Contents. Board of Directors. Management Report. Supervisory Committee Report. Supervisory Committee. Credit Committee Report Financials 5-6

Transcription

1 ANNUAL REPORT

2 Contents Board of Directors Management Report Supervisory Committee Report 2 3 Robert Wolpert... Chairman Brian Raczynski... Vice Chairman Larry Pfeiffer... Treasurer Kathleen Shanahan... Secretary Ted Dwyer... Director John Riddle... Director Bob Kirby... Director Credit Committee Report 4 Supervisory Committee 2013 Financials About Arizona Central John Riddle... Chairman Mark Denke... Member Sandy Watts... Member Patrick Huston... Member Stephanie McQuillan... Member Branch Locations & Hours 9-10 Strategic Management Team Todd A. Pearson... President & CEO Adam Jones... Executive Vice President & CIO Greg Harden... Senior Vice President & CFO Janet Moodie... Vice President & COO Bronwyn Medley... Vice President & CMO Kathy Pluhowsky... Vice President, Risk Management Yvette Clay... Vice President, Lending Mike Neill... Vice President, Finance & Accounting Michelle Bradshaw... Vice President, Information Technology 10 Branch Locations & Hours

3 Branch Locations & Hours Management Report Member Service Apply for a Loan Central Phone Banking Call (602) or toll free azcentralcu.org Branch Locations Chandler W. Chandler Blvd. Flagstaff N. West St. Flagstaff S. Woodlands Village Blvd. Glendale W. Bell Rd. Glendale W. Glendale Ave. Phoenix N. Central Ave., #100 Show Low S. White Mountain Rd., Suite D Tempe S. Price Rd. Tucson S. Alvernon Way Tucson W. Ina Rd. ATM Locations Available at all branches, plus: Maryvale Medical Center, 5102 W. Campbell Ave., Phoenix (cash dispense only; near cafeteria) Phoenix Baptist Hospital, 2000 W. Bethany Home Rd., Phoenix (cash dispense only; near cafeteria) West Valley Hospital, W. McDowell Rd., Goodyear (cash dispense only; in cafeteria) Arrowhead Hospital, N. 67th Ave., Glendale (cash dispense only; in cafeteria) More than 50,000 surcharge-free Allpoint ATMs Hours of Operation Mon, Tue, Thr, Fri...8:30 a.m. - 6 p.m. Wed a.m. - 6 p.m. Sat (select branches)...10 a.m. - 2 p.m. Indicates branches with Saturday hours Locations nationwide SITE-CO-OP Federally insured by NCUA Products & services described in this brochure are subject to change without notice. 9 2 Financial Focus 2013 was a year of continued economic recovery not only across the United States, but also worldwide. Arizona continued to see improvement in housing prices, which led the way to improved overall economic conditions in the state. Economists have characterized the Arizona economy as the patient is recovering, but has not recovered. Arizona Central capitalized on the improving economic landscape by increasing the loan portfolio by $44.64 million in 2013 as compared to an increase of only $10.25 million in Arizona Central s financial picture continued to strengthen during the year as shown by our capital ratio increasing to 8.90% in 2013 as compared to 8.63% in Member Focus Member convenience and ease of doing business with us remained a top priority for Arizona Central in Member retention was also a primary focus. Utilizing member feedback and data that identifies changes in member behavior, we identified pain points in our processes and procedures, allowing us the opportunity to identify customized solutions for common member issues. Offering a menu of solutions allows us to meet our members individual needs, leading to increased member loyalty and confidence. Our quarterly Healthcare Advisory Board Meetings continue to grow, receiving excellent reviews from participants. These meetings gather healthcare industry leaders to network and ultimately create shared value for their organizations and Arizona Central Credit Union proved that, while our members rely on our branch network for many things, the convenience of mobile banking filled a need for our members who prefer electronic delivery channels. Since we launched Mobile Deposit, 3,000 members have signed up depositing over $6 million in checks. Community Focus In 2013 Arizona Central continued to build our relationship with local non-profit organizations that are near and dear to our hearts. Throughout the year we participated in 69 community engagement activities and donated nearly 3,000 hours of service. These events helped us raise over $104 thousand for eight organizations, including Relay For Life, Phoenix Children s Hospital and the AZ Heart Association. Arizona Central also hosted our second charity golf tournament, benefiting the Cancer Support Community. This was a very successful event that raised $60 thousand and we look forward to putting on another great tournament in 2014! Respectfully submitted, Robert Wolpert, Chairman Todd Pearson, President/CEO Management Report

