Keystone Federal Credit Union

Transcription

1 Mission the future is bright The mission of, a not-for-profit organization, is to provide a wide range of services in a personal and caring manner to meet members needs in a constantly changing financial market. Keystone Federal Credit Union Vision will be the preferred choice for financial services in Chester County. Keystone Federal Credit Union ANNUAL REPORT 2014 This credit union is federally insured by the National Credit Union Administration.

2 Keystone FCU Board of s Dr. Richard I. Bauer Chairman Dr. Paul J. Bentley C. David Foreman Vice Chairman Emil R. Capetola David C. Hemingway Treasurer Vida Javan Dr. Pamela A. Gray Secretary Dr. Phyllis Simmons Catherine A. Terpack Goals allow you to control the direction of change in your favor. ~Brian Tracy Annual Report

3 7 Cooperative Principles 1. Voluntary and Open Membership Cooperatives are voluntary organizations, open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. 2. Democratic Member Control Cooperatives are democratic organizations controlled by their members those who buy the goods or use the services of the cooperative who actively participate in setting policies and making decisions. 3. Members' Economic Participation Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the business they conduct with the cooperative rather than on the capital invested. 4. Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If the co-op enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the members and maintains the cooperative s autonomy. 5. Education, Training and Information Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative. Members also inform the general public about the nature and benefits of cooperatives. 6. Cooperation among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures. 7. Concern for Community While focusing on member needs, cooperatives work for the sustainable development of communities through policies and programs accepted by the members. Report from the Chairman: The past year was a thrilling one for brought us to the completion of our recent technology upgrades. As members, you may have received new debit cards and MasterCard credit cards. With our new credit card program, we also introduced an exciting new rewards program for all of our Platinum Rewards cardholders allowing you to exchange rewards point for merchandise, gift cards, and even cash. As we move forward into 2015, we look forward to bringing you even more accessibility with smartphone loan applications, mobile deposit capture, and an enhanced website. While you may always telephone us or visit a branch, we strive to provide secure access to all of our members regardless of age, language, or location. For our members interested in vehicle loans last year, we were able to provide extremely low rate options for both new and used automobiles. We anticipate that we will be able to continue offering similarly competitive rates throughout this year. In addition to great financing, we are pleased to provide our borrowers with superior service during each and every loan transaction. Finally, we want to remind you that your funds are secure with your local credit union. Not only are most accounts insured up to $250,000 by the National Credit Union Share Insurance Fund, but the electronic access with dual authentication that is provided by Keystone increases the security of everything you have on deposit with us. When you access your accounts electronically, it is quicker, easier, and safer than receiving paper statements. With estatements and other electronic services, you will no longer need to worry about identity theft resulting from unauthorized individuals accessing your information from bills or statements that are left unattended in your mailbox or trash bins. As we continue into 2015, it is our hope that you will embrace the positive changes we have made over the past two years as embarks on what we expect to be a very bright future. Respectfully, Richard I. Bauer Dr. Richard I. Bauer Chairman 12 Annual Report

4 Team Keystone Team Keystone Team Keystone Report from the President/CEO: Challenges, Opportunities, Cooperative Principles, and Bright Futures Challenges: The continuing economic turmoil has created some challenges for your credit union as well as other financial institutions. Even more importantly, many of our member-owners continue to experience challenges in their own lives. The economy has affected each of us in different ways. There does not seem to be a week that goes by without hearing on the news about questionable decisions and ethics by some of the larger financial firms. This unsettling state of affairs means that credit unions have a greater role in serving their members. During these tough economic times, it is good to know your credit union recognizes that providing our members with secure deposit options, affordable lending products, and safe access to their accounts is a responsibility that Keystone Federal Credit Union takes very seriously. Juan Perez, Teller Yessenia Reyes, Teller Catalina Rivera, Teller Christine Schmidt, Senior Member Service Representative Zachary C. Stecher,, Finance Amy Taylor, Loan Officer Reese Whitfield, Operations Service Representative Christine Woods, President/CEO Jo D. Worthington, Human Resources Assistant Janet Wyatt, Branch Supervisor Douglas Zimmerman, Accounting Manager Opportunities: During 2014, Keystone FCU undertook the final two segments of our data processing core and ancillary products conversion with the reissuance of our debit and credit cards. This rather large and lengthy process was undertaken to save our member-owners money as well as putting our credit card rewards into the platform where the majority of our members used those benefits. While the immediate hit to the bottom line created red ink, we are well-positioned for the future with the change. We encourage our membership to take advantage of all of the opportunities afforded by the changes we ve undergone in the past two years. Cooperative Principles: During this past year, credit unions have distinguished themselves as being the financial institutions which offer the most favorable products and services for consumers. 2 Annual Report

5 Team Keystone Team Keystone Team Keystone exists as a true cooperative adhering to the seven principles of cooperatives: Open and voluntary membership, Democratic member control, Members economic participation, Autonomy and independence, Education, training, and information, Cooperation among cooperatives, and Concern for community. Our not-for-profit cooperative spirit is alive, well, and allowing us to provide exceptional service to our members during a time when pro-consumer financial services are the exception rather than the norm. Bright Future: Olga Bernal, Teller Charlotte Braxton-Ahmed, Senior Loan Officer Marie Devenny, Human Resources Assistant Christine Hubley, Teller/Student Branch Supervisor Charles Jackson,, Information Technology Susan Johnson, Teller Ann Mannion, Automated Services Clerk Karen Matish, Receptionist/ Member Service Representative Michelle Merkley, Executive Vice President Simone Miller, Receptionist/Member Service Representative Tiffany Miller,, Lending Moving into 2015, we will be expanding our product offerings using even more technology. Be on the lookout for ways to complete your financial transactions using your smartphone! Balance transfers, history inquiries, check deposits, and even loan applications will all be available in the palm of your hand was, and 2015 will be, a time of challenges, opportunity, cooperative principles, and bright futures for your credit union and for our member-owners. Through all, we promise to retain our focus on our mission of providing a wide range of services in a personal and caring manner to meet members needs in a constantly changing financial market. Respectfully, Christine M. Woods Christine M. Woods, CCUE, CUCE, CUERME President/CEO 10 Annual Report

