Unitus Community Credit Union - Annual Report 2005

Unitus Community Credit Union - Annual Report 2005

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  2005 Annual Report P Box 1937 .O. Portland, Oregon 97207-1937 503-227-5571 + 1-800-452-0900 www.unitusccu.com
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  A Message toOur Members Unitus Community Credit Union Board of Directors F rom the Board of Directors to executive management and staff, we are commited to serving the best interests of our members. It is this commit- ment to your financial well being that sets Unitus apart from all other financial of expertise to work for you. Your current Board members bring an average of 13.5 years of experience to managing the Credit Union, while the leadership team brings an average of 16 years of experience per person! institutions, and we sincerity thank you for your continued support through yet Every decision we make is on your behalf, enhancing and adding to the ser- Gordon Akeson another successful year. vices we offer to help you achieve financial success and make life a little easier. Chairman Unitus was the first credit union in Oregon to be granted a community charter, These are some of the ways Unitus made a difference in 2005: Terry Gavin five years ago in 2001, which allowed us to reach out to anyone who lives or works • Our Clackamas branch opened to better serve members who live or work in Vice Chairman in the six county region we serve. Thanks largely to you, our existing members, that portion of the greater Portland area. Barbara Leonard the good news has spread and we have seen significant growth each year since. Vice Chairman During 2005, more than 5,700 of our friends, relatives, and neighbors joined • The number of free ATMs available to you continued to grow, passing 25,000 Don Mason Unitus, bringing total membership to over 54,000 strong. nationwide, as did our shared branch network, with more than 2,000 locations Gordon Akeson Secretary ready to serve you across town and across the country. Chairman Our financial figures have kept pace as well, with every key indicator showing Stacy Augustine healthy gains. (See charts on page 3.) In the past year alone we made more than • We extended our phone hours beyond regular business hours to give you Director 11,000 loans at very competitive rates to members who needed help with buying even more convenient access to personalized assistance. Member Service Tom Faulkner a home or auto, making home improvements, paying for college, consolidating Representatives are now available by phone Monday through Friday from 7:00 Director debt, and other life goals. That added up to an increase of $73 million in loans to a.m. to 6:00 p.m., and Saturdays from 7:00 a.m. to 4:00 p.m. Vernon Reinecker members, bringing our year end total for loans outstanding to over $500 million. • We redesigned our web site, adding “uSolutions”—a growing set of financial Director Members also continued to build their savings with Unitus, reaching a total information and resources for members—and making navigation faster and Will Rader of nearly $550 million. We consistently monitor the marketplace to ensure that more efficient. Alternate Director dividends paid are very competitively positioned. During 2005, Unitus paid mem- bers nearly $13 million in dividends, an increase of more than 27% from the pre- • We continued to make informative financial seminars available to you at no vious year. We also added almost $3.3 million to members’ equity, maintaining a cost, covering topics such as understanding your credit, auto buying, home remarkably strong capital reserve position that helps ensure the security of our buying, and retirement planning. Patricia E. Smith President/CEO financial cooperative. • Advance Loans were introduced as a sensible and affordable alternative to These measures of success show that economically we continue to gain costly payday loans, and we issued 570 of them by year end. strength, but they also reflect how we have remained true to the individual mem- • The Balance Financial Fitness Program was made available at no cost to ber and the local communities we serve. Unitus is one of Oregon’s largest credit members who want to improve their credit standing or need to solve credit unions, but that success is built upon treating every member like family and nur- problems. turing our local roots. Your Credit Union is locally operated, by the Board members you elect and • We teamed with Members Financial Services to offer members assistance employees who are your friends and neighbors. All corporate decisions are made with financial planning, as well as access to an online brokerage and locally, based on local conditions and needs. Together we put a tremendous level insurance services. 1 2
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  Consolidated Statements ofIncome Key Indicators • The Unitus Secured Card, a special Visa that helps rebuild credit, debuted, Financial Statements Years Ended December 31, as did the Unitus Access Card, a Visa card that taps into a home equity line Unitus Community Credit Union 55 2005 2004 50 of credit. Interest Income: 45 • Younger staff members “toured” area colleges—something we plan to do Consolidated Balance Sheets Interest and Fees on Loans $ 24,804,922 $ 21,022,410 40 each fall—introducing college students to the money-saving benefits of Interest on Investments 3,948,749 5,961,408 Years Ended December 31, 35 MEMBERSHIP choosing Unitus. 