Annual Report - Clearview Federal Credit Union

2015
Annual Report
GROWING TO BE
V I R T U A L LY E V E R Y W H E R E
clearviewfcu.org
Federally Insured By NCUA. Equal Housing Lender.
TABLE OF CONTENTS
Chairman’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
President’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Treasurer’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Supervisory Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Statement of Financial Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Statement of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Five-Year Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Management Team. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Member Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2
GROWING TO BE
V I R T U A L LY E V E R Y W H E R E
As our Credit Union grows to reach new milestones and serve more members, we pride
ourselves on offering new ways for members to access their accounts and manage their finances,
while still maintaining our friendly, personal brand of service. We launched many new technology
products and features in 2015 to stay up-to-date with the latest, most convenient methods of
money management in branches, at home and on-the-go. We will continue to provide innovative
solutions in 2016 and into the future, so Clearview members can save money and easily make
the most of their finances from virtually everywhere.
“
OUR MISSION
The mission of Clearview Federal Credit Union is to provide our field
of membership with a wide range of reasonably priced, high quality
financial products that are service driven and promote education while
maintaining a high standard of integrity and stability.
”
3
CHAIRMAN’S REPORT
Throughout 2015, all of us at Clearview were focused on providing convenient,
paperless, mobile technology to better assist members with managing their finances.
From the grand opening of our first Financial Center in Wexford, featuring a paperless
kiosk, video wall, technology bar and face-to-face service pods, to our transition
from printed newsletters to interactive, educational eNewsletters, we were proud to
introduce modern conveniences to complement the traditional member experience.
We worked hard to add value and security to everything we did for the benefit of our
members and their families.
In addition to updating our products and facilities, we also expanded membership with the completion of a
merger with Magnetics Federal Credit Union. By incorporating an existing credit union with our own, we were
able to increase the strength of our entire organization by gaining valuable new members.
Our ongoing growth and success afforded us the opportunity to give back to our members in more ways than
one, including a Thank You Dividend we deposited to member accounts after the close of the year as a show
of our appreciation. This is the second year in a row we were able to surprise members with an unexpected
deposit and a reminder that our members are truly the owners of our not-for-profit financial cooperative.
We look forward to continuing this trend of progress as we approach $1 billion in assets in 2016. This major
milestone is a testament to what dedication and commitment from our management and staff can do for our
longtime members and the new ones who continue to join our organization each day. Our Board appreciates
the hard work of our entire team at Clearview and will remain supportive of our Credit Union, its members
and their communities throughout 2016 and into the future.
Sincerely,
Brian B. Notman, Jr.
Brian B. Notman, Jr., Chairman of the Board
4
PRESIDENT’S REPORT
2015 was a year for growth and progress at Clearview. As we continued to expand
our membership and our assets, we knew it was important that we also upgrade
some of our products and services to better assist members with their finances. For
this reason, we maintained a focus on technology, introducing services like Apple
Pay,® Popmoney® personal payment service and mobile apps for wearable devices,
to make account management simple, safe and portable. We also launched new
products and new features for existing products, like Touch ID for added security on
our Mobile App, so banking on-the-go is quick, safe and secure.
In addition to unveiling new products and services for our members, we also continued to serve our
members’ communities with a total of 9,673 employee volunteer hours in 2015, an increase of 3,112 hours
over 2014. We also sponsored programs like Clearview’s Community Champion of the Game in partnership
with Pitt Football to donate to local charities and recognize their volunteers. We are extremely proud to be a
part of our members’ lives and a part of Southwestern Pennsylvania, so we will continue to give back to the
organizations doing great work in this area.
We were able to devote these resources and time to such worthy causes because of our positive financials
and loan growth throughout 2015. Thanks to the hard work of every Clearview staff member and the support
from our Board, we were able to find solutions for many members and increase the financial strength of our
Credit Union, allowing us to assist members and their communities alike.
As we continue to grow and reach new milestones in 2016, we will remain focused on personal service for
our members and offering the latest products to help save time and make time for more important things.
