TOGETHER WE SERVE TOGETHER WE GROW

Transcription

1 TOGETHER WE SERVE TOGETHER WE GROW BUSINESS LENDING TEAM 2015 ANNUAL REPORT ANHEUSER-BUSCH EMPLOYEES CREDIT UNION AMERICAN EAGLE CREDIT UNION PURINA CREDIT UNION

2 CEO S LETTER ROBERT MCKAY I AM IMPRESSED WITH HOW OUR MANAGEMENT TEAM AND EMPLOYEES LISTEN TO MEMBERS AND HOW MEMBERS ENGAGE WITH US. As incoming CEO, I am very proud to be here and fortunate to be able to build upon the strong foundation of our Credit Union and the leadership of Dave Osborn, who retired after 23 years as CEO. I have been impressed with how our management team and employees listen to members, and how members engage with us to make us better. I believe that this leads to great results. Together, we will continue to serve our members, and together, we will continue to grow. This is the core of what we do: listen to our members, provide financial services tailored to meet needs, offer competitive products, support our communities, and exceed member service expectations. In 2015 with the steady expansion of LifePlan, financial planning service, our Credit Union experienced near record growth of 31% in assets under management and credit union revenue growth of 63% over 2014, making this a successful year. Our direct consumer loans, at the heart of our business, helping members with home loans, credit cards, automobile, and student loans, grew 4.6% this year compared with 2% in In fact, our mortgage loans originated increased 60% over the previous year. In Business Lending, we continued our string of impressive results with growth of 18% with little or no delinquency throughout the year. And in direct lending, we reduced delinquency by 44% from December 2014 to.94%, the lowest since In October, we launched new and more powerful online and mobile banking systems. Our members have more flexibility and more control with innovative tools to see their complete financial picture all on one screen. Bill pay, automatic payments, transfers, deposits, and viewing of checks and statements are even more user-friendly. And, both systems offer greater security as do our new EMV credit cards, equipped with computer chips and the technology to authenticate chip-card transactions. These changes are designed to provide more convenience, protect our members, and reduce fraud. This year we began the redesign of our website to provide a more robust member experience via one of our largest volume member service channels. Look for these improvements in We were thrilled that, for a second year in a row, the Credit Union was awarded the Top Places To Work Award from the St. Louis Post-Dispatch. Each year, employees of nominated businesses are surveyed. Firms with the highest scores based on national benchmarks are awarded this honor. In line with our plans for strategic growth, we successfully completed our merger with Purina Credit Union, which became a division of ABECU. We can continue to provide Nestlé Purina PetCare employees with superior products, enhanced ser vices, and long-term value. We also began to ser ve employees of Energizer and Edgewell Personal Care. This year, I have been so pleased to meet members, families, friends, and employees in the communities we ser ve. I am confident that together we will continue to listen to needs and dreams, grow our Credit Union, and build a bright future for all. Sincerely, Robert McKay Chief Executive Officer

3 CHAIRMAN S LETTER FRED KUHN WE WILL CONTINUE TO LISTEN TO OUR MEMBERS, INNOVATE WITH NEW AND IMPROVED PRODUCTS AND DELIVER EXCEPTIONAL SERVICE. This year, we welcomed our new CEO, Bob McKay. Selected by the Board of Directors, Bob McKay replaces Dave Osborn who led the Credit Union with great success for 23 years. Bob comes to the Credit Union with over 20 years of experience in the industry. Since 1995, he was Executive Vice President and Chief Operating Officer of Baxter Credit Union. He also serves on many credit union industry boards including Member Loyalty Group, CUNA Lending Council and the American Credit Union Mortgage Association. With this experience and his vision for the future, he is an ideal fit as our new CEO, and he is committed to ser ve our members now and in the future. Once again, we have delivered on our promise: Assist members with financial needs and goals; Build sustaining relationships; and Support the communities we serve, and we ended 2015, with a strong net worth and respectable net income that approximated $7 million. Today, we have over 120,000 members with $1.5 billion in assets, and 30 branch offices around the United States. To serve our expanded membership, we opened a new branch in St. Louis Hills, relocated from Hampton Avenue. In 2016, we will open a new branch in Ellisville, MO, a western suburb of St. Louis. In addition, we understand that many of our members prefer to conduct business from the comforts of their home or office so we will continue to enhance our mobile and online options. On behalf of the Credit Union Board of Directors, Management, and Staff, thank you for the continued trust that you place in us for all your financial needs. In the continually changing financial world, we will continue to listen to our members, innovate with new and improved products, and deliver exceptional service to you and your family. Sincerely, Fred Kuhn Chairman of the Board of Directors OUR PROMISE ASSIST MEMBERS WITH FINANCIAL NEEDS AND GOALS BUILD SUSTAINING RELATIONSHIPS SUPPORT THE COMMUNITIES WE SERVE

4 CINDY BUSINESS DEVELOPMENT MANAGER THE CREDIT UNION GIVES ME GREAT OPPORTUNITIES FOR GROWTH THROUGH TRAINING AND MENTORSHIP. 120,000 MEMBERS 30 BRANCH OFFICES $ 1.5 BILLION IN ASSETS KURT MEMBER LOHR DISTRIBUTING CO AWARDED TOP PLACES TO WORK AWARD BY ST. LOUIS POST-DISPATCH

5 BORIS PERSONAL SERVICE COUNSELOR TYLER & RAMONA MEMBERS BUSINESS CLIENTS MAUREEN MEMBER ANHEUSER-BUSCH INBEV WHAT I ENJOY MOST ABOUT WORKING AT THE CREDIT UNION IS THE WAY WE DO OUR BEST TO TREAT EACH OTHER AND OUR MEMBERS AS FAMILY.

