Celebrating 75. years of growth! 2016 annual report. To all of our loyal members... President s Message. Chairman s Message

Transcription

1 President s Message annual report We saw remarkable growth and exciting changes in. At the start of the year we moved our Paso Robles branch to a more spacious location and one week later opened a branch in Santa Maria. Next we relocated our Los Osos Valley Road ATM across the street to the Laguna Shopping Center, where it s well-lighted and easily accessible. During the past 75 years, we ve seen much growth in our local community, and the Credit Union has grown with it. SESLOC was founded in 1942 with just 32 members and a field of membership limited to school employees. Local demand for credit union services led to several charter expansions, and today we re pleased to provide low rate loans and low cost services to over 47, members throughout and Northern Santa Barbara Counties. We enjoyed an exceptional 12% membership growth in, which surpassed the previous year s record increase. Although we re serving more people, we remain committed to earning and keeping your trust and confidence. Growth requires continual internal improvements, and this year we made a major investment in SESLOC s future. Our older operating system could no longer provide the flexibility and speed needed in today s business environment, so in we embarked upon a major technology upgrade. It is difficult to convey the amount of work required to complete this complex system upgrade, which moves all our processes to a new operating platform. The SESLOC staff embraced this project with energy and enthusiasm, working tirelessly for over a year to bring it to a successful conclusion in February 217 all while continuing to manage the busy day-to-day credit union operations. It was a heroic effort. BRANCH LOCATIONS Paso Robles 75 Golden Hill Road HEADQUARTERS 3855 Broad Street Atascadero 838 El Camino Real MAILING ADDRESS P.O. Box 536 CA As we look back on our 75 years, we know that none of this would be possible without the support of our loyal members Broad Street Arroyo Grande 1399 East Grand Avenue Santa Maria 256 South Broadway sesloc.org To all of our loyal members... We ended with assets of $768 million, a solid 8.7 % growth, and net worth grew to $ 67 million. Most important, SESLOC finished the year with 8.76 % capital ratio, which is considered well-capitalized by regulatory standards. Credit Union staff provided support for this growth, in addition to working long hours on the projects required for a successful technology upgrade in February 217. This upgrade to a new operating system will provide SESLOC the tools needed to serve members with efficiency and flexibility for many years to come. As we look back on our 75 years, we know that none of this would be possible without the support of our loyal members who take credit union ownership seriously. Thank you for giving us feedback and supporting our efforts to make this an outstanding financial institution. Geri LaChance President/CEO years of growth! This year, as we celebrate our 75th anniversary, we look back with respect and gratitude to the original 1 school employees who had the foresight to establish a credit union for local school employees. Their vision resulted in the chartering of a small credit union with just $5 in assets. During 1943, the first full year of operation, the credit union granted 13 loans for a total of $54. From those humble beginnings, SESLOC has grown to be one of the leading lenders on the Central Coast, having granted more than $ 2.3 billion in loans to our members since inception. In, we originated $ 224 million in loans, resulting in a $1 million net growth in our loan portfolio - a 26% increase over the previous year. Growth occurred in all lending areas: residential real estate, commercial real estate and vehicle loans. SESLOC s successful lending program, which allows members to apply for SESLOC loans directly at participating car dealerships, continues to provide a great convenience for members. The new technology will benefit all members as it increases our efficiency, improves back office processes, provides better reporting and analytic tools, and gives us the flexibility needed to provide new services. Members will enjoy faster in-branch transactions, which result in shorter teller lines and faster account openings. And it will serve SESLOC well, far into the future. s Message Savings are federally insured to at least $25, and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. Dr. Vic Buccola of the Board Celebrating 75

