DISCOVER the DIFFERENCE

Transcription

1 DISCOVER the DIFFERENCE 2016 Annual Report

2 2016 Year at a Glance To discover the difference of what makes WEPCO great, we started with our employees. We realize that the better they are prepared, the better the member service, and everyone will see the difference between WEPCO and the other guys! So, we introduced an Intranet, a private network only accessible by our employees. This invaluable tool helped us better educate and support our staff so they can help you quickly and easily! As a result, our employees handled your requests with the care and attentiveness that separates WEPCO from other financial institutions! WEPCO recognized employees who excelled in their continuing education through our training platform, BVS, and our Employee of the Quarter program. We also started a new education program that teaches them best practices on protecting sensitive information. As a result, our staff treat your information with the utmost care and privacy you deserve! For you, we added Adjustable Rate s (ARM) to our product offerings! ARMs can make We would like to dedicate this year s annual report to Robert Bob Alkire, former director, for his many years of service to WEPCO Federal Credit Union.. Bob volunteered as a board director with WEPCO from He served our members for 30 years! Words can simply not express what an amazing person Bob was and how much he meant to us! Robert Alkire His contributions and service helped us to grow and continue to be successful. He will be greatly missed and never forgotten. the difference for members with an initial rate that is lower than our conventional mortgages. ARMs make great financial sense for certain homeowners and can help them achieve their personal financial goals. WEPCO continued its local community outreach in 2016 by donating nearly $13,300 to various local programs. WEPCO even focused on outreach in several of its promotions. In August, through your donations, our employees, and WEPCO itself, we collectively donated $500 to each of our local Special Olympics in Allegany, Garrett, Mineral and Preston County ($2,000 total). In October, we stood against breast cancer by collecting $1, from our members. In addition to Relay for Life and donations to charitable organizations, we held our 26th Annual Scholarship Contest, our Member Appreciation Day on Friday, April 22th, and our Kids Days on Tuesday, July 19th. WEPCO sincerely thanks everyone who donated or participated in making a difference! Stepping Forward into 2017! In the age of mobile technology, WEPCO understands that convenience on the go makes all the difference for our members. Thus, we are taking on a huge project to enhance our online and mobile banking platform by expanding the services we can offer! Mobile Bill Payer. You will soon be able to pay your bills wherever you are. Mobile Check Deposit. You will take a picture of the front and back of your check and upload it for deposit. Mobile Loan and Account Applications. You will be able to apply for loans or accounts through our mobile app. We are also researching into making several of our current services mobile, such as check images, estatements, account alerts, and skip-a-pay. WEPCO will continue its outreach to support our local communities. In addition to Relay for Life and donations to charitable organizations, we will hold our 27th Annual Scholarship Contest, our Member Appreciation Day on Tuesday, April 25th, and our Kids Day on Tuesday, July 18Th. Make sure to mark the dates and celebrate with us! 66th Annual Meeting Minutes WEPCO Federal Credit Union held its 66th Annual Membership Meeting on Saturday, March 5, 2016 at 6:00 PM in the Barton Fire Hall of Barton, Maryland. The evening began with Pastor Kenneth Caplinger of the Ebenezer Springfield Charge, in Sunrise Summit, Romney and Springfield, WV, giving the invocation. A chicken breast dinner was then served. After the meal, Mark Alexander, Chairman, came forward and introduced the management, staff, directors, and guests present. He recognized John Pattison, Charter Member; former s: Glenn Shaffer and his wife, Nancy; Bob Alkire and his wife, Marion; Bill McKenzie and his wife, Tootie; Boots, wife of deceased Frank Woy; and former member employee Betty Smith. Tonya Smiley came forward and introduced the entertainment for the evening: Donnie Carmen. He played various songs ranging from Elvis Presley s Blue Suede Shoes to the famous gospel song I ll Fly Away. He kept the guests engaged and entertained! Becky McKenzie came forward and addressed the membership. Becky stated New processes to enhance member service were developed and implemented in 2015 and helped to set our five year strategic goals to grow your credit union. In addition, she stated I am pleased to share that based upon preliminary conversations with the (NCUA) examiner in charge, there were no troubling concerns with any areas of risk. She ended with Our future is bright and I am grateful that you have chosen WEPCO to be your financial institution of choice! Mark Alexander, Board Chairman, conducted the business meeting. He requested Jeff Conner of Fike, Conner and Associates to come forward and address the membership. Jeff stated, Unlike NCUA, which audits risk, Fike, Connor & Associates audit WEPCO s financial statements. WEPCO had $15 million in loan growth and reached $200 million in assets in Management has invested a lot in technology to help WEPCO achieve its future goals. Mark also commended former board directors present for their part in helping WEPCO succeed. The Annual Report was accepted as written. Mark asked Becky McKenzie and Michelle McElwain to come forward and present service awards. They presented awards to Nicole Moore, Member Service, for 5 years of service; and Michelle McElwain, Senior VP, for 15 years of service. In addition, the following employee not present will receive a service award: Jenny Shingler, Bloomington, for 15 years of service. Finally, Tonya asked for Diana Dayton, Ashley DiUbaldo, Brandy Roderick and Pastor Caplinger to come forward to help with the door prizes. She requested that Pastor Caplinger pull the door prize tickets. Carol Bland won the Grand Prize of a $500 VISA Gift Card; Kim Gattens and Delores Poland won $100 gift cards; and John Ours, Megan Machin, Rachael Dayton, Mary Crable, Louise Pfeifer, Scott Whetsell, Bob Poland and Donald Beeman all won $25 gift cards. The meeting ended at 8:00 PM with Pastor Caplinger giving the benediction. Respectfully submitted, Diana Dayton, Secretary Discover the Difference with Wepco!

