IMPROVING THE QUALITY OF YOUR LIFE Annual Report

Transcription

1 IMPROVING THE QUALITY OF YOUR LIFE 2016 Annual Report

2 OUR MISSION General Electric Credit Union s driving force is to Improve the Quality of Life for our members and employees. With our growing capacity we have the opportunity and obligation to maximize the performance of the Credit Union. While delivering optimal member service in the most efficient and secure environment possible, we provide members with the best of the financial world, including quality products and services with competitive rates, to reach their financial goals.

3 BOARD OF DIRECTORS Mary Cay Vessells Chairperson Michael Johnson 1 st Vice Chairman Cheryl Hill 2 nd Vice Chairperson Richard Ille Secretary/Treasurer Timothy D. Ballinger Gene Neff Jerry Cabe Robert Peak John D. MacArthur Director Emeritus COMMITTEES & SENIOR MANAGEMENT Supervisory Committee Gayle Nyswonger, Chairperson Karen Jordan & Jeanenne Denzler Nominating Committee Michael Johnson, Chairman Annual Meeting Committee Jill Lingo & Angela Bachmann CPA Firm BKD, LLP Legal Counsel David Eyrich & Tom Wietholter of Statman, Harris & Eyrich, LLC Executive Management Timothy Ballinger, President & CEO Diane Huelsman, Executive Assistant Ashley Cunningham, Business Development & Member Service Officer Bob Litzinger, Chief Financial Officer Brian Lucas, Operations Administrative Officer 2016 Annual Report 1

4 CHAIRPERSON REPORT The excitement and energy is palpable at your General Electric Credit Union (GECU) while we continue our impressive growth in membership and assets in Our strategic investments in product development/enhancements, technology platforms, data breadth, analytics depth, and process improvements have been necessary to provide quality member service and financial stability. We have witnessed growth in employee development and empowerment through this transitional period. Our focus on Quality of Life improvement is necessary in these uncertain economic times; therefore, GECU measures our success by assisting in your financial goals achievement. Mary Cay Vessells Chairperson Board of Directors Some highlights for 2016: Our total membership grew to 171,168 members which represents an 11.6% year-over-year growth. We provided more than 37,752 vehicle loans totaling over $916 million for a growth rate of 39% from the previous year. A 100% increase in mobile deposits were noted as our membership embraces mobile and online banking. Our 2016 technology initiatives have been launched and will be completed in To address our impactful growth, our current plan includes enhanced risk management to continue balancing attractive loan and deposit interest rates. Your Board of Directors are thrilled with our shared success and very pleased with GECU management and staff. Our focus on Quality of Life improvement is necessary in these uncertain economic times; therefore, GECU measures our success by assisting in your financial goals achievement. Thank you GECU membership for your ongoing support. 2 General Electric Credit Union

5 As one of the largest financial institutions in Cincinnati and a pillar in the community since 1954, we are not only working to Improve the Quality of Life for our members and employees, but for those within the community around us. We support the credit union philosophy of People Helping People and are proud to help a variety of local organizations, including: United Way Leukemia & Lymphoma Society Cincinnati Children s Hospital American Diabetes Association s Walk for Diabetes Hospice of Cincinnati Toys for Tots Local Chambers of Commerce and area schools COMMITMENT TO COMMUNITY 2016 Annual Report 3

6 TREASURER REPORT Richard Ille Secretary/Treasurer Board of Directors We remain one of the most financially sound Credit Union s in the country. In addition, we continue to grow at a double-digit pace. At the end of 2016, our Credit Union is now over $2.8 billion in total assets making us the fourth largest financial institution in the Greater Cincinnati area. Watching our Credit Union grow over the years is not only a proud moment for me, but one with a reflection of respect for the employees and members involved in our success. The number of loans we helped members obtain grew by 13%, while overall loan volume grew by nearly 29%. We also served as a secure, trusted financial institution for deposits which grew by nearly 17%. Our portfolios remained stronger than industry averages. There are not many financial institutions experiencing this type of consistent, positive growth. Likely of importance to you, was the 30% increase in dividends paid out to our membership, after seeing a 20% increase last year. We continue to pay most of the highest rates around. Our regulator, the National Credit Union Administration, has informed us that we pay in dividends more than three times the average institution in our peer group. With all the growth, the most important aspect is the safety and soundness of our Credit Union. The financial strength, the value of our Credit Union if you will, is our Capital our Net Worth. Total members equity remains at over $240 million and is considered well capitalized. I am pleased to report to you, the financial strength of your Credit Union is solid and the growth is very healthy. 4 General Electric Credit Union