2 President s Message annual report We saw remarkable growth and exciting changes in. At the start of the year we moved our Paso Robles branch to a more spacious location and one week later opened a branch in Santa Maria. Next we relocated our Los Osos Valley Road ATM across the street to the Laguna Shopping Center, where it s well-lighted and easily accessible. During the past 75 years, we ve seen much growth in our local community, and the Credit Union has grown with it. SESLOC was founded in 1942 with just 32 members and a field of membership limited to school employees. Local demand for credit union services led to several charter expansions, and today we re pleased to provide low rate loans and low cost services to over 47, members throughout and Northern Santa Barbara Counties. We enjoyed an exceptional 12% membership growth in, which surpassed the previous year s record increase. Although we re serving more people, we remain committed to earning and keeping your trust and confidence. Growth requires continual internal improvements, and this year we made a major investment in SESLOC s future. Our older operating system could no longer provide the flexibility and speed needed in today s business environment, so in we embarked upon a major technology upgrade. It is difficult to convey the amount of work required to complete this complex system upgrade, which moves all our processes to a new operating platform. The SESLOC staff embraced this project with energy and enthusiasm, working tirelessly for over a year to bring it to a successful conclusion in February 217 all while continuing to manage the busy day-to-day credit union operations. It was a heroic effort. BRANCH LOCATIONS Paso Robles 75 Golden Hill Road HEADQUARTERS 3855 Broad Street Atascadero 838 El Camino Real MAILING ADDRESS P.O. Box 536 CA As we look back on our 75 years, we know that none of this would be possible without the support of our loyal members Broad Street Arroyo Grande 1399 East Grand Avenue Santa Maria 256 South Broadway sesloc.org To all of our loyal members... We ended with assets of $768 million, a solid 8.7 % growth, and net worth grew to $ 67 million. Most important, SESLOC finished the year with 8.76 % capital ratio, which is considered well-capitalized by regulatory standards. Credit Union staff provided support for this growth, in addition to working long hours on the projects required for a successful technology upgrade in February 217. This upgrade to a new operating system will provide SESLOC the tools needed to serve members with efficiency and flexibility for many years to come. As we look back on our 75 years, we know that none of this would be possible without the support of our loyal members who take credit union ownership seriously. Thank you for giving us feedback and supporting our efforts to make this an outstanding financial institution. Geri LaChance President/CEO years of growth! This year, as we celebrate our 75th anniversary, we look back with respect and gratitude to the original 1 school employees who had the foresight to establish a credit union for local school employees. Their vision resulted in the chartering of a small credit union with just $5 in assets. During 1943, the first full year of operation, the credit union granted 13 loans for a total of $54. From those humble beginnings, SESLOC has grown to be one of the leading lenders on the Central Coast, having granted more than $ 2.3 billion in loans to our members since inception. In, we originated $ 224 million in loans, resulting in a $1 million net growth in our loan portfolio - a 26% increase over the previous year. Growth occurred in all lending areas: residential real estate, commercial real estate and vehicle loans. SESLOC s successful lending program, which allows members to apply for SESLOC loans directly at participating car dealerships, continues to provide a great convenience for members. The new technology will benefit all members as it increases our efficiency, improves back office processes, provides better reporting and analytic tools, and gives us the flexibility needed to provide new services. Members will enjoy faster in-branch transactions, which result in shorter teller lines and faster account openings. And it will serve SESLOC well, far into the future. s Message Savings are federally insured to at least $25, and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. Dr. Vic Buccola of the Board Celebrating 75

