Annual Report Federally insured by NCUA Equal Housing Opportunity SDCCU

Transcription

1 Annual Report 2017 Federally insured by NCUA Equal Housing Opportunity

2 Mission Statement Provide sound financial services to our members any where, any way, any time. 80 Years of Exceptional Service

3 Since 1938, San Diego County Credit Union has been guided by the principle that people come first and profits second. We exist to add value to the lives of our members and are dedicated to delivering an exceptional financial experience through our product and service offerings. Our success is not only evident in the numbers on our balance sheet but also in the number of lives we positively impact whether it s by providing exceptional service, delivering sound financial services or supporting local schools and non-profit organizations. We are incredibly proud that our impact extends beyond the walls of our branches and into the communities we serve through financial support and volunteerism. We believe our focus on people over profits is what has fueled s growth and success. This report celebrates our success in 2017 which has been propelled by our achievements over the past 80 years. Table of Contents 2 Introduction 3 Table of Contents 5 Board of Directors 7 Chair s Report 8 President s Report 11 Treasurer s Report 14 Financials in Review 19 Coming in Community Impact 27 Member Services 29 Branch Locations 12 Supervisory Committee s Report

4 2017 BOARD OF DIRECTORS TERESA HALLECK President & CEO PATRICIA HONEYCUTT Board Chair LAURIE LEVENSON Vice Chair RICHARD COLLINS Secretary/Treasurer ILAN AWERBUCH Director HEATHER BENJAMIN Director CHRISTOPHER HART Director Downtown SHIRLEY JACKSON Director STEVEN REUEL Director KEN VAN RIPER Director

5 We welcomed more than 35,000 new members last year... CHAIR S REPORT It s hard to believe that 80 years ago, a small group of employees working for the County of San Diego decided to join together to form our credit union. has grown to an impressive 374,000 members strong. As a salute to our founders, we welcomed more than 35,000 new members last year as well as opened three new branches in Costa Mesa, Mission Viejo and Scripps Ranch. In total, there are now 43 convenient locations throughout Southern California! Our strength is not only in our membership but also in our innovative product offerings, exceptional customer service and support for the communities surrounding our branches. Last year, several technological improvements and operational efficiencies were made to help enhance the lives of members by providing better service and making banking easier and more convenient. PATRICIA HONEYCUTT BOARD CHAIR We also helped improve lives by giving back to the communities we serve through sponsorships and volunteerism. In 2017, we helped more than 75 non-profits and participated in more than 400 community events, and our good work did not go unnoticed. was selected as the 2017 Outstanding Philanthropic Business/Corporation by the Association of Fundraising Professionals, San Diego Chapter. Another accolade we are proud of is being named the BEST Credit Union for the 18th year in a row by readers of The San Diego Union-Tribune. Thank you to all of our employees, partners and members who help to make us the BEST year after year! I look forward to another successful year in 2018, and to leveraging our strength to continue to provide members with exceptional service and breakthrough product offerings for the next 80 years and beyond! Del Mar

6 PRESIDENT S REPORT 2017 was a great year for! Guided by our roots of people first and profits second, we focused on providing members sound financial services to make their lives better as well as enhancing the areas where we live and work. This included expanding our branch network to 43 convenient locations for members in San Diego, Orange and Riverside counties. We also made several enhancements to Internet Branch online banking, including real-time travel notifications, a new self service page and Defer-a-Pay, which allows eligible members to defer an auto loan payment in any one month during the year. Improving the financial health of the community is integral to our financial wellness initiative... Our community support also expanded with our sponsorship of the San Diego County Credit Union Holiday Bowl and the naming of Stadium. In addition, the credit union extended Financial Wellness Wednesdays, which resulted in our financial experts delivering close to 70 presentations to more than 1,100 people throughout the year. Improving the financial health of the community is integral to our financial wellness initiative and a key focus of s community outreach. Our community involvement and progress was acknowledged with many accolades and awards received on behalf of community members and publications. In addition to The San Diego Union-Tribune Readers Poll, has been recognized as San Diego s Best Credit Union TERESA HALLECK PRESIDENT & CEO in multiple publications, including La Mesa Courier, Mission Times Courier, Uptown News, Star News, San Diego Downtown News and San Diego CityBeat. Thank you to each member who contributed to these acknowledgements and took the time to vote the BEST! In 2018, we aim to again be the BEST by delivering exceptional service, leveraging technologies to make banking easier and providing community support. Thank you for placing your trust in! Oceanside

