2013 Annual Report Your Dream. Our Purpose.
Your Dream. Our Purpose. Chairman/CEO s Report 3 Statement of Income 6 Supervisory Committee Report 4 Volunteers and Executive Staff 7 Treasurer s Report 4 Locations 7 Statement of Financial Condition 5
chairman/ceo S Report 3 The word Member is used very loosely by today s marketers and businesses. Every business wants you to become a Member. American Express, Costco and Sam s Club all want you to believe that you are a member. Amazon.com has something they call a Prime Membership (prepaid shipping!). You are not a member of American Express ; you re a customer. You re not a member of Costco, Sam s Club or Amazon ; just a customer. TheFreeDictionary.com defines membership as a state involving mutual dealings between people. The Merriam- Webster Dictionary defines member as someone that belongs to or is a part of a group and a part of a structure. Museums, zoos, community gardens, fraternities and aquariums have members, not customers. Farmer s co-ops have members, not customers. Credit unions have members. What do all of these organizations have in common? Their members are in charge. Being a member means that the organization can t exist without you both in its leadership and its activities. Being a member means you can exert some control and influence the direction of the organization. It means that you will participate in the activities of the organization. After all, it s your organization. Your mutual dealings bring benefits to you and others in the group. You are part of the structure. You own it. When American Express tells you that you are a member they are just trying to get you to buy (literally and figuratively) into their business model. They persuade you to pay their usually exorbitant fees and make you think you have some influence. Your Dream. Our Purpose. Core Purpose: To help our members achieve their financial goals. We Will Always: Listen to you to get to know you Find out where you want to be tomorrow Do the right thing Provide the right solution/recommendation Respect you You don t own or control American Express or Costco ; the stockholders do. You can t influence the strategic direction of Amazon.com ; the stockholders can. With your credit union (note how we always say your credit union), you drive our business forward. You do that by serving as a volunteer leader and by using our products and services. You are part of a mutual organization that facilitates mutual dealings among the members of the group. We are owned by you. We are controlled by you. We listen to you. Listening to our members, in their words, deeds and actions, tells us that not only is the world moving into a more digital or virtualized environment many of you are probably reading this report online it s moving into that space very rapidly, faster than any of us could have possibly imagined. In early 2013 we closed many of our small, underutilized branch offices. These offices were expensive to maintain and difficult to access. You were just not using them, so we closed them. We decided to focus our attention on the digital environment. You were already there, using PCs, laptops, tablets and smartphones for virtually everything. We needed to be there too. We realized that we needed to make some changes and embrace this technology as the future of banking. The branch closings were just the first step. We increased our call center staff, just rolled out a new website and are now planning a new digital-channel makeover. In the next several months we will be providing you with a completely new home banking, tablet and mobile experience. We will be providing you with state of the art technologies so that you can easily and conveniently transact business with us at any time and at any place. Our new branch network is in the palm of your hand. We have not totally abandoned the bricks and mortar branch network. We have over 5,000 branch outlets across the country through our participation (our membership ) in the Co-Op Shared Branching Network. I like to say that we have 5,503 branches 5,500 shared branches around the United States, wholly-owned offices in Clark, NJ, and Jamaica, Queens, NY, and of course on that device in the palm of your hand. Even though we give you access to us through all of those physical offices, it is very clear that the future of banking,
the future of the branch network, is in that little digital device you carry around with you all the time. There have been reports that the last thing we touch at night and the first thing we touch when we wake up in the morning is our cell phone. Surveys also say that more people would return home for a forgotten cell phone than would if they forgot their wallet or purse. Why would we not want to embrace this technology? a dedicated group of employees that are focused on your financial well-being. Last, but certainly not least, our volunteer member-leaders are driven to bring you the products and services you need and prices you can afford. Thank you for being a member of Aspire Federal Credit Union! The future of your credit union is as strong and bright as ever. Financially, we are on very firm footing. Technologically, we are moving to more robust, feature-rich offerings. Professionally, we are staffed by James Ostaszewski Chairman Thomas J. O Shea President/CEO Supervisory Committee Report The Supervisory Committee s primary function is to oversee all aspects of the credit union to determine that it is soundly managed and that members assets are safeguarded. In order to fulfill this function, the Supervisory Committee monitors and evaluates the quality of the credit union officials, performs audits and reports on the result of its audits and reviews. An ancillary duty of the Supervisory Committee is administering the annual Salvatore Perricone Scholarship Awards. Your credit union is constantly undergoing reviews and evaluations of their operations and financial reporting by both the Internal Audit Department and the external audit firm of Nearman, Maynard, Vallez, CPAs, P.A. Based upon the