poised for GROWTH 2014 Annual Report

Transcription

1 poised for GROWTH 2014 Annual Report

2 chairman s report 2014 was another strong year for Verity Credit Union: one of change, growth, and preparing for the future. In 2014 our membership grew by 2.50%. Our outstanding consumer loan balances grew by 16.29% and our deposits grew by 3.87%. These factors contributed to a strong reserve ratio, ending the year at 9.36%. I attribute much of this growth to the great focus and dedication of the Verity staff, and we expect these numbers to continue to go up through 2015 and beyond. This past year, the board of directors worked with the executive team to develop nine guidance statements to help Verity continue moving forward with a united front. These statements outline areas of focus for the coming years and are grouped into the categories of growth, financials, the Verity experience, and people. KEEP AN EYE OUT FOR VERITY STAFF IN THE COMMUNITIES Looking toward the future, we are all very excited for the new branches planned to open in 2015 in Greenwood and Ballard. We are also about to launch a new and better home equity line of credit as well as an improved mobile banking service. We continue to look for ways to enhance our service and offer great products and new locations to our current and new members. I d like to thank you, the member owners of Verity Credit Union, who continue to support Above: Verity staff members donated a few hours of their time Friday, March 27 at the Greenwood Senior Center, helping with spring cleaning indoors and out. This was the first group volunteering event of 2015, laying the groundwork for increasing Verity s appearance in our branch communities. and maintain our financial cooperative through your use of, reliance on, and confidence in Verity. We know that you have a choice of financial institutions to work with, and we are so glad that Verity is one you continue to use. Keep an eye out for Verity staff in the communities where we have branches, as we intend to give back even more to further show our appreciation of the communities we serve. To show our appreciation every day, we regularly survey our members to learn about their experiences with Verity, and we strive for positive interactions each time. If you receive a survey from us, know that the feedback is discussed and often implemented. We appreciate your feedback and hearing from you you are an owner of this credit union and we are here to serve our members. Lastly, I would like to thank the board of directors, supervisory committee, and board associates for another year of service. These individuals are all volunteers and donate countless hours of their valuable time to guiding the success of Verity Credit Union. I look forward to another year of positive movement for Verity! Dan Strandy Chairman of the Board, 2014

3 president s report During 2014, I have had the pleasure of meeting many of you. My time talking with you in our branch lobbies is a highlight of each month. Meeting with you reminds me why we strive each day to enhance our members lives. The loyalty that many of you have shown to Verity is inspiring. We hope to re-earn that loyalty each and every day was a good year for Verity Credit Union. The improved Seattle economy helped on several fronts. Consumer lending was the strongest that it has ever been. Loan losses declined which helped the bottom line. As a result, our net income was strong and our reserve ratio climbed from 9.13% to 9.36%. With the recession behind us, we have turned our focus back to growth. To continue providing competitive loan and deposit rates, we need to grow. To improve our technology we need to grow. In 2014, we achieved our second year of solid membership growth in a row. Most of our new members come from referrals from existing members. We appreciate each and every one of you who puts in a kind word with your friends or family. I am extremely fortunate to work with a talented and dedicated staff. This year we were honored to win Seattle Business Magazine s Best Companies to Work For Award for nonprofits. The major credit for this honor goes to the staff, who, by living our core values every day and never losing sight of our mission, make Verity a best place to work and a best place for our members to bank. THE MAJOR CREDIT FOR THIS HONOR GOES TO THE STAFF, WHO, BY LIVING OUR CORE VALUES EVERY DAY... MAKE VERITY A BEST PLACE TO WORK AND A BEST PLACE FOR OUR MEMBERS TO DO THEIR BANKING. In 2014, the board of directors crafted a set of statements that will guide the credit union s future for the next three years (you can read about the statements in more detail in this report). One part of that vision that I am particularly excited about is building our engagement with the communities that we serve. We have started building relationships with North Seattle College and the Phinney Neighborhood Center. We are promoting volunteer activities, including a day this fall when all of Verity s employees will be volunteering. We are also excited to expand our branch network, with new offices in the Greenwood and Ballard neighborhoods. We plan on entering those neighborhoods with a bang, so please visit us there later this year. One of our best strengths is the cooperative nature of credit unions. If we help you become financially stronger, then the credit union becomes stronger as well. We look forward to working with you during 2015 to make your financial lives, and Verity Credit Union, better than ever. John Zmolek Chief Executive Officer

