TRAVIS COUNTY CREDIT UNION ANNUAL REPORT 2014 61st YEAR OF SERVICE APRIL 16, 2015
TABLE OF CONTENTS Agenda 1 Board of Directors 2 A Message to our Members 3 Report from the Treasurer 5 2013 Annual Meeting Minutes 6 Chart of Assets & Deposits 8 Chart of Income & Expense 10 Statement of Income & Expense 12 2013 Balance Sheet 13 2013 Financial 14 Products & Services 16 Additional Member Services 19 Management & Staff 20 Branch Locations 20 AGENDA 60th ANNUAL MEETING 6:00 P.M. Dinner 6:45 P.M. Business Meeting 7:15 P.M. Election 7:30 P.M. Bingo 8:00 P.M. Drawing for Door Prizes 8:15 P.M. Adjournment 1
BOARD OF DIRECTORS Chairman Vice Chairman Secretary Treasurer Membership Director Director Wayne Samson Term Expires 2015 Jo-Ann Bennink Term Expires 2017 Mary Hemby Term Expires 2016 Michael Hemby Term Expires 2016 Texanna Davis Term Expires 2015 Michael Lang Term Expires 2015 Keith Couch Term Expires 2017 2
A MESSAGE TO OUR MEMBERS As the economy continued its slow ascent from the depths of Great Recession, TCCU did its part to help members still struggling by reducing the amount of fees being charged while banking with us. For the second year in a row we have reduced our member fees while relying more on income generated by our loans and investments. The low rate environment driven by the Federal Reserve's monetary policy continued to challenge savers but created incredible opportunities for members new and old to reduce debt payments through refinancing. This was evident in the record $660,000 in new signature and debt consolidation loans granted last year. As rates are likely to remain low again in 2015, we encourage all members to take advantage of this unprecedented opportunity to make your debt more affordable and begin the path to becoming debt free. One of the central pieces of our strength remains our membership. In 2014, the Credit Union added 147 new member accounts, representing 4.7% of our total members. Those new members wasted no time in taking advantage of the many benefits of Credit Union participation. Last year alone we helped make the dream of home ownership come true for 4 members, we financed $2.1 million in new Home Equity loans, and we put 138 drivers on the road by financing their auto or motorcycle. By year-end, we lent over $6.1 million to our members - a new record for us! TCCU continued to expand its reach in 2014 through our partnership with CO-OP Shared Branching. Our members now have access to their accounts for deposits and withdrawals at all participating 7-Eleven Vcom stations and through the new Sprig mobile app. The growing number of free ATMs combined with the more than 5,000 CO-OP Shared Branch locations highlights our commitment to provide members with multiple channels with which to access and transact on their accounts. 3
(continued) The Credit Union continues to exercise a conservative approach in our investment portfolio as well as our lending. Our adherence to prudent financial practices and our commitment to the People Helping People philosophy continues to drive us forward and keeps us focused on service and value for our members. It is the personal difference that drives and motivates our staff. We appreciate that over the years you have recommended TCCU to family, friends, neighbors, and co-workers. We thank you for sharing the gift of membership with others and look forward to many opportunities to serve you, your extended family, and friends in 2015. We would like to thank the Board of Directors, Committee Members, and Staff for their valuable time and deeply appreciated service. We would also like to extend our appreciation to each of you, our members and owners, for your continued support of the Credit Union. Welcome to the 61st annual Travis County Credit Union Meeting. Wayne Samson, Chairman Wayne Watters, President 4
