to our members - Reliant Community Credit Union

2O11
ANNUAL REPORT
to our
members
President & Chairperson’s Report
• As online activity grows, so does the need to provide
additional security measures. We introduced an alert system
for Reliant Platinum Visa credit cards. This email/text
messaging notification system helps members detect fraud
and manage transactional activity.
Pamela P. Heald
President/CEO
Jane Slack
Board Chairperson
W
e are pleased to report that 2011 was a highly
successful year at Reliant Community Federal Credit
Union. As of December 31, 2011, the credit union asset
size grew from $309.7 million to $325.7 million—an increase of
5.17% over 2010. Reliant remains safe, sound, and financially strong.
Despite a sluggish national economic recovery, we are pleased
to report that the local economy showed signs of improvement.
We saw an increase in borrowing as members took advantage
of competitively priced loan rates for auto, credit card, home
equity, and education needs. We saved our members over $716,000
by buying out auto loans that were financed elsewhere. This is a
core competency of the credit union, and one that sets us apart.
Mortgage rates remained low, which kept the new purchase
and refinancing market strong. Our personalized approach to
business lending was very successful, yielding a 75% increase over
the prior year in the number of funded business loans. Deposit
growth also increased as members continued to choose credit union
savings accounts as a safe and secure means to keep their money.
We also experienced significant growth throughout the
year. The credit union industry continued to receive positive
publicity as financial experts touted the great value that credit
unions offer to consumers. As a result an additional 2,892 new
members joined Reliant. We appreciate that so many of you
referred your family, friends, and co-workers to join the credit union.
Throughout the year, we instituted several services that offer
convenience, save time, and enhance your online security.
• Our website received a new look and feel along with several
enhancements. New features include an ATM locator, a full
range of financial calculators, and a search bar. An average of
32,000 individuals visit our site on a monthly basis.
• Reliant was the first credit union in the Rochester area to
launch mobile and text banking. Members were quick to take
advantage of this free service that offers the ability to transfer
funds, check balances, pay bills, and view activity right from
their smartphones.
• If you visit a Reliant ATM you will notice that we now
accept Mastercard in addition to Visa. This has resulted
in a significant increase in usage at our ATMs. Another
convenient member feature added at the ATM is the ability
to change your personal identification number (PIN) at a
Reliant ATM.
• We introduced checks by phone—a service that allows you to
call in to the credit union to make a same-day payment for
your Reliant loan or make a deposit to your Reliant account
from an account at another financial institution.
• Reliant partnered with CU Student Choice to provide
private student lending solutions. Their expertise offers an
easy-to-apply process plus a variety of resources for parents
and students.
Our highest priority is always to provide outstanding member
service, recognizing that this is the key to our success. Our
knowledgeable staff and management team are committed to
serving our members and meeting your financial needs each and
every day. We employed several initiatives this past year that
positively impacted our ability to serve members. Our staff
completed a service-oriented training program that was wellreceived and almost immediately generated positive member
comments. We introduced an ongoing mystery shopping
program where members visit our branches and provide ongoing
feedback on the service they receive. Members were also invited to
participate in focus groups where we had open, candid
conversations about member needs and service expectations. The
feedback we received from these efforts has been invaluable and
you can be assured that this input will guide us as we plan for
the future.
Giving back is an important part of Reliant’s past, present,
and future. The credit union is an active participant in the
community, providing support to dozens of organizations,
chambers of commerce, schools, and area hospitals. Reliant also
gives back to students through the Donald K. Rhine Scholarship
program. Last year five scholarships were awarded to members
who demonstrated the credit union philosophy of “people helping
people.” Reliant also held the second annual Moore Than a Race, a
5K run that supports the ongoing scholarship program and honors
the memory of Richard K. Moore, Reliant’s board chairman from
1986–2009.
Many opportunities lie ahead of us in 2012 and beyond. As
the economy improves, technology advances, and our membership grows, we look forward to meeting your financial needs
in new, innovative ways. We would like to acknowledge and
thank the dedicated staff, management, and volunteers for their
contributions and support to the credit union.
Above all, we thank you, our members, for your business and the opportunity to serve you.
Super visor y Committee Report
T
George Cataldo
Chairman
2011 Supervisory
Committee
John Baker
George Cataldo
Audrey Ferris
Jane Slack
he Supervisory Committee
independently evaluates the
soundness of Reliant Community Federal Credit Union’s
operations and activities. This is
done to ensure that management
implements sound internal controls and maintains practices and
procedures that adhere to generally
accepted accounting principles. The
committee carries out the following
primary responsibilities:
• Verification and protection of
members’ funds and interests
• Safeguarding of assets
• Compliance with regulations,
policies and procedures
• Reliability of financial records
The Committee is supported by
an internal auditor who regularly
conducts audits that include the
review and testing of branch and department operations to
ensure compliance with policies and procedures and to confirm
that the appropriate internal controls are in place. The Supervisory
Committee reviews these audits and addresses any outstanding
issues. Based on the audit results in 2011, the Committee
is satisfied that adequate internal controls exist to protect
member accounts and that the financial statements accurately
reflect the positive performance and condition of the credit union.
An independent, external annual audit of the financial statements
for the fiscal year ending December 31, 2011, was conducted by
Firley, Moran, Freer & Eassa, P.C. in accordance with Generally
Accepted Accounting Principles. Their most recent findings
indicate that Reliant Community Federal Credit Union has
adequate financial control and is financially sound.
In addition, NCUA, the regulatory agency of all federally insured
credit unions, performed an examination to determine the safety
and soundness of the credit union. The result of this examination
confirms that Reliant continues to operate in an efficient manner
with sound policies and practices.
