ANNUAL REPORT 2014 The new extended branch hours; especially 8 AM to 8 PM work great for my busy life. Jeannine, Gresham
The President s Report Welcome to 64th Annual Meeting of Rivermark Com-munity Credit Union. I consider 2014 to have been one of our most successful years. Not only did we have an outsting year financially, but we also had a phenomenal year in executing on our 2014 Business Plan. Our most visible success was rollout of our new Gresham Station Branch (now known as a Member Resource Center) featuring leading edge personal teller technology. Leading up to that achievement was introduction of new technology in our Beaverton Hawthorne Drive-Ups. We ve taken a bold step in providing progressive technology to our members. This mission of improving access convenience for our members will continue to be a major focus of ours. As we were introducing our new branch model delivery channels to our members, Credit Union continued to show solid growth in many areas; including loans, deposits, assets, earnings, capital, members. We were also very busy executing or key 2014 initiatives, which included; Addressing our rewards debit credit programs, launching member business services, setting a foundation to replace our loan origination system, improving online new member experience, strengning our performance culture. So, as you can see, we had an extremely productive year! And our strong financial performance allowed us to build on strategic momentum established in 2013. net income was strong in 2014, finishing year at $5.4 million, or a return on average assets of.94%. The strong earnings were driven by a substantial increase in loan interest (up $1.36 million compared to 2013). We also experienced continued improvement in our loan quality, with record low levels of loan delinquency charge-offs. As a result, we continued to experience substantial relief in need to provision for anticipated loan losses. Operating expenses finished year $35,488 over budget. With an operating budget of $24 million for year, this variance is reflective of well managed expenses. The financial successes in 2014 have provided Rivermark necessary capital to remain focused on our longer term vision of making life better for our members with incredible financial solutions, anywhere, anytime. And finally, we are extremely proud that Rivermark continues to make a positive difference in our member s lives. Our not-for-profit cooperative structure is truly adding value to membership. Collectively, Rivermark membership delivered you your fellow members nearly $15 million in savings last year; an average of $305 per member. All of that just for having your accounts with Rivermark rar than a bank. We will continue to build on great momentum achieved in 2014, look forward to a great year serving you. Thank you for being a member of Rivermark! Scott Burgess - President/CEO From a financial perspective, 2014 was anor strong year. The Credit Union finished year with assets totaling $614.9 million, up $45.6 million, or 8%. In 2014, deposits were up $36.8 million, led by Regular Shares (up $11.9 million) Checking (up $25.2 million). The growth in Checking has been key for us, as it is a product that solidifies deepens relationship with our members. Historically, nearly 8 of 10 new members open up a checking account with Rivermark. The most notable aspect of our financial performance in 2014 surrounded loan growth, in which we achieved record net growth of $89.2 million, or nearly 22%. If you attended last year s annual meeting, you may recall that we noted a significant upturn in loan activity in Fall of 2013. That strength carried over into 2014 has continued into 2015. Our loan growth is likely a reflection of pent up consumer dem improving economic condition of our members. Rivermark has been a very active originator of indirect auto loans, which contributed nearly $64 million in net loan volume last year. Our mortgage portfolio also showed significant strength, up $18.1 million. Rivermark is an outsting mortgage lender, we strive to continue to offer highly competitive products for our members seeking to purchase or refinance ir home. Rivermark makes my banking experience delightful every time! Ryan, Portl Healthy loan growth is a key driver of strong earnings,
