We Do Local. You Do Life! Annual Report Simpler. Faster. Friendlier.

Transcription

1 We Do Local. You Do Life! Annual Report 2017 Simpler. Faster. Friendlier.

2 PRESIDENT S MESSAGE 2017 was a fantastic year for 1st United Credit Union. We celebrated our 85 th year as a financial cooperative. We rolled out a new website, online banking, and mobile banking. We were named one of San Francisco Bay Area s Best and Brightest Companies to Work For. And we wrapped it all up by surpassing $1 billion in assets an accomplishment that is a testament to the stability and growth of our Credit Union. As a member-owner of 1st United, you share ownership in this success. I m proud to share a few of our accomplishments this past year. $1 Billion Strong Achieving the $1 billion milestone required adjustment to business strategies amongst an ever-changing economy. For a Bay Area-based financial institution, ever-changing is an understatement. We ve seen significant fluctuations in the job, housing, and economic markets over the past 10 years; however, through it all, we have held steadfast to our strategic initiatives, adjusting as needed with our members best interests in mind. Banking Just Got Friendlier 1st United prides itself on being on the forefront of the latest technological advances. Our new online banking systems brought a simpler interface and included new text banking, enhanced alerts with realtime functionality, new Visa purchase alerts, enhanced security, online appointment scheduler, and more. We want to continue to remain relevant and tech-savvy while providing the highest level of security and service for our members accounts. Focused on Cyber-Security Cyber-security is ever-changing as well, and we continue to stay ahead of the curve so our members can feel comfortable that their Credit Union is proactively protecting their accounts. This year, we engaged with a new service that identifies threats and takes action before members are impacted, including potentially compromised cards. Community First 1st United Credit Union continues to celebrate our community by investing time and money where our members live, work, and play. Taking this social responsibility to heart, we proudly increased our presence in local communities through Adopt-a-School programs, school fundraisers, community outreach, volunteerism, and financial education. This effort has been a double bonus for us we are helping our community and we re getting to know our members outside of the credit union environment. Better yet, our community has been very appreciative of our support. Together, we celebrate our accomplishments. 1st United Credit Union and our staff and volunteers remain grateful to our members for continuing to put their trust in us. I am also thankful for each and every one of our staff for their dedication and commitment. I appreciate their hard work and their teamwork. We have accomplished a great deal in 2017 and we eagerly look forward to continued success in Sincerely, Victor Quint President and CEO

3 CHAIRMAN S REPORT One billion dollars in assets! What an outstanding accomplishment for 1st United Credit Union during our 85th Anniversary. On behalf of the Board of s, I d like to thank all our members for their continued loyalty and support over the years. It s because of your dedicated participation that 1st United continues to remain financially strong and stable. Our focus was to create strategic initiatives to ensure the organization s long-term financial security and growth. We specifically focused on growing our net worth, increasing loans, attracting and retaining new members, and developing stronger relationships with our existing members. We also focused on improving our use of technology and offering our members more convenient ways to access their accounts all in an effort to be simpler, faster and friendlier. Education was also one of our big efforts. Being able to provide our members with the knowledge they deserve to make better financial decisions was top priority for us. A successful effort was made to strengthen and streamline our executive and management teams to better define areas of productivity and responsibility in order to continue our goals of growth with strong financial stability. 1st United continues to make steady progress financially and we will continue to offer only the very best in financial offerings. With your help and continued support of the credit union, we can continue to offer our members a lifetime of simpler, faster and friendlier products and services. As always, 1st United remains focused on community outreach and support. We were able to help many organizations such as Alternative Family Services (AFS), Alameda County Community Food Bank, and Toys for Tots. On behalf of the Board of s, I wish to give our sincerest thanks to all our members, volunteers, and staff for all of their hard work helping to grow 1st United into the strong financial institution it is today. Howard T. Bud Garrigan Chairman, Board of s GIVING BACK

4 SUPERVISORY COMMITTEE REPORT The Supervisory Committee serves as the Credit Union s audit division. We also conduct a review of the functions of the various Credit Union departments along with their compliance with applicable regulations and internal policies and procedures. In addition, the committee has regular contact with the membership to assure member requests have been properly met. In 2017, the Supervisory Committee engaged an independent audit firm to perform a financial audit of 1st United Credit Union. The results of the audit were favorable and determined 1st United Credit Union to be safe and sound in policy and practice. The audit, conducted in accordance with Generally Accepted Accounting Principles (GAAP), indicated that 1st United Credit Union remains strong and financially stable. Jack Sanders Chairman, Supervisory Committee

5 Comparative Balance Sheet TREASURER S REPORT The Treasurer of 1st United Credit Union oversees and ensures the accuracy of the financial reports as presented to the Board of s by the management of the Credit Union. 1st United Credit Union continued to grow and gain financial strength. Total assets at year-end 2017 were $1,022,881,195. Throughout 2017, we focused on innovative products and services to help our members plan and save for the future and achieve their important financial goals. I am confident that 1st United will continue its great tradition of service to its members within the framework of financial strength and stability. Teresita M. Lauigan Treasurer, Board of s ASSETS Loans, net $ 805,572,745 $ 714,336,286 Cash 57,995,871 59,713,949 Investments 135,998, ,900,084 Building & Land 5,069,158 5,363,561 Other Fixed Assets 3,512,216 3,736,040 Other Assets 14,732,343 14,149,248 Total Assets $ 1,022,881,195 $ 936,199,168 LIABILITIES Regular Shares $ 192,364,541 $ 175,472,564 Share Drafts 129,103, ,440,013 Money Market Account Shares 242,570, ,561,461 Share Certificates 355,723, ,187,766 Total Shares 919,761, ,661,804 Other Liabilities 4,419,783 2,930,048 Total Liabilities 924,181, ,591,852 EQUITY AND RESERVES Unrealized Investment Gains/(Losses) $ (2,068,456) $ (3,138,718) Regular Reserves 26,856,642 26,856,642 Undivided Earnings 73,911,651 68,889,392 Total Capital & Reserves 98,699,837 92,607,316 TOTAL LIABILITIES, EQUITY & RESERVES $ 1,022,881,195 $ 936,199,168 Return on Average Assets 0.51% 0.56% Net Worth Ratio 9.85% 10.23% Asset Growth 9.26% 9.01% Operating Income Statement Total Assets ($ in millions) INCOME Loan and Visa Income $ 29,800,963 $ 25,970,825 Income From Investments 2,980,892 2,556,331 Other Operating Income 7,072,146 6,737,867 Gross Income 39,854,001 35,265,023 DIVIDENDS 5,284,700 3,803,730 $936 $1,023 OPERATING EXPENSES AND PROVISION FOR LOAN LOSS 29,547,042 26,466,341 $859 NET INCOME $ 5,022,259 $ 4,994,

6 Chief s Victor Quint President & CEO Tosha Y. Eagles-Williams Chief Lending Greg Pulliam Chief Administrative Ed Renteria Chief Operations Steve Stone Chief Financial Joanna Uhl Chief Information Board of s Howard T. Bud Garrigan Chairman Dave Macdonald Vice Chairman Naomi Burns Secretary Teresita M. Lauigan Treasurer Veleta Allen Steve Manning Patrick O Connell Ron Thomsen Supervisory Committee Jack Sanders Chairman Len Herrero Secretary Thomas Dean Crystal Hishida Graff Richard Smith 1stunitedcu.org Simpler. Faster. Friendlier.