Board of Directors. Supervisory Committee

Transcription

1 2012 ANNUAL REPORT

2 Contents Board of Directors Management Report 2 Supervisory Committee Report 3 Credit Committee Report 4 Robert Wolpert... Chairman Brian Raczynski... Vice Chairman Larry Pfeiffer...Treasurer Kathleen Shanahan... Secretary Ted Dwyer... Director John Riddle... Director Bob Kirby... Director Supervisory Committee 2012 Financials 5-6 About Arizona Central 7-8 John Riddle... Chairman Mark Denke... Member Sandy Watts... Member Patrick Huston... Member Stephanie McQuillan... Member Branch Locations & Hours 9-10 Strategic Management Team 10 Todd A. Pearson...President/CEO John Wright...Senior Vice President/CFO Adam Jones...Senior Vice President/CIO Janet Moodie... Vice President, Operations Mary Harwood...Vice President, Human Resources Kathy Pluhowsky...Vice President, Risk Management Yvette Casillas Clay... Vice President, Lending Mike Neill...Vice President, Finance & Accounting Branch Locations & Hours

3 Branch Locations & Hours Management Report Member Service Apply for a Loan MOM TouchTone Teller Call (602) or toll free Branch Locations Chandler W. Chandler Blvd. Flagstaff N. West St. Flagstaff S. Woodlands Village Blvd. Glendale W. Bell Rd. Glendale W. Glendale Ave. Phoenix N. Central Ave., #100 Show Low S. White Mountain Rd., Suite D Tempe S. Price Rd. Tucson S. Alvernon Way Tucson W. Ina Rd. ATM Locations Available at all branches, plus: Maryvale Medical Center, 5102 W. Campbell Ave., Phoenix (cash dispense only; near cafeteria) Phoenix Baptist Hospital, 2000 W. Bethany Home Rd., Phoenix (cash dispense only; near cafeteria) West Valley Hospital, W. McDowell Rd., Goodyear (cash dispense only; in cafeteria) Arrowhead Hospital, N. 67th Ave., Glendale (cash dispense only; in cafeteria) More than 50,000 surcharge-free Allpoint ATMs Hours of Operation Mon, Tue, Thr, Fri... 8:30 a.m. - 6 p.m. Wed...10 a.m. - 6 p.m. Sat (select branches)... 9 a.m. - 1 p.m. Indicates branches with Saturday hours Locations nationwide CU SWIRL Federally insured by NCUA Products & services described in this brochure are subject to change without notice. 9 2 Financial Focus 2012 continued the path to economic recovery across the country. Arizona Central made great strides increasing our capital ratio from 7.75% in 2011 to 8.63% in Arizona Central s financial picture remains stable and shows that we are indeed a safe and financially sound institution and as 2012 wound down, we held a year-end net income of $3,486,972. This is an increase of $2,586,446 from 2011 s net income. Although we have seen growth in many areas, we are still committed to increasing our loan portfolio and making strides where in recent years it has been difficult from an economic standpoint. In 2012 our loans increased by $10,245,018. Member Focus We understand that our members have a choice in who they conduct their financial business with. This is why in 2012 we made it our focus to provide additional products and services that through member feedback were determined to be a priority. In 2012 we were excited to launch online services including FinanceWorks, Popmoney, Funds Transfer, Mobile Banking, Text Message (SMS) Banking and mobile apps for Apple and Android products. Simply putting member s finances at their fingertips. In addition to our new online services Arizona Central introduced the istyle Checking Account for members 13 to 23 years old and the ability to esign documents further increasing the convenience of membership. Community Focus In 2012 Arizona Central continued to build our relationship with local non-profit organizations that are near and dear to our hearts. Throughout the year employees, family members, and friends participated in 68 community engagement activities and donated 2,492 hours of service. Organizations Arizona Central supported in 2012 include Credit Union for Kids, Children s Miracle Network and the American Cancer Society. Arizona Central also hosted our first charity golf tournament which benefited the Children s Miracle Network. This was a very successful event and we look forward to putting on another great tournament in 2013! We would like to congratulate our Volunteer of the Year Jeri DiDay. Jeri donated 126 hours of service in We thank you for choosing Arizona Central and look forward to serving you in Respectfully submitted, Robert Wolpert, Chairman Todd Pearson, President/CEO Management Report