Rivermark Community Credit Union Rivermark staff are genuine, compassionate 2013 Annual professional. Meeting I Minutes wouldn t Hawthorne Branch Portl, Oregon The 63rd want Annual my Meeting finances of Rivermark hled Community Credit Union was held on Thursday, April 17th, 2014 at Rivermark s anywhere Hawthorne else! Branch in Portl, Oregon. Vice Chairman Steve Lucas convened meeting at 6:00 p.m. The meeting was called to order with required quorum present. The Annual Report was Brianne, Portl provided to those in attendance as y arrived. Vice Chairman Lucas asked, for benefit of secretary, Dennis Fullan, that anyone addressing Vice Chairman to please st state his or her name. Also, in interest of expediency, all motions should be held until all reports are presented n only one motion will be made to accept all reports or business. Vice Chairman Lucas also advised that we would dispense with reading of minutes from prior meeting since y are contained in Annual Report. Vice Chairman Lucas asked for any additions, deletions or corrections to minutes. There were no changes to minutes. were no questions raised. He n introduced current Board Members who were in attendance at meeting: Lina Cockrell, Tracy Petersen, Dennis Fullan Patti Schnur. The Supervisory Committee of Rivermark Community Credit Union is made up of 3 to 5 people appointed by Board of Directors for a one-year term. Their objective is to preserve a financially stable Credit Union that will function in best interest of all members. The Vice Chairman gave an explanation of ir role in monitoring credit union operations procedures. This committee oversees initiating of annual audit, conducts biennial member account verification, provides an on-going review of closed accounts. This Committee meets on a monthly basis. The Vice Chairman n introduced Supervisory Committee members who were present at meeting: Supervisory Committee Chairman Bill Roberts Jr Jeremy Vehey. The Vice Chairman asked if re were any questions regarding Supervisory Committee Report, which was also contained in Annual Report. There were no questions raised. The President s Report was included in 2013 Annual Report. The Vice Chairman asked if re were any questions regarding President s Report. There The Vice Chairman verified that re was no unfinished business to be brought before membership. He advised those present that although Supervisory Committee Report Your Supervisory Committee was comprised of five volunteers at year-end 2014: Kim Bickford, Matw Baird, Kara Oaks, Darryn Ambrose Travis Hollingsworth. Our responsibility is to oversee verify that Credit Union has established maintains an internal framework that ensures compliance with laws regulations reliability integrity of financial statements. We fulfill this responsibility primarily two ways; we meet Online regularly banking with our Internal with Auditor we engage an external audit firm to audit financial statements. Rivermark We selected is Moss easy, Adams always LLP, Certified Public Accountants to perform an independent audit accessible super of Rivermark Community Credit Union s financial statements quick. in accordance with generally accepted auditing stards. Amy, Portl In ir opinion, financial statements present fairly, in all material respects, financial position of Rivermark Community Credit Union as of September 30, 2014, results of its operations cash flows for twelve months covered by audit. A copy of complete audited financial statements is available at administrative office of Rivermark Community Credit Union. The condensed financial statements in this Annual Report were taken from our Financial Statements as of December 31, 2014. Committee members attend participate in monthly Board of Directors meetings. The Committee itself also meets monthly. At those meetings we review work of Internal Auditor, management external auditor to ensure that Committee s responsibilities are properly discharged. Kara Oaks, Chair
Board of Directors has power to make decisions for The credit President s union on behalf of members, Report any positions. Motion to accept four nominees by unanimous ballot was made by Wendell Cockrell member may bring any matter onto floor for seconded by Vickie Valdez. The Vice Chairman called for discussion by membership. Welcome He asked to if 64th re Annual was all in net favor income to signify was strong by saying in 2014, Aye. finishing There were year no at any new business to be brought Meeting before of Rivermark meeting. $5.4 opposed. million, Motion or a return accepted. on average assets of.94%. The Com-munity Credit Union. strong earnings were driven by a substantial increase in I consider 2014 to have been loan Vice interest Chairman (up Lucas $1.36 introduced million compared President to 2013). We also CEO Rivermark Hawthorne Branch one of our most successful experienced of Rivermark continued Community improvement Credit Union, in our Scott loan Burgess quality, years. Not only did we have an with who record gave low President s levels of loan Report. delinquency Burgess gave charge-offs. a