7 TREASURER S REPORT was another year of positive growth for. It is my pleasure to report that 2017 was another year of positive growth for. Total assets increased to nearly $8.3 billion at the end of s member base ended the year at 374,218, welcoming more than 35,000 new members and representing an increase of 10.3 percent from last year. Return on assets continues to be strong at 1.26 percent for the year. The Board of Directors and management team engaged in prudent practices to ensure that remains a healthy and well-capitalized credit union. The net worth to asset ratio as of December 31, 2017 was percent; well above the 7 percent minimum capital level for well capitalized credit unions established by the National Credit Union Administration. The Board of Directors is committed to making smart financial decisions to ensure remains San Diego s BEST Credit Union for years to come. will continue to invest time and resources appropriately and efficiently to continue to provide members the best financial products and services. RICHARD COLLINS SECRETARY/TREASURER In summary, the credit union is financially sound and well positioned for additional growth in I look forward to another successful year. Pacific Beach

8 SUPERVISORY COMMITTEE S REPORT The Supervisory Committee is made up of volunteer members who independently evaluate the strength, safety and soundness of s operations and activities. The Committee s primary focuses are to ensure that an independent audit is performed annually, the account balances of the membership are verified, adequate policies and procedures exist to protect the credit union s resources, governing regulations and policies and procedures are properly followed and that the financial statements reflect s results of operation.... is a strong financial institution. The Supervisory Committee collaborates with internal auditors, the Board of Directors, the President & CEO and employees of to ensure that the credit union s assets are safeguarded by upholding policies, procedures and regulatory requirements. The Supervisory Committee retained the services of national CPA firm, RSM US LLP, to perform an audit of s financial statements. RSM US LLP s annual audit of s financial statements ensures that they represent fairly, in all material respects, the financial position and results of operations of in conformity with U.S. Generally Accepted Accounting Principles. DAVID WORNER SUPERVISORY COMMITTEE CHAIR The Supervisory Committee has again determined that is a strong financial institution. We thank the Board of Directors, management and staff for their cooperation and commitment to sound financial practices. Coronado

9 2017 FINANCIALS CONSOLIDATED STATEMENT OF FINANCIAL CONDITION December 31, 2017 (unaudited) CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME December 31, 2017 (unaudited) ASSETS INTEREST INCOME NUMBER OF BRANCHES SAVINGS CHECKING 12% 19% DISTRIBUTION OF DEPOSIT PORTFOLIO 23% CERTIFICATES Cash and cash equivalents $361,702,951 Assets in process of liquidation $451,725 Accounts receivable $134,782,215 Investments Available-for-sale $116,967 Held-to-maturity $1,186,222,765 Non-SFAS 115 $40,500,000 Loans and leases to members, net $6,371,205,961 Accrued interest receivable $17,216,393 Interest on loans and leases to members $196,232,459 Interest on investments and cash equivalents $39,445,745 Total Interest Income $235,678,204 INTEREST EXPENSE Dividends on members shares $33,998,831 Interest on borrowed funds $12,883,664 Total Interest Expense $46,882,495 DEPOSITS (IN BILLIONS) GROSS LOANS (IN BILLIONS) ASSETS (IN BILLIONS) IRAS CONSUMER REAL ESTATE VARIABLE BUSINESS REAL ESTATE LOANS 6% ALL OTHER DEPOSITS 7% 30% CREDIT CARDS 4% 2% DISTRIBUTION OF LOAN PORTFOLIO 36% 23% 38% MONEY MARKET SHARES CONSUMER REAL ESTATE FIXED VEHICLE LOANS Property and equipment $54,052,806 NCU Share Insurance Fund deposit $62,451,623 Other assets $33,413,039 Total Assets $8,262,116,445 LIABILITIES, SHARES AND MEMBERS EQUITY Liabilities Borrowed funds $0 Accrued expenses and other liabilities $62,515,360 Total Liabilities $62,515,360 Shares Members shares $6,698,363,839 Non-Member deposits $300,000,000 Total Shares $6,998,363,839 Member's Equity Retained earnings, substantially restricted $1,201,234,203 Accumulated other comprehensive income $3,043 Total Members Equity $1,201,237,246 TOTAL LIABILITIES, SHARES AND MEMBERS EQUITY NET INTEREST INCOME $188,795,709 PROVISION FOR LOAN AND LEASE LOSSES $3,625,000 NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES $185,170,709 NON-INTEREST INCOME Fees and other income $67,553,487 $252,724,196 GENERAL AND ADMINISTRATIVE EXPENSES Salaries and benefits $60,401,175 Other general and administrative expenses $4,793,916 NCUSIF & Corporate Stabilization Assessments ($1,250,000) Professional and outside services $21,024,450 Occupancy $39,967,297 Marketing, promotional and dues $14,295,848 Loan processing/servicing $11,997,280 Total General and Administrative Expenses $151,229,966 $8,262,116,445 NET INCOME $101,494,230

