Our Members Futures Depend on our Ability to Maximize the Value of the Assets Entrusted to us.

Transcription

1 ANNUAL REPORT 2016

2 Our Members Futures Depend on our Ability to Maximize the Value of the Assets Entrusted to us. OUR VISION To become our members first choice through advocacy, innovation, and service. OUR MISSION Jax Federal Credit Union exists to encourage the financial success of our membership. OUR VALUE PROPOSITION We take the hassle out of financial services. We make it easy for our members.

3 MESSAGE FROM THE PRESIDENT AND CHAIRMAN Gerri F. Sexsion President and CEO Donald W. Bottin 2016 Chairman JAXFCU EXECUTIVE TEAM Gerri F. Sexsion President and CEO Mary Svoboda Chief Operating Officer Tamara Byrd Chief Financial Officer Hallie Day Chief Human Resources Officer Angie Coleman-Rao Chief Marketing Officer Manish Kothari Chief Information Systems Officer On behalf of the Board of Directors and the Executive Management Team, I want to express gratitude to our members and commend our associates for their contributions to our success in 2015 that led to many accomplishments and awards. To recap, Jax Federal Credit Union was a 2015 LSCU Credit Union of the Year, and we also received the Shared Branching Award of Excellence, the Business of the Year Award from the Duval County Extension Bureau, and the CUDL Portfolio Analysis Award. As we completed our fiscal year ending June 20, 2016, we saw positive results. Assets and Members Equity increased from $339,604,079 to $362,183,231 representing a 6.65% increase. Loans to members also increased from $226,480,505 to $245,186,532, a 7.31% increase year over year. Net income increased 11.67% from $2,412,611 to $2,694,069. Jax Federal offered several financial wellness classes at Unity Plaza including topics ranging from the 21-day Financial Fast to a Home Buying Seminar, and Mastering Your Credit. We hosted free member shredding days in January and April. We also enjoyed some new product enhancements this year such as no closing costs and no PMI (Private Mortgage Insurance) options on First Mortgage Loans. We helped over 1,500 members with $6.4 million in balances dig out of debt with a VISA balance transfer that was fixed for the life of the balance. Finally, Jax Federal Credit Union staff donated or raised $18,500 for local charities. The most exciting news to report is our upcoming merger with DUCOTE Federal Credit Union. The NCUA approved the merger on July 29, 2016, and DUCOTE s members voted their approval on August 23, Originally founded in 1938, DUCOTE FCU assets total $3,153,579. They currently serve 835 educational-based members from one location on Myrtle Avenue. Jax Federal Credit Union offers great convenience to DUCOTE members with expanded products and services, 5,000 Shared Branches, 30,000 Surcharge-free ATMs, and seven local public access branches around Jacksonville. We look forward to welcoming DUCOTE members into the Jax Federal Credit Union family. As always, we are grateful for our loyal members, without whose support, Jax Federal could not remain the strong and well-capitalized financial institution that it is today. On behalf of our Board of Directors, we have been honored to serve our members and appreciate the trust and confidence placed in us. Sincerely, Gerri F. Sexsion, President and CEO Donald W. Bottin, Chairman of the Board

4 STATEMENT OF FINANCIAL CONDITION ASSETS As of June 30, 2016 As of June 30, 2015 Cash $4,503,926 $4,121,430 Investments: Available for Sale $34,833,658 $36,125,749 Other $51,203,502 $48,525,214 Loans to Members, Net of Allowance for Loan Losses $245,186,532 $228,480,505 Other Receivables $12,047,425 $8,451,934 Accrued Interest Receivable: Investments $113,367 $73,897 Loans $531,983 $488,261 Prepaid and Other Assets $2,944,133 $2,102,583 Property and Equipment, Net $7,877,909 $8,374,997 NCUSIF Deposit $2,940,796 $2,859,509 Total Assets $362,183,231 $339,604,079 LIABILITIES Members Share and Savings Accounts $315,518,790 $295,110,254 Accounts Payable $3,054,692 $2,959,635 Interest Payable $69,176 $69,597 Borrowed Funds $6,000,000 $6,857,143 Other Accrued Liabilities $818,238 $698,826 Total Liabilities $325,460,896 $305,695,455 MEMBERS EQUITY Regular Reserve $9,193,682 $9,193,682 Undivided Earnings $27,348,714 $24,654,646 Accumulated Other Comprehensive Income $179,939 $60,296 Total Members Equity $36,722,335 $33,908,624 Total Liabilities and Members Equity $362,183,231 $339,604, % Increase in Assets and Member Equity +7.31% Increase in Loans to Members % Increase in Net Income $18,500 Raised/Donated by Staff for Local Charities