brief outsting year financially, As overview a result, of we continued previous to year s experience financials substantial shared relief in but we also had a phenomenal need credit to union s provision successes for anticipated over loan past losses. year. Operating He also year in executing on our 2014 expenses shared information finished on year exciting $35,488 new over products budget. With an Business Plan. Our most operating services that budget of credit $24 million union will for be offering year, this in variance visible success was rollout is near reflective future. of well managed expenses. of our new Gresham Station Branch (now known as a Member Resource Center) featuring The financial Vice Chairman successes asked in 2014 for questions have provided after Rivermark leading edge personal teller technology. Leading up to that presentation necessary capital of President s to remain focused Report. on There our longer were term achievement was introduction of new technology in vision no questions of making raised. life better for our members with incredible our Beaverton Hawthorne Drive-Ups. We ve taken a bold financial solutions, anywhere, anytime. step in providing progressive technology to our members. And The finally, Vice Chairman we are extremely asked for proud a motion that Rivermark to accept This mission of improving access convenience for our continues following: to make a positive difference in our member s members will continue to be a major focus of ours. As we lives. Our The not-for-profit Minutes from cooperative 2012 structure Annual Meeting is truly were introducing our new branch model delivery adding The value President s to membership. Report Collectively, Rivermark channels to our members, Credit Union continued to membership The Supervisory delivered you Committee your Report fellow members nearly One show question solid growth was in raised many areas; responded including loans, to regarding deposits, $15 million in savings last year; an average of $305 per branch assets, earnings, kiosk capital, locations. members. There was no or member. Motion to All accept of that just minutes for having your stated accounts reports with was new We were business. also very busy executing or key 2014 initiatives, Rivermark made by Patti rar Schnur than a bank. seconded We will continue by Dennis to build Fullan. on which included; Addressing our rewards debit credit The great Vice momentum Chairman called achieved for in all 2014, in favor to look signify forward by Vice programs, Chairman launching Lucas member explained business procedure services, setting for to saying a great Aye. year There serving were you. no Thank opposed. you for Motion being a accepted. member electing a foundation Credit to replace Union our Board loan origination system, of Rivermark! of improving Directors. A online Nominating new member Committee experience, Scott Burgess - President/CEO is strengning appointed, our performance all of Credit culture. So, as you can Union s see, we had members an extremely are notified productive of how year! And our strong y financial could performance have ir allowed names placed us to build in on strategic nomination momentum established for any Board in 2013. vacancies. All members are also informed of ir From a financial perspective, 2014 was anor strong right to be nominated by petition, which year. The Credit Union finished year with assets totaling would automatically place m on $614.9 million, up $45.6 million, or 8%. In 2014, deposits ballot. Petitions needed to be signed by were up $36.8 million, led by Regular Shares (up $11.9 at least fifty (50) members filed with million) Checking (up $25.2 million). The growth in Nominating Committee by Checking has been key for us, as it is a product that stated solidifies deadline. deepens relationship with our members. Historically, nearly 8 of 10 new members open up a The committee nominated following checking account with Rivermark. individuals for four (4) openings on Rivermark The most notable Community aspect Credit of our Union s financial performance in Board 2014 surrounded of Directors : loan Dennis growth, Fullan in which who we achieved record is net seeking growth re-election, of $89.2 million, Bill Roberts or nearly Jr, 22%. If you attended New Gresham Branch Jeremy last year s Vehey annual meeting, John you Langley. may recall No that we noted a or significant members upturn asked in loan to activity be nominated Fall of 2013. That by strength petition, carried over Credit into 2014 Union s has bylaws continued do not into allow Vice Chairman Lucas declared 2013 Annual Rivermark makes my nominations 2015. Our loan from growth