Judi Berkley Mark E. Claeys Stephen T. Hamborg Laurie Simpson Roger Gerdes Jason Brantley Mano Mannoochahr Jenny Preston Leslie Raya

Transcription

1 ANNUAL REPORT

2 FROM THE PRESIDENT ,653 30, , ,892 Membership Dear Members, was a very strong year for Deere Employees Credit Union. It was also a special year for us, as it marked our 80th year in business. We deliver some very unique values to our member owners: We maintain high levels of Member Satisfaction and Loyalty; We ensure Best-In-Market Rates for both our depositors and borrowers; We return our excess profits through our Owner Participation Rebate; We are a leader on the forefront of convenience and delivery services. We ended the year with 31,653 members. Our net membership growth was 3.5%, or 1,058 members. We continue to keep pace with the credit union industry growth of 4%, and we now have 22 offices inside John Deere facilities around the country. Our newest office opens February 22nd at the John Deere Ottumwa Works factory. We recently added John Deere retirees back into our field of membership, and as always, we invite your family members to join the credit union as well. Total loan balances grew by $58.2 million (9.8%), while total member deposits grew by $67.8 million (11.3%). As a comparison, industry loan and deposit growth was 10.9% and 7.4% respectively. Total assets ended the year at $784 million, up 7.8% from, matching the industry average asset growth of 7.8%. Our DECU Investment and Retirement Services ended the year with 1,484 total clients, representing a growth of 9% from. Total assets under management ended at $148.1 million, up 1% from. We experienced strong net income, ending the year with $7.7 million in earnings, a return on assets of 1.09%. Our capital position remains strong, with an ending Capital-to-Assets ratio of 7.92%. As you probably know, we return our excess profits to our members through our Owner Participation Rebate. In, we returned $862,000 to our member-owners. We are now measuring many aspects of our service delivery and your satisfaction with us. We don t want to over-survey, but your feedback helps us know where to focus so we can improve. During, 77% of our members responding to the survey told us they would be likely to recommend the credit union to another Deere employee or a family member. This resulted in a net promoter score of 69% while the credit union industry scores an average of 60% and banks average less than 50%. In the 4th quarter of, we received the Best in Class Recognition within our peer group for the New Member Survey with a net promoter score of 87%. Our employees have developed and implemented departmental initiatives focused on making things easier for our members. We have also implemented a program at the credit union called the Big Idea, where our staff can recommend changes that they see to improve our member service or eliminate hassles for you. Since they deal with you on a daily basis, they are in touch with the things that can make your experience here even better. During 2016, we will continue to invest into digital delivery, and focus on delivering low-effort and proactive member service. We also want to continue to bring you financial services to save you time and money. In January of 2016, we introduced DECU Insurance Services. Please go to our website ( and check out this new service. We may be able to save you money on your insurance. Thank you for choosing to do business with Deere Employees Credit Union. We think it is the best place to bank, and we know that we have to earn your business each day. Kurt Lewin President & CEO 77% of survey respondents told us they are likely to recommend the credit union to another Deere employee or family member. Kurt Lewin, President & CEO

3 BOARD OF DIRECTORS Judi Berkley Director, Global Compensation Chairman of the Board Board member since April 2008 Laurie Simpson Former Vice President & Chief Compliance Officer Retired from Chairman Emeritus of the Board Board member since March 2008 Mano Mannoochahr Director, Data, Analytics and IT Innovation Board member since March Mark E. Claeys Director, Global Business Conduct Deployment Vice Chairman of the Board Board member since October 2007 Jason Brantley Managing Director, Sub-Saharan Africa Board member since March Jenny Preston Director, Global Service Parts Supply and Materials Board member since March 2011 Stephen T. Hamborg Assistant Treasurer Secretary of the Board Board member since March 2011 Roger Gerdes Manager, Global User Services Planning & Hosting Services Supervisory Committee Chair Board member since September 2008 Leslie Raya Director, Global Corporate Finance Board member since March 2012

