Celebrating Years

75
Celebrating
Years
1936—2011
2 0 1 1 A N N UA L R E P O R T
Federally insured by NCUA
Mission Statement
Southland Credit Union is dedicated to exceptional
Member service resulting in superior financial strength,
offering convenience, courtesy, and valued solutions.
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800.426.1917
Table of Contents
Board of Directors & Supervisory Committee....................................3
Executive Team..............................................................................................4
Board Chair & President’s Message........................................................5
Supervisory Committee Report..............................................................8
Treasurer’s Report...................................................................................... 10
Celebrating 75 Years................................................................................. 11
Commitment to Community................................................................ 13
Consolidated Statements of Financial Condition......................... 15
Consolidated Statements of Income................................................. 16
Products & Services.................................................................................. 17
www.SouthlandCU.org
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Board of Directors
William de la Garza
Chair
Walter Finnigan
Director
James J. Gregg
Vice-Chair
Dolores M. Arriola
Director
Robert L. Hale
Secretary/Treasurer
G.David Mills
Director
Supervisory Committee
Morris J. Litwack
Chair
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Annie Perez
Secretary/Treasurer
Angie Avery
Committee Member
800.426.1917
Executive Team
Ferris R. Foster
President/CEO
Rene M. LeJay
Senior Vice President/
COO
Matthew P. Herrick
Vice President of Sales &
Marketing
Curt A. Bannock
Vice President/CIO
Thomas G. Lent, CPA
Senior Vice President/CFO
Cynthia E. Smolinski
Vice President of
Human Resources
Total Assets
2011
$486,000,000
2007
$403,000,000
2000
$190,000,000
1979
$24,000,000
1960
$3,000,000
1944
$49,000
1936
$1,500
$0
$100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000
www.SouthlandCU.org
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Board Chair &
President’s Message
T
he past seventy five years have been an
incredible journey for Southland Credit
Union. Reflecting on our rich seventyfive year heritage, we realize how fortunate we really
are to have the pleasure of serving our Membership.
We are honored to follow in the footsteps of the
Credit Union’s founders who faced a series of geopolitical, social and economic challenges such as
multiple world wars, new social norms, political and
regulatory changes, inflation, deflation, recession
and periods of prosperity. Regardless of the situation
encountered, they always maintained their focus of
building a rock-solid foundation for the Credit Union,
exclusively focused on safeguarding the Members’
assets and financial service needs.
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Continuing the tradition of strengthening the core
foundation, your Credit Union has also continued
to successfully weather the most recent turbulent
economic storm and has emerged even stronger
than before. We have spent seventy-five years
working to get it right and our strategy has paid off
handsomely. The fact that we have been able to
continue to serve our Members exceptionally well
during these most recent challenging times, coupled
with the ability to continue to build equity to ensure
our financial strength is proof that our strategy is
very sound.
For seventy-five years, our top priority has always
been to serve our Members and to provide financial
solutions for whatever your needs might be.
800.426.1917
Southland has grown to meet the ever-changing needs
of our Members and their dynamic lifestyles over time.
Our strategy and focus has always been simple: provide
value and help our Members enrich their quality of life
by offering the financial products and services needed
at the lowest costs and fees possible. By focusing on
continuous improvements to our low-cost infrastructure
with technology and caring people, we are very well
positioned to meet almost any unforeseen events or
challenges that may be in the future.
What do you call our first seventy-five years of success?
A great start! From modest beginnings of an original
membership of 20 people served by seven fellow
Members in two rooms of the Los Angeles Flood Control
District building, Southland today serves our 42,000
Member-owners with almost 100 Associates in five fullservice branch locations located throughout Southern
California! Through organic growth coupled with
strategic mergers and acquisitions, Southland now has
over $486 million in assets, which provides us with a scale
to give our Member-owners cutting edge tools and a
myriad of emerging technology solutions.
2011 was a special year of celebration for the Credit
Union and we invited our Members and the community
to join us in our celebration. Early in the year we held a
seventy-fifth Anniversary Open house event in the Los
Alamitos, CA community and were joined by many of
our members and neighbors. VIP delegates from the
City of Los Alamitos including the Mayor and other City
Officials joined the Credit Union’s Board of Directors,
Management team and staff in the celebration. Later in
the year we held a similar anniversary celebration in the
community of Downey, CA and were met with the same
enthusiasm and response.
Reaching even deeper in to the communities we serve,
the Credit Union opened a new full-service branch in
Garden Grove, CA. The new Garden Grove branch was
the fifth full-service branch in our network. We are
very pleased with the exceptionally warm reception we
received, ultimately gaining approximately 1,400 new
Members and $19 million in assets. The City of Garden
Grove was equally excited about us reaching deeper into
their community and they joined us in a festive ribbon
cutting celebration ceremony welcoming the Credit
Union.
