Annual Report - Leatherstocking Credit Union
Transcription
Annual Report - Leatherstocking Credit Union
2014 Meeting Minutes 38th Annual Meeting Leatherstocking Region Federal Credit Union’s 37th Annual Meeting was held on Saturday, April 26, 2014 at Templeton Hall in Cooperstown, New York. All members enjoyed a delicious breakfast prior to the business meeting. Charles Ellsworth, MD Chairman of the LSR FCU Board of Directors, called the meeting to order at 11:00 A.M. Dr. Ellsworth welcomed and thanked everyone for coming. A motion was made and seconded to accept the April 13, 2013, 36th Annual Meeting minutes. The motion carried and the minutes were approved. Dr. Ellsworth stated that it was a pleasure to report that the Credit Union remains solvent and financially strong during these economically strained times. The Board of Directors and senior management have worked closely to ensure that we remain well-capitalized. Our Net Worth ratio as of December 31, 2013 was 9.73%. Dr. Ellsworth also reported LSR FCU ended 2013 with net income of $310,172. Mary T. Clarke, Treasurer and Chief Executive Officer/President, reported on the Credit Union’s financial performance for 2013. Total shares increased by approximately $1.3 million. Total loans increased approximately $.5 million. Total assets increased $1.7 million. Return on Average Assets (ROA) for 2013 was .76. In addition, Mary T. Clarke discussed National Credit Union Share Insurance Fund (NCUSIF) assessments which decreased from 2012 to 2013 by $13,242, to $33,118. Mary T. also reported that it is unlikely the Credit Union will be required to pay any stabilization assessment to NCUA in 2014. The provision for loan loss was funded $15,625, and our net charge off for loans in 2013 was $56,642. As of December 31, 2013 the delinquency ratio was 2.38%. From a safety and soundness perspective your money is safe with your Credit Union. Dr. Ellsworth thanked all of our members, the Credit Union Staff, and the Board of Directors and the Supervisory Committee for making 2013 a successful year. We look forward to another great year in 2014. We heard from James Richardson, regarding an update on a product launch for mobile banking, which now includes Remote Deposit Capture. James also explained a new checking account called Protection Plus with credit monitoring features and insurance if your ID is stolen. Dr. Ellsworth introduced Jean Schifano, Supervisory Committee Chairperson, for the Committee's report. Jean introduced the Supervisory Committee Members, Dann West, Secretary, Catherine Tuttle, and Marietta Taylor. Jean thanked the Board Members, Mary T., and the Credit Union Staff for doing a great job protecting our interests. Sam Hoskins, Secretary, Board of Directors, reported the elections results for the Nominations Committee. Incumbents seeking re-election, Edward Landers, Rose Craine, Richard Trimble, MD and Roger MacMillan, MD, were unanimously elected to the Board of Directors for a two-year term. Dr. Ellsworth introduced Tom Iuorno, Director of Originations and Strategic Partnerships, Homeowners Advantage partner with LCU to offer additional Mortgage options to its members. Tom has helped many first time home buyers and Credit Union members to re-finance their current mortgages. Tom also introduced himself and discussed the many different types of Mortgage products offered through Homeowners Advantage. After the drawing of several door prizes, Dr. Ellsworth adjourned the meeting at 11:55 A.M. Respectfully submitted, Sam Hoskins, Secretary Board and Staff Chairman’s Report Dear Members: As Chairman, on behalf of the Leatherstocking Credit Union Board of Directors, I am pleased to thank you all for your continued investment in the success of the Credit Union. We appreciate the support of our new members and of our long-time members for their continued patronage. We remain committed to Bassett employees, Otsego County employee groups and to all the residents of Otsego County who join the Credit Union. Your Credit Union's over all financial performance in 2014 was excellent, considering the initiation of several new service products and the slow increase in economic growth, both global and domestic. Some notable highlights from 2014 include a program to increase membership by expansion of our publicity campaign, using radio and other media networks. We continued to financially support various charity organizations by donating over $9,000 in the communities which we serve. A new initiative was undertaken to expand the Credit Union’s commitment to local students. This includes financial education programs, provided by a member of our staff, to area schools, as well as student friendly loans for education. We attribute our success to being member-owned, having a volunteer Board of Directors and Supervisory Committee, as well as staff members who give generously of their personal time to support worthwhile initiatives. We have a continued commitment to the universal credit union philosophy, “people helping people.” We strive to offer competitive rates and competitive fees for the products and