We will continue to be a visible presence in the community and work hard to improve the lives of our
ever-growing Credit Union family. We truly appreciate your membership and look forward to all the new
developments 2016 will bring.
Sincerely,
Mark Brennan
Mark Brennan, President/CEO
5
TREASURER’S REPORT
Clearview Federal Credit Union finished 2015 in solid financial condition with a
healthy balance sheet and income statement.
2015 Highlights Include:
• Capital ratio in 2015 was a strong 10.20%
• Our overall assets increased by approximately $36 million to over $986 million
• Loans increased by $125,503,000 or 25%
• Net Loan charge-offs (totaling $1.7 million) to Average Loan Ratio was 0.29%
• Delinquent loans (totaling $2.8 million) to Average Loan Ratio was 0.45%
• New members in our Southwestern Pennsylvania Field of Membership increased by 4,944 for a total SWPA
membership of 70,954 and total nationwide membership of 92,187
• Over $2.89 million was paid out to members in the form of dividends, an increase of 7% from 2014
I am pleased to report positive, upward-trending financials for Clearview in 2015, including a net income of
approximately $3.2 million. Thanks to the hard work and dedication of Clearview’s management and staff, we
were able to provide a positive outcome for both our Credit Union and our members by increasing our assets
and providing solutions.
As always, the National Credit Union Administration (NCUA) is committed to protecting these funds in a
federally insured credit union and will continue to take all steps necessary to preserve a safe and sound credit
union industry.
I sincerely thank you for your continued, loyal membership. With your support, we hope to exceed this
positive growth and development in 2016.
Sincerely,
Robert Farrell
Robert Farrell, Treasurer
6
SUPERVISORY COMMITTEE REPORT
The Supervisory Committee independently evaluates Clearview Federal Credit
Union’s activities and operations to ensure soundness and reliability. We work with
our internal auditors to ensure that generally accepted accounting standards and
principles are upheld by Credit Union management in order to safeguard the assets of
Clearview and its members. Our committee also reviews Clearview’s audited financial
statements to verify accurate and fair representation of the financial condition of the
Credit Union.
In order to maintain these high standards and fulfill our financial and regulatory
compliance responsibilities, we meet and interact regularly with Clearview’s Board of Directors, senior
management team and the Credit Union’s internal auditors.
During the first quarter of 2016, we asked the accounting firm of Orth, Chakler, Murnane & Co. CPAs and
Advisors to conduct an in-depth audit of Clearview’s operations and issue a report of their findings. We’re
proud to announce their report showed the 2015 financial statements fairly represent the financial position of
Clearview and are in conformity with generally accepted accounting principles in the United States of America.
Periodic supervisory examinations are also performed by the regulatory agency for all federally chartered
credit unions, known as the National Credit Union Administration (NCUA). The results of their last
examination confirmed that Clearview continues to be financially sound.
After reviewing the results of these audits and examinations, our Supervisory Committee can confidently
report that Clearview continues to be financially strong and well managed with sound policies and programs.
Clearview is in compliance with the Credit Union’s bylaws, Pennsylvania state laws relating to credit unions,
and applicable federal laws and regulations.
Finally, we are pleased to report that as economic conditions have changed throughout the past year,
Clearview’s management has been proactive in its efforts to adapt to those changes. The Supervisory
Committee believes that management has implemented the necessary procedures to achieve the ultimate
goal of protecting members’ investments.
