Invested in you ANNUAL REPORT

Transcription

1 Invested in you ANNUAL REPORT

2 Our success is a reflection of you.

3 CEO S REPORT To our member owners, From branding to technology, your credit union successfully accomplished these transformations in 2015 while maintaining good capital, positive income and steady asset growth. We believe this success is a reflection of you, our members, and the value you find in your credit union. Becoming an integral part of the communities we serve is important to our organization. Beginning in the third quarter of 2015, we established a partnership with the Baton Rouge Food Bank to give back to our community. We have committed to donating 50 meals for every new membership. Together in 2015, we provided approximately 51,500 meals to those in need. We plan on continuing this commitment, with the goal of providing over 100,000 meals to those in need. At Essential, we believe the good things in life always come back around. It is a passion and a pleasure of mine to be able to give back to the communities we serve and enforce the credit union philosophy People Helping People. Looking ahead to 2016, we will begin exploring branching opportunities and ways to enhance our products and services to better meet our members needs. We are consistently looking for improvements that will refine your banking experience. We are focused on providing you, our members, with unmatched personal service that simplifies your financial life. In closing, I would like to thank the Board of Directors for entrusting me and our leadership team with the management of Essential Federal Credit Union. The future is promising for Essential and I am honored to serve this organization. To the Board of Directors, volunteers, senior managers and Essential team members, thank you for your hard work and dedication. It is the day-to-day work you provide that allows us to serve our membership. I look forward to a great year ahead. We will strive to deliver a banking experience that will validate we are truly Invested in You. Rick Williams Chief Executive Officer We are focused on providing you, our members, with unmatched personal service that simplifies your financial life ANNUAL REPORT 2

4 BOARD CHAIR S REPORT To our member owners, First, I would like to thank each and every member for being a part of Essential Federal Credit Union. Our credit union has worked very hard over the past year to educate our community that Essential could be part of their financial lives. I am proud to report that we have been successful in our membership and loans, while maintaining strong capital and profitability. We are proud to say that Essential continues to remain safe, sound, and well positioned to meet the future needs of our membership. I am extremely excited about the future of Essential Federal Credit Union, as we continue to look at branching opportunities, enhancing our technology, and developing new products and services for our members. We will continue to focus on service to you, our members. I am confident that Essential will continue to make a positive impact on our community and will continue to grow and prosper. Members, thank you for your ownership of Essential Federal Credit Union. We, the board members, management team and staff desire to always offer premier services that meet your financial needs. Thank you for entrusting Essential with your financial lives. Essential is invested in you, and we look forward to growing together. I would also like to thank Rick, the management team and the staff for contributing to the everyday operation and your hard work and dedication to our membership, it is greatly appreciated. To my fellow board members, thank you for the many hours of meetings and planning sessions you have invested in our credit union. Your strategic direction has contributed to the overall success of Essential. I can ensure you that the future is bright and we, the Board of Directors, are committed to continue growing Essential into a premier financial institution that is part of our community. Thank you again for a great 2015, and I look forward to a prosperous Joey Justice Chair, Board of Directors I am confident that Essential will continue to make a positive impact on our community and will continue to grow and prosper.

5 BOARD OF DIRECTORS Roberta Avery Director Robbie Bagaley Secretary Edmond Jordan Director Essential s success is dependent upon the commitment of our members a commitment to sharing resources to meet the needs of all. Every decision we make is to serve your financial needs. You have the power to direct our credit union through electing a Board of Directors to serve Essential on a volunteer basis. Joey Justice Board Chair Mary Overall Director Lance Parker Treasurer The nine-person Board of Directors is made up of members like you. They each serve three-year terms and never receive any monetary compensation for their efforts. Their goal is to make sure Essential continues to serve its members with dedication, service and convenience just like we ve been doing for over 35 years. We would like to express our sincere gratitude to our Board, whose commitment to excellence drives their service to the membership. Stephan Pierre Vice Chair Michael Samuel Director Kenith Woodall Director 2015 ANNUAL REPORT 4

6 SENIOR MANAGEMENT Essential is more than a credit union. We built success with imagination and determination. We witnessed a distant dream become a new reality. We watched our members accomplish life goals. We are more than a credit union; we are your trusted partner. Julie Bergeron Vice President of Human Resources Allison Brown Vice President of Marketing Robert Cheiffetz Vice President of Finance Bonnie Denova Executive Administration Krugerrand Hollins Vice President of Information Systems Wes Moreau, III Chief Operating Officer Karesa Pierre Vice President of Retail Operations Let s continue to grow together.

7 TREASURER S REPORT I m very happy to give another very healthy report of the finances of the credit union. Essential Federal Credit Union ended the year at $288,153,212 in assets, with a capital to assets ratio of 8.96%. This is well above the well capitalized industry threshold standard of 7%. Year over year loan growth was 11.07%. This growth rate far outpaced our peers within the credit union industry and exemplifies the value our membership sees in Essential Federal Credit Union. Earnings for the year exceeded expectation at $1,002,344. Our earnings are important, as they ensure the stability of the credit union in the form of a capital reserve, and to allow us to re-invest for our membership. The new online banking system is just one very visible example of how we are investing in technology for member convenience and flexibility. Our online system now has the capability to send in deposits via smartphone, a newly enhanced app, transfers to other financial institutions and much more. Also, we have upgraded our plastic card security to the newly encrypted chip technology. The Board of Directors, along with the management and staff of the credit union, is committed to continuing our practices of financial soundness and member service. I look forward to a very strong 2016 as we continue to grow together. Lance Parker Treasurer, Board of Directors The Board of Directors, along with the management and staff of the credit union, is committed to continuing our practices of financial soundness and member service ANNUAL REPORT 6