services that make your everyday banking easier. We continue to provide people of all ages and backgrounds with the financial services and education they need to be productive in their communities. I am proud of our employees for taking to heart this credit union philosophy. Thanks go to each of you for being a Credit Union member. Without you there would be no Leatherstocking Credit Union to make our communities a better place in which to live, work and raise families. Just as our staff, volunteer Board and Supervisory Committee take pride in the Credit Union’s accomplishments, so should you as member-owners. We are looking forward to another great year for your financial institution—one that constantly reinvests in your success! On behalf of the staff and governing volunteers, thank you for your support and have a prosperous 2015! *Management Team BOARD OF DIRECTORS: Charles Ellsworth, M.D., Chairperson Edward Landers, Vice Chairperson Samuel Hoskins, P.A., Secretary Mary T. Clarke, Treasurer SUPERVISORY COMMITTEE: Jean Schifano, Chairperson Dann West, Secretary Marietta Taylor Catherine Tuttle DIRECTORS AT LARGE: Richard Trimble, M.D. Daniel Gregory, M.D. Roger MacMillan, M.D. Rose Craine Nathan Smith CHARTER MEMBERS: Dr. Clinton Hawn, Marcel Ermeti, Leslie Bartlett, Alice Sill, Robert Butler, Gary Goodwin, Gerald Biamonte, Mary Martin (clerk), Rapture Butler, Gloria Irving, Carole Nunamaker-Tinklepaugh DIRECTOR EMERITUS: Delores Burnett Saturday, April 11th, 2015 YOUR CREDIT UNION STAFF Mary T. Clarke, President* Linda Oldick, Accounting Manager* Anoel Kelly, Financial Service Manager* James Richardson, Accounting & Compliance Officer* Robert White, Lending and IT Officer Cindy Dresser, Financial Service Rep Carla Eckler, Marketing Specialist Josh McMahon, Marketing Specialist Martha Heneghan, Education & Human Resource Specialist AmyBeth Decker, Accounting Assistant Chris Spencer, Lead Member Service Rep Sue Gage, Member Service Rep Lisa Guardi, Member Service Rep Tonya Daley, Member Service Rep Sincerely, Charles Ellsworth, MD, Chairman AGENDA Call to Order Reading and Approval of the Minutes of the last Annual Meeting April 26, 2014 Chairman Report Presented by Edward Landers, Vice Chairperson President/CEO Report Presented by Mary T. Clarke Debit Card and Credit Card Technology on the Horizon Presented by James Richardson, Accounting and Compliance Officer Supervisory Committee Report Presented by Jean Schifano Supervisory Committee Chairperson Nomination Committee Election Results Guest Speaker Edward Lis, Owner/Principal of Credit Union Advisory Group Door Prize Drawings Adjournment Supervisory Committee Report Your Credit Union’s Supervisory Committee is responsible for the safeguarding of our members’ assets. Over the past years, the committee hired auditors to perform on-going internal audits of the Credit Union. In addition, an outside audit and examination by the National Credit Union Administration was conducted. Both found no major areas of concern, our books were in balance and our procedures and operations were in compliance with regulations. We appreciate the opportunity to be of service to the membership and commend Mary T. and the Credit Union staff, and the Board of Directors for a job well done. Respectfully submitted, Jean Schifano, Supervisory Committee Chairperson; Dann West, Secretary; Marietta Taylor, and Catherine Tuttle 24 Glen Ave., Cooperstown, NY 13326 • 607-547-5700 • www.MYLCU.org • [email protected] Treasurer’s Report Charter No. 22625 STATEMENT OF FINANCIAL CONDITION For Period Ended December 31, 2014 Loans: The Credit Union continues to experience a very competitive lending environment. • Our overall loan portfolio had very modest growth ending the 2014 at $20.28 million compared to 2013 year-end of $20.25 million. • Vehicle loans grew from $5.77 million in 2013 to $6.24 million in 2014, while actual number of vehicle loans declined from 624 loans in 2013 down to 603 loans in 2014. • Real Estate loans declined from a high of $10.18 million in 2013 to $9.59 million in 2014. It’s important to recognize that our market continues to feel the impact of the 2007 – 2008 real estate bubble. Values have not recovered in much of our market place, so owner equity continues to be troublesome. • In 2014 we also experienced additional downward pressure on our average loan yields with a decline in average yield of 5.77% in 2013 to 5.37% in 2014. This means we had to offer more aggressive rates to maintain our loan portfolio which resulted in a 0.40% decline in overall yield. • This coupled with an increase in Net Charge offs from 0.30% in 2013 to 0.73% in 2014, impacted our margin by an additional 0.43 basis points on loan yield performance. • In speaking with other colleagues in the Northern US, they have also experienced similar trends and attribute much of the change to a prolonged economic recovery, underemployment, resulting wage stagnation, impact of colder and longer than average winters on members disposable or discretionary income. The long and short is that something was bound to give and that is what we are