2016 annual report - aacfcu.com annual report. 2016 impacts january opening of opp branch ... text...
TRANSCRIPT
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Products and Sevices
Checking &Savings Members Choice Checking
Prime Checking
Youth Accounts
You Choose Debit Account
Money Market Accounts
Regular Savings
Christmas Club Accounts
Kirby Kangaroo Accounts
Share Certificates
Individual Retirement Accounts
2016 IMPACTS
JanuayOpening of Opp branch
Loans & Credit Cads Auto & Truck Loans
RV, Boat & Motorcycle Loans
Personal Loans
Personal Lines of Credit
First & Second Mortgages
Home Equity Loans
Home Equity Lines of Credit
Share & Certificate Secured Loans
Platinum & Platinum Rewards MasterCard® Credit Card
My First Ride Auto Loan
Credit Builder Loan
Mach 50th Anniversary Pay it
Forward promotion
Ou Sevices Online Banking
Online Bill Pay
Direct Deposit & Payroll Deduction
MasterCard® Debit Card
E-Statements
Mobile Banking
iPad, iPhone & Android Apps
Mobile Deposit from Smartphone App
Text Alerts
Balance Debt Management
April32nd Annual
Car Sale
Sevices (cotinued)
Visa Gift Cards
Dixie Phone Banking
Identity Theft Protection
Shared Branching
Wealth Management
Safe Deposit Boxes
Apple Pay
Pop Money
Funds Transfer
ClickSwitch
May Awarded fifty $500
scholarships in celebration of 50th Anniversary
June Blood drives held at area branches
FebruayGroup attends CUNA Governmental Affairs
Conference
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Statement of Financial Coditio & Incoe
2016 Financial Statement 2016 Incoe Statement Assets Loans to Members Cash Investments Fixed Assets Other Assets Total Assets
Liabilities & Equity Accounts Payable Member Shares & Deposits Equity Total Liabilities & Equity
2016 2015 $ 543,900,604 $ 433,895,247
22,139,037 20,770,392 535,978,661 626,808,496
33,260,409 34,625,874 37,835,029 30,811,810
$ 1,173,113,740 $ 1,146,911,819
14,398,923 9,703,985 1,013,926,052 996,990,060
144,788,765 140,217,774 $ 1,173,113,740 $ 1,146,911,819
Income Interest on Loans Income from Investments Other Income Total Income
Expenses Compensation & Benefits Office Expense Data Processing & Professional Services Provision for Loan Losses Education & Promotion Total Expenses
Income Available Dividends & Interest Paid Net Income
2016 $ 20,744,746
10,848,912 16,846,556
$48,440,214
17,804,321 11,394,914
5,280,867 2,981,167 1,201,522
$ 38,662,791
9,777,423 3,072,900
$ 6,704,523
2015 $ 17,859,434
10,390,153 16,071,070
$ 44,320,657
16,523,291 10,844,934
4,774,716 1,874,699 1,292,867
$ 35,310,507
9,010,150 3,324,451
$ 5,685,699
JulyFinancial education
workshop attendance increased 20% over 2015
August50th Anniversary
celebration with employees on August 18
SeptembeAttended Troy University &
University of South Alabama football games
Octobe Annual food drive
donations
Noembe Selfie contest for CMN
donation concludes 50th Anniversary celebration
Decembe New website
launched
Lete Fro The CHAIRMAN OF
THE BOARD
our membership. First was the government’s decision to raise interest rates after years of allowing rates to remain at “rock-bottom.” We have all heard “timing is everything” and the government rate increase coupled with the reduction in energy cost resulted in the 2015 stock market decline. The immediate result was the impact on members’ 401(k)s who depend on returns for part of their income.
significant events that have affected
have year where there has excelled in a Your Credit Union
been two
In effect, many of our members and employees gave up a share of their retirement they were either dependent on or will be dependent on for income.
How does this affect our Credit Union and how do we prepare for these events that take place more often than not? First, we must never lose sight that the foundation of the credit union movement is first and foremost…People helping People. We are very fortunate that you, the Credit Union members, continue to be great stewards in supporting the
For the more mature member that wants a bigger return on a CD or savings, just remember we attempt to maximize your return while balancing the financial well-being of your institution in providing the majority of our membership with lower loan costs for that first auto or home mortgage; again, People helping People. Try to think back to when you were first starting out and needed a helping hand for that auto, home, or personal line of credit for that unexpected family need and how your Credit Union brought you through those challenging events. People helping People!
Your Board of Directors and Supervisory Committee members have again this year spent countless hours reviewing data, policies, updates to loan practices, serving on committees, attending board or executive sessions, and making sure that our members’ voices are heard whenever they have a request or recommendation. Chuck Ennis was relentless for quite some time in his pursuit of getting a branch located in Opp. He accomplished that by being interested in his Credit Union’s future. Thanks to members like him, this Credit Union will continue to be a success for years to come.
You – our members – make us strong and your Credit Union continues to be “Above the Best.”
LTC(Ret) Charlie Mingus
Credit Union. We have been very successful over the past 50 years not only through buildings, employees, and services, but also in having members who care and are proud to
Respectfully submitted,
be part of AACFCU! Thank you. Chairman of the Board
Lete Fro The PRESIDENT
Anniversary as well (AACFCU’s) Federal Credit Union’s Army Aviation Center remembered by the year 2016 was an eventful
that will be
50th
as by the significant progress made financially and from an operational standpoint. Throughout 2016, there was much fanfare celebrating the organization’s first fifty years of existence and the growth from our humble beginnings to opening our twentieth location. There were various promotions and contests celebrating fifty years which culminated with the offering of fifty $500 college scholarships to local students.
