lebrating e C YEARS em ce of M 45 r vi ANNUAL REPORT 2015 ber Se 1970s 1980s 1990s 2000s 2010s TODAY
President & Chairperson s Report Pamela P. Heald President/CEO Jane Slack Board Chairperson Change is inevitable. Change is constant. ~Benjamin Disraeli 2015 was a year when the words change and being engaged were more relevant than at any other time in our history. It was also a milestone year: 2015 marked 45 years of meeting our members financial needs from our humble beginnings in a Sodus classroom to today s nine branches spanning a threecounty area with more than 37,800 members. And, it was a year of preparation for one of the most significant changes in Reliant s history a new core operating system to be implemented in 2016. A look back at 2015 As of December 31, 2015, the credit union had an asset size of $395.6 million an increase of 5.4% over 2014. Loans increased by 4.4%; deposits grew by 5.5%; and 2,085 new members joined the credit union throughout the year. Reliant s sustained strong financial performance demonstrates the value we provide to members and the community, and in turn provides us with the ability to invest in expanding and improving the products and services we offer to meet our members financial needs. During 2015, our highly knowledgeable staff continued to find ways to save our members money by buying out auto loans from other financial institutions. More than 500 members realized an average savings of $1,218 by refinancing their existing auto loans with Reliant. Auto loan savings is just one example of how our staff is engaged with each member s situation to find the best possible solution. Account security and fraud prevention remain a top priority at Reliant. EMV chip enabled credit cards were introduced to add another layer of account security. We continue to offer services such as Visa alerts and text/email alerts to assist our members with account management that improves security and offers peace of mind. Reliant s website was enhanced with responsive design, making it easier to view information from any mobile device. A wealth of information is available for members whenever and wherever it s convenient to them, in a user-friendly format. A new, efficient online loan application and new account opening process were introduced and immediately embraced by our members, who desire convenience and the ability to conduct business when and where it s most convenient. Reliant expanded its mortgage program offerings to partner with First Home Club SM, a program available through the Federal Home Loan Bank of New York that offers incentives to save toward the purchase of a home. This program is already helping members realize their dreams of first-time home ownership. Reliant s commitment to serving our communities remained steadfast. We gave back to our communities by sponsoring dozens of events, fundraisers, and programs. Our staff volunteered hundreds of hours with area organizations. With close ties to our heritage, Reliant annually recognizes the outstanding efforts of student members who demonstrate the credit union philosophy of people helping people. Last year 12 students were presented a total of $10,000 in scholarships. Since the program began in 1998, 127 recipients have received $137,500 in awards. Reliant s Moore than a Race 5K/10K, in its sixth year, has raised more than $36,000 to support the Donald K. Rhine Scholarship Program. The Future A new core system upgrade will consume time, energy, and resources behind the scenes during 2016, and we can assure you that the end result will ultimately provide greater efficiencies and lay the foundation for future technological enhancements. It is an exciting opportunity to look at the future that has endless possibilities. A positive member experience is one of our top priorities at Reliant, and we are working to ensure as smooth and transparent a transition as possible. All that was accomplished this year, and in years past, would not have been possible without our greatest asset: a dedicated, committed staff and management team. We often hear from you that the high quality, personalized service we provide is the primary reason why you are a member. That is very important to us. We will never stop evolving to meet the changing needs of our membership. We are invested in you, our members. We appreciate your business and thank you for allowing us the opportunity and privilege to serve you, our members! Changes Over the Years As we look back over the last 45 years, there is a wealth of history and change to celebrate. We wanted to highlight the year in which milestones were reached and when some of our products/services were introduced to bring us to where we are today. 1970 WCTA chartered to serve employees of Wayne County School Districts 1979 Checking accounts 1986 Membership eligibility expands to employees of area businesses 1991 ATM services 1995 Member Service Center financial planning services offered 1999 Debit cards and website; telephone banking system upgraded 2001 Online banking and bill pay 2004 Community charter expanded membership to residents of Wayne, Ontario, and Monroe counties; Shared branching introduced 2007 Changed name from WCTA to Reliant Community Federal Credit Union 2010 Mobile and text banking 2013 HSA accounts; Online chat; Pop Money and Purchase Rewards programs 2015 New website, featuring responsive design; updated online loan application and account opening; credit cards enabled with EMV chips
Supervisory Committee Report John Baker Chairperson 2015 Supervisory Committee John Baker Chairperson George Cataldo Sarah Cooke Audrey Ferris Jane Slack The Supervisory Committee independently evaluates the soundness of Reliant Community Federal Credit Union s operations and activities. The committee s role is to ensure that management implements sound internal controls and maintains practices and procedures that adhere to accepted general accounting principles. The committee also continues a focus on future succession planning. The primary responsibilities that are carried out by the committee include Verification and protection of members funds and interests Safeguarding of assets Compliance with regulations, policies and procedures Reliability of financial records To support the committee in fulfillment of its responsibilities, audits are conducted by the credit union s internal auditor. These audits assess the adequacy of accounting and administrative controls; compliance with regulations, internal policies and procedures; and that systems are in place to safeguard assets and promote operational efficiency. Based on the audit results in 2015, the Committee is satisfied that adequate internal controls are in place to protect member accounts. The annual independent external audit of the financial statements for the fiscal year ending December 31, 2015, was conducted by Firley, Moran, Freer & Eassa, P.C., in accordance with Generally Accepted Accounting Principles. Their most recent findings indicate that Reliant Community Federal Credit Union continues to be financially and operationally sound. NCUA, the regulatory agency of all federally insured credit unions, performed an examination earlier this year to determine the safety and soundness of Reliant. Result of this examination confirms that Reliant continues to operate in an efficient manner with sound policies and practices. The Supervisory Committee appreciates the opportunity to serve the credit union membership and concludes that your credit union is operating in a financially sound manner. We congratulate the Board of Directors, management team, and employees for an outstanding year in 2015. Board of Directors Jane Slack Board Chairperson John Boogaard Vice Chairman Thomas Miller Secretary/Treasurer Francis Coots Director Cassandra Tilliman Director Our Vision Reliant will be recognized as the premier financial partner in the communities we serve. Our Mission Reliant Community Credit Union is member owned and member driven. We are committed to satisfying members financial needs through competitive, innovative, value-added products delivered with high quality personal and professional service. We will manage the organization to maintain financial soundness, to encourage growth, and to challenge employees with rewarding work.
