ANNUAL REPORT FEDERALLY INSURED BY NCUA

Transcription

1 ANNUAL REPORT 2017 FEDERALLY INSURED BY NCUA

2 CREDIT UNION TRADITIONS Matanuska Valley Federal Credit Union (MVFCU) was founded in Palmer, Alaska, by a small group of New Deal farmers in the spirit of people helping people. A lot has changed since 1948, but our mission continues to be helping each member achieve financial success. At our core, we believe that better financial futures are built with financial knowledge paired with services that aren t just simple but economical. As a financial cooperative, we are owned by our member-owners, not distant stockholders. Because of this powerful distinction, member-owners elect a group of community volunteers to provide their voice in the direction of their credit union. It is through a rich community of current and past Board members that MVFCU has been guided from $395 in a cigar box in 1948 to a nearly $500 million credit union that has never been healthier 70 years later.

3 LEADERSHIP AT MVFCU AL STRAWN CEO 37 Years of Service DON SHIESL Board Chair 12 Years of Service JOHN DUFFY Board Vice-Chair 7 Years of Service GAYE SARVELA Secretary - Treasurer 5 Years of Service DAVID COMBS Director 6 Years of Service JOSEPH HAWKINS Director 6 Years of Service KAREN FOSTER Director 2 Years of Service KELLY MARRE Director 1 Year of Service HELEN MUNOZ Director Emeritus 31 years Served KRYSTYNA COLBERG Director Emeritus 16 years Served SUPERVISORY COMMITTEE MATT REISTERER Chair 14 Years of Service DIANA LONG Vice-Chair 15 Years of Service DAVE TAYLOR Member 39 Years of Service DANALYNN DALRYMPLE Member 7 Years of Service CRYSTAL STANLEY Member 3 Years of Service

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5 REFLECTIONS ON 2017 There has never been a better time to be a member of MVFCU! A place where People helping People is more than a slogan. Our hometown values and cooperative spirit guide every decision, with a singular focus of empowering members to achieve their financial goals. During 2017 we continued to enhance delivery of desired services that are both convenient and safe. Our new Live ATMs, the first of its kind in Alaska, enhance all the functionality of an ATM by providing access to a live representative based in our local Contact Center who can make a deposit, cash a check, and more. To add to the convenience of our Live ATMs, our Contact Center hours of operation were expanded to better serve our members needs. We also introduced our new and improved Bill Pay service. With the update, members can do more than just pay bills for less than the cost of a stamp and no monthly fee. Members can safely transfer money to others by or text and transfer money to and from other financial institutions. MVFCU continues to make it convenient to complete vehicle purchases directly through participating auto dealerships in both Alaska and Hawaii. More and more members are enjoying the convenience of closing their loans at dealerships while still receiving great terms, low interest rates, and the friendly service that they expect from MVFCU. Small business and residential real estate lending continues to be a core service of MVFCU in both Alaska and Hawaii. Local knowledge, flexible terms, and competitive pricing create great value. Add to that local servicing, and you have a winning combination. Whether it is purchase, construction, or refinance, MVFCU is here to help. One of the greatest gifts our credit union can give is to help people improve their financial knowledge; providing valuable services is only part of our mission. MVFCU desires to be a trusted financial partner and a source of reliable knowledge that helps members make informed choices. The future looks bright at MVFCU! We are particularly well positioned to help people looking for security and simplicity in their financial lives. Our challenge is to continue enhancing access to both financial knowledge and services that are relevant, convenient, and easily used in a marketplace that is increasingly complex promises to be another year of challenge and opportunity. On December 7, MVFCU will celebrate our 70th year of service! From very humble beginnings, we are now 44,000 strong and nearly one half billion in assets. We give thanks to our members who have given us their support and trust over the years! Al Strawn Chief Executive Officer Don Shiesl Board-Chair

6 SUPERVISORY COMMITTEE REPORT At Matanuska Valley Federal Credit Union (MVFCU), the safety of members assets is of the utmost importance. Significant steps are taken to provide the tools and protections necessary to ensure the security of the information and resources members entrust to MVFCU. One of these tools is a team comprised of local volunteers called the Supervisory Committee. Federal regulations establish the primary function of the Supervisory Committee is to ensure ongoing reviews and audits to make sure that credit union records are maintained properly, honestly, and accurately; that policies established by law and by the Board of Directors are carried out faithfully; and that members assets are safeguarded and used according to the purposes of the Credit Union. The MVFCU Supervisory Committee is committed to fulfilling its duty to the membership through the performance of key responsibilities. A primary Committee responsibility is working toward strengthening the procedures used to ensure safety and soundness of member assets at MVFCU. A core part of this commitment is engaging our independent external auditor, Moss Adams, LLP to perform an annual audit. Moss Adams, LLP is one of the nation s leading CPA firms with a specialized financial services section that is well equipped to provide an audit of MVFCU s consolidated financial statements in a marketplace that is increasing in complexity. Additionally, Moss Adams, LLP provides a Loan Underwriting and Credit Quality review of MVFCU s member business loans as well as a review of MVFCU s Interest Rate Risk, Asset Liability Management, and Liquidity Management on a biannual basis. The direction of MVFCU s internal audit efforts is another responsibility of the Supervisory Committee. The periodic audits performed by an internal auditor provide an additional layer of review to the effectiveness and compliance of the internal policies and procedures as well as the federal regulations that MVFCU is operating within. The Supervisory Committee meets quarterly with management and the internal auditor. The National Credit Union Administration (NCUA) also conducts periodic examinations. During our last examination, the NCUA looked at seven major risk areas: Credit Risk, Interest Rate Risk, Liquidity Risk, Transaction Risk, Compliance Risk, Strategic Risk, and Reputation Risk. As of December 31, 2017, the NCUA again provided MVFCU with an overall rating indicative of a well-managed credit union. Your Credit Union continues to be a safe, secure, and well-run financial institution. You can place your trust and financial future in your locally operated financial cooperative with confidence. Respectfully submitted, Matthew Reisterer Supervisory Committee Chair

