CHAIRMAN & PRESIDENT S REPORT SUPERVISORY COMMITTEE REPORT

Transcription

1 2017 ANNUAL REPORT

2 CHAIRMAN & PRESIDENT S REPORT If we were looking for a theme for 2017, it would be growth and expansion. A cooperative s health is often measured by its ability to grow and expand in order to ensure scale and prosperity. We experienced another amazing year of growth. Regulatory changes took place recently that allowed us to expand into 10 additional counties in New York and we look forward to adding membership in all of these new regions. Our members are always first and foremost in our decisions, and we manage our growth so that we can continue to provide outstanding service and ensure true value to the membership. This is evidenced by some of our highest member satisfaction scores to date. In 2017, we saw our credit union surpass $4 billion in assets and we now have more than 191,000 members. We manage our growth so that we can continue to provide outstanding service and ensure true value to the membership. This could only happen with the support and willingness of our membership to refer us to their friends and family across our field of membership. Loan growth was exceptional we have more than 142,000 loans being serviced, resulting in net loan growth of over $220 million. This growth has led to a significant rise in our net income before additional reserves required for taxi medallions, allowing us to continue providing the most competitive rates while offering low fees. Up to the beginning of 2013, the credit union originated loans for individuals or companies that wanted to purchase or own taxi medallions. With the rise of ride sharing companies such as Uber and Lyft, the underlying values of the loan collateral have declined. Though most of these loans are currently performing, we decided to materially reserve for this loan category in With the strength of our financials and over $34 million in returns, we chose to materially reserve against taxi medallions today, which will provide more flexibility on the resolution of these loans going forward and will remove an impediment to future performance. We offered new products in 2017, such as our No Closing Cost 15/15 Mortgage that saved members thousands of dollars at closing and our Bump Certificate with two guaranteed annual rate increases, regardless of market conditions or rate environment. We made continued enhancements to our Contact Center, adding new features like a call-back option to provide more flexibility to accommodate our members busy lives. We added new ATMs and branch locations and reinvested in our overall branch delivery channel through renovations across our footprint. For 2018, we have numerous projects in the works that will enhance our mobile applications, online services, credit cards, loan features, and referral process. It is a privilege for all of us including volunteers and employees to be your trusted advisor and partner, and we look forward to fulfilling all your financial needs. We will continue to make enhancements, simplify processes, and add more value to your membership on a daily basis. We thank you for your support, the thousands of referrals, and the opportunity each day to be your credit union. George S. Bobinski, Jr. George S. Bobinski, Jr. Chairman of the Board The Supervisory Committee is an independent committee responsible for overseeing your credit union s financial records, monitoring and evaluating its operation and regulatory compliance practices, and responding to formal member complaints. The committee consists of five members and two alternates that are appointed annually by the Board of Directors. The committee accomplishes its goals by managing the internal audit function and supervising the external audit. Through these, the committee reviews dozens of audits on a wide variety of regulatory, compliance, and security issues facing the credit union to help ensure operation at the highest levels of integrity. This year s external audit, the primary audit of the credit union s financial operations, was performed by CliftonLarsonAllen LLP. The results of that audit certified that Visions Federal Credit Union is in compliance with all applicable rules and regulations, and that our financial reports are accurately prepared and reflect the sound financial condition of your credit union. Douglas J. Camin Chairman of the Supervisory Committee President & CEO SUPERVISORY COMMITTEE REPORT Douglas J. Camin

3 GROWTH AND EXPANSION BY THE NUMBERS 8,797 NEW MEMBERS 10 MORE COUNTIES IN NYS $4 BILLION IN ASSETS 8,697 MORTGAGE LOANS 3 NEW LOCATIONS MEMBERSHIP AT MORE THAN 191, BUSINESS LOANS 1 MILLION INVESTED IN OUR COMMUNITIES NET 2,845 HOURS OF EMPLOYEE VOLUNTEERISM 7,800 ATTENDED FINANCIAL LITERACY PROGRAMS LOAN GROWTH OF $220 MILLION

