Annual report. to our members. This credit union is federally insured by the National Credit Union Administration

Transcription

1 Annual report to our members 2013 This credit union is federally insured by the National Credit Union Administration

2 OSU Federal s core values Member focus Education Integrity Social responsibility Cooperative spirit Passion Our values in action The Dallas High School Developmental Learning Center sent this thank you card (and hand drawn art) to express their appreciation for a commercial shredder donated by OSU Federal. Dear OSU Federal Credit Union, We would like to thank you for the paper shredder. Your gift will help students that need vocational training but aren t able to travel. We can now use this shredder as part of the training program at our school. This will teach skills that will help later in life. Thank you so much for your donation! Dallas High School Developmental Learning Center 1

3 Dear OSU Federal member-owner: As a not for profit financial cooperative, we exist to help people. Richard S. Hein President/CEO On behalf of our 74,000-plus members, volunteer board of directors, supervisory committee, and employees, please accept this publication as the 2013 annual report of OSU Federal, Your Community Credit Union. As the President/CEO, I am proud that OSU Federal remains well capitalized and positioned to do our part locally to assist others in this time of continued recovery. Sound financial practices enabled us to manage through new governmental regulation and an unsure economy to produce a solid year in Regularly, we hear rewarding stories of how we have been able to help a member s dream come true. Whether it s creating solutions for members going through significant life changes, providing opportunities for small businesses that would not exist otherwise, or playing a major role in Oregon s financial literacy. The credit union model of lower fees and competitive loan rates served the state of Oregon well evidenced by more than $121 million in direct member benefits in 2012 alone. The average Oregon credit union member saved almost $100 in fees and the average household saved more than $170 overall. OSU Federal s focus on the credit union mission contributed substantially to those statewide benefits. As a not for profit financial cooperative, we exist to help people. It is an honor and a privilege to serve you and provide for your financial needs. Thank you for your continued trust, loyalty, and support of OSU Federal. Respectfully submitted, Richard S. Hein President/CEO 2 3

4 Year in review: Steady growth OSU Federal continued to grow at its trademark steady pace can now access their accounts by computer, mobile device and in OSU Federal s shares (or deposits) increased 7.55% to iphone and Android apps. Enhanced bill pay, ebill presentment, $688.3 million. Total assets finished the year at $785.4 million, an TurboTax and FinanceWorks, a personal financial management increase of 7.48%, ranking us the seventh largest credit union in tool, are now available within online account access. Oregon. Net worth grew to 10.69% of total assets. For the year, membership finished at 73,646, up 6.61% from Growth in real estate Despite continuing to adhere to additional governmental Granted Low Income Credit Union (LICU) designation Since our charter year of 1954, OSU Federal has adhered closely and prudently to the original mission of serving those of small means. For these 59 years of service, validation came from the Nicole Stueve Philomath High School business instructor, 2012 education grant Jason Wallis Owner, Fitness Over 50, member since 1992 regulation, it was another solid year in real estate lending as we remain among the top 10 lenders in our five-county field of membership. The 10-year no fee mortgage loan program National Credit Union Administration (NCUA) that we qualify as a Low-Income Credit Union (LICU), based on 2010 Census data as more than 57 percent of the OSU Federal membership live in recipient introduced in 2012 yielded solid results. an area that have incomes 80% or less than the corresponding Business services memberships increased 10% median family income. OSU Federal is now serving over 3,300 local businesses and associations. A new referral arrangement was established with Oregon Coast Community College. With this Lincoln County addition, all five counties we serve now have micro-enterprise referral programs. Loan payment protection option includes involuntary unemployment coverage A new suite of payment protection products was completed in May. A new debt cancelation product suite, called Payment Protection, not only includes death and disability protection, but also offers borrowers an option to cover events of New online account access system launched involuntary unemployment. This increases member value and The landmark transition to a more robust online account access peace of mind. platform was successfully completed in February Members 4 5

