Annual Report to Members. Federally insured by NCUA

Transcription

1 2016 Annual Report to Members Federally insured by NCUA

2 Chairman s Message Dear Member-Owners, Marge White Chairman of the Board There are some new faces around Virginia Credit Union, quite a few, in fact. In 2016, your credit union s membership grew to 254,738 members, the highest number ever. We added 83 new employees in order to keep up with demand from members for services. Our members volunteered their time in new ways. They helped select student scholarship winners, participated in committees, and served on the Board as associate members. In March, Chris Shockley became the new President/CEO of VACU. Your Board selected Chris based on his strong qualifications, including 12 years as an Executive Vice President at VACU. We set a new record for participants in our financial education programs. Over 17,289 individuals were reached. There is a lot that is new. But one thing that will never change is your credit union s purpose helping you succeed and gain greater confidence with your finances. Total assets grew to $3.3 billion. VACU provided $1.3 billion in loans to members, the most ever. Total loans grew by more than 16%. Member deposits grew by more than 10%. VACU posted net income of $19.6 million. Virginia Credit Union s net worth ratio was 9.31% at year-end. Credit unions are considered by regulators to be well capitalized when their net worth ratio is above 7 percent. Service Enhancements In 2016, your credit union found new ways to enhance the service it provides. A new mobile app was launched for better mobile banking. The new features included Touch ID, quick balance information, account nicknames, and more. Microsoft Wallet and Masterpass were made available to members. Digital wallets offer convenient and secure ways to make purchases with your VACU credit and debit cards. Apple Watch users were able to access our Mobile Banking app from their devices. The VACU Voice ID service was introduced for faster and more secure identification when calling Member Services for assistance with your accounts. Enhanced Benefit Checking gave added benefits to members with deeper deposit relationships. One-time online loan payments were introduced. VACU Business Services grew, making a positive impact for small businesses in our community and strengthening the credit union with additional loans and deposits. As always, your credit union s aim is to help you manage your finances and enable you to reach your financial goals. Please tell us how we can assist you. Thank you for your loyalty and support. PERFORMANCE Marge White Chairman of the Board

3 Supervisory Committee Report Virginia Credit Union s Supervisory Committee is responsible for ensuring that credit union policies, procedures and internal controls are adequately designed to protect members assets against fraud and conflict of interest. This committee consists of volunteers who apply to serve and are appointed by the Board of Directors. In carrying out its duties, the Committee oversees and reviews the activities of the internal audit department. The Supervisory Committee is also responsible for ensuring that the financial condition of the credit union is accurately presented in the credit union s financial statements by engaging an independent audit firm. The independent auditor s report, issued by CliftonLarsonAllen LLP, for the year ended December 31, 2016, confirmed that the financial statements fairly present, in all material respects, the credit union s financial position and conform with generally accepted accounting principles. The financial statements, related footnotes and auditor s report are on file at the credit union for members review. The State Corporation Commission s Bureau of Financial Institutions, the credit union s primary regulator, also conducts periodic examinations of records and operations. The Bureau s review of the credit union s records as of December 31, 2016 is in process. The Supervisory Committee is pleased to report these positive results and to be of service to the Virginia Credit Union membership. If you have questions, please contact a member of your credit union s management team, Board of Directors or Supervisory Committee. Anne B. Hagen Chairman Richmond Cycling Corps The Richmond Cycling Corps built a new Outreach Center with help from VACU Business Services. RCC is reaching youth from Richmond s public housing communities through the sport of cycling. Executive Director Craig Dodson was one of the finalists for the CNN Heroes of Richmond Cycling Corps photos above and on cover courtesy of Nick Davis Photography

4 Friends of the Chesterfield Library VACU strengthened ties with Chesterfield County Public Library branches during Members of the Friends of the Library are eligible to join VACU and benefit from money-saving programs and financial education. Pictured is Angela Bennett, Manager of the Enon and Ettrick-Matoaca branch libraries. VACU staff volunteered to prepare meals in the Community Kitchen at FeedMore. The credit union s support includes member and employee food drives, volunteer work days and financial contributions. The Money Spot at VCU VACU launched a collaboration with Virginia Commonwealth University to help promote financial literacy. VACU provided training to 9 student counselors to serve as money coaches to their peers on budgeting, understanding credit and managing student loans. Chris Shockley became Virginia Credit Union s President/CEO on March 31, He previously served as Executive Vice President covering multiple areas of member services including branches, lending, business services, cards and payments. Virginia Credit Union employees stepped up to renovate a children s therapy room at the offices of Stop Child Abuse Now (SCAN).

5 Treasurer s Report Virginia Credit Union, Inc. Consolidated Statements of Financial Condition December 31, 2016 and 2015 (dollars in thousands) Assets Loans $2,241,204 $1,919,322 Less Allowance for Loan Losses 23,408 21,553 Net Loans 2,217,796 1,897,769 Investments 955, ,874 Other Assets 130, ,606 TOTAL ASSETS $3,303,926 $2,920,249 Liabilities and Members Equity Members Shares $2,662,268 $2,416,344 Borrowed Funds 314, ,623 Other Liabilities 48,200 37,249 Members Equity 278, ,033 TOTAL LIABILITIES AND MEMBERS EQUITY $3,303,926 $2,920,249 Consolidated Statements of Income For the Years Ended December 31, 2016 and 2015 (dollars in thousands) Interest Income Interest on Loans $107,417 $97,283 Provision for Loan Loss 16,289 12,168 Net Interest on Loans 91,128 85,115 Interest on Investments 12,517 10,742 Total Interest Income 103,645 95,857 Less Cost of Funds Share Dividends 18,961 15,112 Borrowed Funds 5,937 4,788 Total Cost of Funds 24,898 19,900 Net Interest Income 78,747 75,957 Other Income 48,949 42,814 Less Other Expenses 108,107 93,793 Net Income $19,589 $24,978 Neila L. Gunter Treasurer

6 Volunteers Board of Directors Margaret E. White, Chairman Eric B. Tolbert, Vice Chairman Neila L. Gunter, Secretary/Treasurer Belinda W. Blanchard Robert B. Jones, Jr. Robert P. Morris Herbert A. Parr Roscoe C. Roberts D. B. Smit Paul D. Thompson Janet C. Wiglesworth Associate Directors Kenneth E. Ampy J. T. Grier Tracy McCabe Honorary Directors Ray C. Goodwin Donald E. Williams Supervisory Committee Anne B. Hagen, Chairman James M. Holland, Secretary Elizabeth F. Smith David L. Walsh Asset Liability Committee Manju S. Ganeriwala, Member-at-Large Farmville Advisory Council Sheron Jenkins Fletia Lewis Michael O York Kylor Reed, Jr. Mary Jo Stockton Fredericksburg Advisory Council Mary Buck Rose Heyward Brian Orrock Debbie Queen Brooke Sullivan President/CEO Christopher M. Shockley (804) (800) vacu.org Visit a branch Mobile Virginia Credit Union P.O. Box Richmond, VA NMLS#