2013 Annual Report. Hummelstown Hershey Annville

Transcription

1 Hershey Federal Credit Union 2013 Annual Report Strong. Secure. Trusted. Hummelstown Hershey Annville

2 Leadership Report 2013 was a year of transition for HFCU. At the end of June, we saw our President of 31 years, Diana L. Roberts retire. The management team was restructured, with Paul R. Wagner, President; Jill Sottile, Executive Vice President; Dareck Caroway, Vice President - Member Service; Diane Mease, Vice President Lending; and Nicole Smith, Vice President Risk/Compliance/Security. The new structure reflects the changing environment in which we serve you. Our Board has continued to invest in convenient electronic services that keep our Credit Union competitive with major banking institutions, and relevant with our younger members. In June, we introduced our new Mobile Branch. At year-end, more than 500 members actively used this service to track their balances and perform transfers and bill payments. HFCU, like our members, continues to be affected by the economy and low rate environment. Despite continued low borrowing rates, members lack the confidence in the economy to increase borrowing and continue to defer large purchases like cars and home improvements. As a result we saw declining loan balances and increased savings. We have introduced a new tool to help our members save money on their existing borrowings. With a short consultation, lending staff can compare your current loans elsewhere to HFCU rates and tell you how much we can save you. This is just another benefit of membership was another successful year for HFCU. We re proud of what we ve accomplished and that we are the only true LOCAL financial institution in the Hershey area. We have stayed true to our mission of people helping people and this philosophy will continue to guide our efforts as we move into the future. We thank the HFCU Board of Directors, the Supervisory Committee, the Management Team, and the dedicated staff for their hard work and efforts to make HFCU a Strong, Secure, and Trusted financial institution. Richard F. Miller Board Chair 2 Hershey Federal Credit Union Paul R. Wagner President & CEO

3 Treasurer s Report 2013 was a year of controlled growth for HFCU. We finished the year with $54,924,215 in assets which is virtually the same as Credit unions can only add to our reserves (Net Worth) through earnings. The net earnings for 2013 were once again low, due to assessments that were made to NCUA, for the corporate credit union losses. That, combined with the low rate environment, resulted in lower earnings on Treasurer credit union investments. We have been notified that NCUA will not have any additional special assessments for corporate credit union losses during Ercoli J. DiVittore The condensed financial statement is included in the Annual Report. Please review it for more information. The financial analysis shows that HFCU is secure and well positioned for growth and continued service to members I thank the Hershey Federal Credit Union Board of Directors, Committees, Management, and Staff for their continued dedication and assistance during the year. The members are fortunate to have such dedicated individuals working on their behalf for the good of the credit union. ALCO Committee Report The Asset/Liability Committee (ALCO) is made up of several HFCU Board members and the President, Executive Vice President, Vice President of Lending and Vice President of Member Service. The committee meets to review loan and share rates, liquidity, investments, and other financial and operational issues. The committee also discusses and reviews all the financial issues and has the authority to change rates, as needed, and act on other decisions. Franklin D. Wagner Chairperson Asset and liability management is an important part of the credit union financial management. The HFCU Board of Directors relies on the committee to act on their behalf and to be responsive to the needs of the credit union and its members. I wish to thank the ALCO committee members: Ercoli DiVittore, Paul Wagner, Jill Sottile, Diane Mease and Dareck Caroway for their assistance in Annual Report 3

4 Statement of Financial Condition Assets & Liabilities as of December 31, 2013 (condensed) Assets Loans $32,966, $34,425, Cash and Investments 17,561, ,771, Other Assets 4,396, ,712, Total Assets $54,924, $54,909, Liabilities Deposits $50,298, $50,337, Other liabilities 167, , Total Liabilities $50,466, $50,544, Reserves 4,457, ,365, Total Liabilities/Reserves $54,924, $54,909, Income & Expenses as of December 31, 2013 (condensed) Income Interest on Loans $1,621, $1,762, Interest on Investments 132, , Other Income 881, , Total Income $2,635, $2,817, Operating Expenses $2,336, $2,473, NCUA Corporate Assessment 42, , Non-Operating Expenses 11, , Net Income Before Dividends $244, $293, Dividends 152, , Net Income $92, $98, Hershey Federal Credit Union

5 Financial Charts Assets Membership 2010 $48,707, , $49,485, , $54,909,999 $54,924, , , Loans Member Shares 2010 $34,410, $44,327, $33,299,792 $34,425,703 $32,966, $44,922, $50,337, $50,298, Annual Report 5

6 Supervisory Committee Report The Supervisory Committee of Hershey Federal Credit Union complies with the guidelines set forth by the National Credit Union Administration and the bylaws of Hershey Federal Credit Union. Commitment to safety and soundness is our foremost concern. In 2013, the committee engaged PACUL Services, Inc. to conduct the Supervisory Committee Annual Review of the financial statements. The review included tests of accounting records and auditing procedures. No material weaknesses were identified as a result of the review. Lori A. Gall Chairperson To conform with HFCU s commitment to the highest levels of safety and soundness, throughout 2013, the committee performed various audits to assess the adequacy of, and effectiveness of, the internal controls. Once again no material weaknesses were identified. The committee would like to thank the Board of Directors, President Wagner and his excellent staff for their continued support and commitment to excellence and the safety and soundness of Hershey Federal Credit Union. HFCU Leadership Board of Directors Richard F. Miller... Chairman Dennis H. Berkhimer... Vice Chairman Francois Houde... Secretary Ercoli J. DiVittore... Treasurer Franklin D. Wagner...Assistant Treasurer Barbara A. McLaughlin Rita F. Ramacciotti William Sprandel... Director Emeritus Supervisory Committee Lori Gall... Chairperson Jim Summy Diane Carroll Dan Davis Francois Houde 6 Hershey Federal Credit Union

7 HFCU in the Community Angel Tree Tags Youth Day Children s Miracle Network Scholarship Winner National night Out Halloween Parade 2013 Annual Report 7

8 HFCU Management Team Paul Wagner... President & CEO Jill Sottile... Executive Vice President Dareck Caroway... VP Member Services Diane Mease... VP Lending Nicole Smith...VP Risk, Compliance & Security HFCU Branch Information Hummelstown 2 Hershey 232 Hershey Road 904 E. Chocolate Avenue Hummelstown, PA Hershey, PA Annville 710 E. Main Street Annville, PA HFCU Contact Information Phone: Website: hfcu@hersheyfcu.org