The heart of our Credit Union values is to be an integral
part of the many communities which we serve. This is
why we have continued our tradition of participating
in community outreach programs and deepening our
relationships with the cities we serve. Our partnership
with the City of Los Alamitos in particular has been
described as a model for other community-oriented
organizations to follow. We have also reached out with
the same enthusiasm to many other local cities and
communities not only just where we have a physical
presence but also where many of our members live, work,
worship and attend school.
We are very pleased to report a record number of new
memberships in 2011. Our true pride comes not just in
the number of our new Members, but that we have been
able to enrich the quality of living and the livelihood for
an increasing number of people. We have come a long
way in our mission to help people. Whatever the future
has in store, be assured that Southland will continue to
meet your needs, and we will never forget our heritage.
On behalf of the Board of Directors, Management and
Staff at SCU, we are honored to have the privilege of
serving you. Congratulations on 75 wonderful years!
Sincerely,
William de la Garza
Board Chair, Board of Directors
Ferris R. Foster
President and Chief Executive Officer
www.SouthlandCU.org
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Vision Statement
Southland Credit Union will be a dynamic,
innovative and exemplary financial institution
dedicated to meeting the needs of its Members.
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800.426.1917
SupervisoryCommittee
Report
S
outhland’s Supervisory Committee
is an independent body of Member
volunteers who ensure the Credit
Union’s internal controls are implemented and
maintained in order to safeguard the assets and
protect the Members’ interests.
As the Members’ representative to the Board,
the Supervisory Committee ensures that an
annual independent audit of the Credit Union’s
financial statements is performed, along with a
verification of the members’ account balances.
The Committee also oversees the internal audit
function and is involved with the regulatory
examinations conducted by the Federal and
State regulators.
The Committee has contracted with two
national, independent CPA firms to conduct the
annual external and ongoing internal audits
of the Credit Union. The external auditor’s
opinion letter affirmed that the financial
statements of the Credit Union are fairly
stated in accordance with generally accepted
accounting principles as of and for the years
ended December 31, 2011 and 2010.
It is the unanimous opinion of the Supervisory
Committee that Southland Credit Union is
financially strong and is operated in a sound
and prudent manner for the benefit of its
Members.
Sincerely,
The Supervisory Committee also provides
an avenue of open communication for you,
the Members of the Credit Union, as the
Committee reviews and responds to every
letter it receives from our Members. Our
Members, as well as Management, of the Credit
Union benefit from this open communication
because your comments and feedback are used
to help ensure Southland maintains the highest
level of service.
Number of Members
50,000
0
Morris J. Litwack
Committee Chair
Supervisory Committee
20
500
3,000
1936
1955
1960
www.SouthlandCU.org
23,000
32,000
2000
2007
42,000
9,000
1979
2011
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Core Values
• Provide exceptional service with
integrity, honesty and creativity.
• Provide staff with an atmosphere of
respect, education, and career growth.
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Treasurer’sReport
S
outhland experienced another
successful year in 2011. The
Credit Union continued to build
its financial reserves, despite the ongoing
economic challenges and uncertainties. In
2011, during a time when many financial
institutions were decreasing in assets, your
Credit Union increased to $486 million in assets,
continuing our trend of the past decade in
which Southland has doubled in asset size.
Deposits increased to $391 million in 2011, and
we returned more than $3 million to you in
the form of dividends and interest. The Credit
Union also funded more than 5,100 loans to our
Members during the year totaling $105 million!
Anniversary in 2011. We are well positioned for
continued success and look forward to serving
you and your family – and bringing your
dreams to reality - for years to come.
Above all, the Credit Union was able to record
an increase in equity of more than $1.6 million
in 2011. At a highest-ever level of more than
$47 million, equity now stands at nearly 10%
of assets. This ratio is significantly above the
7% minimum level to be considered “wellcapitalized” by the Federal Regulators.
All of these achievements mean that your
Credit Union is solid and safe. We take pride
in the success Southland Credit Union
has achieved as we celebrated our 75th
Robert L. Hale
Secretary/Treasurer
Board of Directors
Sincerely,
Number of Loans
50,000
0
It has been my pleasure to serve as Secretary/
Treasurer of your Credit Union. Your volunteer
Board of Directors and Supervisory Committee
members work hard to ensure the safety and
soundness of the Credit Union. Thank you for
your continued support.