Financially, AACFCU continues to grow not just in dollars but in members as well. During 2016, the assets of the Credit Union grew by $26.2 million which equates to a 2.3% growth rate. Meanwhile, more than 3,100 new members joined the Credit Union in 2016 providing a growth rate of 3.3%. From an earnings perspective, AACFCU also had another solid and profitable year. These earnings are reinvested into the organization and have accumulated to more than $140 million in Total Equity over the past fifty years.
Operational accomplishments in 2016 included the promotion of a 0% Balance Transfer on our MasterCard program. This was widely successful as cardholders used the promotion to refinance their balance from a high interest rate loan elsewhere. The membership has also benefited
from our money-saving automobile and recreational vehicle loan rates. AACFCU’s loan interest rates must be highly competitive as member auto loans increased by nearly $76 million in 2016 while RV loans increased by $18 million during the same period. These high numbers of members financing with AACFCU signify the Credit Union is one of the best lending values available.
In 2016 the Credit Union completed a major refresh of our website, making information streamlined and easier to access through an intuitive search option. AACFCU also increased member convenience with the use of electronic document signatures which have allowed members to sign over 1,600 documents online rather than coming to a branch location.
Lastly, in the first three months of 2017, the Daleville Branch received an interior remodel that is being enjoyed by the members who utilize that facility. Throughout the remainder of 2017, we plan on converting our Enterprise, Alabama, Motor Bank to a full service, state of the art, next generation facility. Later in 2017, we anticipate construction starting on a new branch in Ozark, Alabama. These are just more examples of how the Credit Union is continuing to grow and meet the needs of our members, the reason we exist.
Serving Members,
Bobby Michael President/CEO
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Lete Fro The SUPERVISORY COMMITTEE
CHAIRMAN
The Supervisory Committee is appointed by the Board of Directors. The committee serves as an independent group to ensure that Management and the Board of Directors establish adequate policies and procedures, and helps ensure the financial statements are properly prepared and accurately reflect the financial position and operating results of your Credit Union. The committee’s mission also includes the investigation of any concerns a member may have and the guarantee of a resolution.
Army Aviation Center Federal Credit Union continued its growth in 2016. Assets grew 2.8% over the previous year. Total assets were $1,173,113,740 which was an increase of $26,201,921. The year ended with a total of 98,191 members. Member savings and deposits grew by $16,935,992 to end the year at $1,013,926,052. Loans outstanding to members increased 25% during 2016. This is a result of the leadership, management and staff, and you the members who have placed your trust, loyalty and support in Army Aviation Center Federal Credit Union.
This past year, your Supervisory Committee worked closely with internal and external auditors examining policies and control procedures to ensure they are properly administered and sufficient to safeguard member assets. No material exceptions were noted that violated any of the policies or regulations governing Army Aviation Center Federal Credit Union.
During the year, the Supervisory Committee engaged the firm of OCM and Company CPAs and Advisors, a Doeren Mayhew Firm, to perform the audit of the Credit Union’s financial statements as of September 30, 2016. In the CPAs report, the firm expressed a clean opinion that the Credit Union’s financial statements were, in fact, fairly presented.
I would like to express my gratitude to the Board of Directors, Supervisory Committee members, management and staff for a job well done in 2016. As always, you, our members, are most appreciated for your loyalty to Army Aviation Center Federal Credit Union.
Donna Brackin Supervisory Committee Chairman
Respectfully submitted,
BOARD OF DIRECTORS LTC(Ret) Leslie C. Mingus, Chairman LTC(Ret) Thomas J. Frezell, Vice Chairman Gerald Strange, Secretary Richard “Cracker” Waldrop, Treasurer Mickey Davis, Member MAJ(Ret) Marc Snyder, Member Larry Eagerton, Member Floyd Rodgers, Assoc. Board Member
SUPERVISORY COMMITTEE Donna Brackin, Chairman Elmaree Gordon, Secretary Floyd Rodgers, Member Chuck Ennis, Assoc. Supervisory Committee Member
MANAGEMENT TEAM Bobby Michael, President/CEO Royas Sanders, SVP of Operations Bill Williams, SVP of Financial Services Ken Long, VP of Compliance & Loss Prevention Phyllis Phillips, VP of Human Resources Todd Peeples, VP of Information Technology Jim Freeland, VP of Lending Lisa Hales, VP of Marketing Brant Malone, VP of Quality Assurance Jimmy Smith, AVP of Information Technology Kim Mulliner, AVP of Accounting Laura Lynn Lester, AVP of Mortgages Ben Bradley, AVP of Mobile Operations
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AACFCU LOCATIONS
Mobile Airport Blvd. Bates
West Brookley Downtown
ALABAMA
FLORIDA
Dothan West North South East
Operations Center
Daleville
Enterprise West South East
Troy
Ozark North South
DeFuniak Springs
Santa Rosa Beach
Ft. Rucker
Opp
238 Virginia Avenue, Daleville, Alabama 36322 (334) 598-4411 • (334) 598-1147 Fax
www.aacfcu.com