3 President s Message annual report We saw remarkable growth and exciting changes in. At the start of the year we moved our Paso Robles branch to a more spacious location and one week later opened a branch in Santa Maria. Next we relocated our Los Osos Valley Road ATM across the street to the Laguna Shopping Center, where it s well-lighted and easily accessible. During the past 75 years, we ve seen much growth in our local community, and the Credit Union has grown with it. SESLOC was founded in 1942 with just 32 members and a field of membership limited to school employees. Local demand for credit union services led to several charter expansions, and today we re pleased to provide low rate loans and low cost services to over 47, members throughout and Northern Santa Barbara Counties. We enjoyed an exceptional 12% membership growth in, which surpassed the previous year s record increase. Although we re serving more people, we remain committed to earning and keeping your trust and confidence. Growth requires continual internal improvements, and this year we made a major investment in SESLOC s future. Our older operating system could no longer provide the flexibility and speed needed in today s business environment, so in we embarked upon a major technology upgrade. It is difficult to convey the amount of work required to complete this complex system upgrade, which moves all our processes to a new operating platform. The SESLOC staff embraced this project with energy and enthusiasm, working tirelessly for over a year to bring it to a successful conclusion in February 217 all while continuing to manage the busy day-to-day credit union operations. It was a heroic effort. BRANCH LOCATIONS Paso Robles 75 Golden Hill Road HEADQUARTERS 3855 Broad Street Atascadero 838 El Camino Real MAILING ADDRESS P.O. Box 536 CA As we look back on our 75 years, we know that none of this would be possible without the support of our loyal members Broad Street Arroyo Grande 1399 East Grand Avenue Santa Maria 256 South Broadway sesloc.org To all of our loyal members... We ended with assets of $768 million, a solid 8.7 % growth, and net worth grew to $ 67 million. Most important, SESLOC finished the year with 8.76 % capital ratio, which is considered well-capitalized by regulatory standards. Credit Union staff provided support for this growth, in addition to working long hours on the projects required for a successful technology upgrade in February 217. This upgrade to a new operating system will provide SESLOC the tools needed to serve members with efficiency and flexibility for many years to come. As we look back on our 75 years, we know that none of this would be possible without the support of our loyal members who take credit union ownership seriously. Thank you for giving us feedback and supporting our efforts to make this an outstanding financial institution. Geri LaChance President/CEO years of growth! This year, as we celebrate our 75th anniversary, we look back with respect and gratitude to the original 1 school employees who had the foresight to establish a credit union for local school employees. Their vision resulted in the chartering of a small credit union with just $5 in assets. During 1943, the first full year of operation, the credit union granted 13 loans for a total of $54. From those humble beginnings, SESLOC has grown to be one of the leading lenders on the Central Coast, having granted more than $ 2.3 billion in loans to our members since inception. In, we originated $ 224 million in loans, resulting in a $1 million net growth in our loan portfolio - a 26% increase over the previous year. Growth occurred in all lending areas: residential real estate, commercial real estate and vehicle loans. SESLOC s successful lending program, which allows members to apply for SESLOC loans directly at participating car dealerships, continues to provide a great convenience for members. The new technology will benefit all members as it increases our efficiency, improves back office processes, provides better reporting and analytic tools, and gives us the flexibility needed to provide new services. Members will enjoy faster in-branch transactions, which result in shorter teller lines and faster account openings. And it will serve SESLOC well, far into the future. s Message Savings are federally insured to at least $25, and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. Dr. Vic Buccola of the Board Celebrating 75