3 Supervisory Committee Report President s Report The Supervisory Committee is responsible for ensuring that the financial statements properly represent the fiscal status of the Credit Union. We work with our external auditors Fike, Conner & Associates, who conduct an audit of our financial statements each year as well as other audits required by the NCUA. The committee also works with our internal auditor to review the audit work that is performed on a monthly, quarterly, or yearly basis. Based on the findings, the committee makes recommendations to management on any matters that may arise as a result of these audit reviews. Respectfully Submitted, Bradford D. Anderson Chairman of the Supervisory Committee Your credit union continued to prosper in The management and staff of WEPCO Federal Credit Union worked diligently to meet your lending and deposit needs. WEPCO experienced strong loan growth in All branches exceeded their production goals, which resulted in a 6% increase overall. While the Federal Reserve considered increasing the Fed Funds rate, our members secured WEPCO mortgage loans with rock bottom rates. Thanks to you, our mortgage loan production in 2016 ended at more than $5.1 million, a 10% increase from 2015 and the highest ever for these products. As part of our Mission Statement to provide exemplary service and to offer you the products you want at prices you can afford, WEPCO began offering Mechanical Repair Coverage in mid You can now protect your vehicle even after the manufacturer s warranty expires. To meet deposit needs, WEPCO began offering several new share certificates: you now have the option of a 36 month, 48 month or 60 month share certificate or IRA share certificate. Our members have deposited more than $3 million in these new products. I want to thank you for your dedicated support in and loyalty to WEPCO. As we head into 2017, the WEPCO management and staff will continue finding new ways to meet your needs and deliver the member service that you expect and deserve. We truly believe that Everything we do, we do for you! Becky McKenzie President Chairman s Report In a tumultuous year that culminated in the election of the 45th President of the United States, WEPCO Federal Credit continued making great strides and fulfilling our Mission to you! We made great progress in loan growth, exceeding our projected total in loans, and we intend to continue the trend this year. One particular area of promise was commercial lending. We made several loans for our member businesses last year, and we hope to do more this year! Overall, our net worth remains excellent, which means the financial health of your credit union is better than ever! President McKenzie and her management team are ensuring WEPCO is a safe and enjoyable place to do business. On behalf of the Board, we want to thank you, our members, for putting your confidence in WEPCO as your financial institution of choice. WEPCO will continue to provide you exemplary member service in this promising new year! May God Bless You All, Mark Alexander Chairman of the Board PAST 10 YEARS GROWTH ASSETS MEMBERS SHARES LOANS 2007 $117,706,600 20,536 $101,501,589 $75,587, $125,094,918 21,202 $108,108,485 $79,152, $154,920,564 23,076 $137,531,866 $101,335, $178,819,361 24,187 $161,923,164 $117,077, $193,628,431 24,778 $175,852,779 $112,507, $201,360,187 25,166 $182,616,313 $105,248, $197,623,158 25,538 $178,685,053 $109,066, $196,843,813 28,182 $176,362,007 $121,938, $202,421,390 28,134 $181,448,892 $136,854, $205,977,799 29,418 $184,178,192 $149,380,912 Senior Vice President s Report As we look back at 2016, your credit union had another successful year, and we have you, our members, to thank for this success. With your continued support, we introduced some new products and services that you want. This past year, we offered an improved Guaranteed Auto Protection (GAP) on our loans and began selling Mechanical Repair Coverage (MRC) for automobiles. MRC can help cover the repair costs on your auto, even after the manufacturer s warranty expires, so that it will keep running in the future. MRC can either be added to a loan or paid for separately, so you can add it even if your auto is financed elsewhere. This year, we are focusing on upgrading our online and mobile banking. We understand that convenience is what our members want, and that convenience is found through your mobile device. The upgrades will include: paying your bills wherever you are; depositing checks any time of the day by taking a picture of the front and back; and applying for new share accounts and loans. Our vision is for your mobile device, whether it be a tablet or a smartphone, to become your banking center for our products and services. As we close the books on another successful year and open the new ones for 2017, we are always very appreciative of your support and loyalty. Sincerely, Michelle McElwain Senior Vice President 2016

