LGE COMMUNITY CREDIT UNION. Annual Report This credit union is federally insured by the National Credit Union Administration.

Transcription

1 LGE COMMUNITY CREDIT UNION Annual Report 2014 This credit union is federally insured by the National Credit Union Administration.

2 VISION STATEMENT LGE Community Credit Union is a world-class organization committed to becoming the primary financial institution for our members. We will provide services of high value that exceed expectations through the contributions of every employee, director, and committee volunteer. Member-owned, member-driven, and financially strong we will be an institution that others wish to emulate. 2

3 BOARD OF DIRECTORS Richard A. Dixon Chairperson Michael L. Brock Vice Chairperson Sandra L. Walls Secretary Frank S. Myers Treasurer Abraham W. Kassis Jan G. Austin Michael L. Sanseviro Monte F. Cagle Evans M. Harrell Richard L. Roberts Emeritus Donald L. Braund Emeritus COMMITTEES Dr. Pamella D. Thomas Emeritus Loan Review Committee - Carlos C. Hopkins, Chairperson; Olen G. Hall; Thomas U. Lassiter, Jr.; Erica H. Price; Nancy Parker; Joseph J. Duncan Supervisory Committee - Curt Earnest; Marcia E. Farber; Monte F. Cagle, Chairperson; Cheryl Braund, Secretary; Not Pictured: Elden J. Bonnette, Vice Chairperson; Barry Jones; Joel Larkin 3

4 A REVIEW OF at LGE will be remembered as the year of remarkable loan growth, the addition of the first Fulton County branch, and the launch of new products and services that offered our members a smarter way to manage their finances in a safe and secure environment. In addition to these significant growth indicators, there were several key accomplishments that made 2014 a banner year for the Credit Union. Successful loan promotions throughout the year, including a debt consolidation promotion, first-time homebuyer campaign, and a VISA balance transfer campaign, contributed to the 19.1% loan growth over the previous year. However, significant loan growth came from the indirect lending program, which totaled $58.8M in With the economy starting to show signs of growth, consumers were once again making large purchases, like homes and vehicles, and came to their trusted Credit Union when the time came to finance these items. In addition to loan growth, LGE maintained an exceptionally low delinquency rate which is part of the success of the organization. LGE s loan and membership growth can partly be attributed to the addition of a new branch in 2014 located in Roswell, Georgia. The new location in North Fulton is now convenient for several auto dealerships that participate in our indirect lending program, but also for those individuals and businesses that are located in the Roswell area. LGE was able to continue its youth scholarship program in 2014 and awarded $15,000 to five graduating high school seniors. Scholarship applicants were required to complete a financial education quiz which asked questions about the services provided by the Credit Union and financial education questions that were applicable to their everyday lives. Throughout the year LGE received some notable recognition, including being named as one of The Atlanta Journal- Constitution s Top Workplaces for Top Workplaces are determined solely on employee feedback, and it was an honor to receive this award for the second year in a row. Also, LGE was the 2014 recipient of the Crystal Gavel Award from SafePath Children s Advocacy Center for the Credit Union s outstanding work in the community, and the recipient of the Paulding County Chamber of Commerce Community Partner Award, which recognizes a business within the county that makes a difference through its outreach efforts, participation in the schools, support for local nonprofits, and involvement with the Chamber of Commerce. This report will highlight our efforts to enhance our products and services, our community involvement, a forecast for 2015, and our financial statements. CONTINUING TO ENHANCE OUR PRODUCTS AND SERVICES 2014 marked a very successful year in LGE s growth, development, and enhancement of its products and services. The year began with the opening of a new branch in Roswell, which is the first branch in Fulton County. This location now expands the Credit Union s reach into the Roswell and North Fulton communities where many members and several Partner Groups are located. The new branch utilizes an innovative design that sets it apart from LGE s other locations, and even other financial institutions in the area. It features an open concept, which combines self-service and collaborative interactions. Overall it allows LGE to provide better service to its members by shifting the focus from transactions to interactions. Self-service kiosks are available for deposits and withdrawals, and the knowledgeable staff is available to assist with new accounts or loans. With the use of new technology and a sleek retail design, LGE is able to offer members a truly different and unique banking experience. The branch is located in close proximity to over 600 technology companies and LGE believes this new concept will be attractive to the members in that area. Always looking to serve our members more efficiently, LGE added new products and services while enhancing others, which offers its members a smarter way to bank. One of the new products includes an online quote tool for LGE Insurance Services. It gives members the ability to request an auto or homeowners quote at their convenience through LGE s website. When the form is completed by the member, the information is sent directly to the insurance agency and then quickly processed to find the best quote in terms of coverage and price for the member. For our business accounts, LGE added the convenience of merchant capture (remote deposit). This is an essential tool for small business owners who rely on check deposits from their customers. Additionally, IT infrastructure upgrades were completed in 2014, which led to improved efficiencies and enhancements for our members. These included upgrades to LGE s phone system and the implementation of electronic signature capabilities. These added features have been extremely helpful to our members and are just another way in which LGE makes it easier for our members to do business with us. 4

