2016 ANNUAL REPORT. Federally insured by NCUA EST. 1937

Transcription

1 MEMBER FOCUSED 2016 ANNUAL REPORT Federally insured by NCUA EST. 1937

2 HONORING THE PAST 1937 Twenty-three educators formed what is now CFE Federal Credit Union, so educators in Central Florida could safely save and borrow money. By the end of its first year, the credit union had 64 members with shares equaling $254. The shares were kept in a small locked metal box in a closet under a stairwell at Orange County Public Schools central office. The credit union funded two loans in 1937 totaling $ County 1 Branch 2 Loans 23 Founding Educators HONORING THE PAST In 1998, Joseph A. Melbourne, Jr. became President and CEO of CFE Federal Credit Union. CFE s growth during the past 19 years can be directly attributed to his vision and leadership. CFE s assets grew from $421.7 million to over $1.66 billion and loans outstanding from $185.1 million to $844.9 million during his tenure. His vision and determination to change CFE s charter to a community charter in 2006 signaled a new chapter in CFE s history. CFE added 11 new branches since the change in charter, doubling CFE s physical footprint in the Central Florida community from 11 to 22 branches. With Mr. Melbourne as President and CEO, the credit union experienced tremendous growth. Continuing his legacy means so much to the credit union and the Central Florida community. He saw the growth of the credit union as an opportunity to help. He has fulfilled that mission and more.

3 BOARD OF DIRECTORS Mary Lynn Williams Chair Errol L. Greene 1st Vice Chairman Richard L. Collins 2nd Vice Chairman Janet E. Bush Secretary Michael E. Angel Treasurer Lawrence H. Golub Director Dale C. Kelly Director Naval Modani Director James W. Wilson Director

4 MESSAGE FROM THE CEO AND BOARD CHAIR Kevin S. Miller CFE President & CEO Since my arrival at CFE in 2004, I have enjoyed the privilege to meet and build relationships with many of you. I look forward to developing our relationships further, and to starting new relationships. I am privileged to serve as your President and CEO and I appreciate your continued membership. I will strive to ensure that CFE serves as a steward of positivity and prosperity in your life. As we reflect on last year and the retirement of past President and CEO, Joseph A. Melbourne, Jr., we must pay homage to Mr. Melbourne for leading CFE Federal Credit Union with integrity, compassion, and acumen for more than twenty years. During his tenure, the credit union experienced tremendous growth and financial stability; yet the numbers do not represent the magnitude of what he meant to the credit union. He saw CFE s growth as an opportunity to help more people, take better care of the employees, and do more for the community. He has taught us all important lessons that are forever ingrained in the company ethos. Throughout 2016 we continued our legacy of excellence. CFE continued to focus on serving the needs of its members, employees, and community and it has again been recommended by Bauer Financial, maintaining a five star rating for strength and stability. Our infrastructure substantially improved during the past year. The Clermont branch was relocated to a new, larger facility with a drive thru for member convenience. The former headquarters and branch on Weber Street in the Mills 50 District was demolished to make way for a new facility that will open in the spring of CFE s support of education and the community goes from strength to strength. We live and work alongside our members. It is so important for us to positively impact the quality of life we all share. Our commitment to Central Florida s schools remains at the core of CFE s culture. Through our MyCFE4Schools affinity debit card program, CFE donated $91,600 last year to Orange, Osceola, and Seminole County public schools. Since 2009, the program has generated over $685,000 in donations to the schools. Our partnerships with the University of Central Florida, Seminole State College, Strayer University, and Valencia College also point to the credit union s ongoing commitment to education. In 2016, our dedicated staff presented financial education materials to more than 3,500 students from kindergarten through college at more than 48 locations throughout Central Florida, including our volunteer efforts with OCPS and SCPS s annual Teach-In. Representative of our belief in life-long learning, we also conducted seminars for adults, centering on personal financial management and retirement planning.

5 A sixth high school branch was opened in the fall at Colonial High School in Orange County. These branches are fully run by students who gain skills and understanding of work in the real world, giving them a competitive advantage after graduation. We have accomplished a great deal in 80 years, but there is much more opportunity for continued growth. CFE will embrace positive change, and we will commit to find ways to continuously improve. We made a promise to you: to always be there with each step along the individual financial paths of our members. Our choices will be driven by the value we place in maintaining your trust. As we move ahead, we will honor the past. We will celebrate the present. And we will, as always, look to the future and to adapting to change. Doing so will inspire our work on behalf of CFE s membership and guide our path forward. We thank you for making CFE your trusted friend. Kevin S. Miller President & CEO Mary Lynn Williams CFE Board Chair Mary Lynn Williams CFE Board Chair Our credit union s compelling history and sustained success humbles us, and makes it an honor for Kevin Miller to step into the role of President and CEO following the retirement of Joseph A. Melbourne, Jr. On behalf of the entire CFE community, we would like to thank Joe for all he has done for the credit union and we wish him a successful retirement, one that builds a similarly prosperous legacy as the one attained by the twenty-three educators who founded CFE.

