Our 2015 Annual Report is now available
A JOINT MESSAGE
From Our Board Chairman and President/CEO
Your Credit Union continued its growth trajectory in 2015 in membership, loans, core deposits and assets. We welcomed
another credit union to our family, introduced technological enhancements to our mobile and online channels, and put a new
focus on our culture and employees.
On September 10, members of British Airways Employees Federal Credit Union
(BAEFCU) voted overwhelmingly to approve the merger with SkyOne Federal Credit
Union, expanding our family by 2,204 members and $21 million in assets. We also
welcomed aboard all of the BAEFCU employees, who were instrumental in helping
members transition smoothly to SkyOne.
As of December 31, 2015, our assets are $450 million, a 6.98% growth since 2014. We also saw a 10.29% increase in
total loans, ending the year with $277 million in our loan portfolio. Our total deposits grew by 7.39% to $398 million, and our
membership grew by 4.62% to 36,199 members.
We continue to manage our underwriting responsibly. Our delinquency ratio and charge-off ratio remained low at 0.62% and
0.36%, respectively, resulting in our Loan Quality Index of 0.98%. We also remained diligent in recovering charged-off loans.
We had a 28% recovery ratio, bringing nearly $380,000 in loan payments back to the credit union.
We ended the year with the net income of $698,565 and a return on assets ratio of 0.16%. Our net worth grew to $48.5
million, ending the year with a strong net worth ratio of 10.77%. This categorized SkyOne as “well-capitalized” under the
requirements of our federal regulator, the National Credit Union Administration (NCUA).
Our investment services program continued to perform well. Through our partnership with our broker-dealer, CUSO Financial
Services, L.P., we continued to bring personal attention and an educational perspective on financial planning to our members.
By cultivating existing and new relationships, the investment services program reached $51 million in total assets that we
manage for SkyOne members.
for 67 years
We continued to strive to provide members with convenience. In January, we launched a new online loan and membership
application system. This user-friendly system enabled members to open an account for their minor children, apply for a
loan, and open a checking account in just a few minutes, and it’s safe and secure. In the fall of 2015, we launched Apple
PayTM for SkyOne debit and credit cards, providing members the added convenience of making purchases with just a touch
of their finger. We also launched several enhancements to our iSky Mobile app, including Quick Balance, Fingerprint Login,
We continued to give back to our community. Throughout the year, SkyOne employees organized and participated in
fundraising events to benefit Credit Unions for Kids, a nationwide alliance of credit unions that raises funds for Children’s
Miracle Network Hospitals. We’re proud to report that from SkyOne employees alone, we raised $26,000. We also gave
back to our local community. During the holiday season, SkyOne employees donated presents and blankets to teens and
young adults through the help of Covenant House California, a non-profit organization who reaches out to at-risk homeless
youth living on the streets and offers them hope and opportunities to turn their lives around.
In addition to serving members and our community, we also recognized the importance of engaging our employees. We
believe that having a strong team of employees who are passionate about their work will enable the credit union to better
serve our members. So we began a multi-year initiative to define and build our corporate culture. A team of SkyOne
employees led the effort to identify core values that we all share and live by: integrity, passion, communication, teamwork,
empowerment, and family. We strive to weave these core values into the fabric of culture, and provide even better service
to our members and more robust financial solutions.
In 2016 and beyond, we will continue to look for ways to better serve your needs. We thank you for your loyalty, and invite
you to visit us often (online, over the phone, via social media, and at our branches) to connect with us.
Willoughby E. Henshaw
Chairman, Board of Directors
Eileen C. Rivera
Supervisory Committee Report
Each year, the Board of Directors selects a Supervisory Committee whose duty is to make certain the general safety
and security of the Credit Union. This dedicated group of volunteers oversees the Credit Union’s compliance with the
National Credit Union Administration (NCUA) and our Board of Directors’ policies and procedures. The Committee
also collaborates with third party auditors to ensure that the Credit Union’s security defenses and the integrity of our
daily enterprise are sound, and to assess the risks the Credit Union may face in the near future.
Protecting the safety of your information and assets continues to be our top priority. We continue to go above and
beyond federally mandated audits and conduct extensive tests and audits to help strengthen our commitment to
responsible and secure financial practices. The audit firm of Orth, Chakler, Murnane and Company, CPAs performed
an Opinion Audit for the twelve months ending on June 30, 2015. We are pleased to report that the results of the
opinion audit by the audit firm of Orth, Chakler, Murnane and Company, CPAs, have determined the Credit Union
to be financially sound. In addition to the audits performed by regulators and independent auditing firms, our Risk
Management team conducted numerous internal audits throughout the year.
CastleGarde, a specialist in information security assessments, conducted an exhaustive security analysis of our
computer and network systems, including attack and penetration testing (trying to hack into our servers), onsite
branch assessments (to determine the adequacy of our physical security), and social engineering tests (designed to
test internal security measures, policies, and procedures). We’re pleased to report that CastleGarde failed to infiltrate
our network or gain entry into our servers, and have declared our systems to be secure.
The Supervisory Committee plays a critical role in the Credit Union by keeping our members’ privacy and the safety
of the Credit Union intact. I would like to express my gratitude to our dedicated Supervisory Committee volunteers.
On behalf of the Committee, I would like to extend our appreciation to all the employees of SkyOne and its Board of
Directors, for their ongoing efforts to ensure the safety and soundness of the Credit Union.
Theodore P. Byrne
Chairman, Supervisory Committee
To the following employees for their dedication in serving our members
OVER 5 YEARS
OVER 15 YEARS
OVER 20 YEARS
OVER 10 YEARS
OVER 25 YEARS
Comparative Statement of Financial Condition
Equity Acquired from Merger
Allowance for Loan Losses
Members’ Deposit Accounts
Total Liabilities and Equities
Interest on Investments
Provision for Loan Losses
Interest on Borrowed Funds
NCUSIF Stabilization Expenses
Eileen C. Rivera
President/Chief Executive Officer
Astrid A. Rives
Chief Marketing Officer
Chief Financial Officer
Chief Operating Officer
Comparative Income Statement
Interest on Loans
For 12 months ending December 31. Totals or subtotals may reflect a $1 difference due to rounding.
Chief Technology Officer
Board of Directors
Willoughby E. Henshaw
John G. Clancy
Malachy T. Coghlan
Douglas R. Murphy
M. Wayne Lynch
Theodore P. Byrne
Antonia L. Garcia
Your savings federally insured to at least
$250,000 and backed by the full faith and
credit of the United States Government.