Annual Report. Together ahead

Transcription

1 2017 Annual Report Together ahead

2 Vision Statement We will make a difference in the life of a Member or business partner with each and every interaction by building trust and showing compassion. Mission Statement Our mission is to provide quality services that meet the personal financial needs of our Members, consistent with a fiscally sound credit union cooperative. Brand Values $1,000 scholarship winner, Member Jennifer Tang with LBS Financial President & CEO, Jeff Napper and SVP of Marketing, Heather Summers. Member Focus Value Trust Teamwork On February 11, 2017, LBS Financial employees volunteered at Su Casa Domestic Violence Shelter in Long Beach to replant their garden. Recognized for our Financial Health In 2017, LBS Financial was #97 on the list out of the top 200 Healthiest Credit Unions in the nation (out of approximately 6,000 credit unions)! BauerFinancial, an independent third party that rates credit unions and banks on their financial health, continued to rate LBS Financial with 5 Stars out of 5 possible. On April 1, 2017, 20 LBS Financial employees volunteered to support Patriots and Paws with set up, food preparation, and tear down of their event in support of U.S. veterans. Best Credit Union For seven years straight, LBS Financial Credit Union was honored to be named The Best Credit Union in the Greater Long Beach area by Press Telegram readers. Readers of the Beachcomber newspaper in East Long Beach also voted LBS Financial the Best Credit Union for the fifth year in a row in 2017.

3 LBS Financial Credit Union Leadership Board of Directors Our volunteer Board of Directors are elected by you, our valued Members, to ensure the Credit Union follows its mission statement and is driven by our vision of making a positive difference in our Members lives. Each Director is chosen by the Membership to serve a three-year term. Branch Locations STANDING LEFT TO RIGHT: Douglas M. Wood; Dr. Lionel G. Gatley; Luther W. Williams (Vice Chairman); Gene R. Allen; Jean Davis and Eric David (Chairman). SEATED LEFT TO RIGHT: Dr. Satinder Brar Hawkins; Dr. John Fylpaa (Secretary/Treasurer), and Pamela Fellman. Supervisory Committee Acting as a Member advocacy group, this strategic team oversees the security of Members Share Savings accounts by reviewing annually required audits, verifying closed accounts and enforcing Board policies. PICTURED LEFT TO RIGHT: David Conrad, Chairman; Keith Hansen, Member; Russell B. Young, Member. Bixby Knolls 4436 Atlantic Avenue Long Beach Cerritos rd Street Cerritos East Long Beach 4341 East 10th Street Long Beach Lakewood 4916 Bellflower Boulevard Lakewood Los Altos 6417 East Spring Street Long Beach Executive Management Team Jeffrey A. Napper President/CEO Sean Hardeman EVP/Chief Lending Officer Newport-Mesa 1401 Quail Street, Ste. 130, Newport Beach Coming Soon Long Beach State Campus 49er Bookstore, 2nd Floor 6049 East 7th Street Long Beach

4 To Our Member-Owners Your Credit Union was very busy in 2017 implementing new and enhanced services focused on improving our Members financial lives. While so many changes are underway, the core of who we are and our service to you has not changed. Members are the reason we exist as a Credit Union and the reason we want to adapt with technology and ensure our services continue to meet your financial needs today and in the future. Some of our accomplishments in 2017 included: Introduced a new LBS Financial Credit Union logo and look, rebranding and modernizing all of our branches and signage Launched chip for Debit Cards, providing this enhanced security feature to protect Members accounts. All Members with Debit Cards will have a new chip Debit Card in hand this year. Chip enabled all LBS Financial ATMs Launched a new Home Equity Line of Credit product with a low introductory rate Launched Apple Pay for Debit Cards and Samsung Pay and Android Pay for Credit Cards Added fingerprint sign in and other enhancements to Mobile Banking Launched a new online account opening system on our website (lbsfcu.org) The projects don t end here! We are well into 2018 projects and can t wait to introduce the following new products/services to our Members in 2018: New Online and Mobile Banking platforms Instant issue ATM and Debit Cards in the branches New branch location at the Long Beach State 49er Bookstore There s even more behind the scenes we are working on to increase efficiencies in our services to you, our valued Members. We are especially excited about our newest branch location at Long Beach State coming this spring. Our relationship with employees and students of the college date far back in our history, and we are proud to be a Credit Union that includes Long Beach State employees, students, and alumni in our field of membership. Go Beach! Thank you so much for your continued support over the years. Our Members are the heart and soul of this organization, working Together ahead with our employees towards continued financial success. Eric David, Chairman Jeffrey A. Napper, President/CEO

