A N N U A L R E P O R T

Transcription

1 2015 ANNUAL REPORT

2 Chief Executive Officer and Chairman of the Board Message Dear Member, We are pleased to report 2015 was a good year for PowerNet. The Board of Directors and management continue to work toward a position of balance and strength to meet our members current and future financial needs. While the economy is still sending mixed signals, the work outlook for our union locals was strong and should remain strong through We continued our march toward an ANYTIME/ANYWHERE strategy designed to give you control of managing your money on your terms. In 2015 we introduced estatements, a service that gives you access to your PowerNet statement where and whenever you want. In addition, because it s all done online, you have access to it much sooner. Another service we introduced was Mobile Deposit, a feature in PowerNet Mobile Banking that allows you to deposit a check by taking a picture of it with your smartphone. You can access your money through thousands of ATMs or locate one of over 400 Shared Branch facilities throughout Florida or thousands across the US. Now, with the addition of Mobile Deposit, you won t even need to go to a branch or ATM to make a deposit. All you ll need is a smartphone and the PowerNet Mobile Banking App. How much easier can it get. All this focus on remote delivery channels does present some challenges to make sure everyone is comfortable with these new technologies. We think the best way to implement these new tools is with the help of a top-notch member service team. All our associates can help you take control of your finances and put you in charge of your money. Don t be afraid to give them a call to help guide you through all this new technology. It may make your life a little easier. Your credit union ended the year with Total Assets of $75.9 million, Total Loans of $42.8 million and Total Deposits of $68.2 million. We continue to be the largest labor-based credit union in Florida serving the Building and Construction Trade unions throughout the state since The 2015 contribution to our membership s reserves was $133 thousand, keeping our Net Worth at a healthy 9.5%. As some of the graphs in this annual report demonstrate, PowerNet continues to absorb as much of the financial impact of these challenging times as possible, without placing the future health of the credit union at risk. We do this for one primary reason; to offer the lowest rates we can on loans while simultaneously paying as much as we can in dividends and interest to our depositors. As we move forward, we remain focused on organized labor and providing quality service to our members. We will continue to upgrade our products and services to make managing your finances even more convenient. We thank you for your support and solicit your help in bringing other union and family members to our credit union. The more we can do to increase our membership, the more we can help our brothers and sisters. We remain ready to serve, Donald Prue Chief Executive Officer Mark Mazur Chairman of the Board

3 Revenue Breakdown Compared to PEER 9% 1 7% 11% 17% 9% 12% 18% 9% 10% 18% 10% 11% 18% 10% 85% 77% 84% 74% 82% 73% 84% 73% 83% 72% PowerNet PEER PowerNet PEER PowerNet PEER PowerNet PEER PowerNet PEER Interest Income Other Income Fee Income Net Interest Margin Compared to PEER % 3.09% 3.09% 3.08% 2.78% 2.69% 2.69% % PowerNet Net Interest Margin PEER Net Interest Margin Net Worth Compared to PEER 12.0% 11.0% 10.9% 10.9% 11.1% 11.5% 11.5% 10.0% 9.0% 8.3% 8.7% 9.1% % 8.0% 7.0% PowerNet Net Worth PEER Net Worth

4 POWERNET CREDIT UNION BALANCE SHEET December 31 ASSETS CHANGE Total Loans to Members (Net of Allowance) $42,801,346 $41,810, % Cash and Cash Equivalents 8,788,584 8,358, % Investments in Agencies & other Credit Unions 21,460,216 20,775, % Investment in NCUSIF 560, , % Land, Building & Equipment (Net) 1,619,275 1,716, Other Assets 659, , % TOTAL ASSETS $75,889,662 $73,802, % LIABILITIES & EQUITY LIABILITIES 498, , % MEMBER DEPOSITS Demand Deposits 41,394,186 38,052, % Time Deposits 26,812,509 28,223, % TOTAL DEPOSITS 68,206,695 66,276, % MEMBERS' EQUITY 7,184,370 7,050, % TOTAL LIABILITIES, DEPOSITS & EQUITY $75,889,662 $73,802, % STATEMENT OF INCOME AND EXPENSE January 1 through December 31 OPERATING INCOME CHANGE Net Interest on Loans $1,998,221 $2,110, % Income from Investments 280, , % Other Operating Income 467, , % TOTAL OPERATING INCOME 2,745,976 2,779, % OPERATING EXPENSES Employee Compensation & Benefits 1,202,886 1,188, % Travel & Conference Expense 18,247 19, % Office Occupancy & Operations Expense 346, , % Educational & Promotional Expenses 24,496 29, % Loan Servicing & Member Insurance Expense 37,260 45, % Professional and Outside Services 412, , % Provision for Loan Losses 105,000 (32,000) 428.1% Examination Fees 19,913 19, % Miscellaneous Operating Expenses 45,721 48, % TOTAL OPERATING EXPENSES 2,212,749 2,048, % NON-OPERATING INCOME Gain (Loss) on Sale of Assets % NCUA Assessments % TOTAL NON-OPERATING INCOME % NET INCOME BEFORE DIVIDENDS 533, , % Interest on Borrowed Money % Dividends on Shares 82,031 70, % Interest on CD Accounts 317, , % TOTAL INTEREST & DIVIDEND EXPENSE 399, , % NET INCOME AFTER COST OF FUNDS $133,466 $339, %

