ANNUAL REPORT. Giving The University Community A Financial Edge. (800) UCU-4510

Transcription

1 ANNUAL REPORT (800) UCU-4510 Main Branch 1500 S. Sepulveda Blvd. Los Angeles, CA UCLA Campus Branch 308 Westwood Plaza, Los Angeles, CA A-Level Giving The University Community A Financial UCU APP

2 INVEST IN PEOPLE STRATEGIC PRIORITIES REPORT OF THE CHAIR & CEO Giving Our Members A Financial Edge University Credit Union (UCU) is a purpose-driven financial cooperative dedicated to giving the University Community a financial edge. Headquartered in Los Angeles, UCU traces its roots back to 1951, when the credit union was founded on UCLA s campus in Royce Hall by University employees. Our story has spread exponentially to Loyola Marymount, Mount Saint Mary s, and Pepperdine Universities. UCU s focus over the last few years has been on diversifying and building a foundation for future growth. By partnering with the University Community and maximizing our value proposition for all our member-owners, we will continue to thrive well beyond the near future. UCU marks its 67th anniversary with admirable financial performance. As of December 31, 2017, UCU continues to be wellcapitalized with a net worth ratio of 8.82%. UCU grew 6.2% in total assets to $634 million, total loan balances increased 6.5% to $259 million, share growth increased 5.7% to $581 million, and the return on assets was.50%. IMPROVE SPEED & QUALITY We have $400 million to lend so we are intent on engaging with our members when they are in the market to buy a car, open a credit card, consolidate their debt, or buy a new home. Our team offers unbiased advice and works in our members best interest; which has helped us recapture their loans from other financial institutions giving them significant savings. By educating our members to make sensible financial choices, they have the confidence to create wealth for their future. Investments in our people, our technology, and our brand are creating measurable value for our 36,000 member-owners. Our 2017 accomplishments include: Upgrading our technology to a new, more powerful online and mobile banking platform A new real estate platform that delivers a superior member service experience Using real-time data to make loan offers when members are ready to borrow Continuing to grow and leverage relationships with our partner universities Strategic alignment, leadership training and talent development of our staff SIMPLIFY PRODUCT & SERVICE OFFERINGS UCU Logo Contest Winner Our 2018 strategic priorities are: investing in people, improving the speed and quality of our workflow, simplifying our product offerings, and enhancing our accessibility. Your member trust, loyalty, and support are all intrinsic to our overall success. We continue to work to grow member participation in our cooperative by offering relationship driven products and services. Our new initiatives for 2018 include: Brand revitalization, including a new website with high quality, self-service financial education Emphasis on digital delivery to provide a frictionless, effortless experience for members Quantifying the power of our cooperative savings with a member value statement Simplifying our products and services to increase relevance, member value, and impact Building a high performing organization with professional development and education We also have a direct interest in contributing to the quality of life at the Universities we serve. We exclusively give back to our University communities through sponsorships and donations such as financial literacy, food drives, run/walks to raise funds for campus organizations, and participating in multicultural programs. 2 ENHANCE ACCESSIBILITY TO OUR PRIMARY MEMBER Our staff will continue to become the most knowledgeable in their field to better serve you. We have a long-term view of our priorities and have set a goal of bringing you the best our financial cooperative can offer. The key to UCU s success is you, our member-owners. Our success requires your participation and word of mouth. Thank you for your membership with UCU. Norma Iadevaia Norma Iadevaia Chair of the Board David Tuyo David Tuyo President/CEO 3

3 VOLUNTEER BOARD OF DIRECTORS CORE VALUES TEAMWORK - ALL IN Inspires and gets inspired Leads by example Puts the team before self Quick to support others Celebrates others and doesn t seek recognition NORMA IADEVAIA Chair JANE PERMAUL Vice-Chair ELIZABETH YZQUIERDO Secretary/Treasurer LEARNING AND GROWTH Courageous and fearless Learns, mentors and shares Stretches beyond comfort zone Creates opportunity out of failures MEMBER/TEAM MEMBER FOCUS ANITA COTTER RAY DENNIS LEA HOWE Works for the WOW!!! Makes it easy Prescriptive and predictive Treats others the way they want to be treated ACCOUNTABILITY KATHLEEN KISER 4 RICHARD YAMASHITA KEITH YOUNG Keeps word and honors commitments Follows up and follows through Owns successes and failures Holds self to a higher standard Honest, open and transparent 5