5 Treasurer s Report Stability and strong financial health are critical for us as a Credit Union to be able to offer new products and services, keep fees low, and maintain competitive rates. I m pleased to report that 2017 was another solid year for our financial performance, even with all of the major enhancements to products and services throughout the year. Below are some of the financial highlights of the year: Deposits at the Credit Union increased by 4.0% in 2017 or by $45.8 million. Member loans increased 6.0% or by $54.7 million. The majority of this growth was in auto loans and also our home loan product: the 5/5 Affordable Adjustable Rate Mortgage. Investments decreased by -3.1% or $8 million. Total assets at the Credit Union increased by 4.4% (or $58 million) to $1.38 billion. Net income was $9.8 million with a return on assets of 0.71%. Our Net Capital Ratio was 13.57% at year-end which is well above the 7% required by the National Credit Union Administration to remain well-capitalized. Net capital is money set-aside to protect the Credit Union in the event of future recessions or economic downturns. LBS Financial has one of the strongest net capital ratios of credit unions our size in the State of California. Deposit rates have been increasing as the Federal Reserve continues to raise their target rate. In 2017 they raised their target rate three times and economists predict three additional rate increases in This is positive news for our savers who have waited many years for these increases to occur. Overall, your Credit Union continues to focus on fiscal responsibility, maintaining low operating costs and managing through consistent and moderate growth year over year. This focus enables us to implement all of the new products and services, enhancements, and most importantly, providing exceptional value to our Members. Thank you for giving us the opportunity to be a part of your life and to build on your success, together. Dr. John Fylpaa, Secretary/Treasurer Financials for 2017 Statement of Financial Condition as of December 31, 2017 Asset Growth Assets Cash & Federal Reserve Bank Deposits U.S. Government & Federal Agency Securities Other Investments Member Loans, Accrued Income & Other Assets Furniture & Fixtures Prepaid Expenses Land & Buildings Total Assets 2016 $ 1 1 7,141, ,984, ,100, ,401, ,193, , ,527, $1,322,261, $ 1 2 7,077, ,992, ,600, ,512, ,284, , ,1 8 1, $1,380,640, $1,436 $33,639,427 $1,380,640, Membership Growth Liabilities & Equity Shares to Members Other Liabilities Regular Reserve & Undivided Earnings Accumulated Other Comprehensive Income and Defined Benefit Plan $ 1,144,974, ,625, ,504, (11,843,264.44) $ 1,190,76 1, ,667, ,335, (8,1 2 5,672.01) 28 16, ,167 Total Liabilities & Equity $1,322,261, $1,380,640, Distribution of Loans Auto/Motorcycles 58.98% Real Estate 25.14% Miscellaneous 1.01% Visa 1.49% Boats/Recreational Vehicles 13.38%