4 YEAR-END FINANCIAL HIGHLIGHTS 2017 Assets Loans to Members (net) $2,320,301,592 $2,542,012,296 Cash & Investments 1,200,746,545 1,273,840,945 Land & Building (net) 30,018,243 40,689,202 Furniture & Equipment (net) 7,444,360 7,636,861 Leasehold Improvements (net) 3,006,762 3,526,465 Prepaid Pension Expense 33,112,354 39,103,731 Accrued Income on Loans 5,985,681 6,701,673 Accrued Income on Investments 3,175,294 4,351,609 National Credit Union Share Insurance Fund 28,340,459 29,504,369 Other Assets 78,471,563 75,137,985 Total Assets $3,710,602,853 $4,022,505,136 Liabilities & Reserves Accounts Payable $2,394,469 $2,006,605 Notes Payable 100,290, ,779,214 Other Liabilities 38,614,720 45,062,274 Share Accounts 3,112,393,873 3,208,244,033 Reserves 490,024, ,666,071 Unrealized Gain/(Loss) on Investments/OCI (33,115,542) (36,253,061) Total Liabilities & Reserves $3,710,602,853 $4,022,505,136 Statement of Income Interest on Loans $85,640,799 $94,262,415 Interest on Investments 17,505,591 26,183,767 Other Income 22,629,150 24,627,362 Total Income $125,775,540 $145,073,544 Distribution of Income Compensation & Employee Benefits $37,997,714 $41,684,050 Association Dues 484, ,918 Office Occupancy 21,979,606 24,017,140 Advertising 3,579,286 3,595,679 Loan Servicing 4,237,558 4,987,627 Professional Services & Education 1,656,620 1,274,338 Provision for Loan Loss - Taxi Medallion Loans 3,350,000 22,195,000 Provision for Loan Loss - All Other Loans 3,860,000 8,360,000 Member Insurance - - Federal Operating Fees 348, ,728 Interest Expense 178,097 4,223,244 Misc. Operating Expenses 2,185,098 2,445,079 Total Expense $79,857,610 $113,793,803 (Gains) or Losses on Investments/Assets (1,432,060) (2,849,854) Dividends Paid 21,681,568 21,488,483 Increase to Reserves & Undivided Earnings 25,668,422 12,641,112 Total Income Disbursed $125,775,540 $145,073,544 Total Membership , ,728 Member Averages CU Savings Balance $17,014 $16,733 CU Loan Balance 12,831 13,521 Growth Statistics ($ Millions) Shares $3,112.4 $3,208.2 Loans (gross) 2, ,592.3 Reserves Loan Activity (Outstanding) 2016 # 2016 $ 2017 # 2017 $ Consumer 128,503 $1,134,403, ,007 $1,252,482,972 Real Estate 8, ,451,559 8, ,515,908 Member Business ,420, ,261,843 Total 137,635 $2,347,275, ,510 $2,592,260,723 LEADERSHIP TEAM President & CEO Executive Vice President Edward J. Butler Senior Vice Presidents Kenneth M. Burt, CFO Tracey E. Wheeler, CMEO Vice Presidents Christopher Alfarano Lisa L. Darling Cynthia A. Schroeder Steve I. Wayman James L. Wyatt Assistant Vice Presidents Mark W. Bowman Mandy L. DeHate Linda L. Hamlin Betty J. McQuay, Chief Audit Executive Jenna M. Rosenberg Rebecca S. Trick Sherri L. Westcott Board of Directors George S. Bobinski, Jr., Chairman Alan G. Hertel, Vice Chairman Scott M. Hotalen, Treasurer Kenneth H. Kidder III, Secretary Steven P. Hill Joan S. Lacey Christopher H. Marion R. Mark Patterson Kelly A. Roche Jose Moreira, Associate Director Laurie Schorno, Associate Director Supervisory Committee Douglas J. Camin, Chairman Frederick K. Getz, Vice Chairman Denise B. Stoughton, Secretary Mary C. Robinson Mark A. Wasser Brian J. Eldridge, Alternate Thomas E. Knight, Alternate

5 24 McKinley Ave. Endicott, NY visionsfcu.org Federally insured by NCUA