4 Verity saw a huge transition in 2014 as John Zmolek took over as CEO. Together with the board of directors, they set Verity s sights on the long term, making 2014 a year of growth and planning. Our board of directors, working with the executive team, drafted nine guidance statements that fit into four categories of focus: growth, financials, the Verity experience, and people. Below is information about what we did in each category during GROWTH Loan growth Increasing the number of loans members have with us was a huge focus in This is important to the organization because we like to put our money to work by helping members buy cars or obtain a home. This is also a main way that the credit union makes money, which we invest back in other programs and innovations to consistently get better. We have seen momentum in consumer lending over the last couple of years, and with a great deal of focus and effort, 2014 was a record-breaking year for loan growth. This helps us be a strong and healthy credit union for you, our members. New members Another important goal for us in 2014 (and beyond) was to grow our membership. By increasing our members, we have a bigger pool of people to serve which helps to get our name out in the community even more. Growth in members is also key to helping us grow our loans and afford better technology. We made many efforts to grow our membership this year, the most prominent of which was laying the groundwork to open up two new branches in Verity hasn t opened a branch since 2007, so we ve been researching the best branch models and options to ensure we re meeting the needs of members now and into the future. FINANCIALS In times of change and growth it is important to focus on the financials. While we grow and change, we are working towards ensuring a balance of risk and return. We re also focused on keeping our net worth, return on assets, and other financial ratios well within the guidelines set by our board and our regulators. Early architectural rendering of the Greenwood Branch. Actual space will feature different finishes and similar layout.

5 Left: Staff show their Verity spirit while volunteering at Seattle s PrideFest in June Below: Executive Justin Martin cooks pancakes for frontline staff during a morning appreciation event December 17, THE VERITY EXPERIENCE Community In 2014, we started building Verity s outreach and presence in the communities we serve. We are building partnerships with groups such as North Seattle College, the Greater Seattle Business Association, the Phinney Neighborhood Center and the ewomennetwork. We want to be an integral part of the neighborhoods that contain our branches, and we want to be good citizens of those communities. We look forward to increasing our volunteering efforts fivefold in the coming years based on the effort put into this area in Did you know that Verity puts on classes at our headquarters building in Northgate throughout the year? Many of these classes are free and open to the public. Visit veritycu.com/ experience to learn all about the upcoming classes. PEOPLE Best place to work Verity was incredibly honored and proud to be named the #1 Best Company to Work For on the nonprofit list in 2014 by Seattle Business Magazine. This contest recognizes companies in Washington that are setting the standard for leadership, strong benefits, best work environment, innovative training programs and happiest employees. This is not the first time Verity has made the list, but it is our first time as #1. We have plans to keep innovating and investing in our employees, with hopes that this trend will live on. One of the things that makes this accomplishment even better is that it is based on employee feedback focusing on our people is key to our success in the years to come. Spirit of collaboration Credit unions have a set of operating principles that we all adhere to, and one of those principles is cooperation among cooperatives. Verity is a partial owner of multiple organizations that help us offer better services at a lower cost. One of these organizations is Credit Union Home Mortgage Solutions (CUHMS). Verity started CUHMS in 2008; in 2014 CUHMS continued to expand, and now serves 16 credit unions and 174,797 members. Verity owns CUHMS in partnership with Harborstone Credit Union. In 2014, CUHMS obtained the ability to add partner credit unions from Idaho in addition to its existing operations in Oregon and Washington. Verity is continually looking for new ways to improve our products, services and offerings. We look forward to the opportunity to continue to serve our members in this ever-changing world. Regardless of the transitions we face, Verity will always focus on doing what is in the best interest of our membership.

