2015 ANNUAL MEETING Central Middle School 200 17 th Street Tuesday, February 24, 2015 5:30 p.m.
VISION STATEMENT The community s first choice today and tomorrow MISSION STATEMENT MCT has a passion for our Members financial well- being by responsibly delivering the most innovative products and services in a fun, friendly atmosphere while creating member loyalty.
BUSINESS MEETING AGENDA 1. Establish a Quorum 2. Approve 2014 Meeting Minutes 3. Board Chairman Report Randy Chance Introduction of Board Board Chairman Remarks 4. CEO Report Thad Angelle Introduction of Credit Union Staff Employee Service Recognition CEO Remarks 5. Audit Committee Report Rebecca Demeter 6. Old Business 7. New Business Election of Directors Door Prize Drawings 8. Adjournment
MCT CREDIT UNION ANNUAL MEETING MINUTES DATE: TIME: PLACE: DIRECTORS PRESENT: DIRECTORS ABSENT: ALSO PRESENT: March 25, 2014 5:30 p.m. Central Middle School Nederland, Texas Mike Guidry, Chairman Debbie Norris, Vice Chairman Rebecca Demeter, Secretary/Treasurer Yvonne Grimes Randy Brown Mike Laird Charles Lankford Randy Chance Peggy Delahoussaye Randy Lupton Jimmy Myers None Thad Angelle, Mary Fadhli, Karen Frederick, Michelene Moody, Jill Forse, Chad Powell, other employees and many members. I. Call to Order The meeting was called to order by the Chairman, Mike Guidry at 5:30 p.m. II. Establishment of a Quorum A quorum was established by Sandra Duvall. III. Annual Meeting Minutes Motion: A motion was made by Michelene Moody to dispense with the reading of the minutes. Chad Powell seconded the motion and it carried with all in favor. IV. Report of the Chairman
V. Report of the President Employee Service Award Kayla Allbritton - 10 years Jackie Kirkgard - 10 years Johnnie Fling - 10 years Jennifer Gay - 20 years VI. Report of the Audit Committee The Chairman called on Rebecca Demeter, Audit Committee Chairman, who reported the following audits were conducted by the following: The Texas Credit Union Department, American Share Insurance and Clifton-Larson Allen as well as internal audits. The audits showed MCT Credit Union to be in sound financial state. VII. Old Business There was no old business. VIII. New Business A. Election of Directors The chairman Mike Guidry called on a member of the Nominating Committee to give their report. Randy Chance, Chairman of the Committee read the minutes of the Nominating Committee meeting. The four nominees for a place on the Board are as follows: Mike Laird Rebecca Demeter Randy Lupton Charles Lankford This concluded the Nominating Committee report. Motion: A motion was made by a Mary Fadhli, seconded by Randy Chance to elect the nominees by acclamation. The motion carried with all in favor. There being no further business, the drawings for door prizes took place. Ten certificates for $100 and twenty certificates for $50 were given away.
VI. Adjournment Chairman Mike Guidry adjourned the meeting at 6:05 p.m.
CHAIRMAN REPORT The Board of Directors will continue to plan and move our membership forward in 2015. MCT has had another good year and we are confident that our growth through our members, employees and our Management Team will be even better this year. Our membership and employees are second to none. Our assets and membership are growing and our vision along with your support will make us the best in the area. I want to thank our Board of Directors and our Advisory Board that has served MCT this past year, these dedicated people and employees and our Management Team make MCT not just another credit union. NEVER STOP GROWING Randy Chance Board Chairman
CEO REPORT Never Stop Growing is not just a slogan here at MCT Credit Union, it is what we do. In 2014 the Credit Union excelled like never before in its history. The growth in new membership was driven by the existing members referring MCT to their family and friends. This effort and the love we all feel for our MCT family is what makes this Credit Union so successful. The Credit Union experienced its fifth consecutive year of financial growth and increased earnings. Assets grew 5.34% to $234MM while membership also increased 3.12% to 20,370 members. Once again the growth was a direct result of the Kasasa Cash and Kasasa Saver accounts. Credit Union capital increased from $23MM to $25MM due to strong earnings of $1.5MM resulting in a capital ratio of 10.67%. For the first time since 2011, MCT experienced positive loan growth at 3.90% which was primarily due to consumer loans. On the other hand, delinquency and losses continued to be well below industry standards with delinquency ending the year at 