The Supervisory Committee appreciates the opportunity to serve
the credit union membership and concludes that your credit union
is operating in a financially sound manner.
We congratulate the Board of Directors, management team,
and employees for an outstanding year in 2011.
Board of Directors
Jane Slack
Board Chairperson
John Boogaard
Vice Chairman
Thomas Miller
Secretary/Treasurer
Francis Coots
Director
Cassandra Tilliman
Director
Financials — Income Statement and Ratios
Consolidated Summary of Operating Results and
Year ended December 31
Selected Ratios
(dollars in thousands)
2011
2010
Interest Income:
Investments
$1,102
Loans
12,461
1,474
12,453
Interest Expense:
Shares1,648
Borrowings
0
2,198
0
Total Interest Income
Total Interest Expense
Net Interest Income
Provision for Loan Losses
Service Fees, Credit/Debit Card Income and Other Income (Expense)
13,563
13,927
1,6482,198
11,915
328
4,712
Operating Expenses:
Compensation and Benefits
8,277
Operations and Processing Costs
4,241
Occupancy1,045
Marketing520
NCUSIF Share Insurance Premium
717
Other387
11,729
460
4,642
7,622
3,920
931
539
693
355
Total Operating Expenses
15,187
14,060
Non-Operating Expense:
Other than Temporary Impairment
0
447
$
1,112
1,404
For the Year*
Yield on Earning Assets
%
Dividends and Interest — Member deposits
Interest Rate Spread
4.52
0.59
3.93
4.89
0.83
4.06
Return on Assets
Return on Members’ Equity
Charge-Offs to Loans
0.35
3.61
0.19
0.46
4.72
0.19
At Year End
Loans to Shares
%
Borrowings to Assets
Members’ Equity to Assets
Delinquencies to Loans
Allowance to Loans
79.55
0.00
9.62
0.20
0.48
81.16
0.00
9.80
0.25
0.54 Net Income
* Based on an average of year ending balances.
Financials — Balance Sheet
Consolidated Summary of Financial Condition
Year ended December 31
(dollars in thousands)
2011
2010
Assets
Cash
$4,005
Deposits at Federal Reserve and Corporate Credit Unions
23,120
Certificates of Deposit
11,843
Investments Available for Sale
42,361
Investments Held to Maturity
1,362
Investment in Federal Home Loan Bank, at Cost
275
3,381
36,970
1,082
30,725
1,894
244
Loans:
Mortgage72,287
Home Equity
24,689
Home Equity Lines of Credit
33,951
Vehicle48,688
Credit Card and Other Lines of Credit
24,578
Member Business
6,696
Personal and Other
16,453
Allowance for Loan Losses
(1,101)
75,537
24,217
29,314
46,915
23,513
3,814
15,929
(1,200)
Net Loans
226,241
218,039
Mortgage Loans Held for Sale
Property & Equipment, Net
NCUA Share Insurance Fund Deposit
Interest Receivable and Other Assets
2,077
8,004
2,868
3,622
2,634
8,599
2,734
3,449
325,778
309,751
Total Assets
$
Liabilities and Members’ Equity
Shares:
Share Draft Accounts
$
44,982
41,745
Money Market Accounts
93,538
81,743
Regular Shares
61,322
56,023
Certificates88,547
93,879
Total Shares
288,389
273,390
Accounts Payable and Accrued Liabilities
Long-Term Debt
Total Liabilities
6,061
0
294,450
6,008
0
279,398
Members’ Equity
31,328
30,353
325,778
309,751
Total Liabilities and Members’ Equity
$
Community Involvement 2011
2011 was a busy year for Reliant, and while we wish we could share photos from every event we supported—whether through a donation,
a sponsorship, offering volunteer support, fundraising, and so much more—those photos could take up an entire book! So we wanted
to share a few photos so you could see some examples of Reliant’s activities in the communities we serve. As always, we thank you, our
members, for welcoming us into your communities!
1
Reliant hosted a Shred Day at our Macedon
branch with help from our Tribute Committee
and Scott Spezzano from 98 PXY.
Santa visited our Newark branch, and
listened to our young members’ wishes.
Recipients of the 2011 Donald K. Rhine Scholarship.
Sharing the Reliant Stor y
Reliant’s booth at Kids’ Fest 2011 at Total
Sports Experience in Rochester was a big hit!
Runners take off at the start of Reliant’s second annual
Moore Than a Race 5K, held in Sodus near our branch.
In 2011, we began asking members to complete the sentence, “I love my credit union because...” and we were thrilled at how many members
were eager to let us know the reasons they love Reliant. We couldn’t resist sharing some of them with you, and as we continue our efforts
to gather members’ stories, we hope these short messages will encourage others to share why they, too, love Reliant!
...atmosphere is warm
& friendly. The people
are always pleasant and
a pleasure to deal with.
Thanks for being you.
-Linda, Manchester
Re
U n io n
...of the great help
you receive and the
low rates.
-Sharon, Gorham
t
...I have been a
member for many years.
I’ve always had great
service and the convenience
of direct deposit, and
my loans have been taken care
of by pleasant, friendly
people. Love no fees!
-Alberta,
Canandaigua
...you are open
until 5:00 pm and
on Saturday for our
convenience!
-Chuck & Marcia ,
Sodus
di
I l ove
my
...they go above
and beyond and work
with the member. They
helped us when no one
else would.
-Michael,
Brockport
re
e. .
li
C
c
u n io n b e c a u s
.
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www.reliantcu.com | 10 Benton Place, PO Box 40, Sodus, NY 14551 | 800-724-9282
Brockport | Canandaigua | Geneva | Henrietta | Irondequoit | Macedon | Newark | Sodus | Webster
Com mun
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