8 The good things in life always come back around.

9 SUPERVISORY COMMITTEE S REPORT The Supervisory Committee is made up of volunteers from the credit union membership appointed by the Board of Directors. Committee duties include ensuring proper regulatory and internal controls are followed within the credit union. Members on the Committee work in conjunction with the Board of Directors and staff to carry out its functions. During 2015, our Committee members were made up of five continuing volunteers, Lisa Perry (Chairperson), Sue Hunt (Vice-Chairperson), Stephan Pierre, Perry Robey and Rodney Combs. During 2015, the Committee oversaw numerous audits conducted by the Internal Audit function and by outside firms. The audits performed internally have been reviewed by the external auditors and the Regulator and have been regarded for their quality and thoroughness. As part of its oversight duties, the Supervisory Committee engaged Nearman, Maynard, & Vallez, to provide a financial audit, and to ensure the operations of Essential Federal Credit Union were reviewed for compliance with Federal and State regulations and that all financial records were accurate. The firm of Clifton, Larson, and Allen (CLA) provides internal auditing services and works with the committee to continually develop and refine the audit process to ensure audits appropriately focused based on risk. It is the opinion of the Supervisory Committee, through the various audits and examinations, that the records of the credit union accurately reflect its current financial condition. I would like to thank the staff of Essential Federal Credit Union for their assistance in working with all audit staff and the Supervisory Committee volunteers to ensure the ongoing, continued success of this institution. Left to Right, Top to Bottom: Lisa Perry, Chairperson Sue Hunt, Vice-Chairperson Stephan Pierre, Secretary Rodney Combs Perry Robey (not pictured) Lisa Perry Chairperson, Supervisory Committee 2015 ANNUAL REPORT 8

10 ESSENTIAL FINANCIALS STATEMENTS OF FINANCIAL CONDITION ASSETS Cash and cash equivalents Investments Federal Home Loan Bank (FHLB) stock Central Liquidity Fund (CLF) stock Loans held-for-sale Loans receivable, net of allowance for loan losses Accrued interest receivable Premises and equipment, net National Credit Union Share Insurance Fund deposit Assets acquired in liquidation Other assets TOTAL ASSETS 2015 $21,650, , , ,025 43, ,377, ,989 8,747,267 2,178,170 90,000 8,224,983 $288,153,312 AS OF DECEMBER $15,500, , , , , ,865, ,265 9,018,007 2,173, ,106 7,149,107 $256,402,335 LIABILITIES AND MEMBERS EQUITY LIABILITIES AND MEMBERS EQUITY LIABILITIES Members share and savings accounts Borrowed funds Interest payable Accrued expenses and other liabilities Total Liabilities Commitments and contingent liabilities MEMBERS EQUITY Regular reserve Undivided earnings Total Members Equity TOTAL LIABILITIES AND MEMBERS EQUITY 2015 $242,371,905 15,715,900 6,543 4,241, ,335,948 7,390,893 18,426,471 25,817,364 $288,153, $222,544,244 5,000, ,042, ,587,315 7,390,893 17,424,127 24,815,020 $256,402,335

11 ESSENTIAL FINANCIALS STATEMENTS OF INCOME AS OF DECEMBER 31 STATEMENTS OF INCOME INTEREST INCOME Interest on loans receivable $14,036,055 $13,145,537 Interest on investments 40,107 29,879 Interest Income 14,076,162 13,175,416 Total assets: $288,153,312 INTEREST EXPENSE Dividends on members share and savings accounts Interest on borrowed funds Interest expense 1,389,353 59,153 1,448,506 1,019,831 1,549 1,021,380 Net interest income 12,627,656 12,154,036 Provision for loan losses 1,305,626 1,020,000 Income before operating expense: $17,269,805 Net interest income after provision for loan losses NON-INTEREST INCOME Fees and service charges Other non-interest income Other gains and losses, net 11,322,030 1,945,076 3,459, ,117 11,134,036 2,031,838 3,173, ,672 Non-interest income 5,947,775 5,778,371 Income before operating expenses 17,269,805 16,912,407 NON-INTEREST EXPENSE Net income: $1,002,344 Compensation and employee benefits Operations Occupancy 7,286,563 7,469, ,039 6,644,962 5,123, ,065 Professional and outside services 550, ,505 Loss on disposition of assets acquired in liquidation, net 98,722 91,293 NCUA assessment Non-interest expense 16,267,461 13,230,164 NET INCOME 1,002,344 $3,682, ANNUAL REPORT 10

12 PLAQUEMINE BRANCH Highway 1 South Plaquemine, LA BATON ROUGE BRANCH COMMERCIAL & MORTGAGE DEPARTMENT 6725 Siegen Lane, Suite K Baton Rouge, LA GONZALES BRANCH 1051 North Airline Highway Gonzales, LA WALKER BRANCH Walker South Road Walker, LA essentialfcu.org Post Office Box 738 Plaquemine, LA Toll Free: Phone: Fax: CENTRAL BRANCH Sullivan Road Central, LA 70837