REPORT FROM THE TREASURER The Travis County Credit Union continues to work towards ensuring our financial stability and join in the much anticipated rebound in our economy. Throughout 2014, the Credit Union remained focused on providing value for our members while also broadening the level of services provided. Efforts have continued to increase our services and member access to achieve higher levels of convenience for you. As technology and needs change, we continue to evolve for our members. As other financial institutions were limiting credit or reducing services, we continued to meet the financial needs of our members by providing low rate loans for home improvements, autos, credit cards, and consolidations of credit. The credit union remained focused on our members through personal contact with you and a collection of personalized products and services. We remain impressed with the loyalty of our staff and members and their appreciation for working as a team for the betterment of all members. TCCU remains financially strong and is well positioned to manage through the current economic environment. Total assets at the end of 2014 surpassed $27.5 million, an increase of 2.5%. With a net worth to asset ratio of 7.94% and liquidity at 109%, TCCU is considered a well-capitalized financial institution and our audits reflect that our years of conservative investments and loan practices continue to pay off for our members. In 2015 we will continue to focus on enhancing value for our membership and protecting members and their assets. As our members continue to focus on the basics of debt management and growing savings, we will be here to provide the financial tools and resources to help them. We will continue to encourage our members to take advantage of the historical low loan rates before the inevitable rise begins as the national economy improves. Michael Hemby, Treasurer 5
TRAVIS COUNTY CREDIT UNION ANNUAL MEETING April 17, 2014 Meeting called to order by chair, Wayne Samson, at 6:55 PM after declaration that quorum was present. Board Members Present: Wayne Samson, Michael Lang, Texanna Davis, Jo-Ann Bennink, and Keith Couch. Board Members Absent: Michael Hemby and Mary Hemby Others Present: Wayne Watters Wayne Samson introduced the Board of Directors and Staff Members. Gifts Presented: To Wayne Watters for 10 years of service so far to the Credit Union. Board Meeting Minutes Presented: Member, Betty Duke made motion to accept; second by Joan Stoker; motion carried. Report from the Chairman and President Presented: Member, Jo-Ann Bennink made motion to accept; second by Jose Alcala; motion carried. Report from the Treasurer and TCCU 2014 Financials Presented: Member, Texanna Davis made motion to accept; second by Carol Robles; motion carried. 6
(continued) Old Business: None Nominations & Voting for New Board Members: Nominating committee chair, Texanna Davis made her report of applicants for the board. She and her committee received applications from Jo-Ann Bennink and Keith Couch. Texanna Davis called for floor nominations. The call was given three times, and on the third call a nomination was received from the floor to nominate member Betty Davis for the board. Betty Davis described that she has been a member of the credit union since 1976. Nominations were closed and all members were instructed to add Betty Davis to their ballots as a write-in in the space provided at the bottom of the ballots. Texanna Davis then explained that each member was asked to vote for two of the three members running for the board. At the completion of the vote, Texanna asked for assistance from a member to count the ballots. Carol Robles volunteered to assist, and the two were excused for counting the ballots. Bingo: Bingo games commenced as the next order of business. Results of the Vote: Texanna Davis reported to the membership that the ballots were counted twice and the elected officials are Jo-Ann Bennink and Keith Couch. Tickets were drawn for door prizes. Meeting Adjourned: Move to adjourn made by member, John Cerda; a second to the motion was received from the floor and the motion carried. Adjournment was at 7:50 PM. 7
Asset Growth 8
Asset Distribution Member Deposit Distribution 9
Income Distribution Expense Distribution 10
Cost of Funds 11