4 $891,000 $1,114, $1,043, $856, $649,700,000 $591,400, $521,700, $446,400,000 OPA Distribution Loan Balances Q4 Q3 Member Loyalty Key Driver Performance Q1 Q2 Q3 Q4 Quality Service Delivers Value Easy to conduct Business With Acts in my Best Interest Products and Services Fit Needs Average Satisfaction Q2 Q1 Average Satisfaction Products and Services Fit Needs Acts in my Best Interest Easy to conduct Business With Delivers Value Quality Service Owner Participation Account - Year Ended December 31 This year s Owner Participation Bonus and VISA Purchase Rebate totaled $1,014,710 bringing the 23-year distribution to over $17.9 million. Members received a 3.50% rebate of interest paid on loans and additional bonus on dividends earned. DISTRIBUTION BREAKDOWN: % 5.00% 5.00% 4.20% Bonus Dividend Shares 70,976 72,679 97,704 71,817 Bonus Dividend Drafts 2,905 3,646 3,491 2,578 Bonus Dividends Certificates 89,920 85,134 85,976 76,540 VISA Interest Rebate 64,615 86,038 76,043 61,187 Loan Interest Rebate 326, , , ,966 Real Estate Interest Rebate 336, , , ,908 TOTAL OPA DISTRIBUTION $ 891,566 $ 1,114,007 $ 1,043,476 $ 855,996 VISA Purchase 123, , , ,827 TOTAL W/VISA REBATE $ 1,014,710 $ 1,243,839 $ 1,184,540 $ 1,003,823 Numbers are rounded and may not add up to the exact total. Graphs depicted are not to precise scale and are intended to show the general trend.

5 $705,300,000 $667,600, $594,100, $540,700, $784,425,000 $727,700, $647,580, $589,200,000 Share Balances Total Assets Statement of Financial Condition - December 31, and (unaudited) ASSETS Loans to Members $ 649,687,787 $ 591,489,609 Less: Reserve for Loan Losses (2,499,886) (2,483,462) Net Loans $ 647,187,900 $ 589,006,147 Investments 122,753, ,449,531 Land and Buildings 2,994,213 3,102,517 Furniture and Equipment 2,421,362 2,880,025 NCUA Deposit 5,850,664 5,550,950 Accrued Interest 1,053, ,586 Other Assets 2,162,857 1,748,040 TOTAL ASSETS $ 784,424,641 $ 727,706,796 LIABILITIES, SHARES, MEMBERS EQUITY Other Liabilities $ 17,021,990 $ 4,734,393 Members Accounts: Regular Shares 135,921, ,252,646 Money Market Shares 176,324, ,605,442 High Yield Savings 93,529, ,951,880 Owner Participation Accounts 4,321,558 4,422,592 Share Draft Accounts 131,621, ,826,564 Share Certificates 116,470,476 99,521,696 Individual Retirement Accounts 24,303,175 23,106,572 Other Deposits 22,786,000 52,981,880 Reserves and Undivided Earnings 62,124,509 55,303,131 TOTAL LIABILITIES, SHARES, MEMBERS EQUITY $ 784,424,641 $ 727,706,796 Statement of Income and Expense - Years Ended December 31, and (unaudited) INCOME Interest on Loans $ 21,128,034 $ Investment Income Other Income 209,777 13,488,863 TOTAL INCOME $ 34,826,674 $ OPERATING EXPENSES Salaries and Benefits Marketing and Promotion Depreciation Provision for Loan Losses Other Operating Expenses Dividends: Regular Shares Money Market Shares High Yield Savings Owner Participation Accounts Share Draft Accounts Share Certificates Individual Retirement Accounts Other Deposits TOTAL OPERATING EXPENSES Net Income Before OPA Less: OPA Distribution NET INCOME $ 8,387,977 $ 450,072 1,222,986 1,331,191 10,714, ,415 1,405, ,356 7,956 83,547 2,195, , ,834 $ 27,113,729 $ 7,712,945 (891,566) $ 6,821,379 $ 19,583, ,605 11,862,677 31,643,412 8,393, ,849 1,126,787 1,435,385 9,733, , , ,316 7,681 73,968 1,402, , ,862 24,903,157 6,740,255 (1,114,007) 5,626,248

6 th Avenue, Moline, IL (800) (309) Deere Employees Credit Union serves employees of and their families. Deere Employees Credit Union is not otherwise affiliated or connected with or John Deere other than being licensed to use Deere in its corporate name. It is an independent credit union wholly owned by its members and chartered under the laws of the State of Illinois. Federally insured by NCUA