is floor likely at a this reflection meeting. of pent Therefore, up Meeting adjourned thanked everyone for coming as consumer re is dem only one nominee improving for each economic vacancy condition banking participating experience in this annual event. The meeting Board, of our members. Vice Chairman Rivermark asked has been that a very members active was adjourned. delightful every time! present originator at of this indirect meeting auto cast loans, a unanimous which contributed ballot for nearly se $64 million nominees net to loan fill volume vacancies last year. on Our mortgage Credit Respectfully submitted, Union s portfolio Board. also showed significant strength, up $18.1 million. Rivermark is an outsting mortgage lender, we strive Steve Lucas to continue to offer highly competitive products for our Ryan, Portl Rivermark s Vice Chairman asked for a motion from Vice Chairman of Board members floor to seeking accept to purchase four nominees or refinance to fill ir home. Board Healthy loan growth is a key driver of strong earnings,
Rivermark staff are genuine, compassionate professional. I wouldn t want my finances hled anywhere else! Brianne, Portl Supervisory Committee Report Your Supervisory Committee was comprised of five volunteers at year-end 2014: Kim Bickford, Matw Baird, Kara Oaks, Darryn Ambrose Travis Hollingsworth. Our responsibility is to oversee verify that Credit Union has established maintains an internal framework that ensures compliance with laws regulations reliability integrity of financial statements. We fulfill this responsibility in primarily two ways; we meet regularly with our Internal Auditor we engage an external audit firm to audit financial statements. We selected Moss Adams LLP, Certified Public Accountants to perform an independent audit of Rivermark Community Credit Union s financial statements in accordance with generally accepted auditing stards. In ir opinion, financial statements present fairly, in all material respects, financial position of Rivermark Community Credit Union as of September 30, 2014, results of its operations cash flows for twelve months covered by audit. A copy of complete audited financial statements is available at administrative office of Rivermark Community Credit Union. The condensed financial statements in this Annual Report were taken from our Financial Statements as of December 31, 2014. Committee members attend participate in monthly Board of Directors meetings. The Committee itself also meets monthly. At those meetings we review work of Internal Auditor, management external auditor to ensure that Committee s responsibilities are properly discharged. Kara Oaks, Chair
Statement of Income* 2013 2014 Interest on Member Loans 19,076,098 20,439,664 Income in Investments 1,713,776 1,324,038 Or Income 12,694,506 11,819,848 Total Income 33,484,381 33,583,550 Operations & Administrative Expenses 24,597,680 25,840,277 Income from Operations 8,886,701 7,743,273 Non-Operating Income (123,090) (126,914) Income Before Interest Paid 8,763,610 7,616,359 Interest Paid 2,257,075 2,226,910 Net Income 6,506,535 5,389,449 Statement of Financial Condition* 2013 2014 Loans to Members 404,621,199 494,855,447 Accounts Receivable 32,031 1,011,127 Cash 12,337,725 19,016,867 Investments 126,805,670 74,848,506 Prepaid Expenses 1,707,034 703,238 Premises & Equipment 9,067,035 9,669,204 Accrued Income 1,686,969 1,747,540 NCUSIF Deposit 5,350,803 5,117,832 Or Assets 7,700,929 7,979,497 Total Assets 569,309,395 614,949,258 Liabilities Member Equity* 2013 2014 Accounts Payable 2,449,913 2,632,890 Loans Payable - 5,000,000 Accrued Expenses/Settlements/ Deferred Income 4,385,119 1,580,165 Total Liabilities 6,835,032 9,213,055 Total Deposits 511,561,529 548,375,897 Reserve Accounts 14,186,249 14,186,249 Undivided Earnings 37,905,722 43,295,170 Accumulated Gain/Loss on Investments (1,179,137) (121,114) Total Equity 50,912,834 57,360,306 Total Liabilities & Equity 569,309,395 614,949,258 ASSETS [IN MILLIONS] MEMBERS [IN THOUSANDE] LOANS [IN MILLIONS] DEPOSITS [IN MILLIONS] 600 500 400 300 200 100 0 70 60 50 40 30 20 10 500 400 300 200 100 0 600 500 400 300 200 100 0 Unaudited SENIOR TEAM Scott Burgess, President/CEO Jackie Henderson, HR Leader Nick Hodson, Finance Leader Rob Mills, Technology Leader David Noble, Marketing Leader Gayle Rust Gustafson, Lending Leader Seth Schaefer, Sales Leader SUPERVISORY COMMITTEE (as of 12/31/2014) Kara Oaks, Chair Kim Bickford Matw Baird Darryn Ambrose Travis Hollingsworth BOARD OF DIRECTORS (as of 12/31/2014) Steve Lucas, Chair Patti Schnur, Vice Chair Dennis Fullan, Secretary Lina Cockrell Bill Roberts Jr. Jeremy Vehey Gary Frayn John Langley Tracy Petersen