SF POLICE CREDIT UNION ANNUAL REPORT. Financial Services for First Responders

Transcription

1 2011 SF POLICE CREDIT UNION Federally insured by NCUA ANNUAL REPORT Financial Services for First Responders

2 A MESSAGE FROM OUR PRESIDENT/CEO ONWARD TO 2012 Although still in a state of uncertainty, the outlook is optimistic as the country steadily works to repair the economy. It is with great pride and determination that SFPCU continues to serve our members in an effort to ease any fi nancial burden that may have been encountered during turbulent times. In 2011, we offered our members personalized fi nancial solutions and expert guidance to help alleviate stress and encourage prosperity. With lowered loan rates and competitive interest rates, our members were able to take advantage of an outstanding product offering. Safe, strong and well capitalized, SFPCU remains a secure financial institution that continues to provide exceptional service and fulfi ll the fi nancial needs of our members. Ending 2011 with more than 31,200 members and $4.2 million in net income, we maintained positive growth. In addition to 4% loan growth and 9% share growth, SFPCU has over 13% capital in reserve, which is above the national average of 10%.* As part of the 2011 initiative to increase effi ciency, the Executive Team focused on enhancing internal processes to better the member experience. The efficiency goals for 2011 included streamlining the internal loan and account opening procedures. By condensing loan forms and refi ning common practices, we improved the member experience through quicker approvals and faster service. It was my pleasure to see the strategy translate into tangible results for our membership. Michael R. Sordelli President/CEO 1 SF POLICE CREDIT UNION

3 Welcoming the members of 1st Choice Federal Credit Union to the SFPCU family was an honor. Having primarily served members of the healthcare community in the Castro Valley area, the merger brought together two credit unions with complimentary visions and a commitment to member satisfaction. The merger also gave SFPCU the opportunity to extend its products and services to 1,800 new members and offer the convenience of a new branch location to the existing membership. As we move on to 2012, SFPCU will not waver from the standard of maintaining a healthy capital reserve, a solid loan portfolio and BauerFinancial s 5-Star rating. We will continue to challenge ourselves to discover new innovations that will benefit our members, making your convenience our priority. SFPCU welcomes any suggestions from our members on how to better serve you. As always, thank you for your support. Respectfully yours, Michael R. Sordelli President/CEO MISSION STATEMENT Become the trusted primary fi nancial institution for members and potential members while maintaining earnings and reserves which promote sound growth. We will provide exceptional service, outstanding products and expert guidance to help our members prosper. SERVICE PROMISES As a member of the SF Police Credit Union, Our Promise to you is To WELCOME you with a friendly tone and smile To DEMONSTRATE a can-do attitude To PROVIDE you with valuable solutions To RESPOND to your service needs promptly and accurately To THANK YOU for your business *Source: Callahan & Associates, September 30, ANNUAL REPORT 2

4 CHAIRMAN AND BOARD OF DIRECTORS REPORT Richard Lyons Corriea Chairman, Board of Directors In these challenging economic times, businesses and individuals have struggled in ways which were unimaginable just ten years ago. I am, however, delighted to report to you that the staff of the SF Police Credit Union and your Board of Directors have remained vigilant for both opportunity and risk throughout the economic downturn. While always keeping our members needs at the forefront of decision making, we have successfully maintained a Credit Union that is safe, sound and well capitalized. With that foundation, our assets have grown to more than 695 million dollars and we have added nearly four thousand new members this past year. Our capital ratio is tops in the industry and we continue to provide members with a good return on their investments. The benefits of membership have increased and our online services are now top notch. The Credit Union serves those that serve. And it is our history, traditions and the nobility of the work of First Responders which guides your Credit Union employees and volunteers to do what is best for the membership. The Credit Union is strategically poised to assure its continued strength and ability to meet the needs of our growing membership. We are committed to prospering in a crowded and competitive world, meet the expectations of our current members and the needs of the next generation of First Responders. This new year means that Board Members David Mayer and John Kristovich will be leaving the team after decades of volunteer service to the membership. Their experience and guidance will be missed and I wish them the best. Mike Hebel and John Mindermann are our new Board Members and the entire board is looking forward to working with each of them. Best wishes to each of you for a prosperous, happy and healthy SF POLICE CREDIT UNION

