Annual Meeting Minutes Please review before meeting at UPDATE Resources/2015 Annual Meeting

Transcription

1 May 21, 2015

2 Teleconference (Voice Services) Dial-in number: (877) Participant Passcode: Annual Meeting Minutes Please review before meeting at UPDATE Resources/2015 Annual Meeting Prize Drawing Must attend online Lync meeting Member in good standing Questions Please submit questions via Lync chat panel. Questions will be answered during the Other Business segment.

3 Chairman s Introduction Welcome Call to Order

4 Agenda Welcome Call to Order Chairman s Comments Introduction of Board Approval of Annual Meeting Minutes Supervisory Committee Report Chairman s Report President s Report Nominating Committee Report Other Business Q & A Closing Remarks/Adjourn Meeting Prize Drawing Karen Brey Margaret Sherrod Katrina Barrett Karen Brey Rob Hatefi Anita DeMyers Karen Brey Karen Brey Karen Brey

5 Board of Directors Ivor Longo Karen Brey Nick Nichols Margaret Sherrod Anita DeMyers Benjamin Bard Cameron Tyer Chris Nolan Katherine Fithen Katrina Barrett Mike Gregorio Michael LaKier Nick Nichols Peter Pearson Chairman Vice Chairman Chief Financial Officer Chief Recording Officer

6 Ivor Longo - Board Chairman

7 Karen Brey Vice Chairman

8 Nick Nichols Chief Financial Officer

9 Margaret Sherrod - Chief Recording Officer

10 Rob Hatefi CEO/ President

11 Anita DeMyers Board Member

12 Benjamin Bard Board Member

13 Benjamin Bard Board Member

14 Cameron Tyer Board Member

15 Chris Nolan Board Member

16 Katherine Fithen Board Member

17 Michael LaKier Board Member

18 Mike Gregorio Board Member

19 Peter Pearson Board Member

20 Credit Union Committees Finance Committee Supervisory Committee Committee on Directors Committee Marketing Committee Loan Review Committee Technology/ Security Committee Advisory Council Membership Committee Personnel Committee Contract Review Committee

21 Annual Meeting Minutes Approval of Annual Meeting Minutes Chief Recording Officer, Margaret Sherrod

22 Annual Meeting Minutes

23 Supervisory Committee Report Supervisory Committee Chairman Katrina Barrett

24 Chairman s Report Board Chairman Presented by Vice Chairman Karen Brey

25 President s Report Statement of Condition EARNINGS RATIOS Yield on average Loans 4.3% 4.7% 5.2% Yield on Investments 0.6% 0.7% 0.8% Gross Income/Average Assets 3.8% 4.2% 4.5% Cost of Funds 0.1% 0.1% 0.1% Net Interest Margin 2.8% 3.1% 3.4% Operating Expense Ratio 3.4% 3.5% 3.6% Return on Average Assets 0.3% 0.6% 0.4%

26 Financial Ratios /2013 Growth /2012 Growth 2012 Total Loans $ % $ % $ Total Investments $ % $ % $ 56.3 Total Assets $ % $ % $ Total Shares $ % $ % $ Total Equity $ % $ % $ 13.5 Net Worth Ratio 9.0% 1.7% 8.9% 2.9% 8.6% Loan to Share Ratio 72.7% 6.5% 68.3% -3.9% 71.1% Total Number of Members 14, % 14, % 13,335

27 Financial Results 2014/ /2012 EARNINGS (in thousands) 2014 Growth 2013 Growth 2012 Operating Income $ 6, % $ 6, % $ 7,126.8 Provision for Loan Losses % % Operating Expenses 5, % 5, % 5,658.8 Dividend Expense % % Net Income from Operations % % Non-Operating Gains/(Losses) % % (64.9) Net Income before NCUA Assessment % 1, % NCUA Assessment % % Net Income $ % $ % $ 629.3

28 Nominating Committee Report Nominating Committee Chair Election of Board of Directors

29 Other Business Old Business New Business

30 Questions and Answers

31 New Business New Credit Union name and logo

32 Closing Remarks Chairman s Closing Comments

33 Prizes Eligibility Member in Good Standing Must attend meeting via WebEx Board, volunteers and staff are not eligible Money will be transferred into winners account today 3rd Prize $ 50 2 nd Prize $100 1st Prize $150

