President's Message 2014 was an exciting year for Mobiloil Federal Credit Union. We funded over $200 million in member loans and reached a pivotal goal of $500 million in assets. For 80 years, we ve remained committed to serving our members and our communities. Mobiloil Federal Credit Union was chartered as Magnolia Employees Beaumont Texas Federal Credit Union. Since then, a lot has changed. In 1935, the average annual income was $1,500, the average price of a new home was $6,300, and the average price of a new car was $580. And, gas was $0.19 a gallon. While the price of gas today is the best we ve seen in years that s a pretty significant jump! One thing hasn t changed since 1935 our dedication to serving our members. We ve gone from 700 members and assets of $10,000 to over 42,000 members and well on our way to exceeding our next asset goal of one billion dollars! In April, we introduced our new financial wellness program called Smart Change. This free service is dedicated to providing resources and tools to help our community better understand their personal finances. With the success of our free credit score analysis, whereby a member sits with one of our knowledgeable associates to uncover steps to boost their credit score, we were compelled to offer financial education on a much broader scope. Since the program began, we have facilitated over 25 seminars and taught over 300 members/non-members on various topics such as: credit management, building a budget, and identity theft. We offer set classes each month and work with local businesses in utilizing Smart Change as a way to enhance the financial well-being of their associates. On July 7th, we launched our Lucky 7 Checking campaign as a way to attract new members and to encourage our existing members to utilize our free services such as electronic statements, bill pay, our mobile app, SnapDeposit, and even low rate loans. By activating, using, or agreeing to certain services and products, members had the potential to earn $329. To date, we have paid out over $150,000 to our Lucky 7 Checking account members. Finally, in October we opened the doors to our newest branch located at 1100 N Main in Vidor. When the opportunity to purchase this property became available, we knew it would serve as a convenient location to our Orange county members. We are truly grateful for the warm welcome we received and look forward to serving existing and potential members alike. I d be remiss if I didn t also mention the cyber security challenges presented by retail chains including P.F. Chang s/pei Wei, The Home Depot, and Staples, Inc. In an effort to help mitigate future losses, we continue to move forward on developing chip secured credit and debit cards to help protect your account in the event of a data breach. Through all of this, your credit union remains strong and ranks high among its peers in share growth, loan growth, and our overall return on assets. I m constantly amazed at what we can accomplish when you know your purpose and at Mobiloil Federal Credit Union, our purpose is you, our members.
Board of Directors (seated from left to right) Gary Waldrop Paul Wheelington Richard Hegele Ronnie Sciarrilla Tony Lucenti (standing from left to right) Phillip Brent Raul Lito Morales Jr Ronnie Cessac Giacomo Figlia Floyd Price Scott McCauley 2014 Scholarship Winners Katelyn S. Parent Lamar University Derek Ross Hall Stephen F Austin University Cassidy L Clark Texas A&M University James Dula Lamar University Management Team Bob Hamer CEO / President Sam James Information Systems & Technology Melissa Domingues CFO / Accounting Gina Tweekrem Support & Electronic Services Lisa Miller John Doucet COO / Executive Branch Services Keisha Smith Human Resources Clint Walters Lending Tabetha Franklin Director of Marketing
Lending Report 2014 Even though most financial institutions still struggled to make loans due to weak labor markets and low consumer confidence, lending at Mobiloil Federal Credit Union (MOFCU) has never been stronger. In terms of growth and financial results, 2014 was one of the most successful years in the credit union s history. Our commitment to provide outstanding service and high quality products at competitive pricing has allowed us to meet our member s needs. Our membership took advantage of local decisions and low rates, increasing our overall loan portfolio from $377.7 million at year end 2013 to $441.6 million at year end 2014. This is an overall portfolio increase of 16.9% compared to industry average of 10.85%. As you can see, your credit union is doing its part to give members the access to cash they need to take care of life s challenges and opportunities. MOFCU continues to offer conventional and VA real estate loans to our membership. We do not offer or participate in any of the subprime mortgage loans other lenders offered that caused much of the problems throughout the mortgage industry. Additionally, MOFCU s auto loan portfolio grew in 2014 by 20.95% due primarily to the low rates offered to our members. For year-end 2014, our auto loan portfolio totaled $161 million. The year 2014 proved to be another fantastic year for our Business Lending department. When other financial institutions were cutting back on lending to small businesses, MOFCU stepped in and grew its business loan portfolio by 41.71% in 2014. This is attributed to obtaining the trust of small business owners, which is a large reason why we started our Member Business Loan Program in 2008. Personalized service and local decisions allowed