board of directors loan review committee supervisory

BOARD OF DIRECTORS
ALFRED
RUDOLPH
Chair
CANDI
LEE
JOHNSON
GAZZANO
1st Vice Chair Secretary
LESLIE
POOLE
Treasurer
JUDITH
MILLER
Member
BRUCE
SNEED
Member
SCOTT
McGRATH
Member
RICHARD
FREEMAN
Director
Emeritus
MELVIN
GOSS
Director
Emeritus
BRUCE
EDWARDS
Associate
Director
MAROCCO
ROBERTS
Associate
Director
LOAN REVIEW COMMITTEE
SUPERVISORY COMMITTEE
JAVIER
SANYER
Chair
JUDITH
MILLER
Chair
LAURIE
MOODY
Member
JUDY
PATRICIA
MACDONALD WALLACE
Member
Alternate
KELLI JO
ANTHON
Alternate
EXECUTIVE MANAGEMENT
PATRICIA
KIMMEL
President/
CEO
PATRICIA
WALLACE
Chief
Operations
Officer
MIKE
LIGON
Chief
Financial
Officer
GAYE
DECESARE
Chief
Administrative
Officer
SHARON
BRILL
Member
KAREN
LISA
TURCHIANO ROSENTHAL
Member
Member
SERVING OUR MEMBERS
WORLDWIDE SINCE 1946.
JASON
LINDSTROM
Chief
Marketing
Officer
1|Belvoir Federal Credit UnionBelvoir Federal Credit Union |2
WORLDWIDE SERVICE.
A MESSAGE FROM THE CHAIR AND CEO
Belvoir Federal is strategically positioned for the future. In 2012, we made
considerable investments in delivery systems that will enhance member’s
experience and be more convenient in this digital universe. Members
want financial services available at any time, all of the time, and in new
technological presentations.
Belvoir Federal’s Online Banking was upgraded and made available to all
members, along with a newly-integrated bill payment product, and a personal
financial management software - all available for free. We are sure members
are taking advantage of our free Mobile Banking Application and Deposit
Everywhere Mobile (Remote Deposit Capture) capability. Members can
deposit checks and pay bills from their mobile phones – no need to come
into a branch or rely on the postal service. Receiving instant credit for
deposits and, based on your level, perhaps instant availability of funds is the
way of the future.
Belvoir Federal is making significant technological headway, thanks to the
commitment from our Management Team and Volunteers. They ensure our
technology, compliance, and financial fitness remain a priority. Your leaders
are a frugal group of indivudals who are carefully monitoring the economy,
regulatory demands, and legislative changes.
Throughout the year, we have worked to build a primary financial
relationship with members. We want your business and, with a Net Promoter
Score of 90 (out of 100), we take pride in living by our core values of trust,
integrity, commitment, and respect. This is validated by literally hundreds of
“WOW” emails sent to our CEO from members all over the world.
Belvoir Federal is a forward thinking financial institution dedicated to serving
a niche military and community market. We know your name. We listen to
your suggestions and concerns. We offer products and services that exceed
your expectations. We continue to be your member-owned cooperative,
where people are helping people.
We appreciate your membership at Belvoir Federal and are honored by your
patronage. Please feel free to contact us any time at [email protected].
Alfred Rudolph Chair Patricia S. Kimmel
President/CEO
MISSION TO SERVE.
NATIONALLY ACCLAIMED
MARKETING DEPARTMENT
BELVOIR FEDERAL HOSTED EVENTS
• 7th Annual Installation Appreciation Day “Celebrate Fort Belvoir”
• 3rd Annual Family Fun Day
• 2nd Annual Holiday E-Greetings
The Credit Union National Association Marketing & Business Development
Council, a national network of nearly 1,000 credit union professionals,
celebrated its 19TH Annual Conference whereby awards were presented in 33
categories. Belvoir Federal received three Diamond Awards for marketing
achievements in the following categories - Diamond in the Rough for
eGreetings, Best of Category for Membership Kits, and Miscellaneous
Category in asset size $250-$499 Million for the 2ND Annual Web Hunt.
