Federally Insured by NCUA

Transcription

1 Federally Insured by NCUA

2 Chairman s Report The entire Montgomery County Employees Federal Credit Union Board of Directors joins me in welcoming you to this year s annual meeting. Whether you are attending your first MC EFCU annual meeting or you ve been to many others prior to this one, we are glad you re here and hope you will find this gathering both enlightening and enjoyable. I think we can all agree that credit unions are pretty special. But just what is it that makes them so special? What is it that sets credit unions apart from other financial institutions? I d say it all comes down to one simple idea: cooperation. We re groups of people who cooperate by pooling our money so that we can make loans to each other not institutions out to make money for their outside shareholders off of your money. The members of MC EFCU, you and I, are the shareholders. So, the profits generated by our Credit Union go back to us, the member/owners of MC EFCU. That was the kind of institution our own Credit Union s founders envisioned in 1968, and it s the kind of institution we still are in Not surprisingly, that cooperative spirit can be found in credit unions relations with each other, too. Our Credit Union works together with other credit unions in many ways for the benefit of our members. Knowledge is freely shared among credit unions on products, services and better ways to manage credit unions. This cooperation among credit unions benefits all of us. In addition to knowledge sharing, credit unions cooperate in more formal ways. In 2012 many of our members benefited a great deal from one such cooperative effort: the CO-OP Network of ATMs and Shared Branching services The CO-OP ATM network has made it possible for credit union members to have surcharge-free access to money from more than 30,000 ATMs all across the country, including many in Montgomery County and the surrounding counties. Thanks to cooperation among credit unions, the network now offers more surcharge-free ATMs than just about any bank. CO-OP s Shared Branching services also add to the convenience of your Credit Union. At more than 5,000 locations across the country, you can have a branch near you for your Credit Union in-branch requirements. I encourage you to take full advantage of CO-OP s network of ATMs and Shared Branching services, if you re not already doing so. Speaking of convenience, I also need to say a word about a few other services that now make banking with us a great deal more convenient: mobile and text banking, mobile apps, Me-to-Me transfers, POP Money, Mobile Check Deposit and others have been adopted and used by many of our members and we fully expect both the number of services and the use of the services to grow even more. Services like these are leveling the playing field for us and in some cases giving us the edge. They make it possible for us to effectively compete and often beat banks that have more branches, are better known than us and spend more on marketing and advertising. MC EFCU is extremely proud of our accomplishments over the last few years, but we are not standing still. The financial world is changing and we will change with it. But rest assured that every change we make, of a technological nature or otherwise, will be made with our membership s needs foremost in our minds. Meeting those needs is, and always will be, the reason this credit union exists. Melvin Tull Chairman, Board of Directors

3 Treasurer s Report The financial statements included in this report were prepared by the Credit Union in conformity with generally accepted accounting principles. Management is responsible for the integrity of the financial statements and for other financial information included in this report. The Credit Union s independent auditors, CliftonLarsonAllen LLP, have audited the financial statements. As set forth in their report, their audits were conducted in accordance with generally accepted auditing standards and formed the basis for their opinion on the accompanying financial statements. They consider the Credit Union s control structure and perform such tests and other procedures, as they deem necessary to express an opinion on the fairness of the financial statements. The assets of our Credit Union increased to $91,144,776 by year-end This is an increase of $7,407,380 over the 2011 year-end asset total of $83,737,396, representing a 8.85% increase. Since 1986 the Credit Union has grown from total assets of $25 million to the current total of over $91 million. Net loans to members increased in 2012 by $5,426,405 to a year-end net of $48,430,847. This represents an increase of 12.62%. Our Credit Union continues to grow with share account deposits growing 8.91%, totaling $82,269,765 compared to $75,540,024 in The Credit Union earned a total of $5,637,358 for 2012, representing a decrease of 0.41%. Net Income was $405,404 in 2012, compared to $417,131 in Dividend distributions to members totaled $112,853; this represents a distribution to the members of 2% of total earnings. Joseph N. Sparacino Treasurer Distribution of Income 2012 Gross Income: $5,637,358

4 Financial Condition DECEMBER 31, 2012 AND ASSETS Cash and Cash Equivalents $ 10,307,527 $ 11,030,691 Deposits in Other Financial Institutions 1,240,000 4,580,000 Securities - Available for Sale 13,350,883 7,780,103 Securities - Held to Maturity 61,546 69,131 Cash Value of Life Insurance 5,286,077 5,003,955 Loans, Net 48,430,847 43,004,442 Notes Receivable 742,544 Accrued Interest Receivable 149, ,439 Premises and Equipment, Net 9,033,700 9,953,363 NCUSIF Deposit 804, ,823 Other Assets 1,737,093 1,419,449 Total Assets $ 91,144,776 $ 83,737,396 LIABILITIES AND MEMBERS EQUITY S TAT E M E N T S O F LIABILITIES Members Share and Savings Accounts $ 82,269,765 $ 75,540,024 Accrued Expenses and Other Liabilities 696, ,322 Total Liabilities 82,965,890 76,140,346 MEMBERS EQUITY Regular Reserve 1,174,881 1,174,881 Undivided Earnings 6,768,937 6,363,533 Accumulated Other Comprehensive Income 235,068 58,636 Total Members Equity 8,178,886 7,597,050 Total Liabilities and Members Equity $ 91,144,776 $ 83,737,396 The condensed financial statements presented hereto do not constitute a complete set. The complete set, including the statements of changes in members equity and cash flows and notes to the financial statements, is available in the Credit Union office.