7 FINANCIAL HIGHLIGHTS Loans Shares $2,363,303,049 $1,831,200,012 $2,048,242,400 $2,518,205,728 $1,763,398,533 $2,025,084, Assets Members $2,821,069, ,168 $2,062,806,099 $2,295,040, , , Annual Report 5

8 SUPERVISORY COMMITTEE REPORT The primary responsibility of the Supervisory Committee is to protect the welfare of the Credit Union s members, officials, and employees. Safety of funds, protection of members balances, and the determination of accuracy in maintenance of accounts and records are all under our authority. Your role is to report to this committee any transaction which you consider unusual or not in agreement with your records. Our working together will ensure the continued protection of funds. In 2016, the financial records of your Credit Union were audited on a continuing basis, and we found them to accurately represent the true financial condition of the Credit Union. We also conducted a number of member account verification audits. We randomly select member accounts for verification and ask the member to verify the accuracy of the Credit Union s records versus the member s records. Gayle Nyswonger Chairperson Supervisory Committee Also, under the direction of the Supervisory Committee, the certified public accounting firm of BKD, LLP assisted us by performing our annual audit. The annual examination by the State of Ohio and the National Credit Union Administration was also performed and the Credit Union was found to be in compliance with the laws and regulations set forth by the Ohio Division of Financial Institutions and the National Credit Union Administration. Based on the results of these audits, I am pleased to report your Credit Union is financially sound and well-managed. In 2016, the financial records of your Credit Union were audited on a continuing basis, and we found them to accurately represent the true financial condition of the Credit Union. 6 General Electric Credit Union

9 FINANCIAL REPORT STATEMENT OF FINANCIAL CONDITION Assets Cash and Equivalents $10,451,134 $11,765,584 Investments 227,183, ,800,353 Loans to Members 2,518,031,728 2,048,242,400 Less: Allowance for Doubtful Loans -13,514,563-12,768,466 Other Assets 79,244,711 69,961,247 Total Assets $2,821,396,357 $2,295,001,118 Liabilities and Members Equity Share Accounts $2,363,378,049 $2,024,626,826 Other Liabilities 198,502,475 30,047,558 Members Equity: Statutory Reserve 13,346,093 13,346,093 Retained Earnings 246,913, ,173,285 Net Unrealized Gains on Investments -744, ,644 Total Members Equity 259,515, ,326,734 Total Liabilities & Members Equity $2,821,396,357 $2,295,001,118 STATEMENT OF INCOME Income Interest on Loans $71,285,733 $63,414,658 Interest on Investments 1,693,460 1,608,512 Total Interest Income 72,979,193 65,023,170 Less: Dividends -27,954,751-21,482,969 Less: Interest Expense -176,076-1,943,183 Net Interest Income 44,848,366 41,597,018 Non-interest Income 16,309,762 11,691,515 Less: Non-interest Expenses -27,931,014-25,928,595 Less: Provision for Loan Losses -11,805,556-11,175,639 Net Income $21,421,559 $16,184, Annual Report 7

10 NOMINATING COMMITTEE REPORT General Electric Credit Union s Board of Directors is comprised of volunteers elected by the membership. It is the committee s responsibility to nominate at least one member for each vacancy on the board. The applications received, and completed as nominated candidates, were from the three (3) incumbents. This year s candidates, in alphabetical order, are: Timothy Ballinger Gene Neff Mary Cay Vessells Michael Johnson 1 st Vice Chairman Board of Directors Nominating Committee Chairman As there were three (3) candidates for the three (3) open Board of Director positions, a mail ballot was not required. As stated in our Code of Regulations, elections are to be determined by a plurality vote, except where there is only one nominee for each position. 8 General Electric Credit Union