6 financial report income and expense statement Fiscal Year Ended INCOME Interest Income on Loans Investment Income Other Income Total Operating Income Other Non-Operating Gains (Losses) GROSS INCOME EXPENSES Operating Expense (salaries, supplies, building, postage, telephone, tax & ins.) Provision for Loan Loss Interest on Borrowed Money Dividend Expense TOTAL EXPENSES Net Loss - Noncontrolling Interest NET INCOME FOR YEAR 15,471,173 1,534,998 9,073,773 26,079,944-36,226 26,043,718 20,002,852 1,347, ,646 1,158,178 22,974,873-22,198 3,091,043 14,883,131 1,610,488 10,670,980 27,164,599-22,406 27,142,193 20,051, , ,659 1,342,403 21,821,160-14,223 5,335,256

7 financial report balance sheet Fiscal Year Ended ASSETS Cash on Hand Loans, Notes, Contracts Rec. Investments (Incl. NCUSIF) Property & Equipment (net) Accrued Interest on Loans & Investments Other Assets* 13,842, ,853,234 84,947,810 9,630,552 1,016,007 16,707,810 17,983, ,527,082 91,414,528 9,245,972 1,145,509 13,921,786 Assets loans investments other TOTAL ASSETS 444,998, ,238,625 LIABILITIES Notes Payable Dividends Payable Accounts Payable & Other Liabilities 25,937,700 18,978 5,097,529 25,937,700 25,649 6,140,001 TOTAL LIABILITIES 31,054,207 32,103,350 MEMBERS EQUITY Shares (Including Business, HSA, IRA) Share Certificates Share Drafts Money Market 112,130,735 66,395, ,951,638 79,899,689 98,965,455 71,711, ,674,988 78,143,266 TOTAL MEMBERS EQUITY 372,377, ,495,412 RESERVES Regular Reserves Investment Valuation Reserve Undivided Earnings Noncontrolling Interest 5,565,164 (660,223) 36,067, ,779 5,565,164 (2,518,374) 33,007, ,777 TOTAL RESERVES 41,566,872 36,639,863 TOTAL LIABILITY, EQUITY, & RESERVES 444,998, ,238,625 *Other assets includes loans held for sale, NCUSIF deposit

8 supervisory committee statement The supervisory committee is your representative, tasked with oversight to protect the assets of Verity Credit Union and its members. We are responsible for determining that each area of the credit union is carrying out the plans, policies and procedures for which it is responsible. The committee fulfills these duties by attending meetings and overseeing internal audits of the operations, accounting records and controls at Verity. In addition, we supervise an annual audit by an independent, certified public accountant as well as an annual examination by state and federal regulators. Through these actions, I am pleased to report that Verity Credit Union is well managed, in sound financial shape, and in compliance with applicable state and federal regulations. If you have questions or comments, please the supervisory committee at supervisorycommittee@veritycu.com or send a letter to: Supervisory Committee P.O. Box Seattle, WA Scott Larson Chairman of the Supervisory Committee, 2014 BOARD OF DIRECTORS Dan Strandy Erin Hass Steve Andersen Karen Hunt Rodolfo Hurtado Anthony Kusske Benjamin Lundell Mary Sevilla Dan Young Chair Vice Chair Treasurer Secretary BOARD ASSOCIATES Zachary S. Gose Camille Minogue SUPERVISORY COMMITTEE Scott Larson Steve Andersen John Carpenter E. Laird Hansen Beth Naczkowski Chair Vice Chair EXECUTIVE MANAGEMENT John Zmolek Sherry Steckly Greg Bruns Justin Martin Sarah Slonsky Jason Hirl Chief Executive Officer Chief Operations Officer Chief Financial Officer Chief Human Resource Officer Chief Marketing Officer Chief Lending Officer Chief Technology Officer

9 locations BRANCH LOCATIONS Verity Credit Union P.O. Box Seattle, WA (206) Alderwood rd Ave W Lynnwood, WA Auburn 1424 Outlet Collection Way, #200 Auburn, WA Beacon Hill 1660 S Columbian Way, Bldg 35 Seattle, WA Federal Building 915 2nd Ave, Room 290 Seattle, WA Northgate Headquarters Meridian Ave N Seattle, WA Wallingford 4545 Stone Way N Seattle, WA OTHER SERVICES Investment Services (206) (800) ext 5312 Home Loan Center (206) (800) ext 5320 (206) for servicing ONLINE LOCATIONS veritycu.com corporate website blog.veritycu.com Our Voices blog spendsavelive.com financial education blog facebook.com/veritycu Twitter pinterest.com/veritycu Pinterest Federally Insured by NCUA