7 STATEMENTS OF FINANCIAL CONDITION ASSETS CASH AND CASH EQUIVALENTS INVESTMENTS, AT FAIR VALUE LOANS RECEIVABLE, NET OF ALLOWANCE FOR LOAN LOSS PREMISES AND EQUIPMENT, NET NCUA SHARE INSURANCE FUND ALL OTHER ASSETS TOTAL ASSETS LIABILITIES AND MEMBERS EQUITY MEMBERS SHARES OTHER LIABILITIES RESERVES AND UNDIVIDED EARNINGS UNREALIZED LOSS ON INVESTMENTS TOTAL LIABILITIES AND EQUITY STATEMENTS OF INCOME 2017 $ 17,791, ,788, ,705,374 7,110,561 4,034,186 3,897,678 $494,327,970 $ 436,332,581 4,702,780 55,162,920 (1,870,311) $494,327,970 DECEMBER 31, 2016 $ 14,458, ,273, ,183,215 7,103,075 3,924,883 5,841,329 $475,783,742 $ 422,027,848 4,160,329 52,299,810 (2,704,245) $475,783,742 INTEREST INCOME INTEREST ON LOANS INTEREST FROM INVESTMENTS TOTAL INTEREST INCOME INTEREST EXPENSE: DIVIDENDS ON MEMBERS SHARES INTEREST ON BORROWED FUNDS TOTAL INTEREST EXPENSE YEARS ENDED DECEMBER 31, $ 12,790,087 4,181,010 16,971,097 1,068,383 22,310 1,090,693 $ 12,866,628 3,152,423 16,019, ,063 58, ,426 NET INTEREST INCOME PROVISION FOR LOAN LOSSES NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES NON-INTEREST INCOME OTHER OPERATING INCOME NON-OPERATING INCOME TOTAL NON-INTEREST INCOME NON-INTEREST EXPENSE COMPENSATION AND BENEFITS OFFICE OPERATIONS PROFESSIONAL AND OUTSIDE OFFICE OCCUPANCY EDUCATIONAL AND PROMOTIONAL OTHER OPERATING EXPENSES TRAVEL AND CONFERENCE LOAN SERVICING TOTAL NON-INTEREST EXPENSE NET INCOME 15,880,404 1,474,896 14,405,508 4,827, ,837 5,081,223 10,183,682 2,580,463 1,368,601 1,138, , , ,225 90,966 16,623,621 $2,863,110 15,059, ,045 14,063,580 4,768, ,915 4,945,784 9,408,698 2,539, ,667 1,062, , , , ,141 15,329,414 $3,679,950

8 $351,085,546 $199,093,243 $395,080, LOAN COMPOSITION CONSUMER UNSECURED LOANS $14,851,667 COMMERCIAL LOANS $78,769,307 AUTO LOANS $66,343,310 RESIDENTIAL REAL ESTATE LOANS $82,551,348 OTHER CONSUMER SECURED LOANS $21,865,571 $436,332,581 $264,381,203 $494,327 $422,027 $252,210,486,970,848 $257,619,727 $475,783,742 $378,027,789 $217,172,394 $466,938,929 $426,936,017 $413,995,230

9 $40,630,262 FIVE YEAR TRENDS 43,961 $55,162, % 42, % 40,912 39,663 $52,299,810 $52,299,804 $48,619,860 $48,691, % 10.77% 38,353 $44,366, %

10 As a community credit union, we want more than better financial futures for our members; we want the diverse communities we serve to be vibrant and financially healthy. It is with these desires that we have a growing culture that emphasizes community involvement that is not only corporate giving, but encourages employees to volunteer within their communities. It is also with this heart that we make a part of our mission to provide financial education opportunities for everyone, member or not. In 2017, we offered retirement and investment workshops, budget and credit building seminars, hosted Junior Achievement lessons in local elementary schools, and supported the Financial Reality Foundation to host Get REAL Financial Reality Fairs for high school students across Alaska and Hawaii. We are proud of our membership and look forward to working with them to build the brightest futures for our communities! ALASKA 1, GET REAL FINANCIAL REALITY FAIRS COMMUNITY VOLUNTEERS FAIRS HELD STATEWIDE SPONSORING CREDIT UNIONS

11 2, HIGH SCHOOL STUDENTS IMPACTED AT MVFCU SPONSORED GET REAL FINANCIAL REALITY FAIRS MVFCU SPONSORED GET REAL FINANCIAL REALITY FAIRS FINANCIAL EDUCATION WORKSHOPS, SEMINARS, AND SCHOOL LESSONS $265,000 + DONATED COMMUNITY, SPONSORSHIPS, AND PARTNERSHIPS HAWAII GET REAL FINANCIAL REALITY FAIRS COMMUNITY VOLUNTEERS FAIRS HELD STATEWIDE SPONSORING CREDIT UNIONS

12 CONTACT US MAT-SU: EAGLE RIVER: HAWAII: MAILING ADDRESS 1020 SOUTH BAILEY STREET PALMER, AK