4 1942 Charter granted with assets of $ Total assets of $1,26 55 members 1955 Cal Poly joins field of membership 196 First office, phone and one part-time employee 1963 Assets top $1 million Three employees 1971 First branch built on Peach Street in SLO , members 1987 Supervisory Committee Report A primary responsibility of the Supervisory Committee is to ensure the safety and soundness of SESLOC Federal Credit Union s policies, procedures and practices, as well as to confirm the financial statements are fair and accurate. We work to ensure records are accurate, member deposits are adequately protected, and operations are in compliance with all federal and state regulations, as well as our own bylaws, policies and procedures. In we did this with the assistance of the Certified Public Accounting firm of Orth, Chakler and Murmane, which conducted an independent review of our financial statements and operations. The results of the review show that the Credit Union is performing appropriately to sustain a safe and secure future, and that it is well-managed with a strong commitment to serving the membership. The assistance and cooperation of staff, management and the Board of s in the performance of our duties is much appreciated. Thank you to our current Committee members Gary Hoskins, Charlene Rosales, Lon Magaro and Ann Wassam for their time and effort. community involvement SESLOC Education Grants benefited 42 local schools; our FoolProof Consumer program continues to help members make informed decisions; and employees volunteered their time to help local charities. Ken SanFilippo First in-house computer system 1995 Paso Robles branch 1997 Arroyo Grande branch 1998 First website and online banking system 21 Community Charter 27 Atascadero branch achievements 12% membership growth New branch in Santa Maria Peter Barron Stark Award recognizing workplace excellence Financial seminars attended by hundreds of members New branch location in Paso Robles New ATM at Laguna Lake Shopping Center Outstanding loan growth 214 Board of s Charter expanded to Northern Santa Barbara County Santa Maria Branch 47, members Dr. Vic Buccola Anthony Cangelosi Vice Chair Dr. Alden Shiers Board Financial Officer Barbara Melvin Secretary Loans to Members 379,4, ,694,73 Allowance for Loan Losses (1,836,469) (1,937,813) Cash 4,25,864 3,531,872 Investments 296,815, ,392,817 Fixed Assets 17,479,729 2,336,99 NCUSIF Share Insurance Fund 5,898,522 6,492,77 Other Assets 3,826,472 3,283,63 Total Assets Shares of Members 638,698, ,442,662 Other Liabilities 5,366,31 6,64,75 Restricted Reserves Undivided Earnings 55,158,12 59,47,24 Unrealized Gain/Loss (1,633,596) (2,51,88) Total Liabilities & Equity Income and Expenses Income Interest on Member Loans 14,689,42 17,858,483 Income from Investments 2,47,767 2,781,586 Fees & Charges 3,829,899 4,527,38 Other Income 473, ,647 Total Gross Income $ 21,463,191 $ 25,748,754 Compensation & Benefits 8,819,427 1,698,162 Travel & Conference Expenses 182,98 21,472 Association Dues 53,592 73,466 Office Occupancy 998,128 1,41,917 Office Operations 2,35,643 2,739,989 Education & Promotion 385,28 669,435 Loan Services Expense 234,18 472,744 Professional & Outside Services 2,186,976 2,475,522 Provision for Loan Losses (134,114) 854,87 Federal Operating Fee 96, ,41 NCUA - Member Share Insurance Losses: Checks & Share Drafts 477, ,896 Miscellaneous Expenses 2,655 4,319 Total Expenses $ 15,671,216 $ 2,22,419 Dividends 2,63,423 1,889,847 Non Operating Gain/Loss 2,271,655 25,596 Net Income from Operations $ 6,,27 $ 3,889,84 Operating Expenses Our free financial education seminars brought in attendees from Santa Maria to Paso Robles, and covered a variety of topics, including investing, homebuying, and retirement. Assets of $5 million New headquarters and SLO branch Assets Liabilities And Members Equity A large SESLOC team participated in the Family Care Network s Miracle Miles for Kids 1k. We also had successful fundraisers for the Jack Ready Imagination Park and our local food banks. Other donations benefited Cottage Children s Medical Center and the YMCA. Move to Los Osos Valley Road 1988 Financial Condition Tom Lebens Jim Park Jacquie Paulsen Pauline Shaffer Emeritus

