ANNUAL REPORT

Transcription

1 2015 ANNUAL REPORT

2 Our Purpose To fulfill dreams and enrich the lives of others.

3 Past. Present. Future. Being part of a community where excellence is a way of life, we often find ourselves humbled by the brilliance and historical significance that has defined our community. On April 17, 2015 we commemorated an important day for MIT Federal Credit Union: 75 years of service to our members and past the MIT community. Have you ever wondered why we were created and how far we have come in 75 years? When Frank Conant (Member #1) and eleven like-minded people in the MIT community got together to establish the MIT Employees Federal Credit Union in the basement of Building 3 in 1940, they thought it was a good idea to offer savings, loans and thrift to people they worked with. Back in 1949, a member could have up to 2,000 in savings and up to 200 in loans. A few years later our Lincoln Laboratory branch opened in Building A, coincidentally also in a basement office. In 1964, our MIT Campus branch moved to Building E19, where we stayed until moving to Technology Square in Throughout the 1990s and 2000s, we expanded our products and services to truly become a full service credit union. Additional highlights included our first mortgage program, the creation of the mitfcu.org website, present and electronic services like online banking and bill pay. This year, we celebrated the important milestone of our 75th Anniversary at our Annual Business Meeting and dinner reception for members and volunteers, held at the MIT Media Lab. Throughout the year, we invited members to share their most memorable MIT FCU moments. Members recounted how the Credit Union made a difference in their lives by making the challenges we all face less difficult. We have shared some of these stories in the pages throughout this report. As we continue to improve our products and services in order to continue fulfilling dreams and enriching lives, everything we focus on reflects our commitment to being the most secure, accessible, and convenient option for you, our members. In 2015, we introduced a new website design that presents user-friendly information for every screen size and device. And now our credit cards include the security of an EMV chip and can be used with Apple Pay. future As we look toward 2016, we look to make significant enhancements to how we serve you in person and online, by redesigning and updating our branch centers and ATM technology and deploying a state of the art account opening and consumer loan system for our mobile and web channels. These changes will make your experience second to none, and one that is worthy of the MIT community. Keep an eye out for these as 2016 evolves. We hold very close to our heart the stories and memories of how and why MIT Federal Credit Union was founded. From very humble beginnings, we looked to provide savings and thrift to those in need. Today, we continue these traditions by giving you better financial solutions and helping you make better financial choices throughout your life. Thank you for being one of our 34,000 owners. It is our pleasure and honor to serve you. Respectfully submitted, John M. McDonald - Chairman 1960 s Today John McDonald, Chairman of MIT FCU s Board of Directors, and Brian Ducharme, President/CEO of MIT FCU. Brian W. Ducharme - President/CEO 2 3

4 MIT Federal Credit Union Leadership Board of Directors From left to right: John M. McDonald Chairman David E. Markuson Vice Chairman Maureen A. McCaffrey Secretary Robert M. Dankese Treasurer Richard B. Flanagan Director Mai Luo Director Clinton Blackburn Director Sheelah Britt Director Emeritus Richard R. Fenner Director Emeritus Executive Management From left to right: Brian W. Ducharme President/Chief Executive Officer Nancy J. Fales Supervisory Report The Supervisory Committee continues to perform its charter to ensure that the financial reporting requirements are properly completed and the credit union has effective procedures to safeguard members assets. The committee meets regularly to review the financial and internal control audits as well as other operational topics of interest. We are assisted in our efforts by outside firms that provide audit support of the credit union s finances, policies, and procedures. Internal audits continued to receive significant attention during Wolf & Company, P.C. performed six planned internal audits during the year to test credit union procedures and controls in various areas including funds availability and insider lending and overdrafts and lending compliance. They also assessed compliance with the Secure and Fair Enforcement Act (SAFE) and the Truth in Savings Act (TISA). Focus on information technology continued this year due to increasing occurrences of company security breaches. The committee reviewed the findings and management s responses, and actively worked with Wolf & Company, P.C. and MIT FCU management on the suggested areas for improving procedures, security, and controls. Senior Vice President, Lending and Operations Cynthia M. Hudson Senior Vice President, Chief Financial Officer Kim Mandola Senior Vice President, Member Services Kimberly A. Shooter Vice President, Corporate Initiatives Kathryn V. Carty Vice President, Information Technology Scott M. Hanna Vice President, Marketing I could really tell MIT FCU did all in its power to make sure I got the compensation I needed. I trust MIT FCU completely in handling any issues that may arise marked the third year of a 3-year contract with the audit firm, Nearman, Maynard and Vallez. The audit firm was engaged to perform our financial statements audit, which also included a review of internal controls. The committee met with the audit manager to review the scope, methods, and findings of their audit work. We were pleased to note that Nearman, Maynard and Vallez have concluded that the financial statements, in all material respects, fairly presented the financial position of MIT FCU as of December 31, The Supervisory Committee is charged to investigate and respond to unresolved member complaints against credit union management, as well as whistleblower allegations. All complaints and inquiries have been adequately investigated and resolved. MIT FCU is committed to the highest standards of ethical, moral, and legal business conduct. To support this commitment, each employee, manager, officer, and volunteer must submit a Conflict of Interest and Code of Ethics affirmation each year. The Supervisory Committee successfully completed this review and found no conflicts to report. The committee had one membership change in the past year. Theresa Howell was elected as an Associate member to the Supervisory Committee. We look forward to serving the MIT FCU community in Stephen W. Boyer - Chairman, Supervisory Committee Supervisory Committee Members Stephen W. Boyer Chairman Theresa Howell Associate Committee Member Karon S. McCollin Secretary J. Kendall Nowocin Associate Committee Member Jordan B. Lewis Committee Member Richard B. Flanagan Board of Directors Representative Most recently, you ve provided a loan with great terms to help me responsibly pay off credit card debt. Thanks so much for being there with me through the years. 5