us to accurately assess member needs and strategically allocate funds. We ended the year with over $70 million in our business loan portfolio. MOFCU recognizes a strong need within our communities for safe and reliable lending products. Our credit card portfolio grew by 13.45%. Our members took advantage of our low balance transfer rate of 5.9% for the life of the loan. We also offered several other loan promotions to help the financial needs of our members. The Holiday Express Loan and Summer Fun loan helped members during the times of year when money is tight. Given the challenges presented by the economy, we have taken appropriate actions to ensure the loan portfolio continues to grow and remains strong in the years to come. We offered all of these lending products while maintaining a low average delinquency of 0.60%, compared to industry average of 0.85%. We remain committed to ensuring that all members receive comprehensive consumer, mortgage, and business loan services, with a fair and timely review of their loan requests. In 2015, we will continue to meet the financial needs of our members by improving and expanding our loan product line. These actions that we are taking will ensure that MOFCU maintains its tradition of being a trusted and reliable source of credit for our members. For the second year in a row, Mobiloil Federal Credit Union was awarded Raddon Financial Group s 2014 Crystal Performance Award. The Crystal Performance Award was designed to recognize credit unions for achieving a top ten ranking based on the RFG Performance Index, a balanced scorecard measurement of growth, income, efficiency and margin management. Each year, more than 500 credit unions are evaluated for the Crystal Performance Award through RFG s CEO Strategies Group program. Each of the winners ranked among the top two or three percent of all credit unions analyzed by RFG for two consecutive reporting periods. To be eligible for the Crystal Performance Award, a credit union must participate in the CEO Strategies Group for an in-depth analysis of the credit union s financials, sales, products and member household relationships. Beginning in 2009, RFG recognized the top credit unions in two asset classes based on their performance: credit unions above $500 million and below $500 million in assets. The Crystal Performance Award is presented annually at Raddon s CEO Forum.
Annual Financial Report Assets Loans... Allowance for Loan Loss... Accounts Receivable... Cash... Investments... Other Assets... Total Assets... 2014 441,662,107 (3,445,092) 52,783 35,274,973 38,794,008 23,109,341 535,448,120 2013 377,794,387 (2,585,300) 118,131 23,615,992 45,644,947 20,467,769 465,055,926 2012 325,728,691 (2,321,475) 43,907 28,067,768 36,886,070 21,005,019 409,409,980 Liabilities and Equity Other Liabilities... Shares and Deposits... Regular Reserves... Undivided Earnings... Total Liabilities and Equities... Income Interest on Loans... Interest on Investments... Other Income... Total Income... Expenses Salaries and Benefits... Provision for Loan Loss... Operating Expenses... Total Expenses... Non-Operating Inc (Exp)... NCUSIF Stabilization Exp... Net Earning Distribution Undividend Earnings... Dividends... Total Net Earning Distribution... Total Mobiloil CU Members... 42,012,238 431,632,849 3,043,080 58,759,953 535,448,120 31,983,773 378,029,723 3,043,080 51,999,351 465,055,926 8,292,644 353,275,327 3,043,080 44,798,929 409,409,980 21,293,550 834,740 7,985,649 30,113,939 19,142,632 719,293 7,740,032 27,601,957 17,856,725 705,995 7,109,560 25,672,280 9,943,189 2,527,521 8,140,518 20,611,228 508-8,331,027 1,359,056 8,189,649 17,879,732 (85,726) 277,007 7,603,785 1,239,650 7,492,089 16,335,524 8,645 330,656 6,760,602 2,742,617 9,503,219 7,200,424 2,159,068 9,359,492 6,939,950 2,074,795 9,014,745 42,495 40,341 39,417 Supervisory Committee Report Efficient and effective internal controls as well as compliance with regulations, policies and procedures are paramount in the Supervisory Committee s responsibilities in ensuring the overall soundness of Mobiloil Federal Credit Union. This is accomplished through regular external examinations and internal reviews. The annual financial audit was performed by a local CPA firm and covered the twelve (12) months ending June 30, 2014. The audit was performed in accordance with generally accepted audit standards and included evaluation of the credit union s financial statements. The auditors considered the financial statements acceptable, thus rendering an unqualified or clean audit opinion, which is optimal. The last regular NCUA Federal Examination was performed as of June 30, 2014. This examination indicated very sound financial condition and management. As your representative of Mobiloil Federal Credit Union, I attest that the Supervisory Committee will continue to monitor credit union operations while striving to make the credit union the very best financial institution in Southeast Texas. Scott McCauley, Chairman, Supervisory Committee