6 CREDIT REVIEW REPORT CLINTON LAUGHLIN Each year, your Credit Union builds on its successes of expanding the range of high-quality loan products and services, and helping members manage their assets to achieve their financial goals. Our outstanding loan programs have highly competitive rates, and our channels of delivery are member-friendly, making it convenient to obtain a loan for any need or dream, whether it s for a vacation, car, education, home or for a new or expanded business. In 2015, your Credit Union s branch loans grew more than $60 million exceeding the budgeted amount while mortgage loans increased 60% over Our teams prudently manage and grow these assets to benefit all Credit Union members. We are pleased that we are able to help our members fulfill their objectives at ever y life stage. In 2016, we will introduce a new interest only Home Equity Loan that offers flexibility and opportunity for our members. Also we will introduce new E-signature technology that will result in an even more efficient loan experience. Please consider your Credit Union when thinking about purchasing a home or a car, taking a vacation, expanding your business or financing an education. You will appreciate the ease and convenience of our competitive interest rates and loan programs. Thank you for allowing us to ser ve you in 2015, and we look forward to new programs for you, your family, and your business in Sincerely, Clinton Laughlin Chairman of the Credit Review THE CREDIT UNION SUPPORTS THE COMMUNITIES WE SERVE THROUGH MANY VOLUNTEER AND OUTREACH OPPORTUNITIES. BOARD OF DIRECTORS Fred Kuhn, Chairman Ron Kraus, Vice Chairman Mark Harris, Secretar y/treasurer Michael Chapman, Andrew Dierkes, James Fugel, Jeffrey Knapper, Sara Stobbs, Brock Tuffli BOARD ASSOCIATES Clinton Laughlin, Julia Mize, Beth Rickmann BOARD EMERITUS Charles R. Klauke CREDIT REVIEW Clinton Laughlin, Chairman Andrew Dierkes, James Fugel, Mark Harris, Julia Mize, Beth Rickmann SUPERVISORY COMMITTEE Mark Harris, Chairman Charles R. Klauke, Clinton Laughlin, Julia Mize MANAGEMENT Robert McKay Chief Executive Officer Pier Y. Alsup Senior Vice President of Marketing & Communications Michael Dougherty Senior Vice President of Lending Ronald Kampwerth Senior Vice President of Finance Adrianne Thompson Senior Vice President of Human Resources SUPERVISORY COMMITTEE REPORT MARK HARRIS Anheuser-Busch Employees Credit Union (and its Divisions) remain strong and accountable. The Supervisory Committee is responsible for monitoring management practices to safeguard members assets, overseeing the accuracy of financial statements, and ensuring the fair presentation of the Credit Union s financial condition. The committee provides an oversight role for the Board, the internal audit department, Credit Union management, and the external auditor (BKD LLP). The internal audit department evaluates internal financial controls and determines compliance with policies and regulations. After careful review, BKD LLP expresses an opinion on the Credit Union s financial statement, based on accepted auditing practices. In addition, State and Federal representatives conduct routine examinations of the Credit Union. This committee met with BKD LLP, the internal audit department, and Credit Union management throughout 2015 to review financial information and audit results. We are pleased to report that the Credit Union is operating as intended for the benefit of its members. Thank you for your continued trust, and we look forward to serving you in Sincerely, Mark Harris Chairman of the Supervisory Committee

