Cover Photo: St. Johns Bridge, taken by PNWFCU member Bruce Long

Transcription

1 2013 ANNUAL REPORT

2 Cover Photo: St. Johns Bridge, taken by PNWFCU member Bruce Long

3 What s Inside President s & Chairman s Report 2, 3 Statement of financial CONDITION 4 Statement of Income & Expense 5 Supervisory Committee Report 6, 7 Community Outreach 8, 9 Service Awards 1 0 member Photo Contest 11 Our People 12 THANK YOU 13 PNWFCU ANNUAL REPORT 2013

4 President s & Chairman s Report 2013 was a good year for Pacific NW Federal Credit Union. We had a good year in terms of developing our member service capabilities and a good year in terms of financial performance. During 2013 we improved member service by: Adding mobile banking mid-year, which has been a significant member convenience. We had a good year in terms of developing our member service capabilities and a good year in terms of financial performance. Offering the ability to deposit checks by phone in the third quarter. Reestablishing our business lending program in the fourth quarter of last year. Restructuring our lending department, training staff, and modifying our lending criteria to reach more members. We continue to strengthen the quality of our loan portfolio and improve the quality of our overall balance sheet. Over 900 people became members. Made over 1,100 consumer loans for $15.7 million. Helped 148 members buy or refinance their homes for $27.0 million. Increased total assets from $127.1 to $128.5 million. Maintained total loans (held and serviced) Thomas E. Griffith, CMA Chief Executive Officer Tom has been in the credit union industry for over 20 years. He holds a Bachelor s in Accounting from Portland State University and is a Certified Management Accountant (CMA). After spending five years as an accountant for a market research firm, he became Controller of a small credit union. He spent eleven years as the Chief Financial Officer for a $600 million credit union before joining Pacific NW Federal Credit Union in 2003 as the CEO.

5 flat at $188 million. Improved net worth from 7.44% of total assets to 8.01%. Kept operating expenses relatively flat at 1.2% over 2012 ($70,000 increase). During 2014 our focus will be to increase the convenience and quality of member service. We have a credit union wide effort to review all our processes from the member s experience in order to remove frustrations and improve the quality of the service and products we provide. We will be adding electronic signing for documents to eliminate the need to come into a branch or mail signed documents. We are evaluating online lending applications. We will be starting the design process for remodeling our Erin Way branch (off of 122nd) to improve the member experience at that branch. Our most significant offering to members in 2014 is that we have $20 million to lend. This is an opportunity for our members to realize that dream of a new car, RV or house. Helping you to achieve that dream meets our mission to be your financial partner for life. Paresh Patel, Ph.D., MBA Chairman of the Board Founder and owner of the nationally recognized company Courtesy Vending, and more recently PayRange, Paresh has brought a balanced business perspective to the PNWFCU Board of Directors. As Chairman of the Board for over a decade, he has worked to help ensure our credit union s stability and future, while at the same time ensuring we meet our members needs. His academic background includes an MBA and Ph.D. in Organization and Management.

6 statement of Financial Condition Year ended December 31 ASSETS Cash & cash equivalents Certificates of deposit Investment securities held to maturity Restricted equity securities Loans held-for-sale Loans to members, net Accrued interest receivable Property and equipment, net National Credit Union Share Insurance Fund deposit (NCUSIF) Other real estate owned Other assets TOTAL ASSETS 2012 $ 27,734,547 9,389, ,128 80,000 81,251, ,428 4,135,978 1,177, ,646 1,645,764 $ 127,122, $ 25,922,913 11,536,000 6,978, ,218-76,474, ,584 3,990,369 1,144,710 89,371 1,669,007 $ 128,520,716 LIABILITIES Members shares Borrowed funds Accrued expenses & other liabilities Total Liabilities $ 116,740,641 66, , ,670,476 $ 117,363,570 42, , ,225,480 MEMBERS EQUITY Regular reserves Undivided earnings Total members equity TOTAL LIABILITIES & EQUITY 4,033,040 5,419,343 9,452,383 $ 127,122,859 4,033,040 6,262,196 10,295,236 $ 128,520,716 4

