Annual Report. to the Membership. Your path to financial freedom

Transcription

1 Annual Report to the Membership 2016 Your path to financial freedom

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3 Table of Contents Letter to Members from President/CEO & Chairman 3 Supervisory Committee Report 4 Treasurer s Report 5 Financial Highlights 6 Board of Directors 7 KCCU Management & Staff 8 KCCU Branch Locations 9

4 We thank each and every one of you for your continued support and trust in us. Eric D. Jones President and CEO A letter from the President / CEO & Chairman Page 3 three Janice L. Smith Chairman of the Board We ve had an exciting, busy, and historic year in Our team spent most of the year preparing and executing a system upgrade that transpired on September 1, The new system allows the credit union to operate more efficiently, saving you and the Credit Union money. With the upgrade, Kansas City Credit Union now has the ability to offer you the latest products and services. A few examples of the new products and services now offered are: mobile app, enabling mobile/text banking, and CardNav, which allows you to control and restrict your debit card through your smart phone. With CardNav, you can turn your debit card on and off, set spending limits, select the type of merchants your card can be used for, as well as restrict your card to your proximity. My favorite feature is the text alerts I receive whenever I use my card! Kansas City Credit Union had an outstanding year! After returning $28,282 to our members in a special patronage dividend as a thank you for being a loyal member, Kansas City Credit Union had a net income of $171,560, which will be used to further innovate and grow the Credit Union. The amount each member received from the special patronage dividend was based on the member s relationship with the Credit Union; the more the member utilized our services, the more the member received. We continue to be a strong lender in the community, closing 1,969 loans for $5.86 million, 2016 was one of our better loan years on record. Our loans grew by 8.24% in We continue to be an overall robust credit union. Our net worth ended the year at 11.82%, significantly higher percentage than the Regulatory Authority s 7.00%; a level indicating that a credit union is well capitalized. Kansas City Credit Union remains a good corporate citizen supporting our local communities through donations, serving on local boards, and volunteering many hours in various organizations. We are excited to continue our partnership with Biz Kids, a program that provides financial education materials and curricula to local schools. In 2017, Kansas City Credit Union began a new partnership with Eastwood Hills Elementary School. Lastly, Kansas City Credit Union has eliminated the $1.00 fee for Co-op ATMs, saving credit union members $36,000 per year. You now have access to approximately 30,000 ATMs nationwide, free of charge! Continued on page 4

5 Looking ahead Now that the system upgrade is behind us, we can work on new initiatives to bring you more value as a Member/Owner: Kansas City Credit Union will be switching our card issuer from Visa brand to Mastercard brand and reissuing your card with EMV (Europay Mastercard Visa) chip technology. In addition to the new card issuer, we will offer new products and services this year, including credit cards and Shared Branching. Shared Branching will give you access to your Kansas City Credit Union account at over 5,000 different credit union locations throughout the nation. You will be able to make deposits and withdrawals free of charge, just as if you were at your local Kansas City Credit Union branch. In closing, Kansas City Credit Union looks forward to growing with our members and our community. We will continue to empower people by educating our members, advising decisions, financing needs, and investing in the community. Let s continue to cultivate together! Best regards, Janice Smith Board Chair Eric Jones President/CEO The Supervisory Committee s responsibility is the over sight of the board and to ensure membership can rely on the reported financial position of KCCU through review of annual audits. Howard Petrie Chair, Supervisory Committee Super visor y Committee Report The Supervisory Committee of the Kansas City Credit Union (KCCU) is comprised of three individuals who are elected every three years by the membership of the credit union. They have non-voting rights on the general decisions of the board of directors. Their responsibility is the over sight of the board and to ensure membership can rely on the reported financial position of KCCU through review of annual audits that conform to Generally Accepted Accounting Principles, review of quarterly agreed upon procedures performed by an outside accounting firm, and review of any State of Missouri examinations performed throughout the year. For the calendar year 2016 we were still under contract with J. Tenbrink and Associates. The additional members that make up the Supervisory Committee are Tamela Handie and Kathryn Bell. Howard Petrie Chair Page 4

6 For the year ending December 31, 2016, the Credit Union posted total income of $2,547,022 and total expenses of $2,269,309. Before paying dividends, the Credit Union showed a profit of $193,749 in After paying dividends to members and making adjustments, the Credit Union posted a net profit of $171,561 for the year. John Thigpen Treasurer Treasurer s Report For the year ending December 31, 2016, the Credit Union held assets of $31,483,231 as compared to $30,968,190 for the year This was an increase of $515,041. This increase is due to a continued focus on investments in marketable securities. Investments totaled $21,028,929 at the end of 2016 compared to $20,327,187 at the end of 2015, an increase of $701,742. For the year ending December 31, 2016, the Credit Union posted total income of $2,547,022 and total expenses of $2,269,309. Before paying dividends, the Credit Union showed a profit of $193,749 in After paying dividends to members and making adjustments, the Credit Union posted a net profit of $171,561 for the year. The national economy has shown increasingly gradual improvement as evidenced by the growth in the stock market and other economic indices. This improvement is reflected in the growth of the Kansas City Credit Unions deposits and posted net profit. As always, the Credit Union continues to explore additional avenues for loan growth and revenue improvement while maintaining or reducing on-going expenses. Examples of these opportunities are reducing expenditures through the use on on-line technologies to enabling members to apply for loans and conduct business by secure web interactions, continuing to seek improvements in our branch operations including location(s) and providing additional financial products that our members may desire. Based on these results, I believe the Kansas City Credit Union continues on a sound and stable financial track. John Thigpen Treasurer Page 5 four

