2014 ANNUAL REPORT RIVERFALL CREDIT UNION FORMERLY TUSCALOOSA TEACHERS CREDIT UNION 62nd ANNUAL MEMBERSHIP MEETING March 3, 2015 Your newly re-invented Tuscaloosa Teachers Credit Union
The RiverFall Story AGENDA As Tuscaloosa is reshaping itself with fresh eyes toward the future, one of its constants has been the nearby Black Warrior River, which lends strength, beauty and tranquility to the region. The river and the town are forever connected as the nearby river shoal represents the southernmost site, the fall line, on which the river can be forded. It was at this fall line where the community of Tuscaloosa was established. RiverFall has a rich tradition of helping the people of Tuscaloosa live their lives to the fullest. Since 1953, we ve empowered members with the smart financial tools and expert guidance they need to take advantage of every opportunity that comes their way. Over the years, Tuscaloosa has seen a lot of change and we ve grown right along with it. From our beginnings as Tuscaloosa Teachers Credit Union, we set out to build a better community one member at a time, and that s a commitment that still rings true today. These are exciting times for our city and its people. And we re here to help keep it going. CALL TO ORDER INVOCATION RECOGNITION ASCERTAINMENT OF A QUORUM SECRETARY S REPORT CHAIRMAN S REPORT TREASURER S REPORT SUPERVISORY COMMITTEE REPORT PRESIDENT S REPORT UNFINISHED BUSINESS About the RiverFall name: The use of River is a direct reference to the Black Warrior and Tombigbee, the two major rivers in West Alabama. These rivers flow through the 6 counties of our market Bibb, Fayette, Greene, Hale, Pickens, and Tuscaloosa. The use of Fall is a direct reference to the fall line in Alabama that separates the hilly Cumberland Plateau from the flat Coastal Plain. The fall line is a topographic trait of the Black Warrior and Tombigbee rivers. NEW BUSINESS OTHER THAN ELECTIONS ELECTIONS Board of Directors: Mr. Marlon Murray Board of Directors: Mrs. Deidra Charlton Supervisory Committee: Mr. Deron Cameron DOOR PRIZES ADJOURNMENT 1 2
MINUTES MINUTES TUSCALOOSA TEACHERS CREDIT UNION 61st ANNUAL MEMBERSHIP MEETING MARCH 4, 2014 CALL TO ORDER: The 61st Annual Membership Meeting of the Tuscaloosa Teachers Credit Union was called to order by Vice Chairman Dr. Steve Lamon on March 4, 2014. PRESIDING: Dr. Steve Lamon, Vice Chairman. INVOCATION: Mr. Jack Gibson, Director. ASCERTAINMENT OF A QUORUM: Dr. Steve Lamon welcomed members and declared a quorum present. RECOGNITION: The head table was introduced and credit union employees were recognized. SECRETARY S REPORT: Mrs. Nancy Terry presented the Secretary s Report as printed on pages 2-4 of the 2013 Annual Report. CHAIRMAN S REPORT: Dr. Steve Lamon presented the Chairman s Report. He referred to written material provided in the 2013 Annual Report. UNFINISHED BUSINESS: None. NEW BUSINESS OTHER THAN ELECTIONS: None. ELECTIONS: The following were nominated by the Nominating Committee for terms on the Board of Directors and Supervisory Committee. No petitions were presented by others interested. Board of Directors: Dr. Mike Daria Board of Directors: Dr. Byron Abston Board of Directors: Mr. Greg Hurst Supervisory Committee: Ms. Jennifer Box Supervisory Committee: Mr. Deron Cameron The nominees were elected by acclamation. DOOR PRIZES: Ms. Susan Butler, Marketing Director, conducted the drawings for door prizes. ADJOURNMENT: After drawing for door prizes, the meeting was adjourned. TREASURER S REPORT: Dr. Byron Abston, Treasurer, referred to the printed report provided in the 2013 Annual Report. SUPERVISORY COMMITTEE REPORT: Ms. Jennifer Box, Supervisory Committee Chairman, presented the Supervisory Committee Report. She reviewed information from the 2013 Annual Report. PRESIDENT S REPORT: President Greg Sassaman referred to his printed report. The floor was then opened for questions, of which there were none. 3 4
FINANCIALS FINANCIALS September 30, 2014 2013 Cash and cash equivalents $ 6,554,928 $ 7,548,367 Investments: Available-for-sale 66,631,792 69,276,668 Other 800,000 800,001 Loans receivable, net of allowance for loan losses 39,000,674 37,241,562 Accrued interest receivable 382,558 408,956 Premises and equipment, net 2,746,736 1,721,450 National Credit Union Share Insurance Fund deposit 988,296 947,172 Assets acquired in liquidation 224,874 366,680 Other assets 1,342,903 332,810 Total Assets $ 118,672,761 $ 118,643,666 September 30, 2014 2013 Liabilities Members' share and savings accounts $ 103,309,332 $ 104,675,469 Accrued expenses and other liabilities 724,273 651,384 Total liabilities 104,033,605 105,326,853 Commitments and