2 0 1 4 a n n u a l r e p o r t passionate aring authentic relationships enuine personal ommunity committed riendly value trust reliable Our Members Define Us caring counseling counseling lifelong Membership Advocate welcoming
perso coming authentic genuine value Trust friendly long e counseling ationships community Membership reliable counseling Advocacy 2 2014 Annual Report Travis Credit Union
friendly advocate passionate authentic genuine reliable community relationships lifelong In 2014, Travis Credit Union surpassed $2.3 billion in assets while completing several major projects. Under the new leadership of Chief Executive Officer and President Barry Nelson, we relocated our Dixon Branch to a bigger space, upgraded all of our ATMs and prepared to launch a new open-concept Financial Solutions Center in Vacaville. We also upgraded our website, www.traviscu.org, with several advanced features. And we began full preparations for a major upgrade of our data processing systems that is expected to be completed later this year. these are the actual words our members use to describe their interactions with our employees While these efforts may vary, they ultimately have the same purpose: helping our members improve their financial lives. The members of Travis Credit Union are the touchstone of who we are and what we do. They shape our approach to service, the types of technology we employ, the way we train our employees and how we design our branches. Our members define us, and we work hard every day to meet their high expectations. We are pleased to share last year s accomplishments in Travis Credit Union s 2014 Annual Report. $2.3 billion in Assets new branch in Vacaville new upgraded ATMs new mobile-optimized website www.traviscu.org 2014 Annual Report 3
REPORT FROM THE BOARD CHAIR AND PRESIDENT our members success is our success Travis Credit Union s positive financial performance in 2014 is a story about growth. Our members confidence in the improving economy prompted a 14.51 percent increase in real estate loans from the previous year. Growth in auto loans in 2014 came in both car purchases and in refinances, at 33.17 percent and 23.63 percent, respectively. As our members personal balance sheets improved, so did that of the credit union. Patricia Moreno board chair This growth can be found within the experiences members have shared with us throughout the year. One member, a professor at a local college, was so impressed with how we helped her refinance her mortgage that she posted a glowing review on Yelp. The value of our home loan products and our commitment to service made her switch from a big bank and she never looked back. These are people who keep their word to the letter! she said. Our members were equally appreciative about their experiences with auto loans. Jennifer, one of our branch managers in Antioch, lowered a member s auto loan rate from 18 percent to 5.74 percent. The member was so over the moon with gratitude about his refinanced auto loan that he referred his son to us for his auto loan. Stories like these are the reasons why the credit union s loan volume grew to $1.3 billion in 2014 from $1 billion in 2013. Overall, our assets reached $2.3 billion in 2014, while our net worth remains above the standards required by regulators, at 12.20% capitalization. In this report you ll read more quotes from our members that describe how they feel about the credit union and the words they use to define us. Our members financial success is our success, too! Thank you for your membership. Barry Nelson president & ceo 4 2014 Annual Report Travis Credit Union
THANK YOU FOR SERVING OUR COMMUNITY IN A GREAT WAY Lucas F. Total Assets (Billions) 2.50 Loans (Billions) 1.50 Shares (Billions) 2.00 2.00 1.50 1.00 0.50 1.00 0.50 1.50 1.00 0.50 0 2010 2011 2012 2013 2014 0 2010 2011 2012 2013 2014 0 2010 2011 2012 2013 2014 Net Income Members Net Worth (Millions) 40.00 (Thousands) 180 14% 12.20% 175 12% 30.00 170 10% 165 8% 7.00% 20.00 160 6% 10.00 155 150 4% 2% 0.00 2010 2011 2012 2013 2014 145 2010 2011 2012 2013 2014 0 Well-Capitalized TCU www.traviscu.org 2014 Annual Report 5
reliable advocate elpful trust friendly genuine riendly Our Members Define Us personal dvocate Authentic. Helpful. Caring. These are actual words our members use to describe Travis Credit Union. We couldn t find any better words to talk about 2014 than the ones used by our members throughout this report. Their words matter. Because our members success is our success. enuine committed relationships authentic 6 2014 Annual Report Travis Credit Union
IT S THE PERSONAL EXPERIENCE, THEY REALLY CARE ABOUT YOU OLIVIA G. THEY HAVE MY BEST INTEREST IN MIND, THEY HELP ME WHEN I NEED IT KRYSTEN M. trust value THEY RE ALWAYS OUT AND ABOUT HELPING THE COMMUNITY CINDY M.