150
2,200
5,000
1944
1960
1979
www.SouthlandCU.org
27,000
30,000
40,000
2004
2005
2011
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Celebrating 75 Years
1936-2011
Southland Credit Union was founded in July 1936,
operating under a federal charter and serving the
employees of the L.A. County Flood Control Department.
In March 1944, a state charter was received and the
Credit Union became known as L. A. County Civic Center
Credit Union, the name used until July 1994, when it
became Southland Civic Federal Credit Union, and again
received a federal charter. Southland Civic Federal Credit
Union again converted to a state charter in September
1999 and became Southland Civic Credit Union. This
enabled the Credit Union to complete a merger with
1944
1936
A federal charter is granted
to serve employees of the Los
Angeles County Flood Control
Department; membership is
fewer than 20 and service is
provided by seven volunteers.
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LAIRE Federal Credit Union, an institution founded in
1935, and which serves the employees of the Internal
Revenue Service. Southland completed a merger in
December 2001 with FAMCO Federal Credit Union, a
single-sponsor credit union that serves the employees
of AMRON. Our Board of Directors adopted a name
change to Southland Credit Union (SCU), to better reflect
our diverse field of membership, in February 2002.
Southland Credit Union’s corporate office was moved
to Los Alamitos in October 2002 as part of the overall
strategy to better serve the Orange County market.
A state charter is granted to allow
greater member benefits; name is
changed to Los Angeles County
Civic Center Credit Union.
1965
Membership grows
to 2,900 and assets
to $3.6 million.
1955
Membership grows to 500
and assets to $1.4 million.
800.426.1917
Corporate office
moves from
Los Angeles
to Downey.
1981
1994
Name changed
to Southland
Civic Center
Federal Credit
Union, under new
federal charter.
Southland moves
its corporate office
to Los Alamitos.
2002
2009
1999
Name changed to
Southland Civic Credit
Union under new state
charter and merger with
LAIRE Federal Credit
Union (founded in 1935).
www.SouthlandCU.org
Southland merged with
Cityside Federal Credit Union
(formally the Los Angeles
Times Federal Credit Union)
and acquired a new branch
in downtown Los Angeles.
Southland Credit Union
celebrates its 75th
anniversary with over
42,000 Members and
assets over $486 million.
2011
2011
Southland acquires
Garden Grove
branch of Fullerton
Community Bank.
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Commitment toCommunity
The needs of the community is a priority at Southland Credit Union. Our teammembers and
Members often give back to the community with their own time and funds, ranging from
support to education advancement.
Southland’s employees volunteer and support our community throughout the year with
various charities, toy drives, food drives, women and children’s causes, local school programs,
community events, and several other important community needs.
We care as much about our communities’ quality of life as we do about their financial success.
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800.426.1917
75th Anniversary Celebration
Downey Branch
75th Anniversary Celebration
Los Alamitos Branch
Garden Grove Grand Opening
Celebration
75
CELEBRATING
Wings, Wheels & Rotors
Los Alamitos
Banners of Honor
YEARS
Los Alamitos
Race on the Base
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Celebrating
c o nsol i d a ted s t ate me nt s of
FINANCIAL CONDITION
December 31, 2011 AND 2010 (in thousands) (unaudited)
ASSETS
2011
Cash and Cash Equivalents
Investment Securities:
Available-For-Sale
Other Investments
Federal Home Loan Bank Stock
Loans to Members, Net of the Allowance for Loan Losses
Accrued Interest Receivable
NCUSIF Deposit
Premises and Equipment, Net
Other Assets
$
$
TOTAL ASSETS
$
Total Liabilities
Total Members’ Equity
TOTAL LIABILITIES AND MEMBERS’ EQUITY
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$
486,235
$
391,341
42,847
4,369
38,100
99,393
1,100
2,427
313,585
1,471
3,390
7,294
9,601
$
2011
Members’ Equity
Regular Reserve
Undivided Earnings
Equity Acquired in Merger
Accumulated Other Comprehensive Income
49,993
64,473
100
2,684
337,569
1,543
3,623
8,148
18,102
LIABILITIES AND MEMBERS’ EQUITY
Liabilities
Members’ Shares
Borrowed Funds
Accrued Expenses and Other Liabilities
2010
476,361
2010
$
382,452
45,582
2,253
438,557
430,287
12,887
31,591
2,744
456
12,887
29,961
2,744
482
47,678
46,074
486,235
$
476,361
800.426.1917
75 Years
c o nsol i d a ted s t ate me nt s of
INCOME
For the years ended December 31, 2011 AND 2010 (in thousands) (unaudited)
Interest Income
Interest on Loans to Members
Interest on Investment Securities and Cash Equivalents
$
2011
19,496
1,286
Total Interest Income
2010
$
21,078
1,785
20,782
22,863
Interest Expense
Dividends on Members’ Shares and Savings Accounts
Interest on Borrowed Funds
3,360
1,906
3,815
1,962
Total Interest Expense
5,266
5,777
Net Interest Income
15,516
17,086
Provision for Loan Losses
3,628
Net Interest Income After Provision for Loan Losses
11,888
Non-Interest Income
Fees and Charges
Other Non-Interest Income
Other Non-Interest (Loss) Gain
Total Non-Interest Income
5,447
Income Before Non-Interest Expense
Non-Interest Expense
Compensation and Benefits
Occupancy
Operations
NCUSIF Premium Assessment*
Total Non-Interest Expense
11,639
3,347
811
(54)
3,639
673
182
4,104
4,494
15,992
16,133
7,468
1,368
4,620
906
6,143
1,282
4,559
877
14,362
Net Income $
1,630
12,861
$
3,272
* NCUA mandated charge for Corporate Stabilization Program.