SUPPORTING OUR COMMUNITIES
SUPPORTING FORT BELVOIR INSTALLATION
• Fort Belvoir Oktoberfest
• Month of the Military Child
• Fort Belvoir FreedomFest
• Survivor’s Outreach Services
• Fort Belvoir Annual Spring Run
• Cell Phones For Soldiers
• Car Show
• Summer Reading Program
• Operation Sugarplum
• Cardboard Regatta
• Military Spouse’s Appreciation Night
• Military Family Appreciation
• Raised Donations for Adopt-A-Family
Night
FINANCIAL EDUCATION AND COMMUNITY EVENTS
• National Military Saves Week
• International Credit Union Day
• $4,000 in Student Scholarships
• Children’s Miracle Network
• Financial Seminars and Webinars • Susan G. Komen Race for the Cure
• National Youth Saving Challenge • Credit Union Cherry Blossom Run
NEW ATMS
• JUIAF (1 ATM) - Joint Use Intellegence Analysis
Facility
• SFAC (1 ATM) - Soldiers and Family Assistance
Center at Warriors in Transition (WIT)
Since 1962, the Credit Union Executive Socity has supported the success
of the credit union movement by facilitating professional development and
recognizing them in a national competition, the Golden Mirror Awards.TM
Belvoir Federal won second place in the Social Media category for the 2ND
Annual Web Hunt and an award of merit for Membership Kits.
NATIONAL SAVEUP PROGRAM
In March 2012, Belvoir Federal launched the SaveUp program to encourage
members to save more money and reduce their debt, while including fun along
the way. The SaveUp program is a free, interactive, and educational rewards
based program that encourages members to earn credits based on their savings
and spending habits which allows them to play for prizes. One member who
won $250 in Holiday Cash stated, “SaveUp is awesome. I have made this a part
of my daily routine and winning makes it a ‘WOW’ experience. Thanks!”
SaveUp is a great tool in financial coaching sessions as it helps motivate
members to improve their financial situation. As of year end 2012, there were
378 SaveUp users that connected 883 accounts that have $868,090 in deposits
and $228,761 in debt payments. In less than one year, SaveUp has made a
positive impact on Belvoir Federal’s membership.
3|Belvoir Federal Credit UnionBelvoir Federal Credit Union |4
AUDITING OVERVIEW.
THE BOTTOM LINE.
CliftonLarsonAllen, LLP, an external auditor engaged by the committee,
completed their opinion audit on the financial statements of the credit union
as of June 30, 2012 and for the year then ended, and issued an Unqualified
Opinion of those statements. An Unqualified Opinion concludes that the
Financial Statements are correct and the audiotor has no reservations in the
Financial Statement presentation. A verification of member accounts was
done at this time as well. During the audit, the credit union’s accounting
and financial reporting systems were found to be in excellent condition.
Audit tests determined that internal control and quality control systems
are functioning as designed. Management maintains adequate systems to
identify, quantify, and monitor financial performances and operational risks.
During 2012, with the economy moving toward a recovery, Belvoir Federal
Credit Union was able to have another very productive year and was able to
generate positive earnings for the year of $1,815,401.
SUPERVISORY COMMITTEE REPORT
Witt Mares, PLC, the internal auditor engaged by the committee, performed
quarterly reviews of the credit union’s indirect lending program, an annual
review of the credit union’s compliance and internal controls over the Bank
Secrecy Act and Office of Foreign Asset Control programs, an IT Risk
Assessment, an audit and review of the branches, and a review of Interest
Rate Risk and Asset-Liability Management. The reviews noted no major
concerns with any areas that were audited.
The National Credit Union Administration (NCUA) performed an
examination using the credit union’s December 31, 2011, financial data and
other data provided by the credit union. The examiners found that Belvoir
Federal Credit Union remains well capitalized and well managed.