10 2017 IN REVIEW Balboa Park In addition to providing superior banking products and services, aims to improve the financial future of members. The commitment of s employees to give exceptional service and look for innovative ways to make banking easier for members resulted in a successful year for More than 35,000 new members chose last year, bringing our membership to over 374,000. expanded its presence in Southern California with the opening of our Scripps Ranch Branch in San Diego and our Costa Mesa and Mission Viejo branches in Orange County. These branch locations brought the total number in our network to 43 and made it more convenient for members to access leading financial products and services offered by. In our quest to continue to lead the way in providing the best financial experience for members, made several enhancements to Internet Branch online banking. Improvements were made to bill pay and the self service page, making it easier to navigate. Easier online Defer- A-Pay allows members to defer an auto loan payment in any one month during the year. Real-time travel notifications are now offered through online banking to save members the hassle of notifying us about travel a day early. Deposited checks can now be viewed through Internet Branch, making it more convenient to balance your accounts. The card dispute process was streamlined so members can now dispute transactions online versus going into a branch to do so, saving time and any inconvenience. In addition to providing superior banking products and services, aims to improve the financial future of members. To make financial education more accessible, extended its Financial Wellness Wednesdays program throughout the entire year. As a result, s finance experts delivered nearly 70 presentations that were attended by more than 1,100 people. Launched in partnership with the County of San Diego in support of the Live Well San Diego initiative, Financial Wellness Wednesdays topics include Ten Simple Steps to Financial Success, Understanding Your Credit Report, Preventing Identity Theft & Scams and many more. expanded its community support with the naming of Stadium, where the first San Diego County Credit Union Holiday Bowl was hosted in December. The game, which matched Michigan State and Washington State, was attended by 47,092 fans. $1 from every ticket sold was donated to Biz Kid$ to help teach kids about money and business, resulting in a $47,092 donation. continued to hold Shred Day events to provide the public with free confidential document shredding and recycling. In June 2017, the Super Shred Event at Stadium brought in more than 898,931 pounds of paper, earning its fifth Guinness World Records title for most paper collected in 24 hours. The credit union also received a new world record, its sixth in total, for most paper shredded in 8 hours at the annual event. was proud to be acknowledged by numerous publications and organizations in was voted BEST Credit Union by the readers of The San Diego Union- Tribune for the 18th year. The readers also recognized as BEST Auto Loan Provider, BEST Financial Planner and BEST Mortgage/Home Loan Provider again. Several other publications awarded best local credit union, including La Mesa Courier, Mission Times Courier, Uptown News, Star News, San Diego Downtown News and San Diego CityBeat. was selected as the 2017 Outstanding Philanthropic Business/Corporation by the Association of Fundraising Professionals, San Diego Chapter. s employee wellness practices were recognized with a Best and Brightest in Wellness award by the National Association for Business Resources. President & CEO Teresa Halleck, was named Most Admired CEO by the San Diego Business Journal. Additional honors were received from Raddon Financial Group, Crystal Performance Award and CUNA Marketing & Business Development Council, 2017 Diamond Awards in multiple categories. We would like to thank our Board of Directors, communities, members and staff for all of the successes had in 2017.

11 COMING IN 2018 With a commitment to meet and exceed the diverse needs of customers and improve the banking experience, plans to focus on enhancing our existing products to make customers financial lives easier, and better. In 2018, this focus includes: Unveiling a new website sdccu.com Support of local schools and students through Classroom Heroes, Stuff the Bus and Biz Kid$ Shred Day events throughout Southern California, including the Super Shred Event at Stadium on June 16 Ongoing financial wellness programs Biggest Used Car Sales in March and October Continued support of over 75 non-profit organizations Plus, all-new Internet Branch online and mobile banking Watch sdccu.com and our social media for updates on new products, services and locations as they are announced. Laguna Beach

