Annual Report. Specializing in servicing individuals in the healthcare industry.

Transcription

1 Annual Report Specializing in servicing individuals in the healthcare industry. 2009

2 Message from the Chairman and the President To our members Jane E. Brannon President/ CEO Kenneth J. Rojek Chairman 2009, has proved to be an even more challenging year than 2008 for nearly all of us. We will not expound on economic conditions or the financial marketplace, as news of developments and conditions is ubiquitous. Your credit union has performed well under these adverse circumstances; we achieved a 2009 Return on Assets, before extraordinary items, in excess of.7%; while this level does not match that of recent years, it decidedly exceeds the performance of credit unions nationally. The deterioration in employment levels has notably affected the healthcare services sector, but HealthCare Associates is weathering the storm. We are mindful that, regardless of economic conditions, the credit union should continue its practice of enhancing service and increasing offerings. Last spring, we joined a credit union network ( Shared Branching ) that offers our members the opportunity to do business at other credit unions branches, as though they were visiting one of HealthCare s Illinois locations; since this is a reciprocal arrangement, members of other credit unions can conduct business at our branches. This accessibility has been embraced by our members, who performed thousands of transactions in these shared branches. It is worthy of note that this cooperative arrangement is characteristic of credit unions unique culture, in joining forces and sharing resources for mutual benefit. It is difficult to imagine 1 HealthCare Associates Credit Union 2009

3 Message from the Chairman and the President Continued Fifth Third and Bank of America opening their doors to each other s customers. Your credit union continues to expand its Internet services, most recently with electronic account access via Web-enabled telephone, and a new capability that allows members to transfer funds to other financial institutions (their own accounts and the accounts of family members or friends). In December, we introduced the option of receiving E-Statements in lieu of mailed paper statements; members can register for this on the website s Internet Branch. Within 8 weeks, 21% of members actively using the Internet Branch had registered for E-Statements. During 2009, your credit union invested in a new location for the Des Plaines branch; the move had been planned for nearly 2 years and was realized when a particularly advantageous site was found. We are proud of the look and feel of the new branch, and of this commitment to the future, and invite any member to stop in. signator to the next Message in the Annual Report. We are planning a 2011 conversion to a new data processing system that will provide greater performance and flexibility in meeting members needs as we proceed through the second decade of the century. We intend to pursue greater outreach to new groups of medical professionals, and to strengthen the relationship with the members of our primary sponsor, the Illinois Hospital Association, under the leadership of its new CEO, Maryjane Wurth. Within this pervasive context of change, the constant that drives all effort, decision-making, and planning is the objective of providing financial services for the benefit of our members. The Board of Directors and the Staff of HealthCare Associates Credit Union appreciate the support of our members and look towards a future of continued success and 2011 will see more changes coming to HealthCare Associates Credit Union. The current CEO, Jane Brannon, will be retiring after 12 years in her position, so there will be a new 2 HealthCare Associates Credit Union 2009

4 Board of Directors Officers President/CEO Jane E. Brannon President & CEO HealthCare Associates Credit Union Naperville, Illinois Committees: Executive, ALCO Chairman Kenneth J. Rojek President & General Manager ACL Laboratories Rosemont, Illinois Committee: Executive Vice Chairman Margaret McDermott Executive Vice President & CEO Saints Mary and Elizabeth Medical Center Chicago, Illinois Committee: Executive Treasurer/Secretary John J. Yep Director of Business Development Central DuPage Health Winfield, Illinois Committees: Executive, ALCO Directors William J. Huff Chief Executive Officer Marshall Browning Hospital DuQuoin, Illinois Committee: Executive Al Lewis Vice President Human Resources, Workforce Diversity Advocate Health Care Oak Brook, Illinois Committee: Supervisory J. Chris Mahaffey, MS, CAE Executive Director American College of Foot and Ankle Surgeons Chicago, Illinois John F. Morgan Retired Summer 2009 President Gottlieb Memorial Hospital Melrose Park, Illinois Committee: Supervisory John J. Raleigh Executive Vice President Illinois Hospital Association Naperville, Illinois Committees: Chairman of Supervisory, ALCO Kenneth C. Robbins Retired Fall 2009 President Illinois Hospital Association Naperville, Illinois 3 HealthCare Associates Credit Union 2009

5 Welcoming Illinois Hospital Association s New President Maryjane Wurth On behalf of the directors, management and staff of HealthCare Associates Credit Union, we would like to take this opportunity to welcome Maryjane Wurth as the new President of our sponsor organization, the Illinois Hospital Association. She is succeeding Ken Robbins, who served as President of IHA for the past 25 years. 4 HealthCare Associates Credit Union 2009