Financials Income Statement and Ratios Consolidated Summary of Operating Results and Selected Ratios Interest Income: Year ended December 31 (dollars in thousands) 2015 2014 Loans $ 12,740 12,528 Investments 684 602 Total Interest Income 13,424 13,130 Interest Expense: Shares 767 859 Borrowings 0 0 Total Interest Expense 767 859 Net Interest Income 12,657 12,271 Provision for Loan Losses 380 456 Service Fees, Credit/Debit Card Income and Other Income (Expense) 5,794 5,546 Operating Expenses: Compensation and Benefits 8,930 8,938 Operations and Processing Costs 5,003 4,635 Occupancy 1,119 1,161 Marketing 294 284 Other 339 450 Total Operating Expenses 15,685 15,468 Net Income $ 2,386 1,893 For the Year* Yield on Earning Assets % 3.69 3.76 Dividends and Interest Member Deposits 0.22 0.26 Interest Rate Spread 3.47 3.50 Return on Assets 0.61 0.51 Return on Members Equity 6.56 5.53 Charge-Offs to Loans 0.12 0.17 At Year End Loans to Shares % 81.66 82.50 Borrowings to Assets 0.00 0.00 Members Equity to Assets 9.50 9.46 Delinquencies to Loans 0.20 0.26 Allowance to Loans 0.45 0.45 * Based on an average of year ending balances
Financials Balance Sheet Consolidated Summary of Financial Condition Assets Year ended December 31 (dollars in thousands) 2015 2014 Cash $ 6,531 5,494 Deposits at Federal Reserve and Corporate Credit Unions 21,983 32,564 Certificates of Deposit 0 6,967 Investments Available for Sale 62,907 38,888 Investments Held to Maturity 273 449 Investment in Federal Home Loan Bank, at Cost 291 290 Loans: Mortgage 73,873 76,262 Home Equity 33,977 33,504 Home Equity Lines of Credit 46,871 43,905 Vehicle 51,739 48,804 Credit Card and Other Lines of Credit 27,885 26,770 Member Business 24,644 20,148 Personal and Other 27,137 24,611 Allowance for Loan Losses (1,286) (1,236) Net Loans 284,840 272,768 Mortgage Loans Held for Sale 0 61 NCUA Share Insurance Fund Deposit 3,450 3,341 Property & Equipment, Net 10,356 9,558 Interest Receivable and Other Assets 4,924 4,807 Total Assets $ 395,555 375,187 Liabilities and Members Equity Shares: Share Draft Accounts $ 68,296 58,818 Money Market Accounts 124,953 120,371 Regular Shares 91,950 81,495 Certificates 65,196 71,516 Total Shares 350,395 332,200 Accounts Payable and Accrued Liabilities 7,592 7,500 Long-Term Debt 0 0 Total Liabilities 357,987 339,700 Members Equity 37,568 35,487 Total Liabilities and Members Equity $ 395,555 375,187
Team Reliant in action At work and in our communities Staff wore red in support of Go Red for Women Day. (Pictured here are staff from our lending and mortgage departments.) Reliant helped collect goodies to fill stockings for veterans in the Canandaigua VA s structured outpatient program. Reliant staff wore jeans to raise funds for the United Way. We sponsored the Canandaigua BID s Santa House and wagon rides. We sponsored the Stetson Club of Brockport s Holiday of Lights Parade. Kids enjoyed an educational experience on Take Our Daughters & Sons to Work Day. Reliant hosted and volunteered at the Literacy Volunteers of Wayne County s annual appreciation event. Reliant s Donald K. Rhine Scholarship was awarded to 12 students who exemplified our people helping people philosophy. (Those who attended the reception are pictured here.) Staff shared information about Reliant at booths, including this booth at the Ginna Nuclear Power Plant. Our 6th annual Moore than a Race raised more than $10,000 for Reliant s Donald K. Rhine Scholarship program! Reliant participated in race fundraisers, including the Cubby Chase......and the Corporate Challenge! We collected non-perishable food items for area food pantries. Three Reliant members received scholarships from the Rochester Chapter of NYCUA. Reliant staff entertained members with caroling in the Sodus branch. Reliant staff participated in the Henrietta Chamber s Clean Sweep event. www.reliantcu.com 10 Benton Place, PO Box 40, Sodus, NY 14551 800-724-9282 Brockport Canandaigua Geneva Henrietta Irondequoit Macedon Newark Sodus Webster This credit union is federally insured by the National Credit Union Administration.