MEMBERS BANK BETTER 2015 ANNUAL REPORT. Federally Insured by NCUA

Transcription

1 MEMBERS BANK BETTER 2015 ANNUAL REPORT Federally Insured by NCUA

2 Table of Contents: Page 1:... The Year In Review Page 2:... Financial Indicators Page 3:... ebanking Services Page 4:... New Mystic Branch Page 5:... Business Solutions Page 6:... Gold Rewards Page 7:... Number 1 Lender Page 8:... Community Giving Page 9:... Condensed Financial Highlights Back Cover:... Volunteers/Board of Directors Senior Staff/ Branch Locations Charter Oak Federal Credit Union Snapshot Branch And Headquarters: 1055 Hartford Turnpike, Waterford, CT Assets in millions 206 Number of Employees 750 Deposits in millions 15 Number 741 Loans in millions of Branches in New London and Windham counties Branch Locations Dayville, Groton (3), Killingly, Montville, Mystic, New London, Niantic, Norwich, Pawcatuck, Putnam, Waterford (2), Willimantic. Facebook: Facebook.com/CharterOakFCU Website: CharterOak.org Telephone: or Employees, Assets, Deposits, and Loans as of December 31, 2015

3 2015: A Year of Strength, A Year of Growth What a year it was. In 2015, Charter Oak Federal Credit Union saw its assets grow by a remarkable 10.4 percent to 935 million the strongest percentage growth of all our peers and loans surged 17.2 percent to 741 million. And despite a sluggish year for the economy, we earned an impressive 5.1 million. It certainly was a year of superlatives for Charter Oak, which was once again the Number 1 residential mortgage lender in eastern Connecticut, originating over 126 million in mortgages. Since 2010, we ve been the top lender each and every year for residential mortgages in New London and Windham counties combined, originating more than 782 million in mortgages. Our Gold Rewards member-appreciation program continues to grow, with a record 438,500 paid out in 100 cash bonuses to our members during During this same year, we strengthened our commitment to our local communities and educational institutions by expanding our Community Scholarship Program by more than six times awarding 80,000 in scholarships to lessen the financial burden of college for high school students across New London and Windham counties. We know that growth is good, and during 2015 growth was the operative word for Charter Oak, from our membership to our lending and deposit activity. And that won t stop in We ll continue our momentum of strength and success with the opening of our new Mystic Branch in April, the third new branch opening for us in four years, one of the fastest and broadest branch expansions in our 76-year history. We re proud of all these achievements and all that is to come in 2016 and we re once again impressed by the hard work, dedication and commitment shown each day by our employees, who are the true stars of our exceptional year. We thank you, our members, for your loyalty and for recognizing that Members Do Bank Better at Charter Oak. This past year provided our credit union with a strong springboard for further success in 2016, and we pledge to continue our work to ensure that Charter Oak remains the recognized leader among financialservice providers in eastern Connecticut and beyond. 2015: A Year of Achievement New Mystic Branch is announced. We re the No. 1 Mortgage Lender for the 6th consecutive year. Over 438,000 paid out in Gold Rewards Bonuses a new record. 80,000 in Scholarships awarded the largest amount in our history. We re proud to offer one 2,000 scholarship to each high school in New London and Windham counties with enrollments of 100 or more students. We unveiled our new CharterOak.org website during 2015, featuring a fresh, new design with easy-to-use navigation, quick links to all our products and services and a homepage highlighting our great offers. Visit CharterOak.org today for the latest offerings, product information, and news and updates! Our new Visa Debit Cards, along with our Visa Platinum Credit Cards and our Health Savings Account cards, feature new smart chip technology that uses an embedded chip as an extra layer of security against debit and credit card fraud. These new cards are simple to use, and this new technology is one more way we re protecting our members against fraud. Guy Henry Chairman of the Board Brian A. Orenstein President and Chief Executive Officer Our renewed focus during 2015 on auto lending has resulted in significant growth in auto loans and an expansion of our Preferred Dealership network to more than 20 select dealerships serving New London and Windham counties. 1

4 Charter Oak Is Strong, Safe & Secure Assets Grew 10.4% in 2015 Deposits Rose 6.7% in million million million million million million million million million million Loans Increased 17.2% in 2015 Members Equity Gained 5% in million million million million million million million million million million 2