Judith Searles-Miller
Supervisory Committee Chair
TREASURER’S REPORT
Belvoir Federal was able to continue growing while maintaining its financial
position in all measurable areas. The credit union ended the year with
$298,986,378 in total assets, an increase of 6.10 % from 2011. With the
economy still not at full recovery, the members continue to be very selective
when taking out loans; however, the Credit Union still experienced loan
growth of 6.05%.
The Credit Union continues to maintain a strong capital level at 7.81% of
assets. In 2012, the Credit Union also experienced excellent growth in its 2
newest branches at the National Geo-Spatial Intelligence Agency Campus
East (NCE) facility in Springfield and at the Mark Center.
Belvoir Federal Credit Union uses its financial strength to add services for
the members. Some of the new services added in 2012 were the release of
the Credit Union’s mobile banking application with remote deposit capture
capabilities, and an upgrade for the home banking module, Belvoir Online
Banking (BOB). Belvoir Federal Credit Union remains well positioned to
serve the financial needs of its member/owners into the foreseeable future.
Leslie Poole
Treasurer
BY THE NUMBERS.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITIONS
ASSETS
Loans to Members
(Less Allowance for Loan Losses)
Net Loans Outstanding
Cash and Investments
Fixed Assets
All Other Assets
Total Assets
2012
$199,074,079
(1,505,650)
197,568,429
93,317,587
4,388,271
3,712,091
$298,986,378
LIABILITIES, MEMBERS’ SHARES AND EQUITY
LIABILITIES
2012
Accrued Dividends Payable
$3,783
Accounts Payable and Other Liabilities
4,669,840
Total Liabilities
$4,673,623
INCOME DISTRIBUTION
2011
$187,717,850
(2,035,059)
185,682,791
89,122,489
2,864,156
4,131,914
$281,801,350
2011
$
$
1,238
4,321,244
4,322,482
Interest on Loans - 63%
Operating Expenses - 74%
Other Income - 29%
Dividends - 14%
Income From Investments - 8%
Other Expenses - 12%
MEMBERS’ SHARES
Regular Share Accounts
Share Certificate Accounts
Share Draft Accounts
Individual Retirement Accounts
Money Market Accounts
Total Member Shares
EQUITY
$350
$61,097,529
68,748,041
73,838,135
3,619,777
62,446,428
$269,749,909
Regular (Statutory) Reserves
$2,105,772
Undivided Earnings
21,233,184
Other Reserves
Unrealized Gain/Loss
Total Equity
TOTAL LIABILITIES, MEMBERS’
SHARES AND EQUITY
EXPENSE DISTRIBUTION
$55,329,300
68,607,841
65,607,792
3,657,578
61,630,548
$254,833,059
$
FINANCIAL OVERVIEW
Assets
Loans
Shares
$300
$250
$200
2,105,771
19,399,335
-
18,448
1,223,891
1,122,255
$24,562,846
$ 22,645,809
$298,986,378
$281,801,350
$150
$100
$50
In millions
2012
2011
2010
2009
2008
5|Belvoir Federal Credit UnionBelvoir Federal Credit Union |6
LENDING PORTFOLIO.
increase in indirect lending productivity with an increase in dollars of
38.60% over 2011; comprised of 341 funded deals for $9,840,988 in indirect
loans.
Belvoir Federal Credit Union’s loan portfolio stood at $199,074,079 of
which $4,085,106 was in Participation Loans. Member loans accounted for
$194,988,973, an overall increase of 5.95%, or $10,944,220 over the amount
at the end of 2011.
First mortgages also saw an increase in production of 27% in 2012 in
comparison to 2011. There were 95 mortgage loans funded for $24 million
with 37 loans totaling $9.1millon, which were held in portfolio by Belvoir
Federal. Non-interest income earned on loans sold to the secondary market
in 2012 totaled over $160,000. Belvoir Federal did not foreclose on any
properties in 2012. We are committed to offering solutions and options to
our members experiencing financial difficulties.