4 Supervisory Committee Report 1939 Facts Continued The volunteers of the Supervisory Committee are appointed by the Board of Directors to watch over the members interests in Arizona Central Credit Union. Each year we review credit union records to ensure the staff carried out their duties responsibly and that Arizona Central was properly operated, while maintaining all required documentation and conforming to federal, state, and local laws and regulations. To assist in these duties, the Committee retained the Certified Public Accounting firm of Orth, Chakler, Murnane and Company, CPAs. This firm conducted their regular audit of operations and verified members accounts in order to issue an opinion on the credit union s financial statements. September 1 st, 1939 WWII starts, Germany invades Poland, takes Danzig October 11 th, 1939 Albert Einstein informs FDR of possibilities of an atomic bomb November 4 th, st air conditioned automobile (Packard) exhibited, Chicago, Illinois December 15 th, 1939 Gone With the Wind premieres in Atlanta Arizona Central is state chartered and is regulated and examined by the Arizona Department of Financial Institutions as well as the National Credit Union Administration. As further protection of member funds, a $5 million blanket surety bond covers such risks as embezzlement, theft, forgery, and burglary. In addition, adequate casualty insurance is in force. The Supervisory Committee would like to thank the members of Arizona Central Credit Union for the privilege of serving them. Respectfully submitted, John W. Riddle, Supervisory Committee Chairman Comparison Tables $395,543, Asset Growth $397,431, $403,446, $360,370, Deposit Growth $356,980, $364,989, Member Services & Benefits Member Share Accounts LifeStyle Checking Accounts Money Market Accounts Certificates & IRAs Health Savings Accounts You-Name-It Savings Accounts Central Points TM Member Rewards Program New & Used Vehicle Loans Credit Union Advantage & AutoSMART Lines of Credit, Debt Consolidation & Signature Loans Mortgages & Home Equity Loans Visa Gold, Classic & Secured Credit Cards Quik Money Card (ATM-only card) Small Business Savings, Checking & Loans ebranch Remote Deposit FinanceWorks Easy Pay & Funds Transfer Mobile Banking, SMS Banking & Mobile Apps Payroll Deduction & Direct Deposit Central Phone Banking CO-OP s Shared Branch Network Allpoint Surcharge-Free ATM Network ebranch Online Banking & Bill Pay Services Mechanical Breakdown Protection & Guaranteed Asset Protection policies MEMBER S CHOICE Borrower Security Arizona Central Financial Services* Auto & Homeowner s Insurance through TruStage Life Insurance through ING Financial Partners Monkey Money Savings Program (12 years old & younger) CU Succeed Savings Program (13-17 years old) Free Notary Public Services 24-Hour Depository Vacation & Travel Discounts * Securities and Investment Advisory Services Offered Through ING Financial Partners, Member SIPC Arizona Central Credit Union and Arizona Central Financial Services are not a subsidiary of nor controlled by ING Financial Partners. Investments are not a deposit, not NCUSIF insured, not insured by any federal government agency, not guaranteed by the financial institution, may go down in value. About Arizona Central

5 About Arizona Central Credit Committee Report This year we are proud to be celebrating our 75th anniversary! We want to thank all of you, our amazing members, as we couldn t have made it this far without you. That is why, for our birthday, we are planning a year-long celebration of you! More details will be made available on our website as each event draws closer, so be sure to check in and enjoy all we have planned. During 2013 we experienced an impressive 21% increase in our loan portfolio with over $161 million in new loan originations, bringing our total loans outstanding to over $252 million. Consumer loans showed the most growth in auto lending while our commercial lending portfolio also increased by 20%. The Visa Credit Card program generated over 445 thousand transactions and $27.08 million in purchases. Our total first mortgage loan portfolio ended at $56.28 million by booking over $35.50 million in first mortgage real estate loans. Events include: A month-long in-branch celebration in September, our founding month Prizes and giveaways throughout the year Special product promotions Competitions Our Committee is purposeful and dedicated to reviewing market trends affecting our portfolio and ensuring appropriate oversight and sound lending administration. We look to forward to helping our members achieve financial success in Respectfully submitted, Yvette Clay, Credit Committee Chairman Here are a few fun facts about 1939 and the events that took place over the course of the year. January 6th, 1939 Daily Newspaper comic strip Superman debuts March 14th, 1939 John Steinbeck novel The Grapes of Wrath published July 13th, 1939 Frank Sinatra makes his recording debut August 17th, 1939 Wizard of Oz opens at Loew s Capitol Theater in NY Snapshots of our history from left to right; Flagstaff branch opens, 26th Annual Meeting, members from 34th Annual Meeting, Tempe Branch Ribbon Cutting Ceremony 2nd Annual Golf Tournament benefiting the Cancer Support Community. November Supervisory Committee Report / Credit Committee Report

6 Statement of Financial Condition Statement of Income ASSETS Loans: Net Allowance for Loan Losses Total Loans Held for Sale (HFS), Cash & Accounts Receivable Corporate Capital & Other Investments $246,988,964 $201,805,661 $6,948,018 $11,092,634 $3,310,949 $3,501,425 INTEREST INCOME & EXPENSE Interest on Loans $12,952,911 $12,507,900 Interest on Investments $1,853,231 $1,964,731 Total Interest Income $14,806,142 $14,472,631 Total Dividends & Interest Expense $788,719 $903,175 Net Interest Income $14,017,423 $13,569,456 Corporate Account Deposits & Certificates $8,059,864 $30,834,966 Marketable Investments $95,037,697 $111,106,238 Provisions for Loan Losses $1,078,815 $707,597 Net Interest Income After Provisions $12,938,609 $12,861,859 Fixed Assets $29,326,103 $29,871,183 Accrued Interest, Prepaid & Other Assets* $10,162,061 $5,644,720 NON-INTEREST INCOME Fees & Charges $4,614,963 $4,973,920 NCUSIF Deposit $3,613,318 $3,574,711 Other Non-Interest Income $5,442,503 $5,398,072 Total Assets $403,446,974 $397,431,538 Total Non-Interest Income $10,057,465 $10,371,992 LIABILITIES NON-INTEREST EXPENSE Total Payables $5,464,664 $6,896,834 Compensation & Benefits $9,047,898 $8,027,060 Total Member Deposits $364,989,904 $356,980,553 Total Liabilities $370,454,567 $363,877,387 Occupancy $4,744,785 $4,787,160 Operations $5,249,183 $4,466,612 Marketing $859,919 $727,632 Members Capital $32,992,407 $33,554,151 Total Liabilities & Members Equity * Includes reclassification of $5,869,821 from Marketable Investments to Other Assets in 2013 $403,446,974 $397,431, Professional Fees $150,023 $194,394 NCUA Share Insurance $297,492 $339,598 Other Non-Interest Expense $883,526 $999,867 Total Non-Interest Expense $21,232,827 $19,542,322 Gain/(Loss) or Investments & Fixed Assets ($391,865) ($204,557) Net Income (Loss) $1,763,247 $3,486, Financials