2016 ANNUAL REPORT LMCU.org

Transcription

1 2016 ANNUAL REPORT LMCU.org

2 LETTER FROM OUR PRESIDENT AND BOARD CHAIR Eighty-four years in the making, 2016 was an incredible year for Lake Michigan Credit Union. We achieved record growth and realized our best year ever. We have grown across all business segments, driven by robust performance from top to bottom. Membership surged to over 450,000 members, fueled by our rising market presence in southeast Michigan and Florida, and solidification of our position in our home base of west Michigan. We ve grown organically and by acquisition. It s been a truly phenomenal year. With a dedicated workforce that now exceeds 1,000, we have many, many people to thank for our success. Callahan & Associates has ranked LMCU as #1 in Return Of Member (ROM) for nine straight quarters. ROM is a measure of how much we give back to members in the form of higher rates on savings and lower rates on loans. Number 1 in the nation again for our peer group (assets over 4 billion). Outstanding! Callahan & Associates also ranks us at #1 in Return On Assets (ROA) at 1.91%, beating all others in our peer group. That means even with our tremendous growth, we ve maintained a high level of profitability, which speaks to our strength and stability. In addition, LMCU has been ranked as America s #2 Best Performing credit union in our asset group by S&P Global Market Intelligence. Our Max Checking account was rated best in class by Money Magazine. And we continue to gain recognition as an outstanding company to work for and build a career. Ten straight years as one of the 101 Best and Brightest Companies to Work for in west Michigan, and three straight years at the national level.

3 In its fourth year, our annual $25,000 Home Makeover Giveaway again out-performed previous years with a record +300,000 entries. Our corporate spokesperson, Carter Oosterhouse, continues as the face of LMCU. Back in 2015, we purposefully set very aggressive sales and growth goals for At the time, they might have even appeared impossible. However, through hard work and focusing on always doing what s right for you, our members, we exceeded those goals, many of them spectacularly. We can find no words to adequately express our appreciation for the amazing efforts of our hard-working employees, Board of Directors and senior management team. We continually look for ways to deliver more value, convenience and efficiency. And, always making sure we are the best place for your money! Sandy Jelinski Gretchen Tellman President/CEO Chairperson of the Board OUR GROWTH ALSO DEPENDS ON WORD-OF-MOUTH. KEEP TALKING TO YOUR FRIENDS, NEIGHBORS AND COLLEAGUES ABOUT THE EXCEPTIONAL VALUE LMCU OFFERS, AND PERHAPS WE LL EVEN EXCEED 2016! SANDY JELINSKI PRESIDENT/CEO

4 LMCU S BUSINESS UNITS Mortgage Much of our growth coincides with the continued stellar performance of our mortgage division. LMCU continues to be the largest mortgage purchase originator in Michigan, because of our low rates and professional service. Over 12,000 new mortgages were processed in 2016, resulting in affordable home ownership for our members. Retail Strong branch performance and growth in deposits and loans continued, plus we opened three new locations to better serve you one each in the Grand Rapids area, Livonia and Naples, Florida. Our 55,000 ATM locations, in the Allpoint network, continue to add convenience to our members. We also expanded our Call Center with longer hours and bi-lingual service. Insurance Lake Michigan Insurance Agency grew organically and by way of four agency acquisitions engineered in 2016 Traverse City, Kalamazoo, Walled Lake and Belmont, Michigan. We save members money through our ability to compare coverages from multiple carriers. We received Agency of the Year for Michigan from Frankenmuth Insurance.

5 Commercial Lending Our commitment to helping local businesses grow resulted in our loans and lines of credit expanding to nearly $283 million. We help over 900 local businesses with affordable loans, no prepayment penalties and we pay interest on our business checking accounts, unlike our bank competitors. Investments Lake Michigan Investment Services (LMIS) is backed by the strength, expertise and resources of LPL Financial. LMIS team of investment professionals provides unbiased guidance and personalized financial plans across the entire investment spectrum from IRAs and mutual funds to managed portfolios and strategic estate planning. Anywhere Banking You can open a new checking or savings account, apply for loans, get a credit card, pay bills, transfer funds and keep track of it all online. And with LMCU's powerful mobile banking app, you can also safely and securely deposit checks. In 2016, we had 151,097 members using our mobile app. Convenient access to your accounts 24/7 any day of the year!

6 STATEMENT OF FINANCIAL CONDITION FOR YEARS ENDED DECEMBER 31, 2016 AND 2015 (in thousands) ASSETS Loans Loans To Members Real Estate Loans Commercial Loans $571,079 2,583, ,557 $548,828 2,314, ,544 LIABILITIES & EQUITY Liabilities Accrued Interest on Deposits Accounts Payable & Accrued Expenses Borrowed Funds $828 52, ,000 $682 31, ,000 Less: Allowance For Loan Losses $3,381,252 (3,652) $3,061,666 (5,056) Total Liabilities $496,317 $485,060 Net Member Loans $3,377,600 $3,056,611 Total Deposits $3,775,383 $3,135,450 Equity Loans Held For Sale Cash Investments Deposit - NCUSIF Accrued Interest Receivable Other Receivables & Prepaid Expenses Fixed Assets (Net of Depreciation) $126, , ,793 32,493 9,927 81,841 61,157 $79, , ,984 27,295 9,309 66,982 58,635 Retained Earnings Statutory Reserve Life Savings Reserve Unrealized Gain (Loss) on Investments Other Total Equity $547,459 13, (4,760) (2,443) $553,921 $462,495 13, (4,654) (2,621) $468,887 Total Assets $4,825,621 $4,089,397 Total Liabilities & Equity $4,825,621 $4,089,397

7 2016 HIGHLIGHTS: 55K ATMS In addition to the 100 LMCU ATM s, we also have access to over 55,000 ATM s worldwide through the Allpoint ATM network. NO. 1 $3.8 BILLION in deposits A + A+ rating for excellent financial strength from Weiss Ratings Ranked #1 nationally for Return of Member out of all credit unions >$4B in assets Source: Callahan 450 K MEMBERS 39 BRANCHES #1 home purchase lender in the State of Michigan Source: MarketTrac 5-star rating for financial stability from Bauer Financial 1,060 EMPLOYEES $4.8 BILLION in assets SOLD $3.4 BILLION in loans BEST CHECKING ACCOUNT IN AMERICA AMONG ACCOUNTS OFFERED BY CREDIT UNIONS Money Magazine * rated our 3% APY ** Max Checking account 151,097 Total number of unique users registered to our mobile banking app. 10 YRS *Money Magazine, The Best Checking Accounts. Money Magazine is a registered trademark of Time Inc. **APY= Annual Percentage Yield. Some requirements apply.

8 Lake Michigan Credit Union 4027 Lake Dr. SE Grand Rapids, MI Lake Michigan Home Mortgage 4027 Lake Dr. SE Grand Rapids, MI Lake Michigan Credit Union Commercial Banking 4050 Lake Dr. SE Grand Rapids, MI Lake Michigan Insurance Agency 5550 Cascade Rd. SE Grand Rapids, MI Lake Michigan Investment Services 2024 Celebration Dr. NE Grand Rapids, MI (616 or 800) LMCU.org