CME ANNUAL REPORT. Good is building a credit union. Great is building a community.

Transcription

1 CME ANNUAL REPORT Good is building a credit union. Great is building a community Celebrating 80 Years of Service!

2 A MESSAGE FROM THE CEO To say that 2014 was a banner year at CME, is an understatement! It was a one of our best years! Loans grew in a competitive market, operating income was up, and more great products for each member increased! Our members are doing more with us and the more you do the greater the benefits. Thank you to all members that contributed to our success in 2014! As we approach our 80 th Anniversary in 2015, we are excited to continue to offer you some of the best financial products in Central Ohio. With an expanded community charter to Delaware, Fairfield, Licking, Madison, Morrow, Pickaway and Union counties we know we can assist more members in meeting their financial needs. Consistently looking at technology, we foresee improvements in online banking and the mobile app. With CME you can bank just about anywhere! If you have a smart phone, tablet or computer you can bank with us! WE GIVE BACK TO THE COMMUNITY In addition to the great financial year, something that sets CME apart from other financial institutions is our generosity to support the groups that founded us, our dedicated public servants, police and fire. In 2014, we donated $20,000 to the Firefighters for Kids Toy Drive. Since starting the sponsorship in 2007, CME has donated over $100,000 to this worthy cause. CME also donated more than $25,000 to the Columbus Firefighters Foundation through our annual golf outing. In addition we continue to support organizations like, Pipes and Drums, the Columbus Fire Museum and Box 15. Partnering with radio station Sunny 95, we initiated the Hometown Hero program. Every month CME honors heroes that give back with their dedicated service from police officers to teachers to social workers. We will continue to honor these heroes in We also launched the new ez Money checking account that gives a donation back to either the Fraternal Order of Police, Columbus Firefighters Foundation or Get Behind the Badge. Just by using your debit card you can contribute to your favorite charity. EMBRACING THE NEW WAY OF BANKING Recently I heard a staff member say, If I didn t work at the credit union, I probably would never visit a branch. As technology improves, CME is improving too! In 2014, we revamped our website making it easier to view all of our products, apply for a loan or view your account. Now you can visit the credit union from the comfort of your home, just by going to our In addition, we increased our staff at our contact center and moved them into a state-of-the-art office space. Although we will continue to offer branches for our members visit, it s nice to know you do have an alternative. In addition to our website, CME is very active with social media. If you are not already, become a fan of our Facebook page to keep up to date on all of our activities! We also Tweet and are on Instagram! LOOKING TO THE FUTURE As for 2015, CME wants to continue to be your primary financial institution. If there is something you need, let us know. From auto loans, to checking accounts to savings products, CME has everything you need to take your financial life from good to great! James M. Riederer President/CEO CME ANNUAL REPORT 2014

3 A MESSAGE FROM THE CHAIRMAN Setting out to fulfill our promise to offer competitive products and services to our members is vital to the success of CME Federal Credit Union. Knowing our members can reach out to other financial institutions, only makes CME more determined to provide you with the best products, rates, services and more! Constantly improving our technology, we hope to introduce more convenient ways of banking in The extended community charter gives the opportunity to add new members. If your business, family or friends want the benefit of a great credit union and didn t think they could be a member, let us know! In 2014, our focus was on the one thing that has not changed at CME; great customer service and great financial products. For 79 years we ve provided the best, but we can always do better! We know the financial industry is an extremely competitive one. That s why we thank you for making CME your strong communitybased financial cooperative. We re here because of you, the valued member! CME wants to make sure we are delivering the best products in the most hospitable and convenient way. As we get ready to celebrate our 80 th Anniversary of service in 2015, we still believe in our mission, delivering banking solutions that build valued relationships. At CME, our members are like guests in our home and we value that connection. We want to help you when you need us, hopefully exceeding your expectations. With an extended community charter, anyone in Delaware, Fairfield, Franklin, Licking, Madison, Morrow, Pickaway and Union counties can now be a member. With convenient services, like online banking and a mobile app, you can bank just about anywhere with CME. As a City of Columbus Firefighter, I believe in the value the credit union can bring to its members. I m mindful of the fact that we may not be able to help everyone but we will do our best to try. When you compare CME to others, we still are at the top! Lastly, I would like to thank the CME Board of Directors, Management and Staff for their hard work and commitment in will be a celebration year for CME! Thanks to our members for being a part of this worthy accomplishment. David K. Whiting Chairman Life is Good. Make it Great.

4 SUPERVISORY COMMITTEE REPORT Under provisions of the Federal Credit Union Act, the Supervisory Committee is responsible for an annual audit, verification of member accounts, review of the performance of officials and employees, and for making recommendations to the Board of Directors for improvements in the operation of the credit union. The committee fulfilled each of these responsibilities during We are satisfied that the board, management and staff of CME Federal Credit Union have operated in a safe, sound, progressive and responsive manner. The committee retained the certified public accounting firm of Lillie & Company, LLC. to conduct an independent review of the CME FCU s financial statements. This audit is conducted in accordance with generally accepted accounting standards and requirements of the National Credit Union Administration. Additionally, the Supervisory Committee hired Lillie & Company LLC to conduct periodic, internal audits of reports and operations. They report their findings to the Supervisory Committee as an independent check of the credit union s management. This type of consistent independent review of the CME FCU s operations is part of our commitment to you that your credit union will always endeavor to serve your best interests Supervisory Committee James J. Ankowski Chair Edward L. Montgomery Ekow D. Dennis CME ANNUAL REPORT 2014