5 Statements of Income YEARS ENDED DECEMBER 31, 2012 AND INTEREST INCOME Loans $ 2,930,336 $ 3,036,405 Securities and Interest Bearing Deposits 459, ,965 Total Interest Income 3,389,373 3,431,370 INTEREST EXPENSE Members Share and Savings Accounts 112, ,285 Net Interest Income 3,276,520 3,319,085 PROVISION FOR LOAN LOSSES 103, ,000 Net Interest Income After Provision for Loan Losses 3,173,520 3,011,085 NON-INTEREST INCOME Service Charges and Fees 1,892,217 1,907,806 Other Non-Interest Income 295, ,822 Gain of Sale of Securities 26,249 2,570 Gain of Sale of Fixed Assets 33,757 Total Non-Interest Income 2,247,985 2,229,198 NON-INTEREST EXPENSE General and Administrative Employee Compensation and Benefits 2,150,395 2,177,206 Office Occupancy and Operations 1,468,338 1,420,414 Share Insurance Premium 76, ,706 Other Operating Expenses 1,320,909 1,046,826 Total Non-Interest Expense 5,016,101 4,823,152 NET INCOME $ 405,404 $ 417,131 The condensed financial statements presented hereto do not constitute a complete set. The complete set, including the statements of changes in members equity and cash flows and notes to the financial statements, is available in the Credit Union office.

6 Officers & Staff BOARD OF DIRECTORS Melvin Tull Chairman Justina Ferber Vice Chairman Joseph Sparacino Treasurer Hermene Jones Secretary Rosser L. Campbell, Jr. Assistant Treasurer Bryan Hunt Assistant Secretary James A. Fenner, Jr. Security Officer Jay Pollack Membership Officer Marjorie Roher Board Member SUPERVISORY COMMITTEE Chris Gillis Chairman Dominic Del Pozzo Rick Hands Jeremy Lange MANAGEMENT Jim Norris President/CEO Jared Ferris Branch Supervisor Rockville John Lewis Collections Manager Peggy Morris Director, Member Services/ Branch Operations Jowilene Musser Branch Supervisor Germantown Alec Patrick IT Manager John Pierson Chief Development Officer Jorge Saenz Call Center Manager Ngoc Tran Chief Financial Officer Mary Waterman Lending Director Gregg Zolkiewicz Chief Operating Officer STAFF Alyssa Greene Member Services Specialist Jessica Clay Card Services Administrator Zita Gonsalves Member Services Representative Connie Hoffman Accounting Specialist Syndi Huynh Member Services Specialist Katina Jennings Lending Services Representative Thin Khine Teller Freddie Lau-Lopez ACH/Checking Coordinator Jackie Loayza Lending Services Specialist Barbara McKay Member Services Specialist Jocelyn Sullivan Member Services Representative Margaret Wright Teller Supervisor 20 Courthouse Square, Suite 101 Rockville, MD Crystal Rock Drive, Suite 201 Germantown, MD Phone: Services ACCOUNTS Savings Accounts Checking Accounts Money Market Accounts Holiday Club Accounts Sub Share Accounts Ten Month Employee Savings Account Traditional IRA Accounts Roth IRA Accounts Education IRA Accounts Share Certificates LOAN ACCOUNTS First & Second Mortgages Home Equity Line of Credit New and Used Vehicles New and Used Motorcycles New and Used Boats New and Used Recreational Vehicles Share Secured Signature/Personal Education/Computers Signature Line of Credit Overdraft Protection VISA Platinum Credit Card VISA Platinum Rewards Credit Card Pay Boost CONVENIENCE SERVICES Member Value Program (MVP) Thousands of Free ATMs Shared Branching Mobile & Text Banking Mobile Check Deposit ipad & Android Apps Online Banking/Bill Payment/E-Statements Online Loan Applications and Approval* CUPID Audio Response System Direct Deposit/ACH/ Payroll Deduction Night Depository Free Coin Counter Germantown Branch Money Orders & Travelers Cheques Notary Public Service (Free to Members) Courtesy Pay Safe Deposit Boxes VISA Check Card Wire Transfers Balance Financial Fitness Benefits Plus FinanceWorks AD&D Insurance Credit Life & Disability Insurance on Loans Legal Shield Nationwide Auto Insurance Discounts PFP Family Security Plan Vehicle GAP Insurance Credit Union Auto Loan Network (CUALN) Enterprise Car Sales Program Motor Vehicle Certification Program (MVCP) United Buying Services CU Realty Services Encore Merchant Services *Based on individual qualifications. E Printed on recycled paper with soy ink designed & printed by visions, ink /13