LOAN REVIEW COMMITTEE REPORT
In 2012, Used Autos and Personal Loans continued to be strong areas of
growth as they were in 2011. Used Autos grew by 21.32% in 2012, while
Personal Loans increased by 35.32%. The growth in Personal Loans rose
more steeply than in 2011. Loan promotions helped to contribute to the
growth.
Our automobile rates remained very competitive. The market is still favoring
Used Autos versus New Autos. Contributing to the loan growth was an
Overall, the portfolio continued to shift slightly from Secured to Unsecured.
At the end of 2012, 84.12% of the portfolio was secured versus 87.57% for
2011.
Belvoir Federal Credit Union continues to refine and enhance its loan
products and procedures to keep pace with our members’ needs and to
respond to the market place. Examinations by the NCUA and external audit
firms reported no exceptions.
We appreciate the valued business from members who borrow from Belvoir
Federal and pledge to continue working to meet our members’ lending needs,
while maintaining the safety and soundness of our portfolio.
Javier Sanyer
Loan Review Committee Chair
CREDIT UNION MOVEMENT.
POLITICAL ADVOCACY
Belvoir Federal remains politically engaged to ensure credit union issues are
enhancing the credit union movement with our elected officials. We work
alongside other credit unions and credit union trade associations to make
sure our voices are heard. In 2012, Belvoir Federal employees, volunteers, and
members advocated for credit unions in these ways:
• Hosted Gerry Connolly and his staff at our Global Headquarters to discuss how Belvoir Federal serves our members and community
Building relationships and gaining the trust of our elected officials is
important to Belvoir Federal, so that we might have some influence on the
decisions that directly impact our ability to provide the quality service our
members expect and deserve. If you personally know a local, state, or federal
legislator and are willing to speak to them on behalf of credit unions, please
contact us directly so we may enhance the credit union movement together.
Gaye DeCesare
Chief Administrative Officer
• Participated in NOVA Chapter Credit Unions’ Legislator Appreciation
Night
• Participated in Credit Union Day at the General Assembly, where we
met with representatives in Richmond to discuss credit union issues
• Attended the Virginia Credit Union League’s Annual Congressional
Luncheon, expressing our concerns about the effect of regulatory
changes and sharing how we continue to help our members during
troubled times
• Contacted our representatives by phone and email regarding key
legislative issues
Congressman Gerry Connolly
• Attended Town Hall meetings
• Volunteered to work on the campaigns of credit union supporters at the
state and federal level
• Met our Congressmen in their district offices
7|Belvoir Federal Credit UnionBelvoir Federal Credit Union |8
9|Belvoir Federal Credit Union
Our Mission
Our Vision
Providing the foundation for the
financial success of Members.
Surpassing the individual needs and
expectations of our global community.
FROM GENERATION
TO GENERATION
Our Values
TRUST
We show Trust by:
• Empowering our employees
• Being open to new ideas
• Maintaining confidentiality
• Sharing energy and creativity
• Maintaining open lines of
communication
INTEGRITY
We show Integrity by:
• Being honest and trustworthy
• Following through on promises
• Accepting responsibility for
actions taken
• Always doing the right thing
RESPECT
We show Respect by:
• Treating others as we like to
be treated
• Appreciating differences and
celebrating diversity
• Demonstrating kindness and
thoughtfulness
• Listening attentively and striving
to understand
• Creating a sense of community
COMMITMENT
We show Commitment by:
• Exhausting all possibilities in an
effort to achieve service excellence
• Taking initiative
• Carrying on under difficult
circumstances
• Making training a priority
• Working as a team to achieve
common goals
703.730.1800
www.BelvoirCreditUnion.org
[email protected]
© 2013 Belvoir Federal Credit Union.