5 Banking Is Easy With ebanking From Charter Oak On your couch. On vacation. Away at school. With ebanking from Charter Oak, you can do your banking when you want through the convenience of your smartphone, desktop computer or laptop or tablet device. Our ebanking services never sleep they re available 24/7 to give you the flexibility you need to bank on your time. We offer the latest in electronic banking services for busy members on the go, and during 2015 we continued to enhance and improve our ebanking offerings to meet the ever-changing needs of our members. Whatever your needs, bank the easy way with our convenient ebanking services! Online Banking Bill Pay Mobile Banking* Mobile Deposit* Smartphone Apps Apple Pay edocuments Security Tokens Charter Oak has integrated its Visa credit and debit cards with Apple Pay! By using your digital wallet with Apple Pay, you can make purchases with your iphone 6 or other compatible Apple products at participating merchants. Apple Pay offers a unique way to make purchases with a simple touch of the finger using your Touch ID. More and more of our Online Banking members rely on apps for their Apple and Android smartphones for simple, convenient 24/7 banking with Charter Oak. Download your app today! *A data plan is needed to access Mobile Banking/Mobile Deposit. Standard data and message rates may apply. ebanking: Wherever You Are, Whenever You Want. Learn More Today! With Mobile Deposit, you can deposit checks wherever you are, whenever you like, in the comfort of your own home or even on the go! It s as easy as taking a picture with your smartphone or tablet and it s safe, secure and convenient. Online! Call us! Stop By! Visit CharterOak.org or Stop by a nearby branch 3

6 We re Growing Again: Newest Branch Opens in Mystic Convenience in banking is important to you. That s why we ve undertaken a multi-year expansion to create one of the largest, and most convenient, branch networks of any financial institution serving eastern Connecticut. With the opening of our newest full-service Mystic Branch at 4 Hendel Drive, we now offer our members in the greater Mystic area all the services they need to bank better with Charter Oak. This new branch the 15th in our growing network is centrally located along the busy Route 27 corridor, easily accessible to nearby businesses, professionals, shops, restaurants and tourist attractions. And with all its full-service features, including a lobby ATM and drive-up ATM, drive-up teller lane, and a new Community Room for local non-profit groups, Mystic is the ideal location to better serve and grow our membership throughout the greater Mystic and Stonington areas. Since 2013, we ve opened three new branches in Putnam, at our Waterford headquarters, and now in Mystic one of the fastest expansions of our branch footprint in our entire 76-year history, and just one more reason why Members Bank Better at Charter Oak! Mystic Branch Snapshot Address: 4 Hendel Drive Our new full-service Mystic Branch at 4 Hendel Drive includes a drive-up ATM and lobby ATM, a drive-up teller lane, an Internet Cafe, and Community Room. Rendering by ARTfx/artfxsigns.com. 15 Convenient Branches Across Eastern Connecticut Services: Our newest full-service Mystic Branch features a full teller line, new workspaces for Member Service Representatives, an Internet Cafe, and new Community Room for area non-profits. The branch also includes a drive-up ATM and lobby ATM, as well as a drive-up teller lane. Branch Lobby Hours: Monday through Friday, 9 a.m. to 5 p.m.; Saturday, 9 a.m. to 12 p.m. MYSTIC Branch Drive-Up Hours: Monday through Thursday, 8 a.m. to 5 p.m.; Friday 8 a.m. to 6 p.m.; Saturday, 9 a.m. to 12 p.m. 4

7 We Make It Our Business To Help Your Business Business today is tough, and getting tougher. At Charter Oak, we believe in offering Business Solutions to help you grow your business and your bottom line. Our broad portfolio of business products and services is designed to help businesses of all sizes succeed. We ve helped hundreds of businesses throughout eastern Connecticut succeed, so let us help yours. Whether it s a business checking account, a line of credit, or a commercial real estate loan, we can help. Jane Moriarty , ext jmoriarty@cofcu.com Charter Oak Provides The Products Your Business Needs Business Checking Products: Three different accounts to fit the needs of your business. Deposit Accounts: We offer savings accounts, money markets, and certificates. Business Lines of Credit: Flexible financing solutions for all your cash needs. Fixed-Term Business Loans: Loan amounts of 25,000 and above, with terms up to 15 years. Commercial Real Estate Loans: Customized financing for acquisition or expansion. Small Business Administration (SBA) Loans: We re an approved SBA lender with a variety of SBA loan options. Talk to Jane Moriarty, Vice President of Business Lending, for all your business banking needs! We Offer Convenient Business Services Free Online Banking and Bill Pay with no monthly maintenance fee Night Depository Merchant Check Processing Visa Debit Cards Nationwide Account Access through our unique CO-OP Shared Branching Network During 2015, Charter Oak provided a multimillion-dollar financing package for the new Bayside commercial-and-residential complex located in downtown Niantic a prime example of our continuing growth in commercial lending across eastern Connecticut. Bayside was developed by GDS Capital Holdings, LLC of Old Lyme and designed by Peter J. Springsteel Architect, LLC of Mystic. Let Us Help You Grow Your Business Charter Oak has the business solutions to help your business succeed in today s competitive marketplace. We have extensive lending and business banking experience, and we ll bring a thoughtful, consultative approach to find the right solution that fits your business needs. Let Charter Oak grow your business today! 5