6 SUPERVISORY COMMITTEE REPORT Marie J. Wishau A Supervisory Committee is required by the Federal Credit Union Act. The Supervisory Committee is the credit union s audit committee. It is responsible for ensuring that the financial records are in order and that internal controls are in place to protect the assets of the credit union and its members. The Committee also determines whether the credit union is in compliance with all relevant laws and regulations and whether the board policies are being followed. In order to fulfill its responsibilities, the Supervisory Committee: Engaged the services of the firm Nearman, Maynard, Vallez, CPAs to perform the required external audit of the credit union s financial statements. Engaged the services of Doeren Mayhew CPAs and Advisors to conduct ongoing reviews of internal controls, regulatory compliance, adherence to board policies, and credit union procedures. Developed an annual internal audit plan with the assistance of its audit firm, the Board of Directors, and management, with special emphasis on areas of higher risk. In summary, based on the various reports of the two certified public accounting firms and other reviews of the credit union s operations, the Supervisory Committee believes that CFE Federal Credit Union is effectively managed and maintains adequate internal control procedures to safeguard assets of the credit union and its members. Marie J. Wishau Committee Chair

7 SUPERVISORY COMMITTEE Marie J. Wishau Chair Cary D Ortona Ronald J. Person Kimberly Davis Marten Brenda Jackson SENIOR MANAGEMENT Kevin S. Miller President & CEO Kevin J. Dougherty Executive VP/Chief Operating Officer Linh N. Dang Senior VP of Projects & Electronic Services Sam Nelson Senior VP - General Counsel James R. Rychlicki Senior VP of Finance Kevin S. Wright Senior VP of Information Technology Brian G. Hartwigsen VP of Lending Robert J. Kindermann, SPHR VP of Human Resources Shirley A. Shoemaker VP of Branch Operations DEPARTMENT MANAGEMENT Suzanne W. Dusch VP of Marketing Eddie Sanabria, Jr., NCCO VP of Regulatory Compliance Katie M. Thomason VP of Development Nancyann S. Bonafede Regional Director Annette Boyd Director of Collections Robert Fisher Director of Business Services Thomas P. Gabryluk Director of Accounting Pamela A. Gennarelli Director of Loss Mitigation Jordan George, shrbp, LDCP Director of Training Matthew A. Heisey Director of Card Services Megan Jackson Director of Electronic Services & High School Branches Penny Jordan Director of Branch Operations Kristin Marroquin Regional Director Miriam J. Mitchell Director of Real Estate Lending Nancy Perry Director of General Counsel Susan R. Phillips Director of Information Technology Nora Rodriguez-Patterson Director of Project Management Dan Sheerin Director of Call Center John E. Thomas Director of Facilities Judy E. Wall, CUERME Director of Enterprise Risk Management Cathy Williams-Steward Regional Director

8 $1.8 billion ASSETS Total Assets $1,669,102,936 $1.6 billion $1.4 billion $1.2 billion $1 billion $800 million $600 million $400 million $200 million 0 $1,290,593,856 $1,363,399,386 $1,422,473,607 $1,508,123,360 $1,590,517,633 $1,669,102, Loans to Members - Net $844,968,915 Investments - Net $683,751,314 $1.6 billion $1.4 billion $1.2 billion $1 billion $800 million $600 million $400 million $200 million 0 $1,072,832,773 $1,136,399,550 $1,207,335,719 $1,273,852, $1,398,111, $1,484,549, Cash and Cash Equivalents $41,353,564 Other Assets $25,850,764 Property and Equipment - Net $59,004,035 Share Insurance Deposit $14,174,344 $900 million $800 million $700 million $600 million $500 million $400 million $300 million $200 million $100 million 0 $461,087,083 $492,615,503 $593,556,606 $673,119,288 $706,205,936 $844,968,