5 EXTENDING OUR REACH While LGE Community Credit Union s core mission is to improve the financial well-being of our members, we are very much involved in the communities we serve through our support of local schools and non-profit organizations, as well as our involvement with community festivals and events. LGE focused its efforts this year on education by providing free seminars to members on a variety of topics, including retirement planning, social security, buying a home, and Medicare. We also utilized Junior Achievement training materials to teach financial education to local high school and college students. As a further commitment to youth, LGE awarded $15,000 in scholarships to graduating high school seniors. In addition, we opened 430 new checking accounts for graduating high school seniors as part of our Great Start promotion. The idea was to establish a savings and checking account after high school to get young adults on their way to a smarter financial future by banking with a credit union. In addition to LGE s educational initiatives, the Credit Union wanted to show its appreciation to its members and the community in a very unique way during the holiday season. The 12 Days of Giving campaign, which launched in early December, gave something different each day to either LGE members or people in the community. The gifts were revealed each day on the Credit Union s social media pages. Some of the gifts included baked goods for local firefighters, holiday cards for troops stationed overseas, donations of cold weather clothing, and even caroling at a local assisted living facility. The campaign ended at LGE s annual celebration breakfast in December, with donations made to a number of local charities and families in need. The funds donated were raised by the Credit Union s charity, the LGE Community Outreach Foundation, a 501(c)3 organization, throughout the year. Donations totaled over $102,000. The money was divided up among six organizations voted on by Credit Union employees. To qualify for donations, organizations must demonstrate their ability to provide the basic necessities of life and other vital services within a county served by LGE. Also, LGE s senior management team allowed the LGE Foundation to coordinate 6 half-days of volunteering at each of the organizations voted on by the Credit Union. Staff participated in these Foundation Fridays throughout the year. LGE volunteers stocked food pantry shelves, sorted donations at thrift shops, and played games at a facility that cares for children with special needs. LGE continued to expand its reach into the community by participating in various events, such as local festivals, parades and Chamber of Commerce activities. These events allow our staff to engage with community members and discuss the benefits of joining LGE. Some of these events in 2014 included, the Marietta Chalk Fest (Historic Marietta Square), Owl-O-Ween Hot Air Balloon Festival (Kennesaw), and the City of Woodstock Summer Concert Series. LOOKING AHEAD TO 2015 We re looking forward to another exciting year at LGE Community Credit Union in We will continue to expand our footprint in Cherokee County by adding a ninth location towards the end of 2015 in Canton. That area is experiencing tremendous growth and we anticipate that location to do extremely well in the areas of membership growth and lending. We anticipate our assets to hit the $1 billion mark in early 2015, and we expect our consumer and business lending areas to have another strong year. And as technology continues to change, LGE will evaluate new products and services which will enhance the member experience and truly offer a smarter way to bank. LGE has proven to be an attractive alternative to the mega banks, and we re proud to offer comparable, if not better, products and services to those offered elsewhere in the marketplace. We also strive to provide a better service relationship experience than our competitors. This continues to attract new members while keeping our existing members. On behalf of the board of directors, management team and staff of LGE Community Credit Union, we thank you for your continued support and look forward to the year ahead! Sincerely, Richard A. Dixon Chairperson 5