5 FINANCIAL STATEMENT SF Police Credit Union Financial and Statistic report for period ending December 31, 2011 after closing.* ASSETS Total loans $ 334,583,162 Less allowance for potential loss (6,665,572) Net loans $ 327,917,590 Total cash $ 20,921,158 Total investment 316,798,594 Total prepaid and deferred expenses 590,121 Property and equipment (net of depreciation) 6,689,431 Other assets 22,151,154 Total assets $ 695,068,048 LIABILITIES AND MEMBERS EQUITY LIABILITIES Members shares $ 591,603,224 Accrued expenses and other liabilities 2,562,491 Total liabilities $ 594,165,715 MEMBERS EQUITY Retained earnings, substantially restricted $ 92,905,715 Accumulated other comprehensive income/(loss) 7,996,618 Total members equity $ 100,902,333 Total liabilities and members equity $ 695,068,048 *Unaudited fi nancial statements ANNUAL REPORT 4

6 SUMMARY OF INCOME INCOME Loans $ 18,418,598 Corporate credit union 58,997 Federal agency securities 9,372,043 Fees and charges 1,045,967 Miscellaneaous income 1,636,784 Other investments 453,340 Other non-operating income/(expense) 407,662 Total income $ 31,393,391 EXPENSES Employee compensation and benefi ts $ 8,144,803 Offi ce occupancy and operations 4,336,065 Provision for loan losses 5,199,692 Member insurance 170,220 Other operating expenses 3,953,028 Dividends 5,367,843 Total expenses $ 27,171,652 LOANS Mortgage $ 193,644,915 Shared secured 1,206,756 Signature 9,809,733 Vehicle 42,771,202 Other loans 2,080,018 Participation loans 47,806,540 Visa loans 37,263,999 Total loans $ 334,583,162 Loans Employee compensation and benefits Mortgage Corporate credit union Office occupancy and operations Share secured Federal agency securities Provision for loan losses Signature Fees and charges Member insurance Vehicle Miscellaneous income Other operating expenses Other loans Other investments Dividends Participation loans Other non-operating income/(expense) Visa loans 5 SF POLICE CREDIT UNION

7 NEW LOANS FUNDED 90 $83,603, Loans Funded in 2011 (in Millions of Dollars) Total Loans $46,935,375 Mortgage Loans $28,447,913 Vehicle Loans $6,861,710 Unsecured Loans $1,358,405 Other Loans 2011 ANNUAL REPORT 6

8 SUPERVISORY COMMITTEE REPORT In 2011, we witnessed a slow shift toward optimism. Although uncertainty lingers, we are gradually strengthening our battered economy. Growth and jobs remain focal points as the U.S. labors to regain its footing. Despite the instability that caused other fi nancial institutions to struggle, SFPCU remained fi nancially sound and secure. A strong balance sheet, capital structure and networth, coupled with a loyal membership, continue to make SFPCU a safe place for members to entrust with their hard-earned savings. While other financial institutions elected to charge their customers for traditionally free services, SFPCU remained true to its commitment to serving the members needs and making sound decisions that are in the best interest of its loyal membership. Your member-elected Supervisory Committee is directly responsible to the membership to ensure that board actions, audits and operational functions are in compliance with the rules and regulations of SFPCU, State (DFI) and Federal (NCUA) guidelines. We emphatically state that our Credit Union operates as a safe, effi cient, fi nancially sound and well capitalized affi nitygroup Credit Union. SFPCU remains faithful to its vision statement, become the fi nancial institution of choice for Bay Area First Responders. Our Credit Union also remains committed to its mission statement, providing exceptional service, outstanding products and expert guidance to help our members prosper. Your Supervisory Committee helps keep our Credit Union focused and operating in our best fi nancial interests. The year 2012 will bring new fi nancial initiatives that will clearly exhibit our Credit Union s dedication to earning your business and rewarding your loyalty. We are pleased to report that our Credit Union has received, for its 86th consecutive quarter, the prestigious BauerFinancial 5-Star rating, the highest rating given for credit union excellence, safety and soundness. As required by the California Financial Code, we proudly submit the following important measures of fi nancial health as of December 31, Total Assets: $695,068,048 Retained Earnings: $92,905,715 Total Loans: $334,583,162 Dividends Paid: $5,367,843 Total Shares: $591,603,224 Retained Members: 31,224 Your Supervisory Committee extends its gratitude to the SFPCU employees, Board of Directors, and volunteers. Thank you for your contributions and hard work. You made 2011 another successful and prosperous year. Frank Hedley Chairperson Barbara Brewster Committee Member John Goldberg Committee Member 7 SF POLICE CREDIT UNION