4 LEADERSHIP TEAM SUPERVISORY COMMITTEE To protect our members financial safety, University Credit Union s volunteer Supervisory Committee audits the credit union s financials and operations. The Committee s specific duties are to: ALBERT AUBIN Review and ensure, through internal and external auditors, that the proper internal controls of the credit union exist. Ensure proper audit and enterprise risk management procedures. Audit the books, financials, and business operations of the credit union using an appointed independent auditor. Validate and verify the accounts of members against the credit union s records. Review the affairs of the Board of Directors, officers, and management for adherence to University Credit Union bylaws and policies, and all regulations provided by government agencies. Maintain the reputation of the credit union by thoroughly investigating any and all claims made to the credit union and acting on the findings. DAVID TUYO President/CEO ANGELA ALBERTI Chief Risk Officer SCOTT KO Chief Financial Officer ESTELA NAGAHASHI Chief Lending Officer EVANY PERKINS Chief Experience Officer STEVE SERCU Chief Technology Officer SARA STERN Chief Marketing Officer SANDRA VANOVER Chief People Officer RSM, an independent Certified Public Accounting (CPA) firm, was selected by the Supervisory Committee to audit the credit union s financial statements and ensure that they were reported according to Generally Accepted Accounting Principles (GAAP). An excerpt from the RSM letter states: In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of University Credit Union as of December 31, 2017, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. We are pleased to announce that University Credit Union s financials and operations, to ensure the safety and soundness of the credit union, were confirmed by the independent audit. PATRICIA LOWE DORI MACDONALD 6 Albert E. Aubin, Committee Chair Patricia Lowe, Committee Member Dori MacDonald, Committee Member To obtain a complete copy of the audited financial statements (including the audit opinion), contact: Supervisory Committee, 1500 S. Sepulveda Blvd., Los Angeles, CA

5 STATEMENTS OF FINANCIAL CONDITION STATEMENTS OF INCOME December 31, 2017 & 2016 December 31, 2017 & 2016 ASSETS Cash and cash equivalents Investments: Securities available for sale Other Loans receivable, net of allowance for loan losses Accrued interest receivable Property & equipment, net National Credit Union Share Insurance Fund (NCUSIF) deposit Credit Union owned life insurance Prepaid expenses and other assets TOTAL ASSETS LIABILITIES AND MEMBERS EQUITY Members share and savings accounts Accounts payable and other liabilities TOTAL LIABILITIES Members equity: Retained earnings Accumulated other comprehensive loss $ 49,125, ,269,501 38,420, ,249,492 1,620,139 9,890,767 5,274,224 8,467,463 3,159,832 $ 634,478,371 $ 581,150,561 3,853, ,003,814 56,013,996 (6,539,439) $ 60,493, ,483,134 70,506, ,829,853 1,209,156 9,963,462 4,920,858 8,012, ,305 $ 597,150,007 $ 549,781,995 2,854, ,636,462 52,936,091 (8,422,546) INTEREST INCOME Loans Investments TOTAL INTEREST INCOME INTEREST EXPENSE Members share and savings accounts NET INTEREST INCOME Provision for loan losses NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES NON-INTEREST INCOME Product and service revenue Gain on sale of investments Gain on sale of loans (Loss) gain on sale of premises and equipment Other non-interest income TOTAL NON-INTEREST INCOME $ 10,968,773 4,624,552 15,593,325 1,857,961 13,735,364 1,254,745 12,480,619 4,438,686 3,443-10, ,871 5,117,500 $ 10,136,742 3,516,179 13,652,921 1,647,814 12,005, ,518 11,749,589 4,141,171 63,384 38,218 (1,917) 713,519 4,954,375 TOTAL MEMBERS EQUITY TOTAL LIABILITIES AND MEMBERS EQUITY 49,474,557 $ 634,478,371 44,513,545 $ 597,150,007 NON-INTEREST EXPENSE Salaries and benefits Office operations Occupancy 7,664,595 6,227, ,311 7,549,326 5,468, ,122 TOTAL NON-INTEREST EXPENSES 14,520,214 13,658,220 NET INCOME $ 3,077,905 $ 3,045,

6 UCU BY THE NUMBERS UNIVERSITY COMMUNITY INVOLVEMENT OUR SOLE FOCUS $650,000, Total Assets $634,478,371 $260,000, Total Loans $259,451,007 - EDUCATED - - RAISED - AWARENESS FOR BREAST CANCER AT LMU THINK PINK WALK $600,000,000 $597,150,007 $250,000,000 $550,000,000 $500,000,000 $450,000,000 $400,000,000 $542,793,199 $494,998,170 $475,238,072 $240,000,000 $230,000,000 $220,000,000 $210,000,000 $233,251,948 $238,367,137 $230,579,904 $226,053, s OF MEMBERS THROUGH WORKSHOPS, WEBINARS AND ONE-ON-ONE CONVERSATIONS $600,000,000 $550,000,000 $500,000,000 $450,000,000 $400,000,000 $436,609, Total Shares $454,255,699 $499,520,489 $549,781,995 $581,150,561 $4,900,000 $3,900,000 $2,900,000 $1,900,000 $900,000 $286, % 2017 Return on Assets $4,819, % 0.89% $3,045,744 $2,537, % 0.52% $3,077, % - AWARDED - SCHOLARSHIPS TO MEMBERS THROUGH THE UCU SCHOLARSHIP PROGRAM - FED - $350,000,000 $100, Net Worth $42,533,133 $45,070,737 $49,890,347 $52,936,091 $56,013, s OF STUDENTS ACROSS CAMPUS THROUGH OUR SPONSOSHIP OF THE UCLA & LMU FOOD PANTRIES 8.86% - PROTECTION - - DONATED - BOOKS & TOYS TO UCLA MATTEL CHILDREN S HOSPITAL CHASE CHILD LIFE FUND YEAR SHREDDED 9,000 lbs OF MEMBER DOCUMENTS 10 11