28,753,671 26,983,818 THOUSANDS ASSETS 2005 2004 30 2001 2002 2003 2004 2005 Interest Expense: • Twelve scholarships totaling $12,000 were awarded by Unitus. Cash and Cash Equivalents $ 15,000,964 $ 19,973,809 Dividends and Interest on • Through the volunteer efforts of our staff and generous contributions by Investments 90,169,844 152,903,505 Members’ Share Accounts 12,798,799 10,033,061 625 members, Unitus raised record-breaking donations and provided many hours Loans, Net of $3.4M Allowance 500,925,497 427,448,157 Borrowed Funds 177,499 128,375 600 of community service for local charities, including Doernbecher Children’s Accrued Interest Receivable 2,141,382 2,189,271 Net Interest Income 15,777,373 16,821,842 575 550 Hospital, SnowCap, Helping Hands, American Heart Association, Easter Office Property and Equipment, Net 9,407,055 7,069,722 Provision for Loan Losses 85,818 1,764,154 ASSETS NCUSIF Deposit 4,499,267 4,287,494 Net Interest Income After 525 MILLIONS OF DOLLARS Seals, SMART, Shriners Children’s Hospital, Relay for Life, Schoolhouse 500 Federal Home Loan Bank Stock 2,746,300 2,735,100 Provision for Loan Losses 15,691,555 15,057,688 2001 2002 2003 2004 2005 Supplies, Race for the Cure, Make-A-Wish Foundation, Oregon Mentor, Other Assets 1,784,679 652,902 Non-Interest Income 3,838,555 3,175,795 Salvation Army, Clackamas Women’s Services, and a number of other 500 Total Assets $626,674,988 $617,259,960 Non-Interest Expense worthwhile programs and events at the local level. 450 Compensation and Benefits 7,848,397 7,058,747 400 In 2006 you will see us build on the services and support we already offer. LIABILITIES AND MEMBERS’ EQUITY General and Administrative 8,110,609 7,194,840 350 Beaverton will get a new, full service branch (late March), and we will open a Liabilities: 15,959,006 14,253,587 LOANS Members’ Share Accounts $549,143,312 $538,720,946 300 MILLIONS OF DOLLARS second downtown Portland branch (late April), which will be housed in the new Net Income $ 3,571,104 $ 3,979,896 250 Accounts Payable and 2001 2002 2003 2004 2005 Unitus Plaza now being readied. Located at Southwest Sixth and Jefferson, the Other Liabilities 11,463,795 15,753,200 Unitus Plaza will also serve as our new administrative headquarters, as well as Consolidated Statements of Members’ Equity Total Liabilities 560,607,107 554,474,146 550 home for our mortgage lending operations. As a result, you can expect to see Members’ Equity: 525 expanded mortgage services later in the year. Members’ Equity 500 Regular Reserves 20,559,198 17,489,434 In the meantime, we are introducing a versatile Platinum Rewards Visa Card Balance at December 31, 2003 $ 61,166,154 475 Undivided Earnings 46,550,018 46,048,678 and a set of financial services for local businesses. Plus there is much more to Net Income for 2004 3,979,896 450 SAVINGS SAVINGS Accumulated Other MILLIONS OF DOLLARS come as the year progresses! We look forward to providing you with top-notch Comprehensive Income (1,041,335) (752,298) Accumulated Other Comprehensive Income: 425 2001 2002 2003 2004 2005 financial products and unrivaled personal service through 2006 and beyond. We Total Members’ Equity 66,067,881 62,785,814 Unrealized Gains (Losses) on Securities Available for Sale (2,360,236) hope that you will continue to spread the word about the benefits of Unitus Total Liabilities and 70 Balance at December 31, 2004 62,785,814 membership among your friends and family. Members’ Equity $626,674,988 $617,259,960 65 Net Income for 2005 3,571,104 Thank you again for choosing Unitus as your primary financial services provider. 60 Accumulated Other Comprehensive Income: Unrealized Gains (Losses) on 55 CAPITAL RESERVES CAPITAL MILLIONS OF DOLLARS Securities Available for Sale (289,037) 50 2001 2002 2003 2004 2005 Gordon Akeson Patricia E. Smith Balance at December 31, 2005 $ 66,067,881 Chairman President/CEO 3 4
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  Report of theSupervisory Committee invested in you Supervisory Committee T he summarized financial statement information included in this annual report was prepared by Unitus Community Credit Union management and compiled from the Credit Union’s consolidated financial statements. In preparing the financial statements, management depends upon the Credit Union’s system of internal accounting controls in meeting its responsibility for reliable information. The Supervisory Committee, which consists of four volunteer members appointed by the Board of Directors, monitors the accounting system on behalf of all Unitus members. The Committee meets periodically with the Board of Directors, the Chief Internal Auditor, and management to discuss accounting, financial reporting, internal control systems and processes, and auditing matters. As part of fulfilling its duties, the Committee engaged the independent accounting firm Moss Adams LLP to conduct the 2005 audit of the Credit Union Don Foreman and provide an opinion of the financial statements as a whole. A copy of the Chairman certified audit report is available for review by interested members upon request. Tom Bushman The audit substantiated the solid financial performance of the Credit Union and Rhonda Cramer affirmed the operational practices of management. It also offers definitive evidence Dan Duffy that the membership’s assets are secure. It is the Committee’s opinion that the Credit Union’s day-by-day practices remain in compliance with the Credit Union bylaws, state and federal regulations, and acceptable accounting procedures. Also under the direction of the Committee Moss Adams LLP managed the 2005 verification of members’ accounts. The outcome of this audit further substantiates the responsible financial operation of the Credit Union. My thanks is extended to Committee members for their time and energy given during the past year. We look forward to serving the Unitus membership in 2006. 5