7 Fiscal Year Ending December 31, 2016 INCOME Actual Actual Loan Income $588,700 $617,446 Investment Income $226,458 $242,192 Fees and Misc. Income $1,455,441 $1,687,383 Total Income $2,270,599 $2,547,021 EXPENSES Salaries/Bonuses/Incentives $776,136 $795,127 Benefits/FICA/Unemployment Tax $192,982 $168,489 Travel and Conference $1,000 $17,352 Association Dues $22,574 $19,714 Office Occupancy $112,386 $123,825 Office Operation $572,288 $648,241 Marketing/Advertising $33,581 $33,121 Loan Servicing $68,303 $35,727 Professional Outside Services $197,609 $328,060 Provision for Loan Loss $169,199 $77,644 NCUA Share Insurance $0 $0 Supervisor Fee $6,148 $6,222 Cash Over/Short $3,157 $2,380 Interest on Borrowed Money $0 $61 Misc Expense/Annual Meeting $29,202 $13,407 Total Operating Expenses $2,184,565 $2,269,370 Dividends on CDs $1,648 $1,703 Dividends on Money Market $29,180 $32,155 Dividends on Holiday Club $207 $253 Dividends on Shares $21,388 $49,791 Total Dividends $52,423 $83,902 Total Expenses $2,236,988 $2,353,272 Net Income (Loss) $33,611 $193,749 Gain (Loss) on Investments $13,698 $0 Gain (Loss) on Sale of Fixed Assets $66 $21 Gain (Loss) on Sale of Real Estate ($14,272) ($0) Foreclosed Assets Expense ($21,687) ($18,968) Gain (Loss) on Sale of Repossessed Auto ($5,539) ($3,199) Non-Operating Gain (Loss) ($1) ($0) Net Income (Loss) $5,876 $171,561 Page 6

8 BOARD OF DIRECTORS Janice Smith Chair Earnest Rouse Vice Chair Pearline McFall Secretary John Thigpen Treasurer Anthony Miller Director George Eib Director Diana Smith Director Josè Portuguez Director SUPERVISORY COMMITTEE Crystal Ammons Director Page 7 Howard Petrie Chair Kathryn Bell Member Tamela Handie Member

9 MANAGEMENT TEAM Eric D. Jones President / CEO Lisa Cordill Accounting Manager Bre Hill Lending Manager Jordan Carr Marketing Coordinator Vehicle Loans Kevin Welp Collections & Risk Manager Melissa Tate Branch Leader Sarah Calhoun Branch Leader STAFF Jennifer Haynes...Loan Officer Shawn Ta Rushing... Loan Assistant Laura Andersen... ACH/Checking Specialist Denise Tyson...Assistant Branch Leader Ieisha Eskridge...Senior Member Consultant Ryan Alexander...Senior Member Consultant Kamilah Robinson... Member Service Rep. Kaelee Hodges... Member Service Rep. LeiAnna Ewing...Back Office Representative Nadine Galloway... Teller Supervisor Jarcarreia Kirk-Lewis... Lead Teller Jessica Willis... Teller Chanedia Dixon... Teller Page 8

10 Branch Locations and Hours u MAIN BRANCH 5110 Ararat Drive Kansas City, MO Phone: Fax: MAIN Lobby Hours: Mon-Fri: 8:30 a.m. to 4:30 p.m. Saturday, 8 a.m. to Noon Drive-Thru Hours: Mon-Fri: 7:30 a.m. to 5 p.m. Saturday, 8 a.m. to Noon u DOWNTOWN 414 E. 12th Street 1st Floor City Hall Kansas City, MO Phone: Fax: DOWNTOWN Lobby Hours: Mon-Fri: 8 a.m. to 4 p.m. u NORTHLAND 7245 N. Oak Trafficway Gladstone, MO Phone: Fax: NORTHLAND Lobby Hours: Mon-Fri: 9 a.m. to 5 p.m. Page 9

11 Home Loans

12 For your convenience, there is a free ATM located at the Kansas City Municipal Court, 1101 Locust Street. In addition, we offer thousands of $1 fee ATMs nationwide at any CO-OP Network ATM. Visit Your path to financial for a map freedom of locations