Respectfully submitted,
Jeffrey A. Buckley
Jeffrey A. Buckley, Chairman, Supervisory Committee
7
STATEMENT OF FINANCIAL CONDITION
ASSETS (What We Own)
2015
2014
Gross Loans
$628,890,388
$503,386,945
Less Allowance for Loan Losses
(5,325,263)
(4,693,451)
Net Loans
623,565,125
498,693,494
Cash Resources
11,977,691
11,425,521
292,786,703
379,560,864
7,988,801
5,362,871
Investments
Prepaid Accounts
Accrued Interest
3,191,450
3,242,533
Fixed Assets
24,267,030
23,562,905
Other Assets
22,470,557
28,178,697
$986,247,357
$950,026,885
$36,031,391
$38,806,551
$ 235,367,215
$208,435,729
112,040,809
127,438,315
TOTAL ASSETS
LIABILITIES (What We Owe)
Liabilities
MEMBERSHIP EQUITY
Regular Savings
Savings Certificates
Club Accounts
1,822,249
1,919,827
Checking
175,225,885
155,228,906
Money Market
236,059,174
227,957,889
IRA Savings/Certificates
67,379,980
67,716,373
Business Deposits
28,581,858
28,948,140
Regular Reserve
12,375,199
12,375,199
Undivided Earnings
81,363,597
81,199,956
$986,247,357
$950,026,885
TOTAL LIABILITIES
AND MEMBERSHIP EQUITY
8
STATEMENT OF INCOME
INCOME
2015
2014
Interest on Loans
$
27,646,173
$23,705,302
Income from Investments
7,021,651
8,846,927
Other Income
10,587,898
9,671,824
TOTAL
$45,255,722
$42,224,053
$19,275,460
$19,481,994
212,796
212,008
EXPENSES
Operating and Non-Operating Expenses
Salary and Benefits
Travel and Conference
Office Occupancy
2,328,890
2,134,552
Office Operations
7,615,325
7,537,118
Loan Services
2,956,622
2,597,345
Professional Services
1,634,701
1,423,007
Interest, Borrowed Funds
Non-Operating (Income) Expenses
Other (Income) Expenses
TOTAL
$
36,724
73,785
828,955
(1,864,064)
1,242
51,749
34,890,715
$31,647,494
MEMBERSHIP SERVICE AND PROTECTION
Association Dues
$84,715
$80,841
Federal Examination and Supervision
168,789
159,593
Education and Promotion
1,750,873
2,277,457
Provision for Loan Losses
2,288,513
1,570,824
TOTAL
$4,292,890
$
TOTAL EXPENSES
$39,183,605
$35,736,209
4,088,715
9
0
0
20000
40000
60000
80000
100000
FIVE-YEAR GROWTH
ASSETS
NUMBER OF MEMBERS
$986,247,357
2015
2014
$823,756,459
0 2012
100000000
200000000
300000000
400000000
500000000
600000000
$789,201,801
2011
0
88,598
2013
10000
2012
20000
83,706
30000
40000
82,726
2011
$744,310,362
NUMBER OF LOANS
55,880
49,554
2014
82,427
$628,890,388
2015
$503,386,945
2014
200000000400000000600000000800000000
1000000000
2013
47,355
2013
2012
44,893
2012
$369,683,200
2011
44,143
2011
$366,187,778
SAVINGS AND CERTIFICATES
2015
2014
2013
2012
2011
10
50000
LOANS
2015
0
2014
$950,026,885
2013
92,187
2015
$856,477,170
$817,645,179
$740,359,976
$690,810,990
$650,888,732
$426,018,232
DISTRIBUTION OF 2015 EARNINGS
Gross Income
$45,255,722
Dividends$2,890,416
Operating Expenses
Membership Benefits and Reserves
$34,890,715
$4,292,890
BOARD OF DIRECTORS
Brian B. Notman, Jr.
Mark Palastro
Robert Farrell
Doug Montanari
Chairman
Vice Chairman
Treasurer
Secretary
Victoria Mell
Donald Billings
Mark Brennan
Director
Director
Director
SUPERVISORY COMMITTEE
Jeffrey A. Buckley - Chairman
Gregory Erhard, Jr.