5 1942 Charter granted with assets of $ Total assets of $1,26 55 members 1955 Cal Poly joins field of membership 196 First office, phone and one part-time employee 1963 Assets top $1 million Three employees 1971 First branch built on Peach Street in SLO , members 1987 Supervisory Committee Report A primary responsibility of the Supervisory Committee is to ensure the safety and soundness of SESLOC Federal Credit Union s policies, procedures and practices, as well as to confirm the financial statements are fair and accurate. We work to ensure records are accurate, member deposits are adequately protected, and operations are in compliance with all federal and state regulations, as well as our own bylaws, policies and procedures. In we did this with the assistance of the Certified Public Accounting firm of Orth, Chakler and Murmane, which conducted an independent review of our financial statements and operations. The results of the review show that the Credit Union is performing appropriately to sustain a safe and secure future, and that it is well-managed with a strong commitment to serving the membership. The assistance and cooperation of staff, management and the Board of s in the performance of our duties is much appreciated. Thank you to our current Committee members Gary Hoskins, Charlene Rosales, Lon Magaro and Ann Wassam for their time and effort. community involvement SESLOC Education Grants benefited 42 local schools; our FoolProof Consumer program continues to help members make informed decisions; and employees volunteered their time to help local charities. Ken SanFilippo First in-house computer system 1995 Paso Robles branch 1997 Arroyo Grande branch 1998 First website and online banking system 21 Community Charter 27 Atascadero branch achievements 12% membership growth New branch in Santa Maria Peter Barron Stark Award recognizing workplace excellence Financial seminars attended by hundreds of members New branch location in Paso Robles New ATM at Laguna Lake Shopping Center Outstanding loan growth 214 Board of s Charter expanded to Northern Santa Barbara County Santa Maria Branch 47, members Dr. Vic Buccola Anthony Cangelosi Vice Chair Dr. Alden Shiers Board Financial Officer Barbara Melvin Secretary Loans to Members 379,4, ,694,73 Allowance for Loan Losses (1,836,469) (1,937,813) Cash 4,25,864 3,531,872 Investments 296,815, ,392,817 Fixed Assets 17,479,729 2,336,99 NCUSIF Share Insurance Fund 5,898,522 6,492,77 Other Assets 3,826,472 3,283,63 Total Assets Shares of Members 638,698, ,442,662 Other Liabilities 5,366,31 6,64,75 Restricted Reserves Undivided Earnings 55,158,12 59,47,24 Unrealized Gain/Loss (1,633,596) (2,51,88) Total Liabilities & Equity Income and Expenses Income Interest on Member Loans 14,689,42 17,858,483 Income from Investments 2,47,767 2,781,586 Fees & Charges 3,829,899 4,527,38 Other Income 473, ,647 Total Gross Income $ 21,463,191 $ 25,748,754 Compensation & Benefits 8,819,427 1,698,162 Travel & Conference Expenses 182,98 21,472 Association Dues 53,592 73,466 Office Occupancy 998,128 1,41,917 Office Operations 2,35,643 2,739,989 Education & Promotion 385,28 669,435 Loan Services Expense 234,18 472,744 Professional & Outside Services 2,186,976 2,475,522 Provision for Loan Losses (134,114) 854,87 Federal Operating Fee 96, ,41 NCUA - Member Share Insurance Losses: Checks & Share Drafts 477, ,896 Miscellaneous Expenses 2,655 4,319 Total Expenses $ 15,671,216 $ 2,22,419 Dividends 2,63,423 1,889,847 Non Operating Gain/Loss 2,271,655 25,596 Net Income from Operations $ 6,,27 $ 3,889,84 Operating Expenses Our free financial education seminars brought in attendees from Santa Maria to Paso Robles, and covered a variety of topics, including investing, homebuying, and retirement. Assets of $5 million New headquarters and SLO branch Assets Liabilities And Members Equity A large SESLOC team participated in the Family Care Network s Miracle Miles for Kids 1k. We also had successful fundraisers for the Jack Ready Imagination Park and our local food banks. Other donations benefited Cottage Children s Medical Center and the YMCA. Move to Los Osos Valley Road 1988 Financial Condition Tom Lebens Jim Park Jacquie Paulsen Pauline Shaffer Emeritus

