Green Means Go - Financial Center Credit Union

Annual Report
2014
Green Means Go
green means go
For over 60 years, we’ve been helping people move forward. By providing easy access to loans,
we’ve given members like you the green light to chase your dreams.
We’ve been going full speed ourselves, lately. From launching our new website to breaking ground
on our latest branch, we haven’t stopped working hard to be the kind of Credit Union you deserve.
A Well-Oiled Green Machine
PRESIDENT & BOARD MESSAGE
Financial Center Credit Union celebrated a
milestone anniversary in 2014, achieving
60 years of success. This success is evident
when seeing how the cooperative has put
its mission into practice and has served the
greater community.
The cooperative’s mission is simple and
straightforward: Financial Center Credit Union
is committed to providing credit where credit
is due so that we can return true value to our
member/shareholders all while maintaining
the Credit Union’s safety and soundness.
The successes enjoyed by the cooperative
over the last 60 years fit into the three main
components of this mission.
Credit
Where Credit Is Due
Financial Center started as a place for the
everyday worker to get the cash they need to
finance their dreams – big or small. Our first
loan, in the amount of $300, was made within
a month of establishing the cooperative. It
may not seem like a great amount; but for
those of us with modest means, the loans
provided by Financial Center over the years
have paved the path to abundant life. We’ve
granted more than $2.2 billion in loans since
our inception; $66.2 million of which was in
2014 alone.
Return
True Value
to Members/Shareholders
Over the years, Financial Center has recognized
our members deserve a fair return on their
savings. The proof is in the pudding: FCCU
has not only maintained the highest return
on savings throughout San Joaquin County,
but often at a rate that is 10x greater than
the local average. Going beyond the quarterly
share dividends, we’ve also provided financial
value back to our shareholders (that’s you!)
in the form of extraordinary dividends. The
back-to-back Member Loyalty Dividends of
2013 and 2014 totaled more than $9 million
when combined! Of course, there are also
other ways to quantify value, such as timesaving convenience. We’ve worked hard to
modernize the institution, making it easier
than ever to bank with FCCU thanks to the
addition of extra branches, a Call Center, and
online banking.
Maintaining The Credit Union’s
Safety & Soundness
Safety and soundness has been our beacon
throughout the years. We don’t look to be
the biggest but rather the best. And by best,
we mean safest. In 2014, the Credit Union
maintained a level of capital and reserves to
assets that put us in the 99th percentile of
large credit unions in United States. This feat
was recognized by three independent bank
research firms: Bauer Financial, BankRate.
com, and DepositAccounts.com. Bauer Financial
once again awarded Financial Center their 5
star rating, marking the 21st consecutive year
of earning their highest marks. BankRate.
com also continued to rank FCCU among the
safest credit unions based in San Joaquin
County. The third was DepositAccounts.com,
which awarded an A+ mark to the Credit
Union, ranking us 40th among all credit
unions in the US who received the top mark.
Financial Center has not only accomplished
its member mission over the years; it has also
made an impact on the greater community.
In fact, the Credit Union donated more than
$119,000 to local charities during the past
year. We also positioned the cooperative to
provide essential financial services to a greatly
underserved community by breaking ground
on our newest branch location, which is
scheduled to open in 2015. These efforts were
noticed by local residents, and as a result,
Financial Center was once again voted the Best
Of Credit Unions by Stockton Record readers.
Looking over all of these accomplishments,
the Board of Directors sincerely thanks you for
your continued support over the last 60 years.
It’s through your trust and investment that the
cooperative is able to thrive. Here’s to another
60 years of success!
Michael P. Duffy
President/CEO
Valencia Jones
Chairwoman of the Board
THE GRASS IS GREENER HERE
SUPERVISORY REPORT
Every year, Financial Center Credit Union’s
Supervisory Committee is trusted with the
important task of overseeing the Credit
Union’s records and accounting policies.
The Committee works closely with Financial
Center Credit Union’s staff and the Board of
Directors to ensure policies and procedures
are properly implemented.
We are pleased to report that your funds
at Financial Center are safe, and your Credit
Union is financially poised and prepared
for future progress. As an additional safety
measure, the Supervisory Committee, with
the enlisted help of an independent
accounting firm, conducted a meticulous
evaluation of our records and deemed
Financial Center stable and secure for future
growth. The 2014 McGladrey & Pullen CPA
audit and our 21st consecutive year of Bauer
5-star rating substantiated Financial Center’s
exceptional fiscal soundness.
This positive outcome is a direct result of the
Board of Directors’ and President/CEO’s stellar
leadership and vigilant management. We also
thank our volunteers, management and staff
for their commitment to service and accuracy.
This commitment helps the Credit Union to
prosper and maintain financial soundness for
its member/shareholders.
Kathy Lopez
Chairwoman
Supervisory Committee
ANNUAL MEETING ANNOUNCEMENT
Financial Center Credit Union will hold
its 2015 Annual Meeting and Elections
on Thursday, May 21, at 6:00 p.m., at our
Main Office, 18 South Center Street in
Stockton, California.