11 EVOLVE: EMBRACE THE JOURNEY General Electric Credit Union EV LVE Embrace the Journey. From our humble beginnings in 1954, General Electric Credit Union (GECU) has grown to be one of the largest financial institutions in Greater Cincinnati with over $2.8 billion in assets. With this growth and your needs in mind, we ve begun the process of implementing a new core processing system; this system processes everything we do from an operational standpoint. Additionally, and simultaneously, we ll be transitioning to a new, modernized Online and Mobile Banking platform. Although our core processor operates behind the scenes, both of these systems play an integral role in your experience with GECU and we re confident we ve chosen the right systems to support us as we focus on the future. Our journey over the next several months is about more than just upgrading and enhancing our internal systems; it s about what comes after. The evolution we re experiencing will provide us with capabilities we ve never had before; we ll have room to grow and the ability to bring you improved service, enhanced products, and new offerings. As we embrace the journey, we are fortunate to have the support and patience of our valued members. We ll be providing continual updates; it will be important to read our communications, browse the information available in our branches, and visit our website often at: so you re in-the-know and prepared for the conversion weekend (July 1, 2017). We re thankful for your membership and the opportunity to serve you now and in the future. Our system conversion will begin after close of business on Friday, June 30 th and will continue until the open of business on Monday, July 3 rd. Online/Mobile Banking will not be available beginning at 6:00 pm Friday, June 30 th through 8:00 am Monday, July 3 rd. All GECU locations will be closed on Saturday, July 1 st Annual Report 9

12 2017 STRATEGIC DIRECTION For General Electric Credit Union (GECU), 2017 is a pivotal year; we are rebuilding the Credit Union by reinforcing and enhancing our infrastructure. We re building on a foundation of many years of success to set the stage for providing more valuable products and better, more efficient service. At the heart of this transformation and growth, our mission to you remains simple: Improve the Quality of Your Financial Life. While at the same time, everything we do must also Improve the Quality of Our Employees Employment Life. It s important to reflect on last year s success and understand where we started the year, before we can look to the future. In 2016, our assets grew to $2.8 billion and we remained one of the most financially sound credit unions in the country, as well as one of the largest in the Greater Cincinnati area. Our vehicle loans continue to outpace our competition and we are a top mortgage lender in the area. Many wonder about the potential for rate increases, as we look ahead into While we don t know for certain, we cautiously expect there to be two rate increases of.25%; one around the start of the second quarter and the other in the fourth quarter. As to how this will affect our deposit rates, the weekly comparisons in the Cincinnati Enquirer show, we have consistently held the top spot in the area s deposit rates and we fully plan to remain a leader amidst a rising interest rate environment. As our industry, technology, and members needs change, we must adapt in order to grow and remain competitive in the market. Last year, we invested our time and effort into performing our due diligence in setting the stage for the greatest things to come. Together we will witness our transformation as our efforts come into focus in We ll be implementing our new core system, a robust online/mobile banking platform, and enriched standards for member service. There will be new opportunities and capabilities with our core and online/mobile banking systems as we EVOLVE. We ll explore ways to enhance existing, or create new, products and services to better meet our members needs. In addition, we ll look to extend our services to local businesses to help them succeed. Finally, we ll be making improvements at our existing branches, and looking at the potential for adding new branch locations, to provide members a better experience. These conversions require herculean effort on our employees part, but the journey we are on is essential to better serve you. Every day, we are committed to help make the Credit Union a better place for us all. We are excited for the opportunities that lie ahead; we want to further strengthen our relationship and Improve the Quality of Your Financial Life. Every day, we are committed to help make the Credit Union a better place for us all. 10 General Electric Credit Union

13 2016 Annual Report 11

14 RECOGNITION & ACCOLADES Federally Insured by NCUA Equal Opportunity Lender GECU NMLS # General Electric Credit Union

15 General Electric Credit Union IMPROVING THE QUALITY OF YOUR FINANCIAL LIFE

16 l Reading Road l Cincinnati, OH