5 Financials Membership Total 80,000 60,000 Total Deposits In Millions $800 $600 Total Assets In Millions $800 $600 Statement of income and expense Total operating income $36,785,170 $37,515,372 Total operating expense 23,839,150 23,356,822 Dividend expense 2,073,230 3,160,651 Non operating income (expense) (119,770) (925,035) Net income $10,753,020 $8,072,864 40,000 20,000 0 Total Loans In Millions $400 $400 $200 $0 Total Capital In Millions $80 $400 $200 $0 Statement of financial condition Assets Total loans $426,260,979 $422,309,497 Investments 310,497, ,581,767 Other assets 48,669,000 49,863,171 Total $785,427,695 $730,754,435 Liabilities and member equity Total liabilities $10,428,638 $15,271,670 Total notes payable 0 0 Total shares 688,342, ,030,893 Total equity 86,656,109 75,451,872 Total $785,427,695 $730,754,435 $300 $60 $200 $100 $40 $20 Supervisory Committee report In 2012, the auditing firm of Orth, Chakler, Murnane and Company, Certified Public Accountants was retained by the Supervisory Committee to perform the annual audit of OSU Federal Credit Union. It is the Committee s judgment that the Credit Union is being operated efficiently and the members interests are being protected. $0 $0 Jim Swinyard Chairman, Supervisory Committee 6 7

6 2012 by the numbers: Community 2012 by the numbers: Education $15,000 Amount awarded to local high school seniors for college scholarships. 8 OSU Federal remains solidly invested in our communities with a team mission that is generous with both time and dollars. Here are some of the highlights... by the numbers, of course! 126 Contributed over $130,000 to more than 126 local schools and non-profit organizations. 87% OSU Federal volunteered over 9,650 hours towards more than 225 organizations to establish a new standard for community volunteerism. 13% of those hours were performed as an investment of credit union time, while the remaining 87% $25,000 of the hours were dedicated by staff on their own time. Raised for the Children s Miracle Network and donated to Doernbecher & Sacred Heart Children s Hospitals. We think education is the foundation for a healthy and vibrant community. To help everyone better manage their finances, OSU Federal offers many free online financial education tools: Investment Learning Center provides calculators, articles and a comprehensive glossary of financial terms Home and Family Finance provides timely articles, videos and podcasts about a variety of topics Mymoney.gov teaches you the basics about finances Brass Magazine focuses on finances for high school and college age consumers Debt in Focus offers an evaluation of your current financial position Pocket Cents gives financial tools and resources for different age groups 13, We taught a record 13,689 individuals in 529 financial workshops in Donated $12,500 that funded 44 local school projects benefiting 6,576 students throughout our five county region. $20,000 Amount awarded in scholarships to local college students. 9

7 2012 by the numbers Workplace: 99% 99 percent of internal reports are shared electronically, saving paper and printing costs. 72% Women represent 72 percent of our managerial staff. 3,362 Number of training hours dedicated to employees in by the numbers: Sustainability Two = 10,000 Two community shred events helped recycle over 10,000 lbs of paper documents, conserving 76 trees, 35,000 gallons of water and 20,959 kilowatt hours of energy. E Sending estatements to our members eliminated more than 590,000 double-sided pages of paper along with all of the additional mailing costs. Yes, we know E is not a number, but we sure like the way it adds up! CO2 As a Pacific Power Blue Sky partner, OSU Federal used only renewable energy generated by wind and bio-fuel to eliminate the release of 497,418 lbs. of carbon dioxide (equal to NOT driving a car 504,049 miles, or planting 5,847 trees). 1O 11

8 Credit Unions a definite difference What makes a credit union different? The following principles distinguish a credit union from all other financial institutions. Not for profit Credit unions are not for profit financial cooperatives, owned and operated for the benefit of our members. We do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of additional locations, more services, lower or no fees, and competitive interest rates. Taxation Credit unions pay taxes payroll, sales taxes and property taxes. Congress exempts credit unions from federal income taxes. The exemption was established in 1937, affirmed by statute in 1951, and re-affirmed in Jolynn Meza-Wynkoop 2012 TLT scholarship recipient, member since 1997 Ownership Credit unions are economic democracies owned by members. Each member has equal ownership and one vote, regardless of how much money a member has on deposit. Volunteer boards Each credit union is governed by a board of directors, elected by and from the credit union s membership. Board members serve voluntarily. Membership eligibility By current statute, credit unions cannot serve the general public. Individuals and businesses/organizations qualify for a credit union membership through their employer, organizational affiliations like religious groups, or community. Financial education for members Credit unions assist members to become better educated consumers of financial services. Social purpose: people helping people Credit unions exist to serve their members financial needs, not provide a profit to third party investors. They know their credit union will be there for them in bad times, as well as good. The same people-first philosophy causes credit unions and our employees to get involved in community charitable activities and worthwhile causes. 12

9 To find out more, call or visit any of our branches. osufederal.com Printed on paper made with 10% post-consumer recycled fiber. Please recycle.