STATEMENT OF INCOME & EXPENSES DECEMBER 2014 INCOME INTEREST ON LOANS $530,153.00 INCOME ON INVESTMENTS $166,519.64 FEE INCOME $183,948.95 MISCELLANEOUS INCOME $ 31,833.97 TOTAL INCOME $912,455.56 OPERATING EXPENSES COMPENSATION AND BENEFITS $408,331.60 TRAVEL AND CONFERENCES $ 0.00 OFFICE AND OPERATIONS $334,480.88 EDUCATION AND PROMOTION $ 13,584.31 LOAN SERVICING $ 49,399.51 PROFESSIONAL & OUTSIDE SERVICES $ 17,371.51 PROVISION FOR LOAN LOSSES $ 10,813.76 MISCELLANEOUS $ 7,751.37 TOTAL OPERATING EXPENSES $841,732.94 INCOME BEFORE COST OF FUNDS $ 70,722.62 COST OF BORROWED MONEY $ 784.64 INTEREST ON CERTIFICATES $ 19,642.41 DIVIDENDS: IRA s $ 943.44 MONEY MARKET $ 9,501.97 DIVIDENDS SHARES & DRAFTS $ 16,352.13 NET INCOME BEFORE BEFORE NCUSIF ASSESSMENTS $ 23,498.03 NCUSIF ASSESSMENTS $ 0.00 NET INCOME FOR 2014* $ 23,498.03 * With NCUSIF Assessments 12
BALANCE SHEET DECEMBER 2014 ASSETS LOANS $13,093,902.36 ALLOWANCE FOR LOAN LOSSES ($ 15,125.60) CASH $ 1,060,222.66 INVESTMENTS $11,860,439.23 ACCRUED INCOME $ 41,399.54 PREPAID & DEFERRED CHARGES $ 56,489.98 FIXED ASSETS $ 1,128,888.16 NCUSIF DEPOSIT $ 240,359.62 OTHER RECEIVABLES $ 62,577.68 TOTAL ASSETS $27,529,153.63 LIABILITIES AND EQUITY PAYABLES & ACCRUED $ 264,992.88 SHARES $12,571,028.23 SHARE DRAFTS $ 5,327,983.93 SHARE CERTIFICATES $ 2,716,221.70 MONEY MARKET $ 4,456,530.25 OTHER DEPOSITS $ 6,546.41 TOTAL LIABILITIES & MEMBER EQUITY $25,343,303.40 RESERVES $ 687,945.71 UNDIVIDED EARNINGS $ 1,506,465.29 ACCUMULATED UNREALIZED GAIN/(LOSS) ON INVESTMENTS ($ 8,560.77) TOTAL EQUITY/CAPITAL $ 2,185,850.23 TOTAL LIABILITIES AND EQUITY $27,529,153.63 13
2014 FINANCIAL ASSETS CASH $ 1,060,222.66 LOANS RECEIVABLE $13,093,902.36 ALLOWANCE FOR LOANS LOSS ($ 15,125.60) ACCRUED INTEREST RECEIVABLE $ 41,399.54 INVESTMENTS $11,860,439.23 NCUSIF DEPOSIT $ 240,359.62 OTHER ASSETS $ 0.00 PREPAID & DEFERRED EXPENSES $ 56,489.98 FURNITURE & EQUIPMENT (NET) $ 51,181.31 BUILDING (LEASEHOLD IMPROVEMENTS) $ 1,077,706.85 RECEIVABLE $ 62,577.68 TOTAL ASSETS $27,529,153.63 LIABILITIES & CAPITAL ACCOUNTS PAYABLE $ 213,309.96 TAXES PAYABLE $ 45,721.27 ACCRUED EXPENSES $ 5,891.49 OTHER LIABILITIES ($ 62.79) UNAPPLIED DATA PROCESSING $ 0.00 DIVIDENDS PAYABLE $ 0.45 EXCEPTIONS $ 0.00 TOTAL LIABILITIES $ 264,860.38 SHARES $12,571,028.23 SHARE CERTIFICATES $ 2,716,221.70 SHARE DRAFTS $ 5,327,983.93 MONEY MARKET $ 4,456,530.25 OTHER DEPOSITS $ 6,546.41 UNDIVIDED EARNINGS $ 1,506,465.29 RESERVES $ 687,945.71 UNREALIZED GAIN/LOSS ON INVESTMENTS ($ 8,560.77) TOTAL EQUITY $27,264,160.75 TOTAL LIABILITIES & EQUITY $27,529,153.63 14
(continued) GROSS INCOME $ 912,455.56 EXPENSES ($ 842,517.58) NET INCOME $ 69,937.98 DISTRIBUTION OF NET INCOME INTEREST ON CERTIFICATES $ 19,642.41 INTEREST ON IRA s $ 943.44 INTEREST ON SHARES $ 13,494.04 INTEREST ON SHARE DRAFT s $ 2,833.85 INTEREST ON MONEY MARKET S $ 9,501.97 INTEREST ON HOLIDAY CLUB $ 24.24 TOTAL DIVIDENDS PAID $ 46,439.95 NCUSIF ASSESSMENTS $ 0.00 TOTAL DISTRIBUTION $ 46,439.95 UNDIVIDED $ 23,498.03 NET INCOME BEFORE ASSESSMENTS $ 23,498.03 NUMBER OF MEMEBRS 3,129 AS OF THIS REPORT 15
Savings Account Keep your money growing while still maintaining access to the funds. TCCU savings accounts pay you a competitive rate for balances over $100. Holiday Club Start saving for the holidays today. Earn a better return and make as many deposits as you wish. No withdrawals are allowed on this account until Thanksgiving to keep you and your money apart until it s time. Money Market Better returns on your deposit while still offering the ability to make withdrawals. Checks are available on this account. Interest earned on balances over $2,000. Share Certificates Better returns for longer term investments. Minimum opening deposit is $1,000. Best return on your money. Virtually no access to funds once deposited until account matures. Nationwide Remote & Mobile access to your accounts Your access to free ATM s 16