9 STATEMENTS OF FINANCIAL CONDITION & INCOME STATEMENTS OF FINANCIAL CONDITION & INCOME Years Ended December 31, 2016 and 2015 ASSETS Cash and Cash Equivalents Loans to Members - Net Investments - Net Share Insurance Deposit Property and Equipment - Net Other Assets Total Assets $41,353, ,968, ,751,314 14,174,344 59,004,035 25,850,764 1,669,102,936 $39,951, ,205, ,749,916 13,443,890 58,072,523 26,094,104 1,590,517,633 LIABILITIES Members Shares Accrued Expenses and Other Liabilities Borrowed Funds Total Liabilities MEMBERS EQUITY Retained Earnings $181,422,768 $170,164,572 Accumulated Other Comprehensive Income (Loss) (6,239,147) (819,203) Total Members Equity 1,484,549,681 1,398,111,590 9,369,634 6,185,674-16,875,000 1,493,919,315 1,421,172, ,183, ,345,369 Total Liabilities and Members Equity $1,669,102,936 $1,590,517,633 INTEREST INCOME Interest on Loans $40,311,686 $38,984,607 Interest on Investments and Cash Equivalents 12,534,730 13,128,419 Total Interest Income 52,846,416 52,113,026 INTEREST EXPENSE Dividends on Members Shares 4,333,532 4,446,465 Interest on Borrowed Funds 619,990 2,002,184 Total Interest Expense 4,953,522 6,448,649 Net Interest Income 47,892,894 45,664,377 Provision for Loan Losses 5,157,000 27,550,000 Net Interest Income After Provision for Loan Losses 42,735,894 18,114,377 NON-INTEREST INCOME Service Charges and Other Fees 12,319,928 11,439,287 Other Non-Interest Income 16,263,709 16,035,457 Net Gains (Losses) on Sales of Property and Equipment (558,080) 379,388 Gain (Loss) on Sale of Investments (577) 26,315 Total Non-Interest Income 28,024,980 27,880,447 GENERAL AND ADMINISTRATIVE EXPENSES Salaries and Benefits 30,276,791 27,873,366 Operations 24,751,442 21,732,306 Occupancy 4,474,445 4,640,845 Total General and Administrative Expenses 59,502,678 54,246,517 Net Income $11,258,196 $(8,251,693) Federally insured by NCUA *Displayed financial numbers are unaudited for 2016.

10 BRANCH LOCATIONS MAIN OFFICE LAKE MARY Jessica Rosario 1000 Primera Boulevard Lake Mary, FL LEESBURG Kimberly Bailey 8040 U.S. Highway 441 Leesburg, FL SOUTH ORLANDO Ian Serrao 5301 S. Orange Avenue Orlando, FL HIGH SCHOOL BRANCHES Eleshia Kalish Manager of Electronic Services and High School Branches (Staff & Students Only) APOPKA Melissa Pagano 847 S. Orange Blossom Trail Apopka, FL CFE ARENA Timothy Bell 4210 E. Plaza Drive Orlando, FL CLERMONT Amanda Pickup 2390 E. Highway 50 Clermont, FL EAST ORLANDO Terri Jensen 1823 N. Alafaya Trail Orlando, FL FERN PARK Alex Rodriguez 215 Oxford Road Fern Park, FL FOREST CITY Melinda Wehbi 855 South State Road 434 Forest City, FL KISSIMMEE Alex DeJesus 708 E. Vine Street Kissimmee, FL LONGWOOD Kelly Calkins Assistant Branch Manager 705 W. State Road 434 Suite A Longwood, FL METROWEST Mary L. San Filippo 5990 MetroWest Boulevard Orlando, FL MILLS AVENUE Jeffrey Dry 947 N. Mills Avenue Orlando, FL ORANGE CITY 920 Saxon Boulevard Orange City, FL OVIEDO Patrick Williams 1948 W. County Road 419 Oviedo, FL PINE HILLS Nancy Flint 4601 Silver Star Road Orlando, FL SANFORD Kevin Algeo 101 E. 25th Street Sanford, FL ST. CLOUD Carla Rodriguez th Street St. Cloud, FL UCF CAMPUS Timothy Bell JT Washington Center Aquarius Agora Drive Bldg. 26, Room 107 Orlando, FL UCF COMMONS Timothy Bell Corporate Boulevard Suite 100 Orlando, FL WINTER GARDEN Philina Umah 950 9th Street Winter Garden, FL MEMBER SERVICE CENTER Daniel Sheerin Director of Call Center Phone: or , option 3 BOONE HIGH SCHOOL BRANCH 1000 E. Kaley Street Orlando, FL COLONIAL HIGH SCHOOL BRANCH 6100 Oleander Drive Orlando, FL LAKE BRANTLEY HIGH SCHOOL BRANCH 991 Sand Lake Road Altamonte Springs, FL OAK RIDGE HIGH SCHOOL BRANCH 700 W. Oak Ridge Road Orlando, FL POINCIANA HIGH SCHOOL BRANCH 2300 S. Poinciana Boulevard Kissimmee, FL TIMBER CREEK HIGH SCHOOL PAW PRINT BRANCH 1001 Avalon Park Boulevard Orlando, FL LAKE NONA Pamela Romo Narcoossee Road Orlando, FL 32832

11 CELEBRATING THE PRESENT Branches ORANGE SEMINOLE OSCEOLA LAKE VOLUSIA ORANGE SEMINOLE OSCEOLA LAKE VOLUSIA 3,531 students reached through financial literacy = 50 4 College Partnerships 6 High School Branches 106 High School Tellers

12 LOOK TO THE FUTURE I will strive to ensure that CFE serves as a steward of positivity and prosperity in your life. Kevin S. Miller President and CEO CFE Federal Credit Union MEMBER FOCUSED EST. 1937