12 COMMUNITY IMPACT 75+ continues to support over 75 non-profits each year. This includes title sponsorships like the San Diego County Credit Union Walk MS, San Diego County Credit Union Festival of Arts in North Park, Stuff the Bus, San Diego County Credit Union Holiday Bowl, Classroom Heroes and the Biz Kid$ program in addition to the more than 400 community events and/or activities participated in this year. The result of s support is a huge impact on the communities we serve k 856 Employees + 100s of family members and friends HUGE IMPACT! Team Members More than 75 non-profits supported 30+ supported more than 30 chambers of commerce and community business associations 7k+ Donated more than 7,000 meals to local food banks with Dining Deals, more than 41,000 since the start of the program 74/222 Units of blood/lives saved through Blood Drives $ 17k+ Raised through our annual Presents for Paws 43k+ $ 19k + The community wrote 43,508 letters for troops overseas for our annual BIG Thank You Employees donated over $19,000 to the annual United Way campaign 1,600+ $ 2k + Employees donated over $2,000 to 's Giving Tree providing holiday gifts for 15 families in need Over 1,600 toys were collected for our annual Holiday Toy Drive $ 8k+ Raised over $8,000 for the National MS Society

13 Classroom Heroes is committed to helping teachers, parents and students make educated financial decisions by delivering the BEST financial education, products and services. is engaged in several philanthropic efforts aimed at improving overall economic well-being and making a positive difference in our local schools. Here are a few highlights of our 2017 activities: 84 Biz Kid$ program kits awarded to educators to teach kids about money and business. Free Shred Events Creating safer communities by helping people properly dispose of sensitive information. 489 TONS 10 Deserving San Diego County teachers received a $500 Visa gift card and recognition on a billboard in the community where they teach for their outstanding work in educating today s youth. of paper collected, shredded and recycled 5 San Diego County Teachers of the Year out of 26,000 public school teachers were recognized for their work and dedication to youth and highlighted at the 27th Annual Cox Presents: A Salute to Teachers. 978,434 pounds of paper 8,317 trees saved 1,414 cubic yards of landfill saved Stuff The Bus 215k+ Supplies were collected and 6,400 backpacks stuffed for the more than 22,000 students in over 35 districts in San Diego County experiencing homelessness. 3,424,519 gallons of water saved 3 events 17,790 boxes $ 24,460,850 pieces of paper 15,000+ participants $106,738 saved to community Financial Wellness Wednesdays 67 1,100+ Attendees 10 Biz Kid$ Bashes at local YMCAs Free Financial Wellness Wednesdays presentations MOST PAPER COLLECTED & SHREDDED 5th Guinness World Records title for the most paper collected in 24 hours. 1st Guinness World Records title for the most paper shredded in 8 hours.

14 47,092 attendees Televised to over 1.6 million viewers Over the past 40 years, the San Diego County Credit Union Holiday Bowl has significantly impacted San Diego. As the only credit union across the country to sponsor a bowl game, we are often asked why we do it. For us, the answer is simple. The game is a holiday tradition in San Diego, it gives back to a charitable cause, generates tourism, creates memorable experiences, generates tax dollars and makes a powerful impact on the local economy. is proud to be the title sponsor of the game to help our hometown thrive during a time when the region s tourism industry is at its slowest. Holiday Bowl Parade over 100,000 spectators Over $47,000 to Biz Kid$ program $1 from every ticket sold benefited THOUSANDS of local kids 40 ONE GAME YEARS + = HUGE IMPACT!

15 MEMBER SERVICES ACCOUNTS Certificates Checking IRAs: Traditional, Roth and Coverdell Money Market Savings Teen First ACCOUNT SERVICES Courtesy Clearing Debit Card Overdraft Service Direct Deposit Fly Miles Plus Reward Program Overdraft Protection Visa Debit Card VEHICLE LOANS AdvanceCheck Auto Loans Motorcycle Loans HOME & PERSONAL LOANS Home Equity Lines Home Equity Loans Home Loans Share or Certificate Secured Loans Signature Loans Visa Credit Cards eservices enotices, etax Forms and ereceipts estatements , Fraud and Text Alerts External Transfers Internet Branch Online Banking Live Chat Loan Applications Mobile Banking Mobile Live Chat Mobile Payments New Account Applications Online Bill Pay - Bill Payer Plus Personal Finance Manager - MoneyTracker Popmoney Person-to- Person Payments Dining Deals Mobile Deposit Paybacks Telephone Banking BUSINESS SERVICES ADP Payroll Services Certificates Checking Commercial Real Estate Loans First Data Merchant Card Services Mobile Banking Money Market Savings SBA 504 Loans Mobile Deposit Sweep Savings Vehicle Loans Visa Credit and Debit Cards Square, Clover and Pogo> PAYMENT & PRODUCT PROTECTION Credit Life Protection Credit Disability Protection Disability Payment Protection Guaranteed Asset Protection Life Payment Protection LoJack Unemployment Payment Protection INSURANCE Accidental Death and Dismemberment Insurance Mechanical Breakdown Insurance ADDITIONAL PRODUCTS AND SERVICES Auto Buying Services Educational Seminars Financial Counseling Member Discount Program Real Estate Services Safe Deposit Boxes Cash Card Classroom Heroes Investment Services 1 TrueCar 2 TurboTax Online sm Visa Checkout Visa Gift Cards ACCESS 24/7 Online and Mobile Banking 43 Full-Service Branch Locations Convenient Weekday Hours, With Most Branches Open Saturdays from 9 a.m. to 4 p.m. 30,000 Surcharge-FREE CO-OP ATMs 1 The Financial Advisors with Investment Services are Registered Representatives of LPL Financial. Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. LPL Financial is a Registered Investment Advisor. San Diego County Credit Union and Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. You are advised to seek advice from your own tax professional. Temecula Are Not Obligations of San Diego County Credit Union Are Not Insured by any State or Federal Government Agency Investments and Insurance: Have No Credit Union or Affiliated Entity Are Not NCUA Insured Involve Investment Risks and May Lose Value Including Possible Loss of Principal 2 TrueCar is not affiliated with.

