Building for a Brighter Future Annual Report

Transcription

1 Building for a Brighter Future 2014 Annual Report

2 Joint Chair and CEO Report Dear valued members of University Credit Union, It is with our utmost pleasure to welcome you all to the University Credit Union s 65th year of providing financial services. We thank you for being a member and supporting the credit union movement for so many years. The people helping people philosophy that the credit union was founded upon back in 1951 will continue to thrive. Transition to New Leadership We are extremely grateful to Charles Bumbarger for his leadership and service of 37 years to University Credit Union. With his retirement, new leadership was introduced back in March of 2014 and is now carrying the torch to lead UCU to new horizons. With any change, there comes a bit of uncertainty and some anxiousness. The Board of Directors, the Supervisory Committee, the management team, and the staff continue to work hard to make this a smooth transition. We feel ready to take on the new challenges and focus on priorities and services that are in the best interest of University Credit Union and you, our members. The focus of management is going back to the basics people helping people, member-centric service, and convenient and relevant products for all members. In the 4th Quarter of 2014, we formed a new strategic direction based on a new Vision and a new Mission Statement. Vision To be the credit union of choice for all members of our educational communities. Mission Statement To responsibly assist all members to achieve their financial dreams through INNOVATION, PASSION, and EMPATHY. These three words will be our guiding principles: Innovation We are committed to continuous improvements. Passion We love what we do, and we are committed to bringing wow experiences for all members. Empathy We will do whatever we possibly can to understand you and what you need to bring forth the best solutions for your needs. With these embedded in our culture along with core values that will be our fundamental model, we are committed to assisting our members to the best of our abilities in every way we can. 2

3 Looking Back The year 2014 was a challenging year, and it was the year of change and a turning point for UCU. We are very pleased to announce that UCU continues to show strong financials. At the end of 2014, UCU s assets stood at $495 million with $45 million in members equity. This equity represents a 9% net worth ratio as compared to 7% required by the regulators to be considered well-capitalized. The total net income in 2014 was $2.5 million of which the core net income was $1.6 million. We have turned the corner from surviving to on the road to thriving. In 2014, UCU introduced new, convenient services. We launched instant-issue debit cards so that members can get their cards immediately at the branches. We also launched UCU s Mobile Check Deposit where making a check deposit is easier than taking a selfie with your smart-phone. Our lending processes have gone through an overhaul to be more efficient and more effective where most members are getting loan decisions within a matter of minutes. But most of all, we have changed the way we provide service to you, our members, by being more centered on you. This is what we call member-centric service. Looking Forward 2015 and Beyond If we had a crystal ball, it would say that our future is bright! The opportunity to be the credit union of choice for the members of our partner universities is wide open. We will be working with each university to provide financial literacy, socially-responsible financial services, and value-added products and services to all of their students, alumni, faculty, and employees. We are excited! We have a lot of updating to do in Many of our ATMs are outdated. Our main branch needs a fresher look. Our website needs some new coding. We will be adding more products and services to our offering Private Student Loans, to name one. Management and staff will be busy making UCU more relevant to our members. Please check in with us from time to time to learn about all the improvements that we are making for you. The year 2015 will be a build-up year, and we will be working hard on strengthening the necessary infrastructure to help more members. Our vision will always be about our members. Our focus will always be on finding ways to assist members. Our service will be to wow you every time. Thank you for your support of University Credit Union. We are privileged to serve you, our members. Sincerely, Carole Zaima Chair of the Board Paul Yang President/CEO 3

4 Statements of Financial Condition December 31, 2014 and 2013 ASSETS Cash and cash equivalents $ 80,893,788 $ 132,947,413 Investments 171,432,397 96,230,424 Loans receivable, (net of allowance for loan losses) 223,866, ,679,148 Property & equipment 9,467,379 9,584,340 Accrued interest receivable 845, ,393 Share insurance deposit 4,082,731 4,049,615 Foreclosed and repossessed assets 129, ,883 Prepaid expenses and other assets 4,280,164 1,622,856 Football Fun Days at the Ackerman Branch. TOTAL ASSETS $ 494,998,170 $ 475,238,072 LIABILITIES AND EQUITY Members share and savings accounts $ 454,255,699 $ 436,609,985 Accounts payable and other liabilities 1,552,693 2,954,269 TOTAL LIABILITIES 455,808, ,564,254 Members equity 45,070,737 42,533,133 Other comprehensive (loss) income (5,880,959) (6,859,315) TOTAL MEMBERS EQUITY 39,189,778 35,673,818 TOTAL LIABILITIES AND MEMBERS EQUITY $ 494,998,170 $ 475,238,072 A member celebrates her new car. 4 UCU is an independent organization not affiliated with UCLA