7 statement of Income & Expense Year ended December INTEREST INCOME Interest on loans to members $ 5,197,610 Interest on investments 143,454 Total interest income 5,341,064 INTEREST EXPENSE Dividends on members shares 205,332 Interest on borrowed funds 4,713 Total interest expense 210,045 NET INTEREST INCOME 5,131,019 PROVISION FOR LOAN LOSSES 855,233 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 4,275,786 NONINTEREST INCOME Service fees & other income 1,716,822 Mortgage banking income 1,368,024 Total noninterest income 3,084,846 NONINTEREST EXPENSE Salaries & benefits 3,146,303 Operations 2,380,823 NCUA assessments 111,870 Occupancy 327,623 Total noninterest expense 5,966,619 NET INCOME $ 1,394, $ 4,315, ,418 4,468, ,686 3, ,772 4,364,994-4,364,994 1,686, ,375 2,458,090 3,162,820 2,391,543 91, ,291 5,980,231 $ 842,853 PNWFCU ANNUAL REPORT 2013

8 Supervisory Committee Report As of December 31, 2013, your Credit Union s net worth increased above 8 % compared to 7.44 % as of December 31, 2012, which is considered well capitalized by NCUA standards. Your Supervisory Committee is composed of four member volunteers: Robert Mealey, Travis Richardson, Harry Speropulos (also a Director on the Board), and Henry Tieu (Committee Chairman). The Committee s responsibilities are to oversee and to verify that your Credit Union safeguards the members assets and that the financial condition of the Credit Union is fairly and accurately presented in its financial statements. We meet monthly to review various loans and respond to members complaints forwarded to the Committee. Additionally, at least one Supervisory Committee member attends the monthly Board meetings. Our auditor is the accounting firm of Moss Adams LLP. The unqualified audit opinion of the Credit Union s financial statements covers the period January 1, 2013, through December 31, In performing an opinion audit, the accounting firm considers the Credit Union s internal controls over financial reporting as a basis for designing their audit procedures. Audit procedures include examining and testing supporting evidence for the amounts and disclosures presented in the Credit Union s financial statements. Ultimate responsibility for the accuracy of the financial statements is held with the Credit Union s management. Pacific NW Federal Credit Union s assets as of the end of 2013 were $128.5 million, an increase of $1.4 million in assets over the prior year. The opinion audit allows us to better assess the risks and soundness of the Credit Union s operation. Your Supervisory Committee also ordered other audits as required by NCUA regulations, on compliance with the Bank Secrecy Act (BSA), Office of Foreign Assets Control (OFAC) and the USA Patriot Act. 6

9 The management team and the Board of Directors continually evaluate the financial condition and monitor the state of your Credit Union. The Net Worth Restoration Plan (NWRP) instituted by your Credit Union in 2011 continued into 2013 to mitigate loan losses, improve credit quality, control asset growth, and enhance overall operational efficiencies. As of December 31, 2013, your Credit Union s net worth increased above 8% compared to 7.44% as of December 31, 2012, which is considered well capitalized by NCUA standards. You, the member, also contributed to this restoration of net worth by your loyalty to the Credit Union. The delinquency ratio has decreased to.65 for December 2013 from the December 2012 ratio when it was.67. The Credit Union ended 2013 with a net income of $842,853. The NCUA operates the NCUSIF insuring deposits to $250,000 per account. Moss Adams LLP expressed an audit opinion that your Credit Union s financial statements present fairly, in all material aspects, the financial position of Pacific NW Federal Credit Union on December 31, 2013, and that the results of its operations and cash flows for the twelve months then ended, are in conformity with generally accepted accounting principles. A copy of their audit report is available to members upon request. Henry Tieu Supervisory Committee Chairman

10 Community Outreach To thank our neighbors for their continued support and loyalty, we try to give back whenever possible. In 2013, PNWFCU donated time and money to dozens of local charities, listed on the next page. These organizations provide much needed goods and services, which contribute to a better overall quality of life for those in our communities. We appreciate everyone who donated or purchased items in support of these important local philanthropic enterprises. Last year, PNWFCU employees helped repackage 34,996 pounds of potatoes at Oregon Food Bank, estimated to equate to 29,163 meals for families in need. We also collected old and unwanted electronics for recycling during our Annual Recycle Day, along with hundreds of empty pop cans to help raise money for Parkrose Outdoor School. Pictured: PNWFCU team at the 2013 Making Strides Against Breast Cancer Walk, an American Cancer Society event. Our team raised $1,403. PNWFCU matched the donation for a grand total of $2,806 for breast cancer research, treatment and prevention. 8