contingent liabilities TUSCALOOSA TEACHERS CREDIT UNION STATEMENTS OF FINANCIAL CONDITION ASSETS LIABILITIES AND MEMBERS' EQUITY Members' Equity Regular reserve 6,375,000 6,375,000 Appropriated undivided earnings 687,085 687,085 Undivided earnings 8,989,631 7,990,797 Accumulated other comprehensive loss (1,412,560) (1,736,069) Total members' equity 14,639,156 13,316,813 TUSCALOOSA TEACHERS CREDIT UNION STATEMENTS OF INCOME September 30, 2014 2013 Interest Income Interest on loans receivable $ 1,911,511 $ 2,040,357 Interest on investments 1,436,662 1,231,176 Interest income 3,348,173 3,271,533 Interest Expense Dividends on members' share and savings accounts 789,030 974,137 Interest on borrowed funds 1,185 26 Interest expense 790,215 974,163 Net Interest Income 2,557,958 2,297,370 Provision for Loan Losses 25,097 (22,396) Net Interest Income After Provision for Loan Losses 2,532,861 2,319,766 Non-Interest Income Fees and service charges 831,783 861,908 Other fees and charges 455,859 470,851 Non-interest income 1,287,642 1,332,759 3,820,503 3,652,525 Non-Interest Expense Compensation and employee benefits 1,272,403 1,351,143 Professional and outside services 630,121 619,668 Operations 401,800 459,200 Occupancy 276,264 219,187 Education and promotion 110,978 148,216 Loan servicing 109,670 101,106 Loss on disposition of assets acquired in liquidation, net 20,433 66,360 NCUA assessment - 79,512 Non-interest expense 2,821,669 3,044,392 Net Income $ 998,834 $ 608,133 Total Liabilities and Members' Equity $ 118,672,761 $ 118,643,666 5 6
FINANCIALS TREASURER S REPORT STATISTICS Loans and Advances Made in 2014 9,395 Amount $ 14,898,209 Loans Charged-off in 2014 $ 101,566 Recoveries $ 37,214 Loans Charged-off Since Organization $ 4,444,228 Recoveries $ 1,617,437 Number of Members 8,345 RiverFall Credit Union continues to provide its members with sound financial services and solid credit union operations. During 2014, total assets increased to a little under $119,300,000, representing a modest gain of 0.6% from 2013. Shares showed a slight decrease (1.4%) from $104,800,000 to $103,400,000. For the year 2014, RiverFall Credit Union made 9,395 loans to members. These loans totaled just under $14,900,000, which was up 2.6% from the previous year. This loan growth is directly attributed to the commitment of RiverFall s leadership to provide competitive rates to our members. Additionally, RiverFall returned to its members in the form of dividends over $772,000. COMPARISON OF 2013 2014 FIGURES Assets Shares Loans Members As of 12/31/2013 $ 118,560,305 $ 104,846,511 $ 38,101,549 8,459 As of 12/31/2014 $ 119,294,489 $ 103,363,108 $ 39,747,008 8,345 Amount of Change $ 734,184 ($ 1,483,403) $ 1,645,459 (114) % Change 0.6 % -1.4 % 4.3 % -1.4 % In this unsure financial climate, RiverFall members can be confident that our credit union will continue to be managed with prudence and practical moderation that will maintain its strong financial state. 2014 has been an exciting year of forward thinking and planning, including renovations of existing facilities and the construction of new buildings. These improvements are part of an overall plan to stimulate growth and expand the scope of membership and services for our credit union. While the prospect of growth is exciting, RiverFall remains committed to serving our members, existing and new, with the best financial products and services possible through dedicated and personal relationships. We look forward to an exciting and successful 2015. SOURCE AND USE OF FUNDS IN 2014 SOURCE OF FUNDS AMOUNTS % OF TOTAL Loan Interest Income $ 1,896,754 41 % Investment Income $ 1,398,955 31 % Other Income $ 1,291,290 28 % TOTAL $ 4,586,999 100 % G. Neal Guy, Ed.S. Treasurer USE OF FUNDS Dividends $ 772,550 17 % Operating Expenses $ 2,863,829 62 % Undivided Earnings $ 950,620 21 % TOTAL $ 4,586,999 100 % 7 8
SUPERVISORY COMMITTEE REPORT Chairman s Report The Supervisory Committee of a credit union is created by law to act as the members representative in monitoring and guiding operations of the credit union, and is similar to an in-house audit committee found in many financial institutions. I have proudly served as chairman of the Committee for the 2014-2015 year. Serving with me were Don Kelley and Deron Cameron. Responsibilities of the Committee include making sure the credit union has internal controls in place to protect credit union assets. During 2014, as in years past, we engaged the auditing firm Nearman, Maynard, Vallez, CPAs (NMV). This firm was selected from among several that were considered based on its principles, pricing, and references. It was formed in 1979 and has been