1.22% and a charge off ratio of 0.14%. Although 2014 was a year of modest change, we did introduce Kasasa Cash Back, the Kasasa 360 aggregation tool, and the MCT Anywhere mobile app. In early 2015, we will be introducing Remote Deposit Capture, a new and improved mobile app, instant issue debit cards, as well as other products and services that will enhance the member experience. I would like to extend my appreciation to the membership for the ongoing trust and loyalty to MCT. I would also like to thank the Board of Directors and the newly formed Advisory Board for their leadership. Finally, I want to extend a heartfelt thank you to the staff for the commitment and service they provide to the members and each other as we strive to live the Thank God It s Monday and Creating Member Loyalty philosophies each and every day. And as always, BOOYAH to Team MCT for another great year. Thad J. Angelle Chief Executive Officer
BALANCE SHEET Assets 12-31-14 12-31-13 Cash $ 2,318,422 $ 2,229,864 Personal Loans $ 61,305,952 $ 55,548,330 Real Estate Loans $ 89,704,630 $ 89,005,741 Business Loans $ 1,748,157 $ 2,603,330 Credit Card Loans $ 8,436,039 $ 7,992,251 Less Allowance for Loan Loss $ (520,516) $ (433,215) Land and Building $ 7,908,068 $ 8,065,588 Furniture and Fixtures $ 436,236 $ 501,629 Investments $ 52,692,767 $ 47,878,260 Other Assets $ 10,207,567 $ 8,953,031 TOTAL ASSETS $234,237,322 $222,344,809 Liabilities & Equity Accounts Payable $ 4,168,789 $ 3,691,077 Interest/Dividend Payable $ 106,617 $ 125,782 Other Liabilities $ 786,930 $ 690,283 Shares $ 79,460,107 $ 72,534,360 Share Drafts $ 75,919,891 $ 71,211,550 Certificates of Deposits $ 26,154,057 $ 29,627,991 Money Market Funds $ 12,766,480 $ 11,911,659 IRA s $ 11,858,829 $ 11,935,865 Other Comprehensive Income $ (2,074,616) $ (2,969,160) Reserve Fund $ 3,933,574 $ 3,933,574 Undivided Earnings $ 21,119,504 $ 19,648,685 Accumulated Unrealized Gain (Loss) on available for Sale Securities $ 37,161 $ 3,143 TOTAL LIABILITIES AND EQUITY $234,237,322 $222,344,809 Statistical Information Number of Members 20,370 19,754 Growth in Membership 3.12% 2.21% Operating Expenses as a 76.01% 76.86% Percent of Total Income Total Loans as a Percent of Assets 68.82% 69.78% Capital (Reserves & Undivided Earnings) 10.67% 10.59% Investments as a Percent of Assets 22.50% 21.53% Growth in Shares and Deposits 4.53% 1.01% Growth in Loans 3.90% -0.02% Growth in Assets 5.35% 2.71%
STATEMENT OF INCOME & EXPENSE Interest Income 12-31-14 12-31-13 Income from Loans $ 9,454,175 $ 9,394,172 Income from Investments $ 425,739 $ 329,821 TOTAL INTEREST INCOME $ 9,879,914 $ 9,723,993 Interest Expense Dividends on Shares $ 223,300 $ 233,751 Interest on Deposits $ 1,278,646 $ 1,491,062 Interest on Borrowed Money $ 226 $ 13 TOTAL INTEREST EXPENSE $ 1,502,172 $ 1,724,826 PROVISION FOR LOAN LOSSES $ 401,500 $ 215,800 Non-Interest Income Fee Income $ 3,167,436 $ 3,009,446 Other Operating Income $ 1,048,414 $ 945,322 Gain(Loss)on Investments $ 0 $ 0 Gain(Loss)on Disposition of Fixed Assets$ (7,479) $ 84,434 Other Non-Operating Income(Expense) $ 0 $ (148,691) TOTAL NON-INTEREST INCOME $ 4,208,371 $ 3,980,511 Non-Interest Expenses Employee Compensation & Benefits $ 5,419,902 $ 5,427,756 Travel and Conference $ 215,533 $ 168,453 Office Occupancy $ 764,945 $ 650,878 Office Operations $ 2,292,786 $ 2,164,888 Promotion and Marketing $ 686,741 $ 597,709 Loan Servicing $ 275,365 $ 251,193 Professional & Outside Servicing $ 986,942 $ 1,254,567 Regulatory Fees $ 23,766 $ 23,762 Miscellaneous $ 47,815 $ 43,785 TOTAL NON-INTEREST $10,713,795 $10,582,991 EXPENSE NET TO UNDIVIDED EARNINGS $ 1,470,818 $ 1,180,887
MANAGEMENT Board of Directors Term of Office Expiration Randy Chance, Chairman 2016 Randy Brown, Vice Chairman 2015 Rebecca Demeter, Secretary/Treasurer 2017 Jimmy Myers 2015 Mike Guidry 2016 Peggy Delahoussaye 2016 Charles Lankford 2017 Mike Laird 2017 Executive Management Thad Angelle, Chief Executive Officer Mary Fadhli, Executive Vice President Chad Powell, Chief Financial Officer Jill Forse, VP/Human Resources Michelene Moody, VP/Branch Services Karen Frederick, Controller Mike McGee, VP/Business Lending Debra Crew, VP/Real Estate Lending Sandra Duvall, Marketing Director
Yvonne Daviet Grimes November 17, 1929 February 13, 2015 In Memory Yvonne Grimes served as a Director of MCT Credit Union for 40 years. Her leadership and dedication to MCT greatly influenced the Credit Union s growth. She retired after 33 years from the Nederland Independent School District as well as serving on the school board for 9 years. She will be sincerely missed.