9 INDEPENDENT AUDITORS REPORT We have audited the accompanying statements of fi nancial condition of SF Police Credit Union (the credit union) as of December 31, 2010 and 2009, and the related statements of income, comprehensive income, members equity, and cash fl ows for the years then ended. These fi nancial statements are the responsibility of the credit union s management. Our responsibility is to express an opinion on these fi nancial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the fi nancial statements referred to above present fairly, in all material respects, the fi nancial position of SF Police Credit Union as of December 31, 2010 and 2009, and the results of its operations and its cash fl ows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Turner, Warren, Hwang & Conrad Accountancy Corporation April 14, ANNUAL REPORT 8

10 ELECTION COMMITTEE REPORT As Chairman of the 2012 Election Committee, I am happy to report that under SF Police Credit Union Bylaws Article VIII Section 7, the number of candidates for the Board of Directors is equal to the number of vacancies. Candidates Michael Hebel and John Mindermann will be seated on the Board of Directors for a three year term beginning Congratulations to Mike and John. We will be holding an election for one position on the Supervisory Committee between Barbara Brewster and Desiree Perez. We wish the best of luck to both Barbara and Desiree. Respectfully submitted, Election Committee Robert Puts Chairman David Mayer Board of Directors Glenn Sylvester Board of Directors 9 SF POLICE CREDIT UNION

11 TECHNOLOGY FOCUS The year 2011 was a time of change, growth and positive accomplishments for SF Police Credit Union. To keep up with technological trends and offer our members increased convenience in 2011, we introduced a new Online Banking system with enhanced services. Here s a look at some of our exciting new features we introduced. ENHANCED ONLINE BANKING The goal for the new system was to make it easy for our members to do their banking at SFPCU and support continued technological growth. Since its introduction in February, we have seen our Online Banking users increase 56%. The new system features improved navigation and included the following new services: Ability to transfer funds between institutions Personal fi nancial management tools and mobile account alerts Online check deposits MOBILE BANKING We launched Mobile Banking, along with an iphone app, and most recently an Android app, which give you access to your accounts anywhere, anytime. Check balances, track deposits, transfer funds, and pay bills Locate fee-free ATMs closest to you Free SFPCU app downloadable from the itunes App Store and the Android Market Venturing into the realm of social media, SFPCU ended 2011 with more than 225 Facebook fans, providing them the latest news, promotion and event updates. Moving forward in 2012, we will delve deeper into social media and technology platforms as we continue to make convenience a priority. Visit to Like our Facebook page. In 2012 we will remain focused on investing in the people, technology and infrastructure to make your banking at SFPCU as easy as possible. Look for new enhancements in 2012, including upgraded ATMs and the ability to make transfers to anyone, even if they are not an SFPCU member. We are committed to providing you with the tools and information you need for fi nancial success. ONLINE BANKING ENROLLMENT LINK QR codes are two-dimensional bar codes that can be scanned using a smartphone camera (with the right smartphone app installed). Scan the one on the left to be taken to our Online Banking enrollment page. Android Market is a trademark of Google Inc ANNUAL REPORT 10