6 1942 Charter granted with assets of $ Total assets of $1,26 55 members 1955 Cal Poly joins field of membership 196 First office, phone and one part-time employee 1963 Assets top $1 million Three employees 1971 First branch built on Peach Street in SLO , members 1987 Supervisory Committee Report A primary responsibility of the Supervisory Committee is to ensure the safety and soundness of SESLOC Federal Credit Union s policies, procedures and practices, as well as to confirm the financial statements are fair and accurate. We work to ensure records are accurate, member deposits are adequately protected, and operations are in compliance with all federal and state regulations, as well as our own bylaws, policies and procedures. In we did this with the assistance of the Certified Public Accounting firm of Orth, Chakler and Murmane, which conducted an independent review of our financial statements and operations. The results of the review show that the Credit Union is performing appropriately to sustain a safe and secure future, and that it is well-managed with a strong commitment to serving the membership. The assistance and cooperation of staff, management and the Board of s in the performance of our duties is much appreciated. Thank you to our current Committee members Gary Hoskins, Charlene Rosales, Lon Magaro and Ann Wassam for their time and effort. community involvement SESLOC Education Grants benefited 42 local schools; our FoolProof Consumer program continues to help members make informed decisions; and employees volunteered their time to help local charities. Ken SanFilippo First in-house computer system 1995 Paso Robles branch 1997 Arroyo Grande branch 1998 First website and online banking system 21 Community Charter 27 Atascadero branch achievements 12% membership growth New branch in Santa Maria Peter Barron Stark Award recognizing workplace excellence Financial seminars attended by hundreds of members New branch location in Paso Robles New ATM at Laguna Lake Shopping Center Outstanding loan growth 214 Board of s Charter expanded to Northern Santa Barbara County Santa Maria Branch 47, members Dr. Vic Buccola Anthony Cangelosi Vice Chair Dr. Alden Shiers Board Financial Officer Barbara Melvin Secretary Loans to Members 379,4, ,694,73 Allowance for Loan Losses (1,836,469) (1,937,813) Cash 4,25,864 3,531,872 Investments 296,815, ,392,817 Fixed Assets 17,479,729 2,336,99 NCUSIF Share Insurance Fund 5,898,522 6,492,77 Other Assets 3,826,472 3,283,63 Total Assets Shares of Members 638,698, ,442,662 Other Liabilities 5,366,31 6,64,75 Restricted Reserves Undivided Earnings 55,158,12 59,47,24 Unrealized Gain/Loss (1,633,596) (2,51,88) Total Liabilities & Equity Income and Expenses Income Interest on Member Loans 14,689,42 17,858,483 Income from Investments 2,47,767 2,781,586 Fees & Charges 3,829,899 4,527,38 Other Income 473, ,647 Total Gross Income $ 21,463,191 $ 25,748,754 Compensation & Benefits 8,819,427 1,698,162 Travel & Conference Expenses 182,98 21,472 Association Dues 53,592 73,466 Office Occupancy 998,128 1,41,917 Office Operations 2,35,643 2,739,989 Education & Promotion 385,28 669,435 Loan Services Expense 234,18 472,744 Professional & Outside Services 2,186,976 2,475,522 Provision for Loan Losses (134,114) 854,87 Federal Operating Fee 96, ,41 NCUA - Member Share Insurance Losses: Checks & Share Drafts 477, ,896 Miscellaneous Expenses 2,655 4,319 Total Expenses $ 15,671,216 $ 2,22,419 Dividends 2,63,423 1,889,847 Non Operating Gain/Loss 2,271,655 25,596 Net Income from Operations $ 6,,27 $ 3,889,84 Operating Expenses Our free financial education seminars brought in attendees from Santa Maria to Paso Robles, and covered a variety of topics, including investing, homebuying, and retirement. Assets of $5 million New headquarters and SLO branch Assets Liabilities And Members Equity A large SESLOC team participated in the Family Care Network s Miracle Miles for Kids 1k. We also had successful fundraisers for the Jack Ready Imagination Park and our local food banks. Other donations benefited Cottage Children s Medical Center and the YMCA. Move to Los Osos Valley Road 1988 Financial Condition Tom Lebens Jim Park Jacquie Paulsen Pauline Shaffer Emeritus