5 Statements of Income For the years ended December 31, 2014 and 2013 INTEREST INCOME Loans $ 9,667,140 $ 10,049,496 Investments 1,334, ,315 TOTAL INTEREST INCOME 11,001,567 10,890,811 INTEREST EXPENSE Members share and savings accounts 467, ,567 TOTAL INTEREST EXPENSE 467, ,567 NET INTEREST INCOME 10,534,475 10,424,244 UCU donates books to Mattel Children s Hospital PROVISION (CREDIT) FOR LOAN LOSSES (937,701) 143,292 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 11,472,176 10,280,952 TOTAL NON-INTEREST INCOME 2,975,740 2,894,561 NON-INTEREST EXPENSE General and administrative expenses Compensation and benefits 7,342,890 7,821,552 Office operations 950,396 1,033,769 Other expenses 3,617,026 3,709,798 TOTAL NON-INTEREST EXPENSES 11,910,312 12,565,119 NCUSIF share insurance premium and Temporary 0 323,969 Corporate Credit Union stabilization expense NET INCOME $ 2,537,604 $ 286,425 A member participates in UCU s Shred Day UCU is an independent organization not affiliated with the J. Paul Getty Museum 5

6 Four - Year Financial Trends 0.00% 6 UCU is an independent organization not affiliated with Pepperdine University

7 Supervisory Committee Report To protect our members financial safety, University Credit Union s volunteer Supervisory Committee audits the credit union s financials and operations. The Committee s specific duties are to: Review and ensure, through internal and external auditors, that the proper internal controls of the credit union exist. Audit the books, financials, and business operations of the credit union using an appointed independent auditor. Validate and verify the accounts of members against the credit union s records. Review the affairs of the Board of Directors, officers, and management for adherence to University Credit Union bylaws and policies, and all regulations provided by government agencies. Maintain the reputation of the credit union by thoroughly investigating any and all claims made to the credit union and acting on the findings. Richards & Associates, an independent Certified Public Accounting (CPA) firm, was selected by the Supervisory Committee to audit the credit union s financial statements and ensure that they were reported according to Generally Accepted Accounting Principles (GAAP). An excerpt from the Richards & Associates letter: In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of University Credit Union as of December 31, 2014 and 2013, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. We are pleased to announce that University Credit Union s financials and operations, to ensure the safety and soundness of the credit union, were confirmed by the independent audit. Albert E. Aubin, Committee Chair Dori MacDonald, Committee Secretary Patricia Lowe, Committee Member 7

8 Volunteer Board of Directors Carole Zaima Board Chair Manager, Administrative Policies & Delegations, Retired, UCLA Administrative Policies & Compliance Office Norma ladevaia Board Vice Chair Director of Auditing Services, Pepperdine University Jane S. Permaul Board Secretary/Treasurer Assistant Vice Chancellor Emeritus, UCLA Student Affairs Dean Baim Professor of Economics and Finance, Division Chair, Pepperdine University Anita Cotter University Registrar, Retired, UCLA Registrar s Office Kathleen Kiser Associate Dean for Administration, UCLA School of Public Health Edward McCloskey Director, UCLA Office for Students with Disabilities Eddie Murphy Director, Retired, UCLA Emeriti/Retirees Relations Center Elizabeth Yzquierdo Director, LMU Health Professions Advising/Post Baccalaureate Program Volunteer Supervisory Committee Albert E. Aubin Committee Chair Senior Associate Director, Retired, UCLA Career Center Dori MacDonald Committee Secretary Business Consultant, Conservtech Patricia Lowe Committee Member Chief Financial Officer, UCLA Brain Research Institute Management Team Paul Yang President/CEO Daniel Bhoi Vice President, Finance Rose Chaco Vice President, Enterprise Risk Management Autumn Hoffman Assistant Vice President, Lending Scott Ko Controller Michele Megill Vice President, Member Services Steve Sercu Vice President, Technology Solutions Sara Stern Assistant Vice President, Marketing Julie A. Theriault Vice President, Administration ucumail@ucu.org Main Branch S. Sepulveda Blvd., Los Angeles, CA UCLA Campus Branch - Ackerman Union, A-Level Left to Right Top Row: Kathleen Kiser, Anita Cotter, Edward McCloskey, Eddie Murphy, Dean Baim, Albert Aubin. Left to Right Bottom Row: Jane Permaul, Norma Iadevaia, Carole Zaima, Paul Yang. Not Pictured: Dori MacDonald, Patricia Lowe, Elizabeth Yzquierdo