12 COMMUNITY OUTREACH SFPCU believes in continuing the tradition of lending support to charitable organizations in the Bay Area. Proudly working alongside First Responders, we helped raise funds for worthwhile causes which positively impact our community. This year we are pleased to highlight some of our most signifi cant and benefi cial events. LAW ENFORCEMENT APPRECIATION NIGHT AT SF GIANTS GAME Once again, SFPCU partnered with SFPD to help raise awareness and funds for two outstanding nonprofi t organizations. The Bay Area Law Enforcement Assistance Fund and the California Peace Offi cers Memorial Foundation benefi ted from a portion of every ticket purchased. Both organizations help local law enforcement families affected by a loved one lost in the line of duty. BIKE THE BRIDGES SFPCU co-sponsored the cyclist event with proceeds benefi ting the Special Olympics Northern California. Together, with public safety agencies from all over the Bay Area, volunteers worked to fundraise for a great cause. The scenic route included crossing the Carquinez Bridge and Benicia Bridge in Solano County and travel through greater parts of Contra Costa County. ALISA ANN RUCH BURN RELAY Along with fi re department vehicles, SFPCU participated in a motorcade starting from Moffett Field and ending in the San Francisco Fire Training Facility, to support programs for younger burn victims. In conjunction with the San Francisco Black Firefi ghters Association, SFPCU worked hand in hand to co-sponsor the event s dinner for all participants. GUNS AND HOSES CHARITY TENNIS CHALLENGE Hosted by the San Francisco Tennis Club, San Francisco Police Offi cers Association and The San Francisco Firefi ghters Union 798, SFPCU team members supported this annual charity event that benefi ted the Bay Area Law Enforcement Assistance Fund and the San Francisco Firefi ghters Toy Program. CALIFORNIA CREDIT UNION LEAGUE (CCUL) SAN FRANCISCO CHAPTER ACTIVITIES As part of the CCUL, SF Police Credit Union works alongside other Bay Area Credit Unions to lend support for fundraising efforts. In 2011, SFPCU supported the 25th Annual AIDS Walk, an event where participants walk to raise money and awareness for the San Francisco AIDS Foundation. 11 SF POLICE CREDIT UNION

13 Safe, strong and well capitalized, SFPCU remains a secure financial institution that continues to provide exceptional service... Michael R. Sordelli President/CEO 2011 ANNUAL REPORT 12

14 BRANCH LOCATIONS AND CONTACT INFORMATION BRANCH AND ATM LOCATIONS In addition to SFPCU locations, as an SFPCU member you also have access to fee-free CO-OP Network ATMs, Shared Branch locations and Bank of the West ATMs. To fi nd the fee-free location closest to you, visit SFPCU ONLINE Online Banking Mobile Banking iphone and Android Mobile Banking Apps Search for SF Police CU in the itunes App Store or Android Market to download our app for free! Facebook SFPCU CONTACT INFORMATION 24/7 Call Center MemberLink 24-hour Transactions OTHER SFPCU SERVICES MEMBERS Financial Services BALANCE SM Program Auto Buying Service ADDITIONAL INFORMATON Lost or Stolen Cards Visa Credit Card MasterCard Debit Card (after hours) Falcon Fraud Service Center Visa Credit Card MasterCard Debit Card Shared Branch Locations CO-OP Network ATM Locations Over 28,000 ATMs Nationwide 888.SITE.COOP ( ) Routing Number SFPCU SERVICES Take a look at the many outstanding services available for you and your family 24/7 Call Center Online Banking with Online Check Deposit Online Bill Pay Mobile Banking iphone and Android Mobile Banking Apps E-statements Global ATM Checking with Unlimited ATM Rebates Direct Deposit & Payroll Deduction Visa Credit Cards First Responder Loans Mortgage & Home Equity Loans Personal Loans Student Loans New/Used Auto Loans No-Cost Auto Buying Service Certifi cates of Deposit Holiday Accounts Membership at SF Police Credit Union is open exclusively to First Responders and their families. 13 SF POLICE CREDIT UNION

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16 Financial Services for First Responders