5 TREASURER S REPORT 2014 was a great year for CME Federal Credit Union! We continue to meet the financial needs of our members with strong financial performance. As we celebrate our 80 th year of service in 2015, you can depend on your credit union to perform well into the future. Great financial performance, along with no obligation to pay an assessment to help stabilize the NCUSIF, resulted in net income of $1,307,448 at year end Total assets showed an increase of $6.2 million, or 2.78%. This increase was a result of an increase in cash deposits; borrowing a $4 million advance from the Federal Home Loan Bank; capital due to the unrealized gains associated with the investment portfolio; and positive earnings. Total assets reflect a balance of $230.6 million at year end. the health savings accounts. Money markets increased 5.42%, while share and IRA certificates decreased 11.68%. As a result of the positive earnings reflected during the year, the net worth ratio for CME increased to 9.13%. In addition, with the increase in loans and the decrease in shares, the loan-to-share ratio increased to 88.58%. The return-on-assets ratio for 2014 increased to.57%, higher than budgeted. As Secretary/Treasurer for the CME Federal Credit Union Board of Directors, I can say with confidence that CME will continue to offer the most competitive products and services to its members. I congratulate the CME staff, committees and board of directors for their hard work in During the year, loans grew substantially -- $14.6 million or 8.86%. Total loans outstanding at year end are $180.2 million. However, this loan figure does not include the $28.3 million in fixed rate first mortgages sold to the Federal Home Loan Bank. Thomas F. Brandt Secretary/Treasurer Total shares decreased slightly by $279,000 or.14%, and total approximately $203.5 million at year end. Regular shares increased.86%, however share drafts decreased by 15.07% due to health savings accounts being moved to the IRA share category. On the other hand, IRA shares increased % with the inclusion of Life is Good. Make it Great.

6 STATEMENT OF FINANCIAL CONDITION BALANCE SHEET ASSETS Loans $ 180,255,189 Allowance for Loan Loss (777,779) Net Loans 179,477,410 STATEMENT OF INCOME INTEREST INCOME Interest on Loans $ 8,316,571 Interest on Investments 403,584 Total Interest Income 8,720,155 Cash 5,893,125 Investments 28,789,131 Property and Equipment 10,004,642 Other Assets 6,432,017 Total Assets $ 230,596,325 Interest Expense on Savings Accounts 1,004,368 Interest Expense on Borrowed Money 3,110 Net Interest Income 7,712,677 Provision for Loan Loss 785,035 LIABILITIES Liabilities and Accrued Expenses Members Share Accounts $ 5,716, ,505,124 Net Interest Income After Provision for Loan Losses 6,927,642 Non-Interest Income 3,786,307 EQUITY 21,374,693 Total Liabilities and Equity $ 230,596,325 Non-Interest Expense 9,406,501 NET INCOME $ 1,307,448 ASSET GROWTH $225,413,989 $225 $210,309,313 $175 $224,360,439 $230,596,325 SHARE GROWTH $225 $204,381,744 $203,784,503 $190,453,208 $175 $203,505,124 LOAN GROWTH $200 $154,546,157 $150 $165,043,932 $179,477,410 MIllions $125 MIllions $125 MIllions $125 $135,686,748 $75 $75 $ LETTER REGARDING OUR INDEPENDENT AUDITORS Lillie & Company, LLC has been engaged to perform an audit of the financial statements of CME Federal Credit Union as of December 31, 2014 and for the year then ended. CME Federal Credit Union s financial statements as of and for the year ending December 31, 2014 and Lillie & Company s Independent Auditor s Report on our financial statements may be viewed at the Administrative Office located at 150 E. Mound Street, Suite 100, Columbus, Ohio CME ANNUAL REPORT 2014

7 BOARD OF DIRECTORS David K. Whiting Chair Michael K. Fultz 1st Vice Chair Mark DeVine 2nd Vice Chair Thomas Brandt Treasurer/Secretary Frank Biancone Aileen Heiser Robert E. Hill Jerry L. Mason Craig D. Saylor Cris Truesdell David A. Wilson MANAGEMENT TEAM James M. Riederer President/CEO Brian Warner SVP Finance & Administration Jacquie Ayres VP Marketing & Business Development Ryan Giffin VP Sales & Lending Joe Toth VP Information Technology Ginger Yonak VP Human Resources Life is Good. Make it Great.

8 Celebrating 80 Years of Service! ADMINISTRATIVE OFFICE 150 E. Mound St., Suite 100 Columbus, OH CLINTONVILLE BRANCH 4545 N. High St. Columbus, OH DOWNTOWN BRANCH 365 S. 4th St. Columbus, OH HILLIARD BRANCH 4099 Trueman Blvd. Hilliard, OH PICKERINGTON BRANCH 1017 Refugee Rd. Pickerington, OH TEAMSTERS BRANCH 555 E. Rich Street Columbus, OH WESTERVILLE BRANCH 428 S. State St. Westerville, OH CME Federal Credit Union 2015