you, our valued members, and I extend to you many
thanks for your continued support. It is an honor to be
of service to you!
Elizabeth P. Mercier
President/CEO
SUPERVISORY COMMITTEE REPORT
The Supervisory Committee, which is appointed by the Board of Directors, is responsible for ensuring the
financial records of CDC Federal Credit Union are correct and that safeguards are in place to protect the assets
and information of the credit union and its members. The committee does this through its annual opinion audit
and member account verification process conducted by Nearman, Maynard, Vallez, CPAs, PA. The goals of this
audit were to determine the reliability and integrity of the financial operating information and to determine
compliance with generally-accepted accounting principles. The opinion rendered was unqualified.
Carmen Villar
Chair
5
NOMINATING COMMITTEE REPORT
For the 2016 election year, the Nominating Committee
reviewed the qualifications and interests of a number
of qualified candidates for three positions on the
Board of Directors. We are pleased to nominate the
following members for the positions stated.
Position #2
Ms. Carmen Villar (Incumbent)
Position #3
Ms. Sarah Smith
Position #4
Mr. James Enders
There were no nominations by petition. Accordingly, the
committee nominates the members named above to be
elected to the credit union’s Board of Directors at the Annual
Meeting of the membership, Thursday, April 28, 2016.
Sharon Martin
Chair
6
TREASURER’S REPORT
As of December 31, 2015, member deposits totaled
$258 million, representing a 4.4% increase over
2014. Deposits are insured up to $250,000 per
member relationship by the National Credit Union
Share Insurance Fund (NCUSIF). Loans to members
increased to $86 million! During 2015, CDC Federal
Credit Union made over $31 million in installment
loans to members and $36 million in mortgagerelated loans. Total assets were $283 million,
representing an increase of 5.3% over 2014.
Delinquent loans and loan charge-offs continued to
be well below the national average. Net income for
the year was $1,741,670. The credit union remained
well capitalized with over $21 million in equity and
over 18,000 members served.
Dan Defnall
Treasurer
ASSETS
STATEMENT OF FINANCIAL CONDITION
December 2015
December 2014
19,204,464
10,633,569
165,099,619
162,951,376
184,823
236,365
Consumer Loans
46,386,840
40,299,551
Real Estate Loans
18,934,587
21,366,497
Equity Lines of Credit
18,194,209
19,945,824
2,781,469
1,378,970
86,481,928
83,227,207
(589,017)
(553,055)
85,892,911
82,674,152
-
-
3,555,951
3,664,602
344,135
462,189
NCUA Share Insurance
2,257,776
2,233,788
Other Assets
6,258,277
4,965,103
Total Assets
282,613,133
267,584,779
0
0
3,932,213
1,575,244
Transaction Accounts
133,559,368
126,409,488
Shares, Clubs & IRAs
103,089,117
96,529,429
21,068,071
23,372,983
257,716,556
246,311,900
Regular Reserves
6,627,196
6,627,196
Unrealized Gain (Loss)
(487,501)
(12,561)
-
-
13,083,000
11,926,255
1,741,670
1,156,745
20,964,364
19,697,635
282,613,133
267,584,779
Cash & Cash Equivalents
Investments
Credit Card Loans
Mortgage Loans in Process
Total Loans
Allowance for Loan Loss
Net Loans
OREO
Land & Buildings
Other Fixed Assets
LIABILITIES & CAPITAL
7
Total Borrowing
Accounts Payable
Certificates
Total Deposits
Other Reserves
Undivided Earnings
CU Income Year to Date
Total Equity
Total Liabilities & Equity
We certify to the best of our knowledge and belief that this statement and the related statements are true
and correct and fairly present the financial position and the result of operations for the period ended.
INTEREST EXPENSE
INTEREST
INCOME
STATEMENT OF INCOME
December 2015
December 2014
Interest on Loans
4,223,748
4,039,105
Income from Investments
2,153,959
1,797,131
Total Interest Income
6,377,707
5,836,236
Dividends on Shares
27,478
33,151
Interest on Deposits
152,165
236,677
2,084
638
181,727
270,466
6,195,980
5,565,770
462,000
258,000
Net Income after Provision
5,733,980
5,307,770
Fee Income
1,890,259
1,691,084
Other Operating Income
1,221,556
730,541
Gain (Loss) Investments
314,883
125,178
Gain (Loss) Fixed Assets
-
(16,553)
Total Non-Interest Income
3,426,698
2,530,250
Compensation & Benefits
3,873,782
3,389,788
80,160
50,040
Office Occupancy
312,512
334,326
Office Operations
1,488,061
1,477,019
Marketing
311,146
279,890
Loan Servicing
653,381
487,616
Professional & Outside Service
497,706
471,444
48,925
47,729
153,335
143,423
Total Non-Interest Expense
7,419,008
6,681,275
Total Operating Income
1,741,670
1,156,745
Interest on Borrowed Money
Total Interest Expense
Net Interest Income
NON-INTEREST EXPENSE
NON-INTEREST
INCOME
Provision for Loan Loss
Travel & Conference
Operating Fees
Miscellaneous Operating
8
BRANCH HOURS & LOCATIONS
Northlake Office Park Location
2301 Parklake Drive
Atlanta, GA 30345
Chamblee Branch Location
4770 Buford Highway
Chamblee, GA 30341
Monday through Thursday
All Services: 8:00 a.m. – 4:00 p.m.
Monday through Friday
All Services: 8:00 a.m. – 4:00 p.m.
Friday
8:00 a.m. – 6:00 p.m.
Saturday
9:00 a.m. – 1:00 p.m.
Clifton Road Location
1600 Clifton Road
Atlanta, GA 30333
9
Monday through Friday
All Services: 8:00 a.m. – 4:00 p.m.
Contact Center
404-325-3270
800-245-9655 (outside Atlanta)
Monday through Friday
All Services: 8:00 a.m. – 6:00 p.m.
Mailing Address
CDC Federal Credit Union
P.O. Box 49169
Atlanta, GA 30359-1169
Personal Access Line (PAL)
Available 24 Hours
In Atlanta
404-325-3270
Toll-Free
800-245-9655
Website
www.cdcfcu.com
BOARD OF DIRECTORS
EXECUTIVE MANAGEMENT
Shelia L. Humphrey
Chair
Betsy Mercier
President & CEO, ext. 5384
Dr. Mitchell Cohen
Vice-Chair
Australia Hoover
Executive Vice President, ext. 5355
Dan Defnall
Treasurer
Walter Hobby
Chief Financial Officer, ext. 5335
Shea Lockheart
Assistant Treasurer
Marolee Kime
SVP, Human Resources, ext. 5305
Carlinda Nelson
Secretary
Carmen Villar
Assistant Secretary
Sharon Martin
Director
Steve Reynolds
Director
John Lehnherr
Director
SUPERVISORY COMMITTEE
BRANCH MANAGEMENT
Carmen Villar
Chair
David Wofford
Team Leader, Clifton Branch, ext. 5343
Rita-Marie Brady
Member
Erica Hall
Team Leader, Northlake Branch, ext. 5380
Paula Casillas
Member
Michael Hawkins
Team Leader, Chamblee Branch, ext. 5463
Sarah B. Smith
Member
Lauren Taylor
AVP, Sales & Service, ext. 5321
Katerina Taylor
Member
10
404-325-3270 (Atlanta)
800-245-9655 (outside Atlanta)
www.cdcfcu.com