8 A Golden Year for Gold Rewards At Charter Oak, we believe in saying thank you. For our Gold Rewards members, we say thank you with an array of special privileges, like a 100 Annual Cash Bonus, special Gold Rates on deposits, no ATM fees (some limitations apply), and much more! Gold Rewards is our way of rewarding the growing number of our members who make Charter Oak their primary institution for all their financial needs. And in 2015, our Gold Rewards Program hit new records yet again! Annual Bonus Payouts Total 438,500! Total payouts since Gold Rewards launch in 2010 top 2 Million What other financial institutions say thank you in cash? So if you re not yet a Gold Rewards member, learn how you can benefit from our unique member-appreciation program and make Charter Oak your primary financial institution for all your banking needs. Here s How To Qualify For Gold Rewards! Maintain a personal checking account, and Have a month-end minimum Combined Deposit and Loan Balance of 20,000 or more, and Either maintain a monthly Direct Deposit totaling 1,500 or more or have Bill Pay with a minimum of 4 unique payments posted within the month. Gold Rewards Bonuses Break New Record in , , , , ,800 6

9 #1 MORTGAGE LENDER EASTERN CONNECTICUT Looking for a Mortgage? Then Look to Charter Oak We like to think that it s teamwork that makes us the Number 1 Lender in eastern Connecticut.* Our experienced mortgage lending team, from our mortgage officers to our branch staff, work tirelessly to find the right mortgage to fit the needs of our members and it works. For six years running 2010, 2011, 2012, 2013, 2014, and 2015 Charter Oak has originated more residential mortgages in New London and Windham counties combined than any other financial service provider, including the large national banks, national mortgage companies, community banks and credit unions. The numbers tell the story of our mortgage success: Since 2010, we ve originated more than 6,200 mortgages worth more than 782 million. That s over three-quarters of a billion dollars worth of residential mortgages that have helped young couples fulfill their dreams of homeownership, helped homeowners refinance their existing properties, or provided the means for growing families to move into bigger homes. We ve said it before, and it s worth saying again: When eastern Connecticut looks for a mortgage, they look to Charter Oak. 6 YEARS We Offer Flexible Mortgage Products That Fit the Needs of Today s Homeowners 10, 15, 20 and 30-year Conventional Mortgages 1, 3, 5, 7, and 10-year Adjustable Mortgages Biweekly and Jumbo Mortgages VA, FHA, USDA and CHFA Mortgages Accelerator (8 or 12 year) and Cost Saver (15 or 30 year) Mortgages Home Equity Loans and Lines of Credit All Our Products Feature Great Terms and Great Rates! And It s Easy To Apply! Investment Mortgages Apply Online! Call us! Stop By! Visit CharterOak.org or Stop by a nearby branch *Source: The Warren Group, Boston, MA. Residential Mortgage Marketshare Report data for New London, Windham counties combined. 7

10 Charter Oak Cares for Its Communities Charter Oak s success isn t something that we take for granted. Through our successes over the years as a community-based credit union, we ve been able to give back to those very communities that have made us the largest credit union in eastern Connecticut, and the third largest in the state of Connecticut. In 2015, we once again strengthened our financial commitment to our Community Giving programs, highlighted by the fact that we increased our Scholarship Program by more than six times, to 80,000. Charter Oak was proud to offer one 2,000 scholarship to each high school in New London and Windham counties with an enrollment of 100 or more students. This significant increase in our scholarship commitment helped to ease the financial burden of college for 40 students across New London and Windham counties and we couldn t be prouder of this achievement. We believe strongly in education, and our Scholarship Program now plays a significant role in furthering the college dreams of students across eastern Connecticut. In 2016, we ve increased our pledge to ensure we award over 80,000 in scholarships to help students pursue their dreams of a college education. Charter Oak s commitment to our communities is part of the fabric of who we are as a credit union it s reflected every day in the many volunteer efforts and financial contributions made by our generous employees and that commitment remains unwavering as we continue to serve those in need in the coming year. Community Giving Highlights of 2015 In 2015, we expanded our Scholarship Program and awarded a total of 80,000 in scholarships to students across New London and Windham counties. 8 Overall Community Giving grew by more than 50 percent. Our Scholarship Program awarded 80,000 in scholarships to students in New London and Windham counties. Our Community Room s popularity grew, with many non-profits and charitable groups regularly using the room, in addition to community-focused seminars held by Charter Oak. Since 2009, our Community Giving has totaled over 1.3 million. Charter Oak s Community Room is available free of charge to non-profits and charitable groups throughout our region. For more information about the use of our Community Room, please contact Shaun Formica, Community Relations Manager, at sformica@cofcu.com or call or toll-free at , ext

