Columbia Credit Union. Making life better since 1952

Transcription

1 Annual Report 2012

2 Columbia Credit Union Making life better since 1952

3 CEO & Chair Report In 2012, Columbia Credit Union celebrated its 60th Anniversary of service and making life better throughout Southwest Washington. With effects of the recession easing and economic conditions improving, credit unions across the nation experienced growth in Columbia was no exception. Throughout the year, the credit union s notable gains facilitated product innovation, community service projects and a strengthening of our overall financial position. In August, Columbia s membership grew to 75,000 members, distinguishing us as the financial institution of choice for nearly one in three Clark County families. If you referred new members to us in 2012, thank you for sharing the value in joining a nonprofit financial cooperative. Columbia maintained solid financial performance throughout the year. Total assets grew to $891 million, a nine percent increase over Our net worth remained above 10 percent, easily surpassing the level considered well capitalized by our regulators. Members continued to put their trust in Columbia, growing deposits eight percent over the previous year to $782 million, making your credit union Clark County s largest local deposit holder. Our deposit strength allowed us to serve families and businesses with affordable borrowing solutions, as evidenced by a five percent loan growth over Members took advantage of terrific auto loan values and historically low mortgage rates, enabling us to continue as Clark County s #1 auto lender and top local mortgage lender. Hundreds of members took advantage of the super low rates and shortened terms in our new RetireIt! Mortgage SM, saving thousands on their path to a mortgagefree retirement. Our business lending team partnered with local businesses to direct over $38 million into our local economy. Businesses play a crucial role in a healthy economy, and we re pleased to contribute to the success of our community. Columbia s dedication to making life better in our community remained strong in Collectively, we logged nearly 1,200 hours of management volunteer service and worked with area nonprofits to help raise over $2.7 million. See a copy of Columbia s 2012 Community Report for more information.

4 2012 Awards & Recognition Dora Maxwell award recipient for outstanding social responsibility projects Voted Clark County s Best Financial Institution for the fourth year in a row Recognized by the Greater Vancouver Chamber of Commerce for community contributions In 2013, expect to see our Operations Center expansion and remodel completed. The new facility will house all back office staff and the expansion will be constructed to LEED Gold certification standards, continuing our commitment to sustainability. You ll also see advancements in technology including a new website and new services to make your banking experience easier, convenient and more secure. As we close our 60th Anniversary of service, making life better continues as our core purpose to improve the quality of life in our community. Thank you for your membership and continued support. Your participation, commitment and recommendations for Columbia Credit Union are greatly appreciated. Steve Kenny - President & CEO Judith L. Chipman - Board Chair

5 Consolidated Statements of Financial Condition (shown in thousands) ASSETS 12/31/12 12/31/11 Cash and due from banks $42,208 $72,822 Restricted equity securities 2,796 2,847 Investment securities availablefor-sale, at fair value 188, ,567 Trading securities, at fair value Loans held-for-sale 2,941 2,163 Loans 633, ,125 Allowance for loan losses (15,053) (18,205) Total loans, net 618, ,920 Other real estate owned (OREO) 6,906 12,170 Accrued interest receivable 2,207 1,959 National Credit Union Share Insurance Fund deposit (NCUSIF) 7,372 6,591 Premises and equipment, net 18,410 19,315 Prepaid and other assets 1,451 1,080 Total assets $890,945 $815,564 LIABILITIES Members shares $782,403 $722,357 Accrued expenses and other liabilities 13,071 11,631 Total liabilities $795,474 $733,988 MEMBERS EQUITY Regular reserve 11,039 11,039 Undivided earnings 81,360 68,094 Accumulated other comprehensive income 3,072 2,443 Total members equity $95,471 $81,576 Total liabilities & members equity $890,945 $815,564