5 Treasurer s Report 2015 Financials Your Board of Directors is pleased to report that the financial results of 2015 showed a year of change and growth for MIT Federal Credit Union. The key financial points that demonstrate those changes include: Total Assets 458,059,690 Net Loans 378,083,054 Net Income 2,606,007 Total Membership 33,093 Statement of Financial Condition ASSETS Cash & Cash Equivalents 12,516,890 Loans, Net 378,083,054 Investment Securities 50,684,401 All Other Assets 16,775,345 Total Assets 458,059,690 7,150, ,496,797 84,043,235 18,346, ,037,000 16,647, ,288,558 77,766,519 15,767, ,470,594 The financial strength of MIT Federal Credit Union allows us to achieve goals. Thank you to the members, volunteers, and employees of MIT FCU - the achievements of 2015 were made possible through their support. Respectfully submitted, LIABILITIES Member Shares & Deposits 419,560,508 Accounts Payable & Other Liabilities 3,475,778 Total Liabilities 423,036, ,557,170 3,244, ,801, ,411,182 2,806, ,217,970 Key Financial Data millions of dollars 394,470, ,037, ,059,690 Robert M. Dankese - Treasurer, Board of Directors TOTAL TOTAL ASSETS RETAINED EARNINGS MEMBERS millions of dollars ,252,624 32,235, ,023,404 thousands of members 30,440 31,658 33,093 RETAINED EARNINGS Regular & Undivided Earnings 35,714,001 33,107,994 30,473,260 Unrealized Gain (Loss) (690,597) (872,727) (2,220,636) on Investments Total Retained Earnings 35,023,404 32,235,267 28,252,624 TOTAL LIABILITIES & RETAINED EARNINGS 458,059, ,037, ,470,594 Statement of Income & Expense INCOME Interest on Loans & Investments Fees & Other Income Total Income EXPENSES Operating Expenses Dividend Expenses Interest on Borrowings Total Expenses NET INCOME 15,410,137 2,938,462 18,348,599 14,456,929 1,271,177 14,486 15,742,592 14,279,503 3,109,656 17,389,159 13,461,129 1,293,297-14,754,426 13,111,920 3,079,020 16,190,940 11,974,396 1,347,127 4,732 13,326,255 2,606,007 2,634,733 2,864,685 Please note: These scheduled reflect audited financial statements. 6 7

6 A quick glance at our 75th Anniversary Celebration Brian Ducharme with the People Helping People Award winner, Barbara Johnson. Chester Kurys, former MIT FCU Board Member. 8 MIT FCU contact center and lending department representatives celebrating our 75th anniversary. MIT FCU s 75th anniversary ice sculpture. It s great to know that MIT FCU, in true MIT spirit, is looking out for the interests of our community.

7 Call: Click: mitfcu.org Visit: Cambridge: 700 Tech. Sq. (NE48) 84 Mass. Ave. (W20-116) Federally insured by NCUA Lexington: 244 Wood St. (LL-A-100)