11 These Numbers Tell The Story of Our Strength & Success Charter Oak s financial performance in 2015 was robust, with gains in numerous key indicators, including our assets, loans, and deposits. Our financial success is important, since it provides the crucial foundation for our continuing growth and expansion, which benefits all of our members. In 2015, our assets increased 10.4 percent to 935 million. In addition, our deposits grew 6.7 percent to 750 million and our loan portfolio surged 17.2 percent, to 741 million. Our net income showed growth, as well, rising 5 percent to 5.1 million. Our Condensed Financial Highlights below indicate that Charter Oak Federal Credit Union is a safe, sound and secure financial institution. Charter Oak s Net Worth Ratio Is Strong Our Net Worth Ratio is an important financial indicator because it measures our overall financial strength. In 2015, Charter Oak s Net Worth Ratio remained strong. We are pleased to report that our Net Worth Ratio was 9.61% at year-end 2015, which is well above our regulatory requirements. We are also proud to report that we are classified by our regulators as a well-capitalized credit union. Charter Oak is a strong financial institution, and our Net Worth Ratio signifies that our credit union is financially safe and sound. Condensed Financial Highlights 9.61 % Net Worth Ratio Cash and Other Assets 74,096,418 75,141,612 Loans to Members, Net 741,343, ,398,666 Investments 119,467, ,657,098 Total Assets 934,907, ,197,376 Members Shares and Savings 750,368, ,452,187 Members Equity 89,222,841 84,762,230 Other Liabilities 95,316,713 58,982,959 Total Liabilities and Equity 934,907, ,197,376 Income 39,042,500 36,675,630 Interest Expense 5,140,194 4,556,980 Operating Expenses and Provisions for Loan Losses 28,847,239 27,283,418 Net Income 5,055,067 4,835,232 9

12 BOARD OF DIRECTORS Left to Right Brad Heil, Director; Paul McGlinchey, Secretary; Pierre Brochu, Director and Past Chairman; Michael Malvinni, Director; Barbara Gregg, Treasurer; Melvin Olsson, Vice-Chairman; Guy Henry, Chairman. SUPERVISORY COMMITTEE Wayne Burgess, Chairman Paul Filippetti John Grossomanides, Emeritus Annette Janovic SENIOR STAFF Back Row Joseph L. Childress, Senior Vice President/ Chief Information Officer Brian A. Orenstein, President and Chief Executive Officer Bradley J. Sullivan, Senior Vice President/ Chief Financial Officer John J. Dolan, Senior Vice President/ Chief Lending Officer BRANCH LOCATIONS Branch and Headquarters 1055 Hartford Turnpike Waterford, CT Dayville 589 Hartford Pike Dayville, CT Electric Boat (Limited Access) 50 Pequot Avenue New London, CT Groton 32 Chicago Avenue Groton, CT Long Hill Road Groton, CT Montville 601 Norwich/ New London Turnpike (Route 32) Montville, CT Mystic 4 Hendel Drive Mystic, CT Front Row Jeanne M. Mikula, Senior Vice President/ Chief Operating Officer Laurie B. Cormier, Senior Vice President/ Chief Human Resources & Marketing Officer Niantic 335 Main Street Niantic, CT Norwich One Connecticut Avenue Norwich, CT Pawcatuck 20 Liberty Street Pawcatuck, CT Putnam 7 Providence Pike (Route 44) Putnam, CT Waterford 3 Boston Post Road Waterford, CT Willimantic 893 Main Street Willimantic, CT Board of Directors Senior Staff CharterOak.org For more information about Charter Oak Federal Credit Union s products and services mentioned in this Annual Report, including rates and fees, please stop by one of our convenient branches in New London or Windham counties, call or , or visit CharterOak.org. HIGH SCHOOL BRANCHES (Limited Access) Robert E. Fitch High School 101 Groton Long Point Road Groton, CT Killingly High School 226 Putnam Pike Dayville, CT Federally Insured by NCUA