11
MANAGEMENT TEAM - EXECUTIVE LEADERSHIP TEAM
12
Mark Brennan
Ronald Celaschi
Thomas Garver
President & CEO
SVP Operations & Lending
SVP Administration & Risk
Ralph Canterbury
Daniel Kutch
VP Technology
VP Finance
Renée Lucas
James Wood
VP Operations
VP Lending
MANAGEMENT TEAM - ASSISTANT VICE PRESIDENTS
DIRECTORS
Donald Autry - Director
Facilities & Communications
Wendy Doolan - Director
Human Resources
Daniel Doutt - Financial Analyst
LuAnn Carr
Lisa Florian
AVP Finance
Raymond George
AVP Strategic
Research & Analysis
AVP Technology
Scott Harper - Director Sales &
Relationship Development
Thomas Henricks - Director IT Security
Thomas Huff - Director Marketing
Kimberly Jugan - Director Training
Jamie Karwoski - Director
Operations Support
Daniel Komacek - Director Collections
Jeanne May - Director
Project Management
Ronald Gottschalk
Christianne Gribben
AVP Compliance &
Asset Protection
AVP Marketing
Robert Ritter - Director
Member Business Lending
Sydney Manning
AVP Human Resources
Mark Robison - Director
Technical Services
Deborah Schlaegle - Director
Business Development
Jody Tournay - Director
Deposit Operations
Stacey Yablonski - Director
Investments &
Treasury Management
Teresa Peterson
Janet Preteroti
Sharon Sweeney
AVP Consumer Lending
AVP Operations
AVP Real Estate Lending
Cecelia Vallandingham Executive Secretary
13
MEMBER SERVICES
Checking Accounts
Credit Cards
• Free
• Elite Rewards Visa Signature®
• Signature
• Visa® Platinum
• Advantage 50
• Student Visa®
• Campus
• Secured Visa®
• Clearview At Work
• Military Appreciation
Real Estate and Home Equity Loans
• Health Savings Account (HSA)
• First Mortgages
Savings Accounts
• Clearview Savings
• Member’s Choice
• Home Equity Loans
• Home Equity Lines of Credit
• Land Loans
• Christmas Club
Lending
• Vacation Club
• Vehicle Loans
• Money Market
- Auto Loans
• Individual Retirement Accounts (IRAs)
- Motorcycle Loans
- Traditional IRA
- Recreational Vehicle Loans
- Roth IRA
- Boat Loans
- Coverdell Education IRA
- Airplane Loans
• Health Savings Account (HSA)
• Certificates
- Keystone Lending Alliance – Indirect Lending
at the Dealership
- Savings Certificates
• Consolidation Loans
- Traditional IRA Certificates
• Better Choice Loans – Payday Loan Alternative
- Roth IRA Certificates
• Student Choice Private Loan Program
- Coverdell Education IRA Certificates
• PowerLine Line of Credit
- Youth Certificates
• Promotional Loans
- Jumbo Certificates
• Secured Loans – Savings, Money Market, Certificate
• Signature Loans
• Borrower Security – Voluntary Loan Protection Coverage
• Guaranteed Asset Protection Insurance (GAP)
• Route 66 – Extended Warranty
14
Business Services
Account Services
Convenience
• Business Checking
• Automatic Transfers
- Basic Business Checking
- Business Dividend Checking
• GreenPath FREE
Financial Counseling
• 19 branches with convenient
weekday hours, most branches
open Saturday
- Business Checking Plus
• Clearview Investment Advisors*
- Business Dividend Checking Plus
• Coin Counter**
- Business Money Market
• Courtesy Pay
- IOLTAs (Interest on Lawyers’
Trust Accounts)
• Cross Account Transfers
• Business Loans
• Debit Cards
- Business Term Loans
• Debit Purchase Rewards
- Commercial Real Estate Loans
• Direct Deposit
• TellerPhone – 24-Hour Audio
Response System
- Construction Loans