4 Supervisory Committee Report Member Service Pledge The volunteers of the Supervisory Committee are appointed by the Board of Directors to watch over the members interests in Arizona Central Credit Union. Each year we review credit union records to ensure the staff carried out their duties responsibly and that Arizona Central was properly operated, while maintaining all required documentation and conforming to federal, state, and local laws and regulations. To assist in these duties, the Committee retained the Certified Public Accounting firm of Orth, Chakler, Murnane and Company, CPAs. This firm conducted their regular audit of operations and verified members accounts in order to issue an opinion on the credit union s financial statements. Arizona Central is state chartered and is regulated and examined by the Arizona Department of Financial Institutions as well as the National Credit Union Administration. As further protection of member funds, a $5 million blanket surety bond covers such risks as embezzlement, theft, forgery, and burglary. In addition, adequate casualty insurance is in force. To be available to assist you with your financial transactions 24/7 by providing a combination of live and automated support options. To maintain a positive, friendly attitude. To give you our full and complete attention so you feel as if you are the only member we will assist all day. To be knowledgeable about our jobs and the credit union s products and services so we may assist you in reaching your financial goals. To be thorough in our interactions with you to ensure we are meeting your needs. Member Services & Benefits To be accurate when processing your transactions and answering your questions. To show respect for your busy schedule by assisting you in a timely and efficient manner. To be accountable for finding the answers you need and minimizing the need to refer you to another employee or department. To work as a team so we can serve you better. To consistently provide excellent service so you ll be proud to be a member of Arizona Central Credit Union. The Supervisory Committee would like to thank the members of Arizona Central Credit Union for the privilege of serving them. Respectfully submitted, John W. Riddle, Supervisory Committee Chairman Comparison Tables $404,819,561 Asset Growth $395,543,331 $397,431, $400 $300 $200 $374,274,884 Deposit Growth $360,370,402 $356,980, $400 $300 $ Member Share Accounts LifeStyle Checking Accounts Money Market Accounts Certificates & IRAs Health Savings Accounts You-Name-It Savings Accounts Central Points TM Member Rewards Program New & Used Vehicle Loans Credit Union Advantage & AutoSMART Lines of Credit, Debt Consolidation & Signature Loans Mortgages & Home Equity Loans Visa Gold, Classic & Secured Credit Cards Quik Money Card (ATM-only card) Small Business Savings, Checking & Loans ebranch Remote Deposit FinanceWorks Popmoney & Funds Transfer Mobile Banking, SMS Banking & Mobile Apps Payroll Deduction & Direct Deposit MOM 24-Hour TouchTone Teller CU Services Network Nationwide shared branching Allpoint Surcharge-Free ATM Network ebranch Online Banking & Bill Pay Services Mechanical Breakdown Protection & Guaranteed Asset Protection policies MEMBER S Choice TM Borrower Security Arizona Central Financial Services* Auto, Life & Homeowner s Insurance through CUNA Mutual Insurance Group Clown Club Savings Program (12 years old & younger) CU Succeed Savings Program (13-17 years old) Free Notary Public Services 24-Hour Depository Vacation & Travel Discounts * For tax advice, consult a tax advisor. For legal advice, consult your attorney. Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. About Arizona Central

5 About Arizona Central Credit Committee Report Vision Helping people achieve financial success for every stage of life. During 2012 Arizona Central s lending staff booked over $115.6 million in new loans, more than doubling gross new loan volume from the previous year. This total includes mortgage loans booked at ACCU and sold on the secondary market. Although loan growth came from all areas, commercial and mortgage lending channels saw the greatest increase. The Visa Credit Card program generated 455,106 transactions and $27,373,708 in purchases. Mission We will become the primary financial institution for members, contribute to the wellbeing of the community, and maintain financial strength and stability promoting sound growth and member loyalty. We will do whatever it takes to provide exceptional service and expert guidance to help our members achieve their financial success. Total loans outstanding for the year were $207,553, as compared to 2011 year end, $197,308, Our total first mortgage loan portfolio serviced by ACCU ended with 238 loans for a total of $35.5 million. We booked first mortgage real estate loans totaling over $46.3 million, including loans sold. Our Committee is purposeful and dedicated to reviewing the quality and trends affecting our portfolio and overseeing effectiveness and administration of credit related policies. We look to forward to 2013 and meeting our aggressive strategic goals. Service Standards When you speak to one of our employees you can expect to receive a FRIENDLY SMILE and a SINCERE GREETING. We ll treat you with respect and CALL YOU BY NAME during your transaction. We ll take time to answer your questions and OFFER ADDITIONAL ASSISTANCE so you feel comfortable about your financial decisions. Finally, we ll THANK YOU FOR YOUR BUSINESS because we know that serving you, our member, is our highest priority. Arizona Central staff working at the Garden of Tomorrow for In Service, February Respectfully submitted, Yvette Casillas Clay, Credit Committee Chairman 1st Annual Golf Tournament benefiting the Children s Miracle Network. November Supervisory Committee Report / Credit Committee Report

6 Statement of Financial Condition Statement of Income ASSETS LIABILITIES Loans: Net Allowance for Loan Losses $201,805,661 $187,005,643 Total Loans Held for Sale (HFS) *, Cash & Accounts Receivables 11,092,634 5,354,585 Corporate Capital & Other Investments 3,501,425 2,724,225 Corporate Account Deposits & Certificates 30,834,966 87,387,101 Marketable Investments 111,106,238 74,979,539 Fixed Assets 29,871,183 28,934,981 Accrued Interest, Prepaid & Other Assets 5,644,720 5,497,121 NCUSIF Deposit 3,574,711 3,660,136 TOTAL ASSETS 397,431, ,543,331 Total Payables 6,896,834 4,614,115 Total Member Deposits 356,980, ,370,402 Total Liabilities 363,877, ,984,517 Members Capital 33,554,151 30,558,814 TOTAL LIABILITIES & MEMBERS EQUITY $397,431,538 $395,543,331 INTEREST INCOME & EXPENSE Interest on Loans $12,507,900 $14,372,755 Interest on Investments 1,964,731 1,926,034 Total Interest Income 14,472,631 16,298,788 Total Dividends & Interest Expense 903,175 1,276,598 Net Interest Income 13,569,456 15,022,190 Provisions for Loan Losses 707,597 4,407,227 Net Interest Income After Provision 12,861,859 10,614,963 NON-INTEREST INCOME Fees & Charges 4,973,920 4,550,033 Other Non-Interest Income 5,398,072 4,938,935 Total Non-Interest Income 10,371,992 9,488,968 NON-INTEREST EXPENSE Compensation & Benefits 8,027,060 7,544,397 Occupancy 4,787,160 4,757,570 Operations 4,466,612 4,151,967 Marketing 727, ,931 Professional Fees 194, ,249 NCUA Share Insurance 339, ,035 Other Non-Interest Expense 999, ,283 * HFS is new category in Total Non-Interest Expense 19,542,322 19,281,431 Gain/(Loss) on Investments & Fixed Assets (204,557) 78,027 NET INCOME (Loss) $3,486,972 $900, Financials