6 Nominations & Elections The Secretary of the Credit Union hereby notifies its members that the Nominating Committee has nominated the following persons to the Board. Report from the Supervisory Committee: Board of s 3 year terms The accounts and books of were audited as of December 31, 2014 by the Certified Public Accounting firm of Reinsel Kuntz Lesher LLP. As required by Federal regulations, the audit was conducted according to Generally Accepted Auditing Standards under the guidance of the Supervisory Committee. These standards require that the audit be planned and performed in such a manner that reasonable assurance can be obtained that the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. Also included in the audit is the assessment of accounting principles used and significant estimates made by Management, as well as internal controls and accounting procedures. The firm of Reinsel Kuntz Lesher LLP has advised the Supervisory Committee that our financial statements are presented in accordance with Generally Accepted Accounting Principles and are free from material errors or misstatements. The Supervisory Committee continues to work very closely with NCUA, our federal examiners, to ensure the ongoing safety and security of all phases of Internet banking. Catherine A. Terpack Chair Roland C. Boyle Member Dr. John S. Bakken Member Paul J. Bentley Paul Bentley, a former public school administrator, has been active in the Keystone Federal Credit Union since Paul has served as the Chair of the Board of s and was an independent real estate marketing consultant in the Exton area. C. David Foreman David Foreman has worked in the accounting field since Mr. Foreman is a certified public accountant and worked for two regional accounting firms for eight years providing audit and tax services before becoming the CFO for Bike Line and Ice Line in Mr. Foreman served as a township auditor for 10 years and currently serves as the Treasurer for the Inter County Scholastic Hockey League. David has been involved as a on the Board for since 2003, has served on the Supervisory Committee, and is currently the Vice Chair of the Board. Phyllis R. Simmons Phyllis Simmons was appointed to the Board of s during the summer of Phyllis was the principal of West Chester Bayard Rustin High School since its opening in 2006 and continued there until she retired from the school district in Simmons also worked as an English teacher and Assistant Principal in the Downingtown Area School District and as an English teacher in Ohio. At the Annual Meeting, nominations cannot be made from the floor unless circumstances prevent the candidacy of the one nominee for a position to be filled. Only those positions without a nominee are subject to nominations from the floor. All persons nominated by either the Nominating Committee or by petition must be placed before the members. When nominations are closed, the chair appoints tellers, ballots are distributed, the vote is taken and tallied by the tellers, and the results announced. When only one member is nominated for each position to be filled, the chair may take a voice vote and declare each nominee elected by general consent or acclamation. Qualifications: Any member who has not been convicted of a crime involving fraud or dishonesty; anyone who meets the minimum age requirements (18) years of age; and Board Members may not be paid employees of the Credit Union. 4 Annual Report

7 Report of Loan Activity: School Ambassadors Richard Klinedinst Chester County Intermediate Unit Michael DeHaut Coatesville Area School District Wendy Bradley Downingtown Area School District Joe Tornetta Great Valley School District Camille Dean Thomas Owen J. Roberts School District Mary Black Oxford Area School District Madeline Crouse Phoenixville Area School District Tema Tiller Retired Delaware Valley PSEA Jackie McCalla Retired West Chester PSEA Robert Kirkby Tredyffrin-Easttown School District Cathy Snell Twin Valley School District Grace Vinci Unionville Chadds-Ford School District Carol Lill West Chester Area School District Thank you for your volunteer efforts! The following is data covering regular loans disbursed for: $5,700, $5,626,280 Write-offs and Recoveries against loans: Write-offs $306,559 $178,991 Recoveries $ 30,650 $ 23,647 People with goals succeed because they know where they re going. ~Earl Nightingale 8 Annual Report

8 Statements of Financial Condition, and Statements of Income, and Assets Loans to Members, Net 2014 $29,506, $32,969,467 Interest Income Interest and fees on loans Interest on interest bearing accounts 2014 $2,155, , $2,495, ,558 Cash 800, ,039 Total Interest Income 2,451,836 2,794,709 Interest Bearing Accounts Securities Available for Sale Accrued Interest Receivable Property and Equipment, Net NCUSIF Deposit 8,041,505 34,986, ,855 1,656, ,142 7,604,000 35,779, ,240 1,738, ,671 Interest Expense, Dividends on Members Shares and Savings Accounts Net Interest Income Provision for Possible Loan Losses Net interest income after provision for possible loan losses 140,879 2,310, ,786 2,089, ,140 2,598,569 79,400 2,519,169 Prepaid Expenses and Other Assets Total Assets 498,525 $76,414, ,710 $80,239,659 Noninterest Income Service fees Other 259, , , ,914 Liabilities and Members Equity Total Noninterest Income 478, ,917 Liabilities Members shares and savings accounts Accounts payable and accrued expenses Total Liabilities $69,944, ,391 70,544,458 $73,043, ,000 73,978,423 Noninterest Expenses Salaries, benefits, and payroll taxes Occupancy and office expense Other Total Noninterest Expenses 1,291,259 1,198, ,405 2,950,534 1,281,815 1,077, ,360 2,951,409 Members Equity 5,869,805 6,261,236 Net income $(382,820) $ 17,677 Total Liabilities and Members Equity $76,414,263 $80,239,659 6 Annual Report