11 Organizations we ve helped support throughout 2013: Portland/Vancouver Ace Academy Scholarship American Cancer Society Associates Foundation Blanchet House Doernbecher Children s Hospital Kiwanis Children s Cancer Program Lions Club Multnomah County Animal Services NW Blue Crush Aquatic Oregon Food Bank Salvation Army (Vancouver) Shepherd s Door Trauma Intervention Program World Forestry Center Parkrose Community Future Business Leaders of America (FBLA) Parkrose Business Association Parkrose Educational Foundation Parkrose Farmers Market Parkrose Football Parkrose Golf Parkrose High School (PHS) Senior Project Parkrose Neighborhood Cleanup Parkrose Outdoor School Parkrose Water Polo PBA Scholarship Committee PHS Business Advisory Board PHS Senior Graduation Party columbia river gorge Angel of the Hour Delta Kappa Scholarship Hawks Ridge Senior Wish Project Hood River 4-H Club Hood River Elementary School Auction Hood River Farmers Market Hood River Rotary Club Relay for Life Each year PNWFCU and OSAC give away two $1,000 scholarships to deserving students. Congratulations once again to our 2013 scholarship winners Autumn Cox (top) and Jacob Cocks (bottom). PNWFCU ANNUAL REPORT 2013

12 Service Awards PNWFCU wishes to extend congratulations to individuals who celebrated employee milestones in We thank you for all of your hard work and dedication to our company throughout the years. 5 years of service Gerry Benko Jennifer Benson Michelle Caudle Tina Litsey Julie Roth Becky Shinn Alyssa Stuhr Tom Griffith Karina Perez Val Baxter Dana Eaton Laureen Boda Insurance Specialist Collections Specialist Collections Manager Mortgage Underwriter Card Services Specialist Member Service Team Lead ACH Specialist President/CEO Compliance Officer BPA Branch Manager VP Marketing & Member Service SVP CFO Other Accolades Jessica Nielsen, Director of Branch Operations at PNWFCU Jessica was the 2013 Mt. Hood Chapter Kickoff to the Capitol scholarship winner! She was chosen in recognition of her efforts in credit union advocacy. Jessica received airfare, hotel and registration to attend the 2014 CUNA Government Affairs Conference (GAC) in Washington DC. At the GAC, more than 4,000 credit union representatives came together to rally for the powerful credit union cause and connect with leaders from across the USA. Judy Kennedy, Business Development Specialist Judy was awarded a Certificate of Appreciation from Dr. Karen Fischer Gray, Parkrose School District Superintendent. Superintendent Gray recognized Judy for being energetic and willing and for her outstanding contributions to the Parkrose School District at the board meeting on October

13 Member Photo Contest This year, our members sent us their favorite shots from around the globe. All Credit Union employees voted and chose our top three winning photos. Thank you to everyone who participated, and congratulations to our winners (shown below). 1 st Place - Tony Morrell Rocky Mountain High Elk Mountain Range, Colorado 2 nd Place - Rachael Bryant Tree in the Towers Bryce Canyon, Utah 2013 Photo Contest winners and other top selections were featured in our 2014 calendar, which was sold in our branches. All proceeds from the calendars went to Doernbecher Children s Hospital ($600). We also made a $200 donation to the World Forestry Center. 3 rd Place - Mark Maher Santorini, Greece PNWFCU ANNUAL REPORT 2013

14 Our People Board of Directors Paresh Patel, Chairman Nancy Morgan, Vice Chairman Phil Livesley, Treasurer David Lacka, Secretary Linda McKinney, Director Larry Long, Director Harry Speropulos, Director Spencer Wedlund, Director Ron Miller, Director Supervisory Committee Henry Tieu, Chairman Travis Richardson, Secretary Robert Mealey, Member Harry Speropulos, Member Senior Management Tom Griffith, President/CEO Laureen Boda, SVP CFO Diane Calvin, SVP CLO Dana Eaton, VP Marketing & Member Service Dave Thompson, VP Human Resources & Training Eric Keyser, VP Information Technology 12

15 Thank You The raffle prizes given out at our 2013 Annual Meeting were made possible through the generosity of the companies listed below. We would like to thank them for their support. Allied Solutions Aspen Landscape Management Auto Mentors Bay View Building Maintenance BIT Statement CEO Promotions CO-OP Shared Branch CUBG CUDL CUNA Mutual Digital Insight Enterprise Car Sales Fiserv-XP Harland Lipsky Research Meadow Outdoor Mike Caro, Attorney Output Solutions Pacific Office Automation Paulson Printing Pavement Maintenance Sanderson Safety The Killers, Pest Control Tomasi Sayler Baroway USI Benefits Broker PNWFCU ANNUAL REPORT 2013

16 2013 ANNUAL REPORT Erin Way Branch NE Erin Way Portland, OR BPA Branch 911 NE 11 th St. Room 122 Portland, OR Ross Branch 5411 NE Hwy. 99 Vancouver, WA Hood River Branch 1004 Pacific Ave. Hood River, OR