6 STATEMENT OF FINANCIALS ASSETS December 31, Loans $752,747,971 $631,536,982 Investments 167,515, ,668,105 Fixed Assets 12,791,052 13,206,101 Other Assets 49,200,956 42,018,020 Cash and Cash Equivalents 6,860,099 4,891,119 Total Assets $989,115,983 $954,320,327 SHARES, LIABILITIES AND MEMBERS EQUITY December 31, Shares and Savings Accounts $801,658,900 $780,642,525 Borrowed Funds 70,000,000 65,000,000 Other Liabilities 4,768,662 4,343,749 Equity 112,688, ,334,053 Total Shares, Liabilities & Equity $989,115,983 $954,320,327 STATEMENT OF INCOME AND EXPENSE December 31, Interest on Loans $28,265,685 $26,945,903 Interest on Investments 1,967,265 1,952,894 Other Income 14,123,737 14,351,833 Gross Income $44,356,687 $43,250,630 Operating Expense $29,752,063 $29,071,832 Loan Loss Provision 2,179,507 1,364,283 Dividends 3,128,512 3,614,175 Borrowed Funds 1,148,076 1,033,631 Total Expenses $36,208,158 $35,083,921 Non-Operating $0 $0 Net Income $8,148,529 $8,166,709 LGE Community Credit Union received an unmodified opinion audit from Nearman, Maynard, Vallez, CPAs, P.A. In their opinion, the financial statements referred to above present fairly, in all material respects, the financial position of LGE Community 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 conformity with accounting principles generally accepted in the United States of America. - Monte Cagle, Supervisory Committee Chairperson 6

7 SUPPORTING OUR COMMUNITY At LGE s annual employee event in December, donations were made to local charities and families in need. The funds donated were raised by the Credit Union s charity, the LGE Community Outreach Foundation, a 501(c)3 organization. The Credit Union had pledged to match funds raised by the LGE Foundation up to $50,000, which was double the amount from the previous year. With the match, the Foundation donated over $102,000. One of LGE s most popular events has become its annual free Shred Day. Members have the opportunity to securely shred and dispose of documents that contain sensitive information. A professional shred truck collects and shreds the documents on the premise. As part of its 12 Days of Giving campaign, which was aimed at bringing holiday cheer to the community, LGE employees caroled at a local assisted living facility in Marietta, Georgia. LGE expanded its branch operations by adding a location in Roswell at the beginning of The new branch utilizes an innovative design that sets it apart from other LGE locations, and even other financial institutions in the area. It features an open concept, which combines self-service and collaborative interactions. During this year s Chalk Fest, LGE decided to have some fun while at the same time educating festival-goers about why LGE is a smarter way to bank. LGE employees scattered money across the fountain in the Marietta Square and attached a message to the back of the bills telling people they didn t have to wish for more money, but instead they could earn more if they bank with LGE! The stunt was filmed and it turned into a great video to share on LGE s social media platforms. 7

8 LOCATIONS Marietta 430 Commerce Park Drive Marietta, GA Acworth 3891 Cobb Parkway Acworth, GA Austell 2760 East West Connector S.W. Austell, GA East Cobb 4101 Roswell Road Suite 309 Marietta, GA Hiram 5875 Wendy Bagwell Parkway Hiram, GA Kennesaw 2050 Cobb Parkway, N.W. Kennesaw, GA Roswell 1010 Mansell Road Roswell, GA Woodstock Highway 92 Suite 111B Woodstock, GA A smarter way to bank. *Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ( CFS ), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/ NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. LGE Community Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. ** LGE Insurance Services, LLC was formed primarily to provide insurance services to LGE Community Credit Union members. LGE Insurance Services, LLC is an independent company. 06/14 05/15