serving only credit unions for more than 30 years. NMV conducted three audits: (1) Certified Audit for the period October 1, 2013 through September 30, 2014; (2) ACH (Automated Clearing House) Compliance Review; (3) OFAC (Office of Foreign Assets Control) & BSA (Bank Secrecy Act) Compliance Review. In addition to the annual, outsourced audits performed by NMV, the Supervisory Committee has also enlisted the assistance of, and delegated authority to, select credit union staff to perform various internal audit tasks on a periodic, ongoing basis. Some of these include random counts of teller drawers and vaults, review of account maintenance changes, and transaction verifications with members. Adherence to regulations by RiverFall Credit Union is monitored, and the credit union remains sound and in compliance. Jennifer Box Chairman The RiverFall Credit Union (formerly TTCU) Board of Directors would like to thank our members for another terrific year and for allowing our credit union to serve your financial needs. It goes without saying, but it has been a year of exciting and positive change for our credit union. A lot has changed since our meeting last year! Our credit union s business plan is coming to fruition. The signs of our change are visible as you visit our newly renovated branch in Northport, our brand new branch on Highway 69 South, and the new main branch downtown that is under construction. The changes you see are signs of the steadfast focus we have on ensuring our relevance in service to our members. We are committed to providing our members with a comfortable and accommodating approach for all financial needs. In the midst of this positive change, there are things that remain unchanged. The RiverFall Credit Union remains firm in its loyalty to the traditional values of our service for our 8,345 members. We remain committed to making sure that all of our members financial and personal needs are met with integrity, trust, and professionalism. As you review the Treasurer s report, you will see that RiverFall Credit Union remains fiscally sound and secure. This too shall remain our ongoing focus. We enter another year with great optimism for our future. Whether you are a longtime member or a new member, we are confident that your credit union has what you need. Our past has truly set us up for a bright future. On behalf of the RiverFall Credit Union Board of Directors, thank you for trusting us as your credit union. Mike Daria Chairman 9 10
PRESIDENT S REPORT In this space last year I remarked that 2013 had been the most profound for Tuscaloosa Teachers Credit Union since its establishment in 1953 and went on to suggest that in all likelihood, 2014 will surpass 2013. Times are changing! Times have changed! Welcome to RiverFall Credit Union! Although the official transition occurred in February 2015, the process had begun much earlier and the bulk of the groundwork took place throughout 2014. At this point, about a month into the re-creation process, we hope you are beginning to see and feel some of the improvements. We have much more to do but the progression is well underway and we are pleased with the resources now available, and with the more that soon will be. In looking back through prior years annual reports, it is interesting to note the first reference to this organization s transformation was in 2010 where it was explained why we have not yet proceeded with development of the Veterans Memorial Parkway (15th Street) property. There has been some consideration and temptation to initiate the project but, because of these economically tumultuous times, we have stayed the fiscally prudent course rather than creating substantial new expenses associated with a multi-million dollar facility requiring additional employees and increased operating expenses. Time has proven that a wise decision, as it had become evident that upgrading existing locations, products, and services was a higher priority than adding a new location. It is important to RiverFall officials and staff that you understand the motivations behind the credit union s new identity. The name is absolutely not about a turning away from the credit union s proud heritage and relationship with area educators. Rather, it is entirely about turning toward the credit union s long-time commitment to all of West Alabama. You will see that in our offices and in our actions over time. Be assured the plan remains to build on what Tuscaloosa Teachers Credit Union was to make RiverFall Credit Union even better, and to the benefit of even more. Our ultimate goal truly is to help you find your pace and grow your life. Greg Sassaman President 11