Minutes of 79th Annual Membership Meeting The 79th Annual Membership Meeting was held at Rogers Park Community Center, 6540 Gladys, Beaumont, Texas 77706 on Friday, March 21, 2014 at 6:30 p.m. Chairman, Richard Hegele, called the meeting to order at 6:30 p.m. He welcomed everyone to the 79th Annual Membership Meeting and stated that he would present financial reports, election results and the state of the credit union movement in our community. Included will be some good fellowship with our members. Floyd Price, a Credit Union board member, gave the invocation. The Chairman thanked Mr. Price. Chairman Hegele asked Mr. Wheelington to affirm the presence of a quorum. Having so affirmed, the minutes of the 78th Annual Meeting were presented for approval. A motion to approve the minutes was made by Lucie Morales and seconded by Claude Mitchell. The membership unanimously approved the minutes as presented in the members programs. Chairman Hegele announced that there were three (3) Board positions requiring re-election by the membership. As prescribed by our credit union by-laws, the Board Nominating Committee made one nomination per Board position. Notices were mailed to all members announcing the election and the annual meeting. There were no nominations made by membership petition, therefore, by acclamation, the three (3) nominees stand re-elected to the Board of Directors for a three (3) year term. Congratulations to: Tony Lucenti, Lito Morales, and Floyd Price. The three board members should be familiar faces to all of the members. These three Directors have over 45 years of volunteer service on the Board. Thank you for your dedication and continued commitment to the Mobiloil Federal Credit Union. Special thanks to Giacomo Figlia and Richard Newton for serving as Nominating chairman this year and for assuring that all the mail outs and required paper work was handled correctly. All the directors and volunteers were asked to stand while everyone showed their appreciation with a thank you. The chairman shared with the members that for their review, the required financial reports were in the program. There were no questions about any of the reports. Bob Hamer, the Credit Union President/C.E.O. will tell us about all the challenges he faces and the great things happening at Mobiloil Federal Credit Union. Mr. Hamer welcomed everyone to the 79th Annual Meeting of Mobiloil Federal Credit Union. He indicated that the Invest in Us We Invest in You had been the Credit Union s motto line for the last several years. At the end of 2013 Mobiloil Credit Union ranked #1 in our Texas Peer Group; 12th in our national peer group and in the top 5% in all credit union nationwide. In 2013, there was steady asset growth of $56 million to $465 million and recently in 2014 crossed $1/2 billion. This growth is important because it allows us to serve the members better. We are members of a not-for-profit cooperative with a mission to serve the financial needs of our members... so growth and greater earnings lead to: Ability to cover constantly rising costs; Provide additional reserves; Make more loans and large loans, such as small business loans; Provide more qualified staff and training; Build additional service outlets; and Offer lower loan rates and higher deposit rates. Right now we offer the highest deposit rates in the region. Other indicators that the Credit Union is a quality institution: We are the recipient of the Raddon Financial Group s Crystal Performance Award; which is described in our Annual Report. Our services per member are among the highest in the industry; which is an indicator that more members are making us their primary financial institution. Increase in Net Worth of $7.2 million last year; Paid out Dividends of $2.2 million. We made 16,000 loans totaling $168 million. Regarding branch expansion, we opened the Silsbee branch in 2012, the Lumberton branch in 2013, and the Vidor branch will be opened in 2014. We continue to work on product development for our members such as: Digital Wallet, Social Media Involvement/Social Media Coordinator, and Online signature to name a few. As far as what s on the horizon, we already mentioned the Vidor branch will be opened in fall 2014. The staff has already been hired and is being trained. We are looking at changing from a Federal to a State Charter and improving member service. We will have training program for improving member service and staff leadership. Developing and maturing the technologies and services we have installed over the last two to three years. And, among other improvements, we will be looking at developing or participating in new payment methods that are coming on the scene and to compete with non-traditional financial companies. Finally, I want to thank our 140 staff members and their families for all they do every day to learn and grow and spread the benefits of membership in Mobiloil Credit Union. To our Board of Directors and Associate Directors for giving freely of their time and talents to lead the Credit Union in its mission, thank you. And especially to you, among our 41,000 members, for making us the fastest growing, largest and healthiest credit union in Southeast Texas. The chairman thanked Mr. Hamer for his report. He asked if there were any general questions, comments, or member feedback from the floor. There were a couple of questions which were answered by Mr. Hamer. First question was: What are the risks, challenges or problems the credit union might face down the road? To name a few, Mr. Hamer indicated there s interest rate risk or risks the oil industry could cut back on their staff. Second question: Does the credit union think the Beaumont Independent School District s situation could affect the credit union. Mr. Hamer stated that he did not see how their situation would affect us. It was announced that the business portion of the program was concluded. The chairman asked for a motion to adjourn. Karl Duerr made the motion and Jean Baradara seconded the motion. The motion to adjourn carried. The meeting adjourned at 7:20 p.m.