4 Treasurer s Report BOARD OF DIRECTORS Our Official Family STATEMENTS OF FINANCIAL CONDITION ASSETS Dec. 31, 2016 Dec. 31, 2015 Net Loans Outstanding $148,289,193 $136,098,849 Cash on Hand 5,468,784 4,912,803 Federal Agency Securities 16,931,624 21,554,095 Fed Discount Window Investment 2,000,000 2,000,000 Mid-Atlantic Corporate FCU 3,999,861 3,984,731 Alloya Corporate FCU 4,131,788 4,122,367 Mid-Atlantic Corporate FCU Capital Shares/CD 250, ,000 Corporate One FCU 8,736,396 9,804,406 Dain Rauscher Certificate of Deposit 1,492,000 2,237,000 FTN Certificate of Deposit 3,477,626 5,962,209 M & T Money Market 3,026,257 3,023,224 Land & Building (Net) 5,034,823 5,209,082 Other Fixed Assets (Net) 509, ,205 Accrued Loan Interest 342, ,532 Accrued Investment Income 54,301 69,737 Accounts Receivable 14, ,759 Prepaid & Deferred Expenses 406, ,141 Assets Acquired in Liquidation of Loans - 41,319 NCUSIF Deposit 1,812,808 1,785,932 TOTAL ASSETS $205,977,799 $202,421,390 Mark Alexander Chairman MANAGEMENT Becky McKenzie President Jennifer Ravenscroft IT Manager OAKLAND Walt May Vice Chairman Michelle McElwain Vice President Heather DeShong Collection Manager Cheryl Smith Treasurer Bobby Alkire Accountant Marcie Lyons Bloomington Diana Dayton Secretary Krisite Hamilton Loan Operations Manager Ashley DiUbaldo Keyser Kathy Poole Terry Apple Compliance Officer Heather Fleming Oakland Donald Harvey Tonya Smiley HR Officer Brandy Roderick LaVale Debra Langan Barry Lancaster Mark Bittinger SUPERVISORY COMMITTEE Brad Anderson Chairman Kenneth Caplinger Debra Langan LIABILITIES Accounts Payable $274,956 $194,587 Clearing Accounts (557) (6,438) Dividends Payable 154, ,628 Other Liabilities 1,952,180 1,272,788 EQUITY Members Accounts 184,178, ,448,892 Regular Reserves 3,545,824 3,545,824 Undivided Earnings 17,787,921 17,122,806 Unrealized Gain/Loss (154,541) (191,744) Unfunded Managers Pension (1,760,473) (1,177,108) Sue Fazenbaker KEYSER David Wildesen Susan Marple Rachel Ford Peggy Evans BJ Schroyer Mary Sisler Brenda Beckman KINGWOOD Patrica Falkner TOTAL LIABILITIES & EQUITY $205,977,799 $202,421,390 STATEMENT OF INCOME INCOME Loan Interest Income $6,900,479 $6,412,936 Investment Income 394, ,438 Non-Operating Gain/Loss (17,127) 72,266 Other Income 2,191,784 1,964,506 TOTAL INCOME $9,469,488 $8,925,145 EXPENSES Operating Expenses $7,780,096 $7,067,819 Executive Compensation 334, ,495 Dividend Expense 761, ,953 Jill Bruckey BLOOMINGTON Sue Broadwater Bookkeeper LaVALE Kristy Ashby Lori Taylor Crissy Fazenbaker Amber DiUbaldo Indirect Lending Heather Kidwell Jenny Shingler Melissa Brady Keely Shoemaker Brittany Stullenbarger Connie Bray Kaitlyn Everett Ariel Kirk PART TIME Kishia Shoemaker Member Loan Servicing Officer Jenessa Bassford Nicole Moore Member Loan Servicing Officer PART TIME Carley Shaw Katelyn Valentine TOTAL EXPENSES $8,876,529 $8,130,267 NET INCOME $258,204 $794,878 Carol Duncan Kathy Bradley Shelley Curry Michelle Morris Jessica Ronnenberg Brittany Weitzell Mariah Goff Sarah Miller Allison Stafford Beth Lambert

5 Discover the Difference with Wepco! 67th Annual Membership Meeting Saturday, March 4, 2017 Cost: $11.00 per ticket 6:00 PM Dinner 7:00 PM Business Meeting Midland Fire Hall, Midland, MD Entertainment by The Witmer Sisters Prizes Grand: $500 1st & 2nd: $100 8 others: $ Main Office 204 North Branch Avenue, P.O. Box 157, Bloomington, MD Oakland Branch Office Garrett Highway, P.O. Box 614, Oakland, MD Oakland Drive-Thru 130 North Fourth Street, Oakland, MD LaVale Branch Office Winchester Road, LaVale, MD Keyser Branch Office 459 New Creek Highway, Keyser, WV Kingwood Branch Office 202 W Main Street, Kingwood, WV Serving anyone who lives, works, worships, attends school, as well as a business or legal entity within: Allegany & Garrett Counties in Maryland; Mineral, Tucker & Preston Counties in West Virginia We would like to welcome anyone within our field of membership to join the Credit Union. Take advantage of the many great services and rates that we have to offer. WEPCO PAL Plus Online Account Access EQUAL HOUSING LENDER Federally insured by NCUA. Looking Out For Our Members WEPCO PAL Personal Access Line Toll Free: 877.WEPCO.PAL or Keeping connected with our members e STATEMENTS