34 Thank You & Have a Great Day

35 Statement of Income Statements of Income for the years ended December 31, 2014 & Change % Income Interest Income $ 4,842,921 $ 5,136,571 $ (293,650) (5.7)% Other Income 1,404,930 1,594,216 (189,286) (11.9)% Total Income 6,247,851 6,730,787 (482,936) (7.2)% Expenses Salaries & Benefits 3,204,015 3,080, , % Office Operations 2,261,527 2,408,009 (146,482) (6.1)% Provision for Loan Losses 96, ,526 (77,375) (44.6)% Other 58,751 55,764 2, % Total Operating Expenses 5,620,444 5,717,701 (97,257) (1.7)% Income Before Dividends & Interest 627,407 1,013,086 (385,679) (38.1)% Dividends & Interest Expense 168, ,091 (15,720) (8.5)% Net Income from Operations 459, ,995 (369,959) (44.6)% Non-operating Gains/(Losses) - 107,641 (107,641) (100.0)% Contribution to Capital Reserves $ 459,036 $ 936,636 $ (477,600) 51.0 %

36 Statement of Financial Condition Statements of Financial Condition as of December 31, 2014 & Change % Assets Cash and Cash Equivalents $ 16,020,908 $ 17,145,899 $ (1,124,991) (6.6)% Loans to Members 106,662,587 99,575,550 7,087, % Less: Allowance for Loan Losses (952,082) (1,291,701) 339,619 (26.3)% Net Loans 105,710,505 98,283,849 7,426, % Government Securities and Certificates of Deposit 41,476,161 45,514,240 (4,038,079) (8.9)% Other Investments 3, ,596 (137,896) (97.4)% Less: Allowance for Investment Losses Total Investments 41,479,861 45,655,836 (4,175,975) (9.1)% Other Assets 2,293,294 2,048, , % Total Assets $ 165,504,568 $ 163,133,954 $ 2,370, % Liabilities & Equity Liabilities Share Accounts and Certificates $ 83,370,341 $ 80,742,383 $ 2,627, % Checking Accounts 37,523,130 34,732,926 2,790, % Money Market Accounts 23,182,329 27,586,716 (4,404,387) (16.0)% IRA Accounts 3,039,312 3,327,737 (288,425) (8.7)% Total Shares 147,115, ,389, , % Accounts Payable and Other Liabilities 3,507,567 2,285,424 1,222, % Total Liabilities 150,622, ,675,186 1,947, % Equity Regular Reserves 2,074,762 2,074, % Undivided Earnings 12,827,024 12,367, , % Unrealized Gains (Losses) on Available for Sale Securities (19,898) 16,017 (35,915) (224.2)% Total Equity 14,881,888 14,458, , % Total Liabilities & Equity $ 165,504,568 $ 163,133,954 $ 2,370, %

37 (in Millions) Assets vs Capital $159.3 $159.6 $157.5 $163.1 $ $12.2 $12.9 $13.5 $14.4 $ Year Assets Capital

38 Loans (in Millions) Loan Growth $120.0 $100.0 $80.0 $89.4 $4.2 $7.7 $93.6 $2.8 $7.5 $100.5 $99.6 $106.7 $3.2 $3.3 $2.5 $6.8 $7.3 $7.2 $60.0 $52.2 $59.0 $60.4 $59.2 $64.4 $40.0 $20.0 $24.6 $24.3 $29.5 $30.7 $32.9 $ Year Auto Loans Real Estate Credit Cards Other

39 Shares (in Millions) Share Growth $160.0 $140.0 $120.0 $145.4 $143.5 $141.7 $146.4 $147. $3.9 $3.3 $3.0 $3.4 $3.4 $1.7 $0.6 $0.2 $0.1 $0.4 $23.2 $27.6 $34.9 $32.1 $29.5 $100.0 $28.9 $31.3 $31.7 $34.7 $38.0 $80.0 $60.0 $40.0 $76.0 $76.1 $76.9 $80.6 $82.5 $20.0 $ Year Savings Checking Money Market Share Certificates IRA's

40 Allowance for Loan Loss Real Estate $ % Secured $ % Credit Cards $ % Unsecured $30.2 3% Secured Unsecured Credit Cards Real Estate

41 Executive Management Team

42 Finance Team

43 IT Team

44 Lending Team

45 Marketing Team

46 Sales and Service Team