President and Chairman Letter

Transcription

1 2008 Annual Report

2 President and Chairman Letter In 1936, when Texas Trust Credit Union was founded, America s economy was in a volatile state. In the early 30 s people lost everything: their fortunes, their jobs and, worst of all, their Trust. After the fear, anger and depression left, people began to find their Trust again. They found Trust in the simple things in life; Trust that a family can pull together to make it through anything; Trust that a community will come together in hard times. They found Trust in people. With that Trust, a group of Vought Aircraft employees came together to form a credit union. They took the Trust they had found and coupled it with the credit union motto of People Helping People to create a better financial choice for themselves and their coworkers. That financial choice, Texas Trust Credit Union, has remained strong through the 12 recessions since, and remains strong today. Trust in our Traditions Financial strength has turned into a lasting tradition at Texas Trust. While other financial institutions struggled due to risky lending practices and the subprime mortgage downturn, Texas Trust held steadfast with a 23.9% growth in mortgage lending. Our underwriting standards are sound and we review the quality of our portfolio on a regular basis. Texas Trust stayed true to its course resulting in an 8.8% deposit growth. The tradition of member rewards continued to prosper in Members received over $124,000 from the everyday cash back debit card rewards program, over $45,000 in credit card cash rebates, and $118,000 in new member and refer-a-friend rewards. Trust in People Within 73 years, Trust in people allowed that small group of workers to grow into a community credit union with seven branches. Trust in each other is what has allowed Texas Trust to reach an all time high of over $563 million in assets. That Trust is as strong as it was for those few in Texas Trust remains strong for its 59,000 members today - and for those that join tomorrow. Trust in Community The Credit Union is part of a larger community. Dedication builds Trust within a community. Texas Trust employees served over 1,200 volunteer hours at hometown festivals, school carnivals, and charity events. The communities have taken notice. Residents voted Texas Trust as the Best Place to Bank or Best Financial Institution in Athens, Mansfield, Cedar Hill, and Grand Prairie. Other community honors include Best Place to Get a Mortgage and Best Insurance Company.

3 Trust in our Products Whether in the community or in the branch, we listen to our members needs. It started with the basic share savings that holds its roots in the first days of the Credit Union. With a focus on member needs, Texas Trust introduced several new products aimed at different life stage needs. In 2008, Texas Trust introduced MasterCard Gift Cards, so members could have a more secure option than cash. Two new services, the online Allowance Tracker and the Go! Card - a reloadable teen debit card - help parents teach financial responsibility. Another new product, MoneyTracker, a free online money management tool, assists members in managing their own finances within multiple accounts. In honor of everyday heroes, a new public servant product line was also created in These everyday heroes, which include educational and government employees, receive similar perks as those members benefiting from relationship pricing. The more services with Texas Trust, the more savings and earnings each member receives. Trust in the Future We want to arm our members with competitive, cost-saving financial services, as well as empower them and their children with financial education. Online family financial resources and a free credit fitness checkup with a financial service officer can be valuable tools that are offered without charge to every member. In 2008, Texas Trust also partnered with the Mansfield Independent School District (MISD) to open a new full service branch inside Ben Barber Career and Technology Academy. The Ben Barber branch program employs two student interns for hands-on credit union experience. Texas Trust staff members teach Texas Education Agency approved curriculum to MISD high school students and offer workshops to teachers and parents. To help our future in other areas, Texas Trust launched a new program. The Let s Do It For Them project is a new kind of fundraising that started with three partnering school districts -- Athens and Mansfield Independent School Districts and Trinity Christian Academy in Cedar Hill. Through the School Fundraising Program, Texas Trust will donate to the partnering school or organization of their choice when anyone opens a new checking, loan, or mortgage. The more accounts a person opens, the more money Texas Trust donates on their behalf. More than $2,600 has already been donated within the first four months and two additional partnering schools will be added in Texas Trust continues to stay true to its course that builds Trust. It s the Texas Trust Way to do more at every turn because with Trust, our members expect more. Chairman of the Board Larry Skinner President James Gray

4 Consolidated Statement of Financial Condition As of December 31 Assets Cash 7,840,311 9,359,446 Net Collectable Loans 377,243, ,743,159 Investment 107,755, ,660,972 Other Assets 28,152,101 25,994,082 Loan Mix 16.2% 7.4% 30.9% Total Assets $ 520,991,002 $ 563,757,659 Liabilities Deposits 436,501, ,101,601 Other Liabilities 5,670,582 7,134, % 23.0% Total Liabilities $ 442,172,158 $ 482,236,283 Equity Total Equity 78,818,844 81,521,376 Total Liabilities & Equity $ 520,991,002 $ 563,757, % Real Estate 22.5% New Vehicles 7.4% Personal 30.9% Used Vehicles 16.2% Business

5 Deposit Mix 13.2% 10.6% 15.3% 5.0% 18.9% 37.0% 37.0% Share Certificates 10.6% IRA Shares & Certificates 18.9% Shares 15.3% Money Markets 13.2% Share Drafts 5.0% Business Income Distribution 24.4% 10.0% 30.0% 30.0% Dividend 10.0% Reserves 24.4% Personnel 35.6% Operations 35.6% From the Treasurer Last year, we continued to provide a competitive loan solution for our membership. We grew in loans by 12.88%. Our assets are now a record $563 million. Every year we continue to serve our members with financial solutions they can Trust. Treasurer Charlie Nutt

6 Consolidated Statement of Income Interest Income Interest Income 30,148,357 32,903,315 Cost of Funds 12,517,860 12,577,254 Loans $353.7 $380.9 $430.0 Other Income 8,254,292 9,027,189 Other Expense 21,619,368 25,185,483 Net Income $ 4,265,421 $ 4,167, Figures shown here are in the millions of dollars

7 Deposits $418.5 $436.5 $475.1 Assets From the Supervisory Committee $ $ $ Clifton Gunderson, LLP, audited the Credit Union s operations this year and concluded that we are operated and managed in accordance with generally accepted accounting standards and practices. In addition, the Credit Union is reviewed periodically by the Texas Credit Union Department. The Credit Union Department s review focuses on safety and soundness and compliance with regulations governing the Credit Union and our operations. The Credit Union did not have any reportable deficiencies. Chairperson Charlie Girl Bottorff

8 Board of Directors Chairman Larry Skinner Vice Chairman John Hamner Treasurer Charlie Nutt Secretary Susan Smith Assistant Secretary Charlie Hollabaugh Membership Officer Don Higginbotham Security Officer Charlie Girl Bottorff Director (Emeritus) Lou Nabors Executive Staff President/CEO James Gray EVP/CFO Joan Opp SVP/COO William Kelsey Supervisory Committee Chairperson Charlie Girl Bottorff Secretary Joe Johnson Member Philip Martinez CUSO Board of Managers Chairman John Hamner Vice Chairman Bob McLellan Treasurer Leroy Buchanan Secretary Karen Sauls Member James Gray TexasTrustCU.org