6 Consolidated Statements of Income INTEREST INCOME 12/31/12 12/31/11 Interest and fees on loans to members $30,332 $31,034 Interest on mortgage-backed securities 2,157 1,974 Interest on other investment securities Other interest and dividends Total interest income 32,989 33,312 INTEREST EXPENSE Interest on members shares 2,006 3,018 Total interest expense 2,006 3,018 Net interest income 30,983 30,294 PROVISION FOR LOAN LOSSES (PLL) 1,467 2,986 Net interest income after PLL 29,516 27,308 NON-INTEREST INCOME Fees and service charges 4,305 4,062 Wealth Management income 1, Gain on sale of loans held-for-sale 3,575 1,187 ATM income 4,690 3,758 Loan product income Misc. operating income Total non-interest income 14,793 10,561 NON-INTEREST EXPENSE (shown in thousands) Compensation 10,893 10,165 Employee benefits 2,928 2,840 Staff and official expense Office occupancy expense 2,655 2,519 Office operations expense 3,363 3,404 Computer and electronic services 4,450 3,703 Marketing expense 1,698 1,853 Loan servicing expense Professional services 1,132 1,700 NCUA assessments 700 1,648 OREO operating expense 1,697 2,146 Net (gain) loss on sale of OREO, land, fixed assets and other assets (12) 392 Misc. operating expense Total non-interest expense 31,043 31,797 Net Income $13,266 $6,072

7 Supervisory Committee Report The Supervisory Committee (Committee) of Columbia Community Credit Union (Columbia or Credit Union) is comprised of five members elected by the membership to three-year terms. The Committee conducted regular meetings throughout As a state-chartered credit union, Columbia is bound by Chapter of the Revised Code of Washington (RCW). The Committee duties are enumerated in this Chapter. In accordance with RCW , the Supervisory Committee must: a. Meet at least quarterly; b. Keep fully informed as to the financial condition of the Credit Union and the decisions of the Credit Union s Board; c. Perform or arrange for a complete annual audit of the Credit Union and a verification of its members accounts; and d. Report its findings and recommendations to the Board and make an annual report to members at each annual membership meeting. In addition, the Committee must comply with the applicable sections of Part 715 of National Credit Union Administration (NCUA) rules. The audit firm of Moss Adams, LLP was retained to perform the annual audit of Columbia s financial statements for the fiscal year ending December 31, The audit determined that Columbia s financial statements fairly present the financial condition of the Credit Union. In addition to carrying out its statutory duties noted above, the Committee oversees the Internal Audit Department in its broader audit function. The Department, in some cases through its audit cosourcing partners, provides an additional layer of review through the performance of internal audits

8 and reviews. Qualified Supervisory Committee Report auditing and consulting firms are utilized for their expertise to review areas such as information technology security, business lending, home lending, and compliance, to ensure a thorough, qualified audit or review and an objective internal audit process. As a result of these various audits and reviews, it is the opinion of the Supervisory Committee that the financial condition of Columbia is strong. The Committee believes that the internal controls, policies, and operations of the Credit Union are in compliance with all governmental regulations. The support and cooperation from management and staff has assisted the Committee in the performance of its duties and is greatly appreciated. Questions or comments regarding financial statements, audits, and information in this Report should be directed to Ron Dobyns, Senior Vice President/Chief Financial Officer. Copies of Columbia s 2012 audited financial statements are available from Ron Dobyns upon request. John Bucholtz Supervisory Committee Chair

9 2012 Leadership Board of Directors Bill Barron Judith L. Chipman John Dingethal* Mike England* Charles McDonald Paul Montague, III Larry Paulson* Al Schauer* Lisa Schauer* Patricia Stryker Dean Sutherland Alishia Topper* Supervisory Committee Mona B. Ail John Bucholtz Robin Hayden Lowell McDougal Martin H. Oreschnigg Senior Management Steve Kenny President & Chief Executive Officer William Fulk Executive Vice President Chief Operating Officer Colleen Boccia Sr. Vice President Marketing & Chief Deposit Officer Ron Dobyns Sr. Vice President Chief Financial Officer Michael Florea Sr. Vice President Chief Information Officer Lindsey Salvestrin Sr. Vice President Service Delivery & Project Manager Dee Anne Cloke Sr. Vice President Human Resources *Served partial year in 2012

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