16 BRANCH LOCATIONS SAN DIEGO COUNTY BALBOA/GENESEE 5407 Balboa Avenue Suite 420 San Diego, CA CARLSBAD 2530 El Camino Real Carlsbad, CA CARMEL MOUNTAIN Carmel Mountain Road Suite C-1 San Diego, CA CHULA VISTA H Street Chula Vista, CA DEL MAR Carmel Country Road Suite C-100 San Diego, CA EASTLAKE 2280 Otay Lakes Road Chula Vista, CA EL CAJON 312 West Main Street El Cajon, CA ENCINITAS 501 North El Camino Real Encinitas, CA ESCONDIDO 1875 Centre City Parkway Suite F Escondido, CA ORANGE COUNTY ALICIA PARKWAY Alicia Parkway Suite A Laguna Niguel, CA ESCONDIDO CIVIC CENTER 150 East Valley Parkway Escondido, CA HILLCREST 502 University Avenue Suite 500 San Diego, CA KEARNY MESA 5500 Overland Avenue Suite 190 San Diego, CA LA COSTA 7630 Via Campanile Suite 138 Carlsbad, CA LA JOLLA/TORREY PINES 3366 N. Torrey Pines Court Suite 100 La Jolla, CA LA MESA 8555 Fletcher Parkway Suite 101 La Mesa, CA MIRA MESA 6705 Mira Mesa Boulevard San Diego, CA MISSION VALLEY 2245 Fenton Parkway Suite 107 San Diego, CA LAGUNA NIGUEL Golden Lantern Suite A Laguna Niguel, CA NATIONAL CITY 2525 East Plaza Boulevard National City, CA NORTH PARK 3180 University Avenue Suite 100 San Diego, CA OCEANSIDE 625 College Boulevard Oceanside, CA PACIFIC BEACH 1664 Garnet Avenue San Diego, CA POINT LOMA 1004 Rosecrans Street San Diego, CA POWAY Stowe Drive Poway, CA RANCHO BERNARDO Bernardo Plaza Drive Suite 169 San Diego, CA RANCHO PEÑASQUITOS Black Mountain Road Suite 3 San Diego, CA SAN DIEGO 5555 Mildred Street San Diego, CA MISSION VIEJO Alicia Parkway Mission Viejo, CA SAN MARCOS 790 W San Marcos Boulevard San Marcos, CA SAN YSIDRO 2036 Dairy Mart Road Suite 130 San Ysidro, CA SANTEE 286 Town Center Parkway Santee, CA SCRIPPS RANCH 9974 Scripps Ranch Boulevard San Diego, CA SOLANA BEACH 665 San Rodolfo Drive Suite 110 Solana Beach, CA SORRENTO MESA Pacific Heights Boulevard San Diego, CA SPORTS ARENA 3455 Sports Arena Boulevard Suite 120 San Diego, CA UTC REGENTS 7708 Regents Road San Diego, CA VISTA 1475 West Vista Way Vista, CA WESTMINSTER 6745 Westminster Boulevard Suite B Westminster, CA COSTA MESA 2300 Harbor Boulevard Suite A-1 Costa Mesa, CA La Jolla RIVERSIDE COUNTY MURRIETA Madison Avenue Murrieta, CA TEMECULA Temecula Parkway Temecula, CA TEMECULA NORTH Overland Drive Temecula, CA San Diego County Credit Union Equal Housing Opportunity Federally insured by NCUA

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