7 1942 Charter granted with assets of $ Total assets of $1,26 55 members 1955 Cal Poly joins field of membership 196 First office, phone and one part-time employee 1963 Assets top $1 million Three employees 1971 First branch built on Peach Street in SLO , members 1987 Supervisory Committee Report A primary responsibility of the Supervisory Committee is to ensure the safety and soundness of SESLOC Federal Credit Union s policies, procedures and practices, as well as to confirm the financial statements are fair and accurate. We work to ensure records are accurate, member deposits are adequately protected, and operations are in compliance with all federal and state regulations, as well as our own bylaws, policies and procedures. In we did this with the assistance of the Certified Public Accounting firm of Orth, Chakler and Murmane, which conducted an independent review of our financial statements and operations. The results of the review show that the Credit Union is performing appropriately to sustain a safe and secure future, and that it is well-managed with a strong commitment to serving the membership. The assistance and cooperation of staff, management and the Board of s in the performance of our duties is much appreciated. Thank you to our current Committee members Gary Hoskins, Charlene Rosales, Lon Magaro and Ann Wassam for their time and effort. community involvement SESLOC Education Grants benefited 42 local schools; our FoolProof Consumer program continues to help members make informed decisions; and employees volunteered their time to help local charities. Ken SanFilippo First in-house computer system 1995 Paso Robles branch 1997 Arroyo Grande branch 1998 First website and online banking system 21 Community Charter 27 Atascadero branch achievements 12% membership growth New branch in Santa Maria Peter Barron Stark Award recognizing workplace excellence Financial seminars attended by hundreds of members New branch location in Paso Robles New ATM at Laguna Lake Shopping Center Outstanding loan growth 214 Board of s Charter expanded to Northern Santa Barbara County Santa Maria Branch 47, members Dr. Vic Buccola Anthony Cangelosi Vice Chair Dr. Alden Shiers Board Financial Officer Barbara Melvin Secretary Loans to Members 379,4, ,694,73 Allowance for Loan Losses (1,836,469) (1,937,813) Cash 4,25,864 3,531,872 Investments 296,815, ,392,817 Fixed Assets 17,479,729 2,336,99 NCUSIF Share Insurance Fund 5,898,522 6,492,77 Other Assets 3,826,472 3,283,63 Total Assets Shares of Members 638,698, ,442,662 Other Liabilities 5,366,31 6,64,75 Restricted Reserves Undivided Earnings 55,158,12 59,47,24 Unrealized Gain/Loss (1,633,596) (2,51,88) Total Liabilities & Equity Income and Expenses Income Interest on Member Loans 14,689,42 17,858,483 Income from Investments 2,47,767 2,781,586 Fees & Charges 3,829,899 4,527,38 Other Income 473, ,647 Total Gross Income $ 21,463,191 $ 25,748,754 Compensation & Benefits 8,819,427 1,698,162 Travel & Conference Expenses 182,98 21,472 Association Dues 53,592 73,466 Office Occupancy 998,128 1,41,917 Office Operations 2,35,643 2,739,989 Education & Promotion 385,28 669,435 Loan Services Expense 234,18 472,744 Professional & Outside Services 2,186,976 2,475,522 Provision for Loan Losses (134,114) 854,87 Federal Operating Fee 96, ,41 NCUA - Member Share Insurance Losses: Checks & Share Drafts 477, ,896 Miscellaneous Expenses 2,655 4,319 Total Expenses $ 15,671,216 $ 2,22,419 Dividends 2,63,423 1,889,847 Non Operating Gain/Loss 2,271,655 25,596 Net Income from Operations $ 6,,27 $ 3,889,84 Operating Expenses Our free financial education seminars brought in attendees from Santa Maria to Paso Robles, and covered a variety of topics, including investing, homebuying, and retirement. Assets of $5 million New headquarters and SLO branch Assets Liabilities And Members Equity A large SESLOC team participated in the Family Care Network s Miracle Miles for Kids 1k. We also had successful fundraisers for the Jack Ready Imagination Park and our local food banks. Other donations benefited Cottage Children s Medical Center and the YMCA. Move to Los Osos Valley Road 1988 Financial Condition Tom Lebens Jim Park Jacquie Paulsen Pauline Shaffer Emeritus