STATEMENTS OF FINANCIAL CONDITION 2014 2013 ASSETS Cash and cash equivalents $70,519,035 $112,435,557 INVESTMENTS Securities available for sale 769,171,843 832,762,282 Other 11,111,919 10,617,143 IT S THE PERSONAL EXPERIENCES AND KNOWLEDGEABLE EMPLOYEES THAT SET IT ABOVE THE REST CHRIS B. Loans held for sale 526,600 2,455,069 Loans, net 1,321,026,929 1,074,472,202 Accrued interest receivable 7,432,626 7,321,765 Property and equipment 36,895,378 35,949,356 National Credit Union Share Insurance Fund ( NCUSIF ) deposit 18,215,389 17,660,907 Other assets 67,279,055 50,864,280 Total assets $2,302,178,774 $2,144,538,561 LIABILITIES AND MEMBERS EQUITY LIABILITIES Members share accounts $2,008,891,773 $1,893,857,296 Dividends payable 364,068 398,046 Accrued expenses and other liabilities 16,976,268 15,406,524 Total liabilities 2,026,232,109 1,909,661,866 MEMBERS EQUITY Retained earnings 277,828,256 250,307,940 Accumulated other comprehensive income (loss) (1,881,591) (15,431,245) Total members equity 275,946,665 234,876,695 Total liabilities and members equity $2,302,178,774 $2,144,538,561 8 2014 Annual Report (Unaudited Statements) Travis Credit Union
STATEMENTS OF INCOME 2014 2013 INTEREST INCOME Loans to members $63,170,998 $58,719,182 Interest-bearing accounts and investments 14,383,473 10,133,248 Total interest income 77,554,471 68,852,430 INTEREST EXPENSE Interest on members share accounts 4,770,331 5,231,824 Total interest expense 4,770,331 5,231,824 Net Interest Income 72,784,140 63,620,606 Provision for Loan Losses 2,249,685 634,402 Net Interest Income After Provision For Loan Losses 70,534,455 62,986,204 NON-INTEREST INCOME Fees and charges 8,803,877 9,074,784 Interchange Income 10,432,941 9,842,916 Realized gains (losses) on sale of investments 293,592 (1,192,762) Gain on sale of loans 2,433,169 2,808,491 Net accretion of First Metropolitan Credit Union credit loss discount 1,150,531 1,015,306 Other Income 3,800,301 5,224,915 Total non-interest income 26,914,411 26,773,650 NON-INTEREST EXPENSE Compensation and benefits 39,009,146 34,042,826 Office operations 26,317,825 23,606,892 Office occupancy 4,601,579 4,681,627 Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment 0 1,412,873 Total non-interest expense 69,928,550 63,744,218 Net income $27,520,316 $26,015,636 STATEMENTS OF COMPREHENSIVE INCOME NET INCOME $27,520,316 $26,015,636 Net change in unrealized gains (losses) on available-for-sale securities 13,843,246 (20,879,810) Less: reclassification adjustment for realized gains (losses) included in net income (293,592) 1,192,762 Total other comprehensive income (loss) 13,549,654 (19,687,048) Comprehensive income $41,069,970 $6,328,588 I FEEL LIKE THEY GIVE YOU RELEVANT INFORMATION, THINGS THAT YOU WANT TO HEAR THENISHA R. www.traviscu.org (Unaudited Statements) 2014 Annual Report 9
Trust friendly elcoming value Membership genuine elationships SUPERVISORY COMMITTEE REPORT reliable The Supervisory Committee s major responsibilities are to safeguard our members assets, ensure an independent audit is performed annually and verify members accounts. In 2014, the committee performed its duties in collaboration with the credit union s internal audit department, certified public accountants, the National Credit Union Administration (NCUA) and the California Department of Business Oversight (DBO). The Supervisory Committee engaged the auditing firm of Turner, Warren, Hwang & Conrad to perform the annual independent audit of Travis Credit Union s financial statements. We are pleased to inform you that the audit for 2014 was completed successfully. Travis Credit Union s financial statements comply with generally accepted account principles and fairly represent the financial condition of the credit union. Johanna Benker Supervisory Committee Chair Based on the results of the annual financial audit, TCU s internal audits and examinations conducted by the NCUA and DBO, the committee finds that Travis Credit Union is a financially sound organization, dedicated to serving its members. In addition, the committee commends the management team and board of directors for their diligence and support. The Supervisory Committee continues to fulfill its duties to protect your interests in strict compliance with policy and all relevant laws and regulations. Respectfully submitted, Johanna Benker, Supervisory Committee Chair Doug Beaumont Supervisory Committee Member Arturo Reyes Supervisory Committee Member 10 2014 Annual Report Travis Credit Union
BOARD OF DIRECTORS Back row (L-R): Dee Alarcón, Board Director; Len Augustine, Board Director; Debra Aspling, Board Vice Chair; Tim Truesdale, Board Director; Ann Rollin, Board Director. Front Row (L-R): Tom Kulinski, Board Treasurer; Pat Moreno, Board Chair; Mary Coburn, Board Secretary; Curt Newland, Board Director. Welcoming reliable Trust friendly Membership relationships www.traviscu.org 2014 Annual Report 11
Thank You For Your Membership. www.traviscu.org n One Travis Way, Vacaville, CA 95687 n (707) 449-4000