5 STATEMENT OF INCOME INTEREST INCOME As of June 30, 2016 As of June 30, 2015 Loans to Members $11,227,262 $10,620,203 Investments $577,282 $529,143 Total Interest Income $11,804,544 $11,149,346 INTEREST EXPENSE Total Interest Expense $917,982 $922,558 Net Interest Income $10,886,562 $10,226,788 Provision for Loan Losses $437,462 $142,193 Net Interest Income after Provision for Loan Losses $10,449,100 $10,084,595 NON-INTEREST INCOME Fees and Service Charges $2,022,181 $1,971,687 Miscellaneous Operating Income $3,421,822 $2,742,274 Total Non-Interest Income $5,444,003 $4,713,961 $15,893,103 $14,798,556 NON-INTEREST EXPENSE Compensation and Employee Benefits $6,812,553 $6,642,206 Office Operating Costs $2,654,673 $2,652,559 Other Expenses $3,731,808 $3,091,180 Total Non-Interest Expense $13,199,034 $12,385,945 Net Income $2,694,069 $2,412,611 C. Eugene Worth Secretary/Treasurer MESSAGE FROM THE TREASURER It s hard to believe that it has been eight years since the economic downturn in After all this time, things have now returned to normal for your credit union. Of course, this is the new normal in which all financial institutions are now operating. With most of the financial difficulties behind us, we can now concentrate on making loans to our members, attracting new members, and finding better ways to serve you. We want to thank you for keeping Jax Federal Credit Union as your primary financial institution, and we will, as always, strive to maintain the trust you have in us.

6 2016 BOARD OF DIRECTORS AWARDS & RECOGNITION Sponsored by Jax Federal Credit Union Donald W. Bottin Chairman Joseph W. Sharp Vice Chairman C. Eugene Worth Secretary/Treasurer Christine Conner Board Member CUDL Portfolio Analysis Award Director Emeritus Ernest Webster Joyce Barnes 2015 Credit Union of the Year Charles T. McLeod Board Member Patrick O Neill Mary Jones Board Member Board Member Jimmy Hicks Scott Preacher 2015 Nancy Dalton Excellence Award TECHNOLOGY ENHANCEMENTS Business of the Year Award from the Duval County Extension Bureau EMV Chip Card Technology esign for Loan Documents Secure ANNUAL SCHOLARSHIP LiveChat Online We awarded a $1,000 Scholarship to JAXFCU member, Naoma Wood from Hilliard. She is attending Florida State College at Jacksonville and is pursuing a degree in Early Childhood Education. BRANCH REMODEL The Park Street Branch, located at the entry to the Brooklyn neighborhood, is undergoing a major renovation. New Website Coming Fall 2016 One EASY Mobile App Mobile Check Deposit Apply for a Loan Mobile Credit Card App Shop for a New/Used Auto & Mobile Wallet More!

7 MESSAGE FROM THE SUPERVISORY COMMITTEE The Board of Directors approves the appointment of five members and an alternate to the Supervisory Committee annually. In 2015, the committee was comprised of Ed Teller, as Chairperson; Joe Putz, as Secretary; Bruce Dickinson; Sylvia Ludwig; Dan Longhi; and Joan Kane as alternate. On behalf of the Members of Jax Federal Credit Union and its Board of Directors, the Supervisory Committee is responsible for oversight of auditing and testing the (1) integrity of financial statements, (2) system of internal controls, (3) internal and external audit processes, (4) compliance with applicable laws and regulations, and (5) code of conduct and ethics. The Supervisory Committee of Jax Federal Credit Union must be an informed and effective overseer of the financial reporting process and the internal controls of the Credit Union. We are pleased to report to you that the Credit Union s financial reports and disclosures are accurate and reliable. Jax Federal Credit Union is in compliance with laws and regulations, and the Credit Union operates in an ethical environment. The Supervisory Committee utilizes several resources to fulfill its responsibilities, including an Internal Audit function. This department reports directly to the Supervisory Committee. Internal Audit performs operational and compliance audits of Jax Federal s activities and tests and reviews the overall system of internal controls. A June 30, 2016 financial statement audit was conducted by Ewart & Associates, LLC. The external audit s main purpose is to certify that the financial statements are free from material misstatements and are in accordance with Generally Accepted Accounting Principles. The federal regulator for Jax Federal Credit Union is the National Credit Union Administration (NCUA). An examination was performed by NCUA for the period ending September 30, It focused on Jax Federal s safety and soundness. Results of all audits (both internal & external), examinations, and reviews are presented to the Board of Directors, the Supervisory Committee, and Executive Management. These reports provide Jax Federal Credit Union with information to make decisions that benefit our Members. All reports indicate that Jax Federal Credit Union s financial condition remains strong and that the internal control structure is in place to safeguard our Members assets SUPERVISORY COMMITTEE Ed Teller Chairman Bruce Dickinson Member Dan Longhi Member Joe Putz Secretary Sylvia Ludwig Member Joan Kane Alternate The Supervisory Committee welcomes your suggestions, comments, or concerns, and may be contacted by U.S. Mail or by at the following addresses: Supervisory Committee c/o Jax Federal Credit Union P.O. Box Jacksonville, Florida supervisory@jaxfcu.org

8 APPS Find us as JAXFCU on Facebook, Twitter, YouTube and Google+ Visit for maps, our ATM locator tool, and shared branching locations! FEDERALLY INSURED BY THE NCUA We do business in accordance with the Federal Fair Housing Law and The Equal Credit Opportunity Act.