seeing. Line of Credit: • The Credit Union ended 2014 without using their line of credit at the Corporate Credit Union. Member Shares: • The Credit Union's total assets grew in 2014 from $40.57 million in 2013 to $42.24 million in 2014. • Total Deposits rose from $36.55 million in 2013 to $38.2 million in 2014. • Members' average savings balance grew from $7,927.48 in 2013 to $8,362.74 in 2014. • The number of checking accounts to total members improved in 2014 with 58.12% of our members using us as their primary financial institution. Income: • Income for 2014 is down from the prior year as a result of the higher charge offs and lower yields on loans. • The good news is we ended the year with a positive ROA of .07% and Net worth in millions grew to $4.01 million dollars, leaving us a very strong Credit Union. Expenses: • Cost of funds were well maintained with a slight decline from .28% in 2013 to .22% in 2014. • Loan servicing was up as a result of higher delinquency and charge offs as a % of total expense from 6.1% in 2013 to 7.14% in 2014. • This also had an impact on Professional and outside services 10.45% in 2013, 12.28% in 2014. Summary: Management continues to monitor areas of savings and efficiency while striving to provide new and improved services to the membership. Sincerely, Mary T. Clarke, CEO & Treasurer PRODUCTS AND SERVICES: Simple and Protection Plus Checking with ID Protect Savings and Investment Programs Primary Share account (savings) Special Savings accounts Christmas and Vacation Clubs Youth/College Savings and Checking Account Program Youth Member Monthly Deposit Incentive Program Money Market and Preferred Savings Accounts Share Certificate (CDs) Individual Retirement Accounts (IRAs) Individual Retirement Account Certificates Smart Start Certificates Lending Programs Vehicle Loans, Boat, Camper, Motorcycle, Recreational Vehicle, and Snowmobile Loans Personal Loans Visa Credit Cards Share Draft Line of Credit Computer/Student Loans Share and Certificate Secured Loans First Mortgage Loans Home Equity and Home Equity Line of Credit Loans Online Home Banking E-Statements E-Blasts and E-Alerts Mobile Banking & Remote Deposit Capture Bill Pay Online Loan application Phone Access Teller System (PAT) Platinum Debit MasterCard Direct Deposit Payroll Deduction Automatic Transfer OTHER SERVICES: Loan Skip a Pay Courtesy Pay Money Orders Wire Transfers Notary Services – by appointment Scholarship Program Signature Guarantee Balance Financial Fitness Program Referral Mortgage: Home Owners Advantage and Visions FCU participation with LCU SPECIAL DISCOUNT PROGRAMS: CUNA Mutual TruStage Insurance Products Seasonal Discount Tickets for Great Escape and Water Safari Year Ending From 12/31/13 To Year Ending 12/31/14 ASSETS Loans to Members (net) Cash & Investments Land & Building (net) Furniture & Equipment (net) Leasehold Improvements (net) Prepaid Expense Accrued Income on Loans Accrued Income on Investments National Credit Union Share Insurance Fund Other Assets Total Assets LIABILITIES & RESERVES Accounts Payable Notes Payable Other Liabilities Share Accounts Reserves Unrealized Gain/(Loss) on Investments/Pension Assets Total Liabilities & Reserves STATEMENT OF INCOME Interest on Loans Interest on Investments Other Income Total Income DISTRIBUTION OF INCOME Compensation & Employee Benefits Travel and Conference Association Dues Office Occupancy Office Expense Advertising Loan Servicing Professional Services & Education Provision for Loan Loss Member Insurance Federal Operating Fees NCUA Assessment/Share Insurance Misc. Operating Expenses Total Expense (Gains) or Losses on Investments/Assets Dividends Paid Increase to Reserves & Undivided Earnings Total Income Disbursed TOTAL MEMBERSHIP MEMBER AVERAGES CU Savings Balance CU Loan Balance GROWTH STATISTICS ($ MILLIONS) Shares Loans (gross) Reserves LOAN ACTIVITY (OUTSTANDING) Consumer/Other Loans Real Estate Loans TOTAL 2013 $20,109,664.16 $19,364,819.71 $548,380.80 $67,453.37 2014 $20,091,668.38 $21,014,799.39 $541,396.12 $93,151.14 $72,346.63 $31,289.15 $36,297.08 $348,671.71 $(22,775.25) $40,556,147.36 $73,353.46 $28,986.83 $42,852.74 $362,359.92 $(16,985.25) $42,231,582.73 $7,688.88 $2,759.23 $66,357.31 $36,537,273.58 $618,665.65 $3,326,161.94 $40,556,147.36 $36,148.74 $38,188,394.40 $618,665.65 $3,385,614.71 $42,231,582.73 $1,155,240.74 $158,840.81 $443,328.62 $1,757,410.17 $1,087,399.98 $196,994.57 $476,783.46 $1,761,178.01 $631,694.54 $31,960.65 $13,154.15 $80,564.28 $246,757.40 $38,530.11 $81,451.64 $139,528.13 $15,624.61 $724,912.82 $42,357.37 $13,243.92 $75,272.72 $243,847.83 $40,061.68 $104,051.97 $178,913.40 $194,395.23 $8,629.05 $33,118.00 $30,213.28 $1,351,225.84 $3,440.26 $99,452.91 $1,454,119.01 $310,171.68 2013 4611 2013 $7,924.00 $4,389.00 2013 $36,537,274.00 $20,237,714.00 $3,944,828.00 2013 # 2013 $ 19 $128,221.00 7 $362,692.00 26 $490,913.00 2014 # 20 8 28 $7,813.65 $$26,570.10 $1,651,440.69 $1,017.30 $82,103.49 $1,734,561.48 $28,651.13 2014 4568 2014 $8,360.00 $4,436.00 2014 $38,188,394.00 $20,019,668.00 $4,004,280.00 2014 $ $78,760.00 $313,366.00 $392,126.00