A GREENBACK LOOKBACK
INCOME
2012
2013
2014
Interest on Loans
12,422,995
11,928,990
10,817,043
Interest on VISA
1,791,927
1,815,003
1,754,222
Investment Income
1,461,248
1,608,344
2,155,403
Miscellaneous
5,136,247
4,885,243
4,840,440
Total Income
20,812,417
20,237,580
19,567,108
EXPENSE
2012
2013
2014
Dividends
1,571,324
6,337,142
5,030,009
Other Expenses
14,525,921
13,900,438
13,745,353
Total Operating Expense 16,097,245
20,237,580
18,775,362
ASSETS
2012
2013
2014
Loans
153,147,783
154,087,683
153,537,352
Cash & Investments
183,883,719
199,067,817
222,389,735
Furniture & Equipment
543,769
442,938
372,250
Land & Building
4,757,847
5,269,277
5,564,581
Other Assets
4,192,394
4,678,997
4,476,292
Total Assets
346,525,511
363,546,713
386,340,210
liability and
members’ equity
2012
2013
2014
Member Shares
250,746,856
267,042,864
289,334,853
Other Liabilities
7,763,988
9,876,563
9,523,465
Reserves
22,818,238
20,037,132
16,558,104
Undivided Earnings
65,196,429
66,590,153
70,923,788
Total Liabilities/Equity
346,525,511
363,546,713
386,340,210
TOTAL ASSETS
HOW ‘BOUT THEM APPLES?
From Greenhorn to Green Giant
1970: L. Dennis Duffy becomes
the Credit Union’s first
Assistant Manager
1972: SJC Employees Credit Union
reaches $5 million in assets
1976: Four years later, assets
double to $10 million
1977: A new name is adopted
as we become Financial
Center Credit Union
1992: L. Dennis Duffy, CEO in ’92,
and Dorothy Jones, then Board
Chairman, share a historic
moment as Credit Union assets
top the $100 million mark
1995: A new website is launched
and your Credit Union is now just
a click away at www.fccuburt.org
1996: Our VISA Gold card is
introduced
1977: Share Drafts mark the
“full service” nature of the
Credit Union
1999: A branch in the bedroom?
Well, almost, as BURT-Online
brings the ease and convenience
of anytime banking home
September 1954: The San Joaquin
County Employees Credit Union
opens its first office in the county
court house.
1978: We’re on the move…literally…
as we proudly open our new office
at 18 S. Center Street, which today
remains our Main Branch
1999: L. Dennis Duffy retires after
29 years of dedicated service
and Michael Duffy starts the new
millennium as our CEO
October 1954: Our first loan is
made in the amount of $300
2011-2014: Great strides are
made to increase our
paperless banking abilities,
including: upgraded ATMs,
check processing,
e-signatures for lending, and
a new-and-improved website
2013-2014: We put our money
where our mouth is by
mailing out back-to-back
Member Loyalty Dividends
totaling more than $4 million
each year
2014: We break ground for
our newest branch
located at Airport Way in
South Stockton
1955: We hired our first full-time
Treasurer, William F. Haywood
1958: A Credit Union shareholders’
meeting from early 1958; the same
year we moved into our first
permanent location, an apartment
house at 538 S. San Joaquin St.
1979: The installation of BURT
(Bringing Up Real Time), our
first in-house computer system,
is the initial step toward a
future of unimaginable services
1950’s
1970’s
1960’s
1962: Guy McElhaney becomes
our first full-time Manager
1980’s
1990’s
1983: The very first MATT/ ATM
is installed
1963: We reach a milestone of
$1 million in assets
1968: The Credit Union builds its
first office at 1400 N. El Dorado,
and Manager Guy McElhaney
seems to like the new quarters
1968: In just five years, the
Credit Union doubles in size, as
$2 million in assets is reached
1985: BURT/Audio Response is
introduced, allowing members
to make varied transactions
over the phone
1988: A new logo. Does it
look familiar?
2000’s
2010’s
2000-2001: The new millennium
finds Financial Center really
branching out—quite literally—
as we open the Manteca Branch
and relocate the Sherwood Mall
Branch to a Credit Union-owned
building on Benjamin Holt Drive.
The more expansive facility
allows for two additional drive
through windows and two ATMs
2001: Assets top $200 million
2002: Our CheckCard is
introduced, letting members
choose: paper or plastic
1989: We debut a “Cheap
Charge” Visa card
2003: Our branch at March &
Pershing opens
1989: A “Hit Since 1954”, we
open our first branch at the
Sherwood Mall
1989: After more than a
quarter of a century with the
Credit Union, Guy McElhaney
retires and L. Dennis Duffy
becomes our CEO
2004: Our VISA SafeGuard card
is introduced
2007: We open the phone lines
for our Call Center
2009: Our online banking gets a
makeover when we reveal a brand
new site and online banking system—
myBURT (also Burt’s 30th Birthday!)
2009: Assets top $300 million
2009: We expand into North
County with the opening of
our Lodi Branch