Checking accounts to suite your needs. Which account is right for you? E-Saver account is designed for those that predominantly rely on their Debit Card and not paper checks. This account comes with added benefits to help save you money! Check Plus account is designed for those that write a lot of checks but don't really use their Debit Card. This account comes with added benefits to help save you money! Unlimited account is designed for those members that use both and don't want to worry about paying any fees outside of the one easy monthly service charge. This account comes with added benefits to help save you money! Advantage account is designed for those that aren t looking for the rewards and benefits tied to the other accounts. These members just want a simple and free checking account. Checking Account Rewards Open an E-Saver, Check Plus, or Unlimited account and receive free Identity Theft Insurance as well as many valuable money saving benefits! Visit us online or call for more information about how we are making it easy to meet all your banking needs at TCCU! Score Card Rewards Turn your purchases into incredible rewards! If you pay with your TCCU credit and/or debit MasterCard, you'll earn valuable ScoreCard Bonus Points. Accumulated points can then be redeemed for rewards like appliances, jewelry, cookware and recreational equipment from Movado, Toshiba, General Electric and more. If travel is more your style, redeem your points for airline tickets, car rentals, hotel stays, experience awards, cruises and more. Available on select accounts. 17
HOME LOANS Planning to buy your first home, upgrade to something larger, or refinance your current home, we make it easy. We are your convenient and competitive Home Loan lender. The experts in our mortgage group will provide the complete, up-to-date information you need to save time and money. Call us today to start your application. MEMBERS Auto & Homeowners Insurance Program You trust Travis County Credit Union to provide you and your family with quality products and services to meet your financial needs. We ve joined with a dedicated team of insurance professionals to bring you the MEMBERS Auto & Homeowners Insurance Program. The MEMBERS Auto & Homeowners Insurance Program is the property and casualty coverage solution preferred by credit unions and their members. Access convenient e-service, pay your bill or make changes to your policy, even report a claim. Receive fast, easy access to claims service 24 hours a day. Obtain a free, no-obligation quote from a local agent Find an agent today at 888-888-3942 to see how TCCU discounts can keep more of your money in your pocket! Affordable loans made easy! TCCU has been offering you loans for the things you need from new cars to debt consolidation, to a well deserved vacation! View our low, low rates online, and then call us today to start your application and see how we can help you reach your goals! Don t have time to call? No problem - start your application online at tccu.net. 18
ADDITIONAL MEMBER SERVICES Family Membership Direct Deposit Safe Deposit Boxes Free Notary Public Teller Checks & Travelers Checks Gift Cards Pre-Paid Travel Cards Home Banking Mobile Banking Remote Deposit using Sprig Check Images online E-Statements Online Bill Pay Overdraft Loans and Lines of Credit MasterCard Credit Cards (No Annual Fee & 25 Day Grace Period) Extended Warranty GAP Insurance This credit union is federally insured by the National Credit Union Administration to at least $250,000 19
MANAGEMENT AND STAFF Wayne Watters Alicia Quezada Claire Rangel Cora Dawson Mina Aleman Makaylia Cruz Cheryl Sledge Jonathan Botello Nana Luwengo Helen Alonzo Lynette LaMonica President Vice President Accounting Loans Head Teller Service Specialist Account Representative Account Representative Account Representative Account Representative Account Representative BRANCH LOCATIONS Main Office South Office 1101 North IH 35 6301 South 1st Street Austin, TX 78702 Austin, TX 78745 Phone: 512-477-2641 CAL: 512-479-7422 Find Shared Branch and ATM locations online at tccu.net 20
T r a v i s C o u n t y C r e d i t U n i o n 1101 North IH 35 Austin, Texas 78702 Phone: 512-477-2641 Fax: 512-472-1324 Web Site: www.tccu.net