information gathered from both the internal and external audits, it is the committee s opinion that the operation of your credit union is in compliance with the applicable statutes and regulations, it is financially sound and, as always, the interest of its members are being well served. Respectfully Submitted, Supervisory Committee 4 Treasurer s Report In this annual report you will find a Statement of Financial Condition and Income Statement for the year 2013. Your credit union is a strong and healthy financial institution. Our Net Operating Income for 2013, before extraneous items, was $703,315. After accounting for federal share insurance stabilization mandates, our net income ended the year at $589,481. Our shares on deposit were $156,962,809, our total gross loans were $127,540,475 and our assets at year-end 2013 were $175,783,766. Our capital ratio, the indicator of our health, continues within the well-capitalized level at 10.0%. We continue to invest for the future, in technology, services and our people. We are dedicated to strengthening our relationship with you and providing you with the financial services you need. Nicholas Luca Treasurer
statement of financial condition December 31, 2013 December 31, 2012 ASSETS Cash and cash equivalents $1,222,170 $1,788,509 Investments: Available-for-sale 8,294,017 4,620,084 Held-to-maturity 744,000 992,000 Other 30,557,995 49,072,691 Federal Home Loan Bank (FHLB) stock 106,400 126,100 Loans receivable, net of allowance for loan losses 127,540,475 120,969,406 Accrued interest receivable 988,249 733,216 Premises and equipment, net 172,040 248,917 National Credit Union Share Insurance Fund deposit 1,422,922 1,459,171 Assets acquired in liquidation 882,820 913,401 Other assets 3,852,678 3,019,189 5 LIABILITIES AND MEMBERS' EQUITY Total Assets $175,783,766 $183,942,684 Liabilities Members' share and savings accounts $156,962,809 $165,591,806 Borrowed funds - 27,596 Dividends payable 4,620 5,560 Accrued expenses and other liabilities 1,307,410 2,194,097 Total liabilities 158,274,839 167,819,059 Commitments and contingent liabilities Members' Equity Regular reserve 5,152,000 5,152,000 Undivided earnings 12,888,841 12,299,360 Accumulated other comprehensive income (loss) (531,914) (1,327,735) Total members' equity 17,508,927 16,123,625 Total Liabilities and Members' Equity $175,783,766 $183,942,684
Statement of income December 31, 2013 December 31, 2012 interest income Interest on loans receivable $7,490,985 $8,098,595 Interest on investments 267,703 297,907 Interest income 7,758,688 8,396,502 interest Expense Dividends on members' share and savings accounts 645,259 812,454 Interest on borrowed funds 504 2,639 Interest expense 645,763 815,093 Net Interest Income 7,112,925 7,581,409 Provision for Loan Losses 832,536 927,419 Net Interest Income After Provision for Loan Losses 6,280,389 6,653,990 non-interest income Other non-interest income 1,515,088 1,464,468 Fees and service charges 1,282,639 1,193,526 Gain on servicing rights, net 431,330 788,725 Non-interest income 3,229,057 3,446,719 6 non-interest expense 9,509,446 10,100,709 Compensation and employee benefits 3,555,160 3,487,759 Professional and outside services 2,402,505 2,492,604 Operations 935,969 1,112,131 Loan servicing 983,215 857,376 Education and promotion 362,959 364,176 NCUA assessment 113,834 138,621 Loss on investments, net 70,005 - Occupancy 352,211 330,925 Loss on disposition of assets acquired in liquidation, net 142,181 126,000 Loss on disposition of premises and equipment, net 1,926 4,493 Non-interest expense 8,919,965 8,914,085 Net Income $589,481 $1,186,624
Volunteers and Executive Staff Board of Directors These volunteers set policies and develop long-term strategic planning for the future of the credit union s success. James Ostaszewski, Chairman^ Neal Holtzer, Vice-Chairman Nicholas Luca, Treasurer^ Dominick Festa, Secretary Fred Glassberg, Director Dan Peters, Director Manny Weiss, Director ^Up for renomination this year. Supervisory Committee This committee is responsible for ensuring the credit union s compliance with all relevant laws and regulations. Christine Zoeller, Chairperson Barry Boshnack Fritz Duchatellier Khari Faison Executive Staff Thomas J. O Shea, President/CEO Rosemary Masters, VP Member Services & Lending Robyn Oresto, VP Finance Laura-Ilene Harding, VP Marketing & Business Development locations Visit us online at www.aspirefcu.org for branch locations and hours. 24/7 Call Center Call Center Representatives are available 24/7 at 888.322.3732, Option 3. Over 5,500 Shared Branches Take advantage of a variety of services as if you were at your own credit union. We ve joined forces with other credit unions across the nation to offer you convenient account access wherever you may be! It s easy to deposit, withdraw or transfer money at a Shared Branch. You can also inquire about your loan balance. Visit our Branch Locator online at www.aspirefcu.org for a location near you. *Maximum deposit amount $3,000. Other restrictions may apply. Visit www.aspirefcu.org/policies.cgi for the full edeposit User Agreement and Disclosure. Over 70,000 Surcharge-Free ATMs Access your accounts anywhere, anytime with your ATM or Debit Card at over 70,000 surcharge-free ATMs! Visit our ATM Locator online at www.aspirefcu.org for a location near you. Mobile Banking We re as close as the phone in your pocket! You can transfer funds between accounts, view transaction histories and account balances and even find a surcharge-free ATM or branch near you right from your smartphone! Visit www.aspirefcu.org/mobilebanking to enroll today. Aspire Mobile Deposit You can deposit checks with your smartphone! Simply download our mobile app for iphone /ipad or Android to register for Aspire Mobile Banking. Go to www.aspirefcu.org for more information. edeposits Qualifying members* may deposit checks directly from their home or office. It s easy, and we ll even supply you with postage-paid envelopes! 888.322.3732 855.MY CU LOAN (855.692.8562) www.aspirefcu.org Federally Insured by NCUA.