8 President s Message annual report We saw remarkable growth and exciting changes in. At the start of the year we moved our Paso Robles branch to a more spacious location and one week later opened a branch in Santa Maria. Next we relocated our Los Osos Valley Road ATM across the street to the Laguna Shopping Center, where it s well-lighted and easily accessible. During the past 75 years, we ve seen much growth in our local community, and the Credit Union has grown with it. SESLOC was founded in 1942 with just 32 members and a field of membership limited to school employees. Local demand for credit union services led to several charter expansions, and today we re pleased to provide low rate loans and low cost services to over 47, members throughout and Northern Santa Barbara Counties. We enjoyed an exceptional 12% membership growth in, which surpassed the previous year s record increase. Although we re serving more people, we remain committed to earning and keeping your trust and confidence. Growth requires continual internal improvements, and this year we made a major investment in SESLOC s future. Our older operating system could no longer provide the flexibility and speed needed in today s business environment, so in we embarked upon a major technology upgrade. It is difficult to convey the amount of work required to complete this complex system upgrade, which moves all our processes to a new operating platform. The SESLOC staff embraced this project with energy and enthusiasm, working tirelessly for over a year to bring it to a successful conclusion in February 217 all while continuing to manage the busy day-to-day credit union operations. It was a heroic effort. BRANCH LOCATIONS Paso Robles 75 Golden Hill Road HEADQUARTERS 3855 Broad Street Atascadero 838 El Camino Real MAILING ADDRESS P.O. Box 536 CA As we look back on our 75 years, we know that none of this would be possible without the support of our loyal members Broad Street Arroyo Grande 1399 East Grand Avenue Santa Maria 256 South Broadway sesloc.org To all of our loyal members... We ended with assets of $768 million, a solid 8.7 % growth, and net worth grew to $ 67 million. Most important, SESLOC finished the year with 8.76 % capital ratio, which is considered well-capitalized by regulatory standards. Credit Union staff provided support for this growth, in addition to working long hours on the projects required for a successful technology upgrade in February 217. This upgrade to a new operating system will provide SESLOC the tools needed to serve members with efficiency and flexibility for many years to come. As we look back on our 75 years, we know that none of this would be possible without the support of our loyal members who take credit union ownership seriously. Thank you for giving us feedback and supporting our efforts to make this an outstanding financial institution. Geri LaChance President/CEO years of growth! This year, as we celebrate our 75th anniversary, we look back with respect and gratitude to the original 1 school employees who had the foresight to establish a credit union for local school employees. Their vision resulted in the chartering of a small credit union with just $5 in assets. During 1943, the first full year of operation, the credit union granted 13 loans for a total of $54. From those humble beginnings, SESLOC has grown to be one of the leading lenders on the Central Coast, having granted more than $ 2.3 billion in loans to our members since inception. In, we originated $ 224 million in loans, resulting in a $1 million net growth in our loan portfolio - a 26% increase over the previous year. Growth occurred in all lending areas: residential real estate, commercial real estate and vehicle loans. SESLOC s successful lending program, which allows members to apply for SESLOC loans directly at participating car dealerships, continues to provide a great convenience for members. The new technology will benefit all members as it increases our efficiency, improves back office processes, provides better reporting and analytic tools, and gives us the flexibility needed to provide new services. Members will enjoy faster in-branch transactions, which result in shorter teller lines and faster account openings. And it will serve SESLOC well, far into the future. s Message Savings are federally insured to at least $25, and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. Dr. Vic Buccola of the Board Celebrating 75