6 Gateway to the Community Our brand promise is to connect families, neighbors and our community with paths to success. We also see LBS Financial Credit Union as a gateway to the communities we serve. Corporate responsibility is important to us and we look for ways to engage our employees in making a difference locally. LBS Financial donated over $80,000 in support of local schools, student scholarships and charities in 2017 while our employees, their friends and family, volunteered over 534 hours in the local community during the year. Sponsorships, volunteer hours, financial education and charitable support in 2017 were focused on the following: LBS Financial beach clean up crew, July 22, ABC Education Foundation ABC Into the Summer Fun Run ABC Unified School District Adopt-a-School Program (ABC Adult School, Edison Elementary in LBUSD, and Bellflower Alternative Education in BUSD) Annual $1,000 Member College Scholarship Aquarium of the Pacific Assistance League of Long Beach/Operation School Bell Beach Clean-Ups Belmont Shore Christmas Parade On August 22, 2017, 20 LBS Financial employees helped the ABC Education Foundation with their annual backpack drive for needy students by prepping supplies and 500 backpacks for assembly and distribution to the schools. Bouggess-White Scholarship Foundation Boys and Girl Club of Whittier California Assembly 57th District College Fair Children s Miracle Network/Children s Hospitals Freedom Writers Foundation Historical Society of Long Beach Home Buyer s Seminars Lakewood Education Foundation Lakewood Little League s Challenger Division Lion s Club International Long Beach Century Club Long Beach City College Long Beach City College Foundation Representatives from LBS Financial Credit Union were greeted by students, teachers and Principal Ed Garcia from Edison Elementary School in LBUSD on September 14, 2017 when delivering school supplies as part of the Credit Union s annual Adopt-a-School Program. Long Beach Education Foundation Long Beach NAACP Long Beach Rescue Mission Long Beach Senior Center Long Beach State University (CSULB) Long Beach Unified School District Long Beach Unity Festival Orange County Professional Firefighters Association Patriots and Paws Scholarships to 36 local schools and colleges Su Casa Domestic Violence Shelter Teacher s Association of Long Beach United Negro College Fund Wrigley Area Neighborhood Alliance LBS Financial employees donated over 200 gifts to the Long Beach Police Foundation s Annual Toy Patrol Holiday Drive on December 13, 2017 during their holiday breakfast. From left to right: LBS Financial Credit Union President & CEO, Jeff Napper; Long Beach Police Department s Community Engagement Administrator, Karen Owens; LBS Financial Credit Union SVP Marketing, Heather Summers; Long Beach Police Chief, Robert Luna; Long Beach Police Foundation Administrative Director, Anjelica Vargas; and Long Beach Police Foundation Board President, Bruce DD Mac Rae.

7 Financial Services Especially for You Consumer Loans Auto and Motorcycle Recreational Vehicle, Boat and Powersports Personal or Signature Visa Classic and Gold Credit Cards Member Accounts Free Checking with estatements, Interest Checking, Direct Deposit, Visa Debit Card Share Savings accounts Share Certificates of Deposit Money Market account Summer Savings account for School Employees IRA (Individual Retirement Account) Real Estate Loans Home Purchase Loans Fixed and Adjustable Rate Mortgages Home Equity Line of Credit Home Equity Loans Home Loan Refinancing Packages VA Loans Convenient Access Online Banking Perform transactions online, view copies of checks and/or pay bills through our free Bill Payment feature at lbsfcu.org Mobile Banking Access your account through our iphone and Android apps or our Internet version for other mobile phone devices; take a picture to deposit your check estatements Save paper and sign up to access your statements 24/7 through Online Banking HomeTeller Automated, voice-activated account access by phone ATM Network offers no surcharge at all LBS Financial and F&M Bank ATMs plus access to over 30,000 free CO-OP Network ATMs Six branch locations Bixby Knolls, Cerritos, East Long Beach, Lakewood, Los Altos, Newport Beach and Long Beach State Campus Branch coming soon! CO-OP Shared Branching Access to more than 5,000 Shared Branches nationwide Other Services Investment options Auto, home and life insurance Auto purchasing resources LBS AutoSmart, Enterprise Car Sales and the Surrogate Auto Shopper Access LBS Financial auto loans directly at your local dealership Verified by Visa For safe online shopping

8 STANDARD MAIL P.O. Box 4860 Long Beach, CA Federally insured by the NCUA 2017 Annual Report lbsfcu.org