5 POWERNET CREDIT UNION STATEMENT OF CASH FLOWS For the Years ended December 31, 2015 and 2014 Increase or (Decrease) in Cash and Cash Equivalents CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $133,466 $339,404 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: Provision for Loan Losses $105,000 ($32,000) Amortization of Deferred Origination Fees (6,839) (8,803) Accret / (Amort) of Disc/Prem on Agency Securities 7,070 10,944 Amortization of Mtg Servicing Rights 13,129 (4,356) Depr / Disposal - Bldg/Furn,Fix & Eq/Leasehold Imp 107,377 92,758 Decrease / (Increase) in Accrued Income (17,506) 26,788 Decrease / (Increase) in Prepaids and Other Assets (75,632) (22,526) Increase / (Decrease) in Payables and Accrued Liabilities 23,277 53,711 Total Adjustments 155, ,516 Net Cash Provided by Operating Activities $289,342 $455,920 CASH FLOWS PROVIDED / (USED) BY INVESTMENT ACTIVITIES: (Purchases) and Maturities of Investments (Net) ($691,710) ($3,956,257) (Increase) / Decrease in Loans Available for Sale $0 $0 (Increase) / Decrease in Loans (Net) (1,088,908) 784,583 (Purchase) / Sale of Property and Equipment (Net) (10,471) 0 (Increase) / Decrease NCUSIF Capitalization Deposit 1, (Increase) / Decrease CORP One FCU PCC Investment 0 0 Net Cash Provided / (Used) by Investment Activities ($1,789,725) ($3,171,476) CASH FLOWS PROVIDED / (USED) BY FINANCING ACTIVITIES: Increase / (Decrease) in Notes Payable 0 0 Increase / (Decrease) in Member Savings Accounts 1,930,528 1,744,703 Net Cash Provided / (Used) by Financing Activities $1,930,528 $1,744,703 NET INCREASE / (DECREASE) IN CASH $430,145 ($970,853) Net Increase or Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year $8,358,439 $9,329,292 Cash and Cash Equivalents at End of Year $8,788,584 $8,358,439

6 POWERNET CREDIT UNION CREDIT MANAGER REPORT LENDING RECORD Loans Made During Year (# / $) 787 $13,453, $10,018,934 Loans Since Organized (# / $) 28, ,406,199 27, ,952,633 Loans Charged Off 98,253 57,857 Recoveries 4,272 5,110 Total Charge Offs 2,459,692 2,361,439 Total Recoveries $669,853 $665,581 DEPOSITS / LOANS LOAN GROWTH 5 YEAR HISTORY In Millions Deposits Loans $ in Millions ANNUAL LOAN VOLUME in Dollars and Count Count New Loan $ New Loan Count

7 POWERNET CREDIT UNION FAMILY AS OF 2015 MEMBERS 3,945 STRONG BOARD OF DIRECTORS Mark J. Mazur, Chairman Conrad H. Varnum, Vice Chairman Scott T. Barber, Secretary/Treasurer R. Ronald Anderson, Sr, Education Director Charles E. Carver II, Director-at-Large Wm. James Nolan, Director-at-Large Jonathon E. Dehmel, Director-at-Large AUDIT COMMITTEE Lisa S. Pink, Chairman Clark Obel Royce Yancey STAFF Donald A. Prue, Chief Executive Officer Timothy D McMurry, President Richard D Walker, Chief Financial Officer Michael J. Piotrski, Vice President - Member Services Heidi E. McNeill, Consumer Loan Manager Jason Ward, Mortgage Manager Claudia Rhinehart, Information Systems Coordinator Robert L. Golonka, Collection Manager Tyler A Smith, Jr. Staff Accountant Julie Brinson, Operations Supervisor Evelyn Nazario, Credit Counselor Nichole Hauss, Loan Processor Carolyn J. Tackett, Head Teller Michele Keene, Sr Member Service Rep, Tampa Michelle Liston, Sr Teller, Tampa Nikita Mulai, Member Service Rep, Tampa Bonnie Henry, Teller, Tampa Joseph P. Henry, Branch Manager I, Jacksonville Terri Wilkes, Teller, Jacksonville Susan Townsend, Teller, Jacksonville

8 Together, We re Building $trength in Unity! Proudly Serving Union Members Since Main Office - Tampa 5619 Harney Road Tampa, FL Phone: (813) Fax: (813) Toll Free: 888-4MEMBER ( ) Mon.-Wed. 8:30 am - 5:00 pm Thu.-Fri. 8:30 am - 6:00 pm Jacksonville Office IBEW Local 177 Bldg 966 Liberty Street Jacksonville, FL Phone: (904) Fax: (904) Mon.-Fri. 9:00 am - 5:00 pm Powerline: Tampa or Toll-Free MasterCard: