2007 ANNUAL REPORT. First for You. First for Life.

Transcription

1 2007 ANNUAL REPORT First for You. First for Life.

2 Chairman and President s Report In 2007, Firstmark Credit Union proudly celebrated 75 years of service to our members as the oldest state-chartered credit union in San Antonio. Starting with an award-winning anniversary logo, we dressed up all our branches with banners and created a historical anniversary video that told our story. Our year-long celebration included appreciation events for members and the community including kick-offs at each branch, a special annual meeting, and monthly events promoting wellness, child safety, pet care and financial fitness. The Credit Union even had an award-winning float in two of the Fiesta parades. As part of the anniversary celebration, we ran a 75th anniversary-themed auto refinancing promotion, a $75 checking offer, and a special 5.75% CD. These were topped with a new car giveaway that members could participate in all year long. We also began offering Health Savings Accounts, to give members a tax-advantaged way to pay medical expenses not covered by health insurance. It begins as a goal. In spring 2007, Firstmark Credit Union established a relationship with a new broker/dealer, Financial Network Investment Corporation, an ING Company. ING is a global financial services company with a strong reputation in the marketplace. Our goal with this alliance is to provide our members with the finest financial services and enhanced products offerings to maximize member investments. The Credit Union expanded its ATM network for members convenience and access to their accounts. We chose a new credit card processor and were able to offer more of our cardholders more options like reward points and cash back. In 2007, a significant website enhancement made it possible for new members to join and open their accounts online and also for existing members to open and fund deposit accounts 24 hours a day. This new technology compliments the online loan applications that have been popular for years, helping busy members take advantage of our services when and where it is convenient for them. We also launched new services for our small business owner. These new services included merchant card and other deposit services and investment options. They are structured to help meet the varying transaction and deposit needs of small business owners. Firstmark Credit Union increased members convenience and access to their accounts by opening a new branch on Bandera Road. The new branch proudly displays a commissioned mural that illustrates our local heritage. Through this new location, the Credit Union became a strong community partner with the Braundera YMCA and O.P. Schnabel Park in both monetary and volunteer donations. As always, Firstmark Credit Union and its employees have been active in the San Antonio community. With the help of our members, we raised $55,000 last year for Children s Miracle Network, through the Credit Union for Kids program. Through our two scholarship programs, we reached out to high school seniors in the local area to help make their dreams of college more affordable with ten, $1,000 scholarships. We also helped

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4 Audit Committee Report (cont.) P.C. to act as the internal auditor and perform internal auditing procedures to verify compliance with state and national regulations, adherence to the Credit Union s policies and procedures, and to review controls over operations for adequate security. The Committee reviews the Fisher, Herbst & Kemble, P.C. Internal Auditor s reports as well as management s responses and addresses any issues in its monthly meetings. The Committee retained The Hanke Group, P.C., a CPA firm, to conduct the annual independent audit of the statements of financial condition, related statements of income, changes in members equity and cash flows for the period ending June 30, Their findings indicate that Firstmark Credit Union is in good health, both financially and operationally. Those members interested in reviewing a copy of the auditor s report and opinion may visit any Firstmark Credit Union office. The Audit Committee welcomes questions or comments from the members at any time and remains dedicated in its efforts to provide reviews and audits of all aspects of Firstmark Credit Union operations to protect each and every member. It adapts to change. Sincerely, Joyce E. Chamberlain, Chairperson Lucille H. Herndon, Committee Member Ronald U. Kyle, Committee Member Roxanne Garcia, CPA, Committee Member Members may write to: Audit Committee P.O. Box San Antonio, Texas Credit Committee Report The Credit Committee is appointed by the Board of s to regularly review current Credit Union loan policies, to ensure the safety and soundness of loan underwriting and meet the credit needs of the membership. The Credit Committee is also responsible for ensuring loan policies are followed, taking action on selected loan requests and overseeing the manner in which accounts are collected. Firstmark Credit Union extended more than 10,600 loans in 2007 for a total of $183.1 million. The total loan portfolio reached $474.2 million, an increase of 6.7% over Real Estate loans including home loans and home equity loans grew $7.714 million for the year and the credit card portfolio grew 8.3%. The new business lending program allowed us to extend over $3 million in small business loans to members throughout the community.

5 Credit Committee Report (cont.) The Credit Union succeeded in our goal to diversify the loan portfolio with increased emphasis on Real Estate loans. More members than ever turned to the Credit Union for Mortgage loans or Home Equity loans to finance things such as home improvement, college education or consolidating debt.the Credit Union s mortgage program provides a realtor service that allows members to save on closing costs when purchasing or selling a home. This is one of the many ways using your Credit Union can help save you money. The new Member Business Lending program continues to reach out to the community to help build strong businesses. Firstmark Credit Union knows that strong business creates many of the jobs and opportunities for families in San Antonio. In 2007 we added a full time Business Lending Manager to meet with you at your office or on the work site to better understand the needs of your business.the merchant services program and the Business VISA were two components added to the program to help business members succeed. In 2007, many members enjoyed the benefits of transferring their high rate card balances to a Firstmark Credit Union card at a significantly lower rate. The Holiday Skip Payment promotion is another popular program which helps members during the hectic holiday season.these and other money-saving programs were available throughout the year to bring value to our members. The lending environment for 2007 has been challenging in light of the mortgage crisis and credit crunch making the headlines on nearly a daily basis. Finding ways to meet the needs of the membership is a priority for the Credit Union particularly in difficult times or in the bleak economic conditions which create many hardships for individuals and their families. Institutions across the nation have tightened their lending criteria to protect themselves from default. Many institutions have fallen because they have funded sub-prime loans or placed borrowers in products they didn t fully understand. You can rest assured that Firstmark Credit Union did not participate in this type of lending. We promote sound lending practices that protect the assets of the members. It achieves strength and stability. The Credit Union did see an increase in bankruptcy filings for 2007, but the amount of bankruptcy dollars remained flat, however, the loan delinquency rate was up slightly to 1.22%. By and large our members continue to support the Credit Union by paying their loans on time. The worrying economic factors, the sub-prime crisis, the rising cost of fuel and necessities continue to take their toll on consumers and many have suffered greatly. Fortunately, the Credit Union has resources for members that have found themselves in difficult financial situations. We continue to work with members to minimize losses due to bankruptcy through member awareness, financial counseling programs and a staff that truly cares about our members future. The Credit Committee remains committed to maintaining Firstmark Credit Union as a trustworthy source of affordable credit while protecting the assets of our members.

6 Statement of Financial Condition Results as of December 31, Statement of Income & Expense Results as of December 31, ASSETS Loans to Members (Net of Allowance) $ 471,721,937 Accounts Receivable 821,912 Cash on Hand in Financial Institutions 7,650,982 Investments 109,276,415 Prepaids/Deferreds 1,084,364 Buildings (Net) 13,241,744 Land 3,093,289 Furniture, Fixtures & Equipment (Net) 3,721,124 Leasehold Improvement (Net) 880,426 Capital Leases (Net) 1 Accrued Income 2,670,421 NCUA Deposit Insurance 5,309,838 Other Assets 8,306,251 Total Assets $ LIABILITIES AND CAPITAL Notes Payable Accounts Payable Dividends Payable Other Liabilities Member Deposits Regular Reserves Accumulated Comprehensive Income AFS Accumulated Comprehensive Income Pension Plan Undivided Earnings Total Liabilities & Capital $ 627,778, ,437 6,546,194 1,613,595 4,895, ,793,178 14,553, ,971 (1,590,647) 43,880, ,778, ,551, ,717 9,998, ,218, ,822 13,627,775 3,082,989 2,998,917 19, ,644,333 4,866, , ,398,572 12,050,245 7,320,535 1,377,479 2,257, ,615,840 14,553,488 (186,951) 0 42,410, ,398,572 INCOME Interest on Loans to Members $ 31,284,932 Interest on Investments 6,492,015 Miscellaneous Income 12,927,530 Total Income 50,704,477 EXPENSES Employee Compensation Employee Benefits Meetings & Employee Training Association Dues Office Occupancy Office Operations Marketing & Promotion Member Loan Servicing Member Services Communications Data Processing Auditing Services Professional/Outside Provision for Loan Loss Member Insurance Operating Fees Cash Over/Short Interest on Leases Annual Meeting Miscellaneous Operating Expense TOTAL OPERATING EXPENSE Non-Operating (Gain)/Loss Dividends & Interest Total Expenses 10,817,149 2,465, , ,175 2,084,507 2,097, ,109 1,854,322 2,287,015 1,113, ,648 91, ,322 2,883,371 40,762 48,084 6, , ,509 28,547,086 (8,153) 20,484,135 49,023,068 29,277,992 4,024,462 11,247,874 44,550,328 9,249,678 2,307, , ,366 1,944,436 1,703, ,130 1,482,269 2,213,413 1,013,192 1,065,893 90, ,752 3,083,247 33,394 43,158 11, , ,328 26,054,733 (1,577,798) 14,887,590 39,364,525 NET INCOME $ 1,681,409 5,185,803 Loans (in Millions) Assets (in Millions) Deposits (in Millions) Reserves (in Millions)

7 Board Of s Management Leon Ewing President/CEO Jesse Martinez Executive Vice President, COO Ginny Fisher Vice President, CFO Lucille H. Herndon Chairman Ignacio Orozco, Jr. Vice-Chairman Joyce E. Chamberlain Treasurer James W. Muir Secretary Lester Warby Vice President, Information Technology, CIO Brenda Moczygemba Vice President, Marketing & Public Relations Edward Munoz Vice President, Lending Servicing Tom Pryjomski Vice President, Facilities Connie Shoemaker Vice President, Lending Retail Redell Ervin Michael A. Lara Rodolfo Peña Marialyn P. Barnard Dawn Sloans Vice President, Human Resources Esther Rodriguez AVP, Mission & O Connor Branch Manager Linda Sue Rodriguez AVP, Member Contact Center Diane Bacon Bandera & Culebra Branch Manager Angelica Spinks Gulfdale & Zarzamora Branch Manager Ronald M. Cordes Donald L. Pinson, Sr. Advisory Board Member Kyle Friesenhahn Advisory Board Member Allen Nail Gold Canyon Branch Manager Megan Shrader Huebner & Jefferson Branch Manager

8 Whether you re just starting out, raising a family, or planning for retirement, Firstmark Credit Union can help you reach First for You. First for Life. your financial goals. Credit Union Information Branch Locations 8826 Bandera 7200 Culebra IH-35 North 1440 S.E. Military 6927 S. Zarzamora 24/7 Loan Information & Application Line (210) Lobby Hours 9 a.m. 5:15 p.m. M F 8:30 a.m. 4:30 p.m. Sat. Drive-Thru Hours 7 a.m. 6:30 p.m. M F 8:30 a.m. 4:30 p.m. Sat. 122 Donaldson 2023 Gold Canyon Gulfdale 8960 Huebner Member Contact Center (210) , (800) SmartCall (210) , (888) Phone Branch Hours 8:30 a.m. 5:30 p.m. M F 8:30 a.m. 4:30 p.m. Sat. Website firstmarkcu.org