• Website – clearviewfcu.org
- SBA Loans
• Financial Education and
Community Outreach
• Online Banking
- Revolving Line of Credit
• Googolplex - Online Youth Center
- Letters of Credit
• Online Home and Family
Finance Center
• BillPayer – Online Bill
Payment Service
• Cash Management Services
• Business Sweep Accounts
• Merchant Services
• Business Visa® Debit Cards
• Business Visa® CU Rewards
• Corporate Credit Cards
• Clearview At Work
Employee Checking
• Online Member Auto Center
• Over 25,000 surcharge-free
ATMs nationwide
• Service Center – General Account,
Loan and Online Banking Support
• eStatements
• Money Orders
• eRate Notices
• NADA Vehicle Guides Online
• eBills – Electronic Bill Statement
• NCUA Insurance
• FinanceWorksTM - Online
Budgeting Tool
• Notary Service**
• Official Checks
• Overdraft Protection Transfers
• Safe Deposit Boxes**
• Online Banking, Mobile Deposit
and BillPayer
• Signature Guarantee
• Wealth Management and
Investment Services
• Visa® Reloadable Cards
• Online Financial Wisdom Small
Business Resource Center
• Over 2,500 Shared Branches in
the nationwide CO-OP Shared
Branching network
• Visa® Gift Cards
• Volunteer Income Tax
Assistance Program (VITA)
• Wire Transfers
• TurboTax® within Online Banking
• Mobile and Text Message Banking
• iPhone® and Android™ Mobile Apps
• iPad® and Android Tablet Apps
• Wearable Device Apps – Apple
Watch® and Android Wear
• Quick Balance
• Touch ID and Eyeprint ID
• Mobile Deposit
• Popmoney® Personal
Payment Service
• DocuSign® – Online
eSignature Service
• Apple Pay® Smartphone
Payment Service
*The Clearview Investment Advisors Program is offered through CUNA Brokerage Services, Inc.
**At select branches
15
BRANCH LOCATIONS
Moon Township – Main Office
Center Township
Hopewell Township
Robinson Township
8805 University Boulevard
Moon Township, PA 15108
(412) 269-3011
210 Golfview Drive
Monaca, PA 15061
(724) 775-7802
2646 Brodhead Road
Aliquippa, PA 15001
(724) 857-3907
Robinson Town Centre
1920 Park Manor Boulevard
Pittsburgh, PA 15205
(412) 787-0498
Alcoa Technical Center
Chippewa
Kennedy Township
(For active Alcoa employees)
100 Technical Drive
New Kensington, PA 15068
(724) 337-2130
Chippewa Square
2652 Darlington Road
Beaver Falls, PA 15010
(724) 847-0348
101 Langer Drive
McKees Rocks, PA 15136
(412) 771-6581
Brentwood
Delmont
Brentwood Towne Square
330 Towne Square Way
Brentwood, PA 15227
(412) 882-2393
Hollywood Plaza
6750 Hollywood Boulevard
Delmont, PA 15626
(724) 468-6811
107 Lloyd Avenue
Latrobe, PA 15650
(724) 539-9396
Butler
East Liverpool
600 Butler Crossing
Butler, PA 16001
(724) 431-2322
127 West Sixth Street
East Liverpool, OH 43920
(330) 385-1921
Canonsburg
Emerson Plant
105 East Pike Street
Canonsburg, PA 15317
(724) 746-1790
(For active Emerson employees)
200 Beta Drive
Pittsburgh, PA 15238
(412) 963-4120
Connect with us:
Latrobe
Lower Burrell
3271 Leechburg Road
Lower Burrell, PA 15068
(724) 335-2274
McMurray
Clearview Commons
465 Valleybrook Road
McMurray, PA 15317
(724) 942-0650
Sewickley
510 Beaver Street
Sewickley, PA 15143
(412) 749-5435
The Village at St. Barnabas
(For residents and employees
of St. Barnabas)
5850 Meridian Road
Gibsonia, PA 15044
(724) 443-4155
Wexford
Village At Pine Shopping Center
3000 Village Run Road
Wexford, PA 15090
(724) 934-3322
clearviewfcu.org • 1-800-926-0003