7 2015 FINANCIAL STATEMENT ASSETS DECEMBER 31, 2015 Loans to members $ 1,239,953,689 $ 1,179,824,543 Less allowance for loan losses (13,144,212) (14,567,592) Net Loans 1,226,809,477 1,165,256,951 Investments 157,555, ,822,484 Interest bearing deposits 74,956,643 43,358,884 Cash and due from banks 12,712,015 12,391,848 Property and equipment 44,161,149 43,092,187 Share insurance deposit 12,651,081 11,907,299 Federal Home Loan Bank stock 2,338,100 2,495,100 Interest receivable 4,504,598 4,345,309 Other Assets TOTAL ASSETS LIABILITIES AND MEMBERS EQUITY Shares and other savings accounts 16,830,869 $ 1,552,518, ,695,718 $ 1,448,365,780 $ 1,370,678,311 $ 1,272,494,361 Long term debt 15,000,000 20,000,000 Other liabilities 10,415,340 11,430,544 Total Liabilities 1,396,093,651 1,303,924,905 Regular reserves 2,491, ,402 Undivided earnings 155,887, ,011,504 Accumulated other comprehensive loss (1,953,642) (5,084,031) Total Member s Equity TOTAL LIABILITIES AND MEMBERS EQUITY 156,425,336 $ 1,552,518, ,440,875 $ 1,448,365,780 INCOME Interest on loans to members YEAR ENDED DECEMBER 31, 2015 $ 55,208, $ 54,360,101 Interest on investments and interest bearing deposits 3,113,401 3,304,819 Total Interest Income 58,321,797 57,664,920 Dividend and interest expense 6,797,518 6,909,697 Net Interest Income 51,524,279 50,755,223 Service fees and other income GROSS INCOME EXPENSES Provision for loan losses 21,970,267 $ 73,494,546 $ 10,725,000 17,974,681 $ 68,729,904 $ 12,162,500 Salaries and employee benefits 25,338,572 23,551,323 Net occupancy expense 3,352,825 3,046,848 Equipment expenses 2,023,190 1,703,227 Data processing expense 3,488,481 3,270,912 Professional services 1,390,810 1,088,777 Advertising and promotion 1,248,446 1,264,347 Postage, printing and office supplies 993,900 1,264,221 Telephone 1,095, ,944 Insurance expense 862, ,158 Credit card expenses 3,288,487 3,156,044 Net loan expenses 3,504,299 3,338,946 ATM expenses 480, ,769 Termination of defined benefit plan 3,431,449 - Other expenses 5,394,765 4,890,596 Total Expenses NET INCOME 66,618,356 $ 6,876,190 60,982,612 $ 7,747,292

8 LOCATIONS TO SERVE OUR EXPANDED MEMBERSHIP, WE OPENED A NEW BRANCH IN ST. LOUIS HILLS. St. Louis Main 1001 Lynch Street St. Louis, MO Jennifer Duncan, Manager Crestwood 9895 Watson Road Crestwood, MO Marta Kasprzak, Manager Creve Coeur Olive Blvd. Creve Coeur, MO Mar y Barry, Manager Des Peres 2175 Barrett Station Road St. Louis, MO Linda Rosso, Manager Fenton 304 Summit Road Fenton, MO Terri Eatherton, Manager Florissant 1075 N. Lindbergh Florissant, MO Samantha Knight, Manager Jefferson County 1334 Jeffco Blvd. Arnold, MO Kelly Guenther, Manager O Fallon 2531 Highway K O Fallon, MO Jennifer Begley, Manager Shiloh 1153 Blue Springs Plaza Shiloh, IL Paul Martin, Manager South County 3805 Union Road St. Louis, MO Janice Rea, Manager South County Tesson Ferry Road St. Louis, MO Azra Schmidt, Manager South St. Louis 6600 Chippewa Street St. Louis, MO Tiffany Jernigan, Manager Purina Credit Union 901 Chouteau Avenue St. Louis, MO Jennifer Duncan, Manager Baldwinsville 2885 Belgium Road Baldwinsville, NY Roxine Langdon, Manager Cartersville 100 Busch Drive NE Cartersville, GA Jeannie Watkins, Manager Cedar Hill 725 E. Belt Line Road Cedar Hill, TX Rosie Magallon, Manager Columbus 690 Schrock Road Columbus, OH Lori Holdren, Manager Fairfield 2351 N. Watney Way, Ste. A Fairfield, CA Elizabeth Valk, Manager Fort Collins 1520 East Mulberry, Ste. 100 Fort Collins, CO Kathleen van Boord, Manager Houston 775 Gellhorn (in A-B complex) Houston, TX Debbie Goddard, Manager Jacksonville 155 Busch Drive Jacksonville, FL Zonnetta Thomas, Manager Los Angeles Roscoe Blvd. Van Nuys, CA Jill Melton, Manager Merrimack 302A Mound Court Merrimack, NH Sherri Kehnast-Cuipa, Manager Newark 200 US Highway 1 & 9 Newark, NJ Linda Campanelli, Manager Orlando 7007 Sea World Drive Orlando, FL Julieta Urquiola, Manager San Antonio Sea World Drive San Antonio, TX Felipe Guzman, Manager San Diego 500 Sea World Drive San Diego, CA Teri Christensen, Manager Tampa 3209 E. Busch Blvd. Tampa, FL Bobbie Bertram, Manager Williamsburg 243 McLaws Circle, Ste. 100 Williamsburg, VA Tanisha Jones, Manager Federally insured by NCUA. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act. Anheuser- Busch Employees Credit Union (and its divisions) is an independent financial institution, chartered by the state of Missouri, which is owned and operated by its membership. The Credit Union is not a subsidiar y of Anheuser-Busch Companies, Inc. or its divisions. NMLS # ANHEUSER-BUSCH EMPLOYEES CREDIT UNION AMERICAN EAGLE CREDIT UNION PURINA CREDIT UNION 1001 Lynch Street St. Louis, MO abecu.org ameaglecu.org purinacu.org CU4U (2848) Loan-by-Phone CUE Phone (audio response)