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Products& Services
Deposit Accounts
Free Checking Accounts
Business Accounts
Certificate Accounts
Health Savings Accounts
Individual Retirement Accounts
Money Market Accounts
Savings Accounts
Quickline
Receive around-the-clock access to
your accounts via your touch tone
phone. Obtain current rates, check
your balance, transfer funds, make
withdrawals, and more!
Loans
Auto & Recreational Vehicle Loans
Business Loans
Deposit-Secured Loans
Home Equity Loans/Lines of Credit
Mortgage Loans
Personal/Signature Loan/Lines of Credit
FREE eSERVICES
ePay—pay bills online
eStatements—online statements
eLoans—apply for a loan online
eDeposits—deposit checks online
eTransfers—Account-to-Account
transfers online
Mobile Banking—Access your
accounts from your mobile phone
Card Services
VISA® Credit Card
VISA® Check/Debit Card
HELOC Access Card
Investment and Insurance Services
LPL Financial Services
Accidental Death & Dismemberment
Credit Life & Disability
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Guaranteed Auto Protection
FREE Identity Theft Insurance Protection
Mechanical Breakdown Protection
Value Added Services
Rewards Plus Program
Auto Buying Services
Cashier’s Checks
Money Orders
Traveler’s Cheques
Health Wellness Services
Investment Services
LEO Accounts
Notary Services
Overdraft Protection
800.426.1917
PROUDLY SERVING THE EMPLOYEES OF
OVER 300 COMPANIES INCLUDING:
S O C A L PE NSKE AUTO GROUP
LO S A N GE L E S COUNT Y E M PLOYE E S
R E TI RE D E M P LOYEE S OF LOS ANGE L E S COUNT Y (RE L AC )
I N T ERNAL RE V E NUE SE R V IC E
LO S A N GEL ES COUNT Y BAR ASSOC IATION
LO S ANGE L E S TIM E S
LO S A N GEL ES COUNT Y SANITATION DISTRIC T
DE PA R TM EN T OF PARKS & RE CRE ATION
DE PA R TM ENT OF BE ACHE S & HARBOR
DEPA R TME NT OF PUBL IC WORKS
HYDR AF LOW USA
CO L DWE L L BANKE R
C E NTURY 21
LON G B EAC H CO N V E NTION & E NTE R TAINM E NT CE NTE R
MA N H AT TAN BE ACHWE AR
O P TIONS F OR YOUTH
H AT H AWAY- S YC AMORE S CHIL D & FAM ILY SE R V IC E S
S EDGWICK ’S CM S
L A F RE IGHTL INE R
CO M M E RCE C ASINO
LO S A L AM ITOS R ACE COURSE
TA R Z A N A T RE ATM E NT CE NTE R, INC
U. S . MARSHAL L SE R V ICE S
U. S . BA N K RUP TC Y COUR T AND DISTRIC T COUR TS
U. S . S EC URI T I E S E XCHANGE COM M ISSION
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DOWNEY
8545 Florence Ave.
Downey, CA 90240
GARDEN GROVE
12860 Euclid St.
Garden Grove, CA 92840
LOS ALAMITOS
10701 Los Alamitos Blvd.
Los Alamitos, CA 90720
LOS ANGELES
(Federal Building)
300 N. Los Angeles St.
Los Angeles, CA 90012
LOS ANGELES
200 S. Spring St.
Los Angeles, CA 90012
MAILING ADDRESS
P.O. Box 7022
Downey, CA 90241-7022
PHONE
800.426.1917
QUICKLINE
888.426.1918
FAX
General 866.526.5854
Lending 866.630.5792
WEBSITE
www.SouthlandCU.org