6 2009 at a Glance What we ve brought to you in 2009 Throughout 2009 our members were able to rely on the security of their deposits as well as the accessibility of loans throughout the year s unpredictable economic environment. HealthCare Associates Credit Union remained well capitalized and positioned to handle the economic turbulence, demonstrated by our solid financials and growth. HealthCare s Total Capital to Total Assets Ratio Capital Level to be well Capitalized * 13.1% 7.0% * Determined by the National Credit Union Association. Even with the issues facing the financial services industry, we continued to provide lending when other institutions were either unable or unwilling. We continued to improve convenience and introduce new products. HealthCare Associates Credit Union s 30th Anniversary marked 30 years of having the privilege of providing financial services focused on people in the health care industry. Due to the support we have received from our members over the last 30 years we have been able grow and thrive; we look forward to continuing to support our members one solution at a time. We welcomed Automated Health Systems, CornerStone Medical Group, Direct Home HealthCare and Midwest Physicians Group into our field of membership, adding our specialized services to their employee benefit packages. Golden Mortgages became available to qualifying members 62 and over, allowing them to remain in and take financial advantage of their home in their golden years. Telephone Teller (PAM) was upgraded, improving service with easier prompts and navigation. Branch Access Nationwide was added to bring our membership over 3,400 additional branches. Through this nationwide shared branching network, participating credit unions accept HealthCare Associates Credit Union account transactions. Their branch is now your branch! (Visit for locations.) 5 HealthCare Associates Credit Union 2009

7 2009 at a Glance One solution at a time The Des Plaines branch relocated in September. Providing members a new look, the site was designed with the most current features available for improved efficiency and member service. E-Statements made their debut in December, providing members with anytime access, up to fourteen months of statement history, increased security, and Money and Quicken download capability. Share-A-Smile was again a success. The credit union s staff delivered toys and supplies to pediatrics patients of some of its partner hospitals. We would like to express our gratitude to our members who made it possible for us to give back to the community that does so much for so many. Auto loan refinance opportunities were promoted throughout the year, allowing members to save money and lower monthly payments. The Green with Envy promotion gave all members the possibility to lower their existing rate by up to 2%. Also, a cash-back campaign put 1% of their total loan balance into the member s savings account. Not only were we able to save money for our members, we generated nearly $3.8 million in loans. High Equity Home Loan Promotion allowed members with equity in their home the opportunity to lower their existing mortgage payment or to accelerate their payoff by refinancing with the credit union at special terms and rates. This proved to be successful - saving members thousands and generating just over $1.5 million in mortgages during an economic time when other lenders were unable to meet the need. Visa Credit Cards with our no surprises policy offered fairness and reliability in credit card lending when the marketplace at large took advantage of the consumer. This allowed our credit card portfolio to grow by nearly 6% in Business Services grew with our nationwide business loan portfolio reaching an all time high in 2009 with $9.2 million on the books at year-end. 6 HealthCare Associates Credit Union 2009

8 2009 Balance Sheet Balance Sheet (in thousands) Assets ($ in millions) Assets Loans: Vehicle and Signature $ 49,364 $ 48,843 VISA 13,741 13,318 home Mortgages 33,200 31,181 home Equity Loans 61,048 66,668 member Business Loans 9,236 8,924 Reserve for Loan Losses (1,778) (1,537) Total Loans (Net) $ 164,811 $ 167,397 $174.2 $188.9 $193.8 $218.3 Cash on Hand 2,495 2,089 Investments 46,156 21,577 Accrued Income NCUSIF Deposit 1, Other Assets 2,302 1,507 Total Assets $ 218,311 $ 193,840 $147.8 $ Liabilities Accounts Payable $ 891 $ 351 Accrued Expenses Total Liabilities $ 1,790 $ 1,232 Loans ($ in millions) Membership Equity Regular Share Savings $ 63,475 $ 59,710 Secondary and Club Accounts 3,892 3,705 Checking 20,063 16,882 Money Markets 63,231 49,409 Certificates and IRAs 37,266 35,542 Total Membership Shares $ 187,927 $ 165,248 Regular Reserves 6,906 6,906 Undivided Earnings 21,688 20,454 Total Membership Equity $ 28,594 $ 27,360 Total Liabilities & Membership Equity $ 218,311 $ 193,840 Unaudited Balances as of December 31, 2009 $168.9 $140.1 $156.0 $124.0 $ $166.6 $ HealthCare Associates Credit Union 2009

9 2009 Income Statement Income Statement (in thousands) Capital ($ in millions) Income Loan Income $ 10,520 $ 11,064 Investment Income Other Income 4,168 4,112 Total Income $ 15,060 $ 15,953 $25.7 $27.4 $28.6 Provision for Loan Losses 1, Dividends 2,380 3,138 Income Before Operating Expenses 11,111 12,129 $17.9 $19.9 $22.7 Operating Expenses 9,878 10,633 Net Income $ 1,233 $ 1,496 Return on Average Assets 0.6 % 0.8 % Capital to Assets 13.1 % 14.1 % Unaudited Balances as of December 31, 2009 Business Loans 5% Visa 8% 20% First Mortgages Checking 11% Certificates & IRAs 20% Home Equity 37% 30% Vehicle & Signature Money Market 33% 36% Regular Share & Club Savings Loans Savings 8 HealthCare Associates Credit Union 2009

10 Branch Locations HealthCare Associates Credit Union Call Center for All Locations: (outside the Chicagoland area) ATM and Night Deposit Box Available for after-hours usage ATM and Night Deposit Box Available for after-hours usage ATM and Night Deposit Box Available for after-hours usage 9 HealthCare Associates Credit Union 2009

11 2007 There s nothing like a credit union, especially one that s exclusively yours Specializing in servicing individuals in the healthcare industry. Our mission is clear: Helping our members achieve their financial goals, one solution at a time. And our vision is solid: HealthCare Associates Credit Union will anticipate needs and exceed expectations to be our members trusted choice. 10 HealthCare Associates Credit Union 2009

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