2017 YEAR IN REVIEW
Letter from the President If I were to sum up the past year in a single word, it would be “progress�. Throughout this report, you will see how our activities are helping to improve the lives of our members and the communities we serve. Whether it be through investments in our employees, expanded service channels, or digital enhancements, we are firmly committed to offering industry-leading solutions that matter to you. As we move boldly into the future, we will continue to honor the rich history of our credit union. We stand firmly on our founding principles to consistently maintain a strong, secure, and innovative credit union. We are excited about the opportunities in front of us, and remain committed to serving the needs of our membership for years to come.
Chris Dickman
Serving our Members and Communities
R ALEIGH GR AND OPENING On Oc tober 19, our members, loc al leaders, and friends joined us to celebrate the grand opening of our new Raleigh branch.
In 2017, CTFCU served over 35,000 members and nine communities.
BACKPACK DRIVE Our donations to the First in Families’ Backpack Projec t fulfilled the needs of several children with development al disabilities and their siblings.
Love ♥ C TFCU! Amazing st af f. - Melinda, Valued Member
2017 MEMBER BENEFITS TOP PERFORMANCE AWARD WINNER C TFCU was recognized for providing out st anding member benefit s by the Credit Union National A ssociation.
166 lbs. of food were donated by C TFCU to Second Har vest and Lexing ton Inter faith Communit y Ser vices.
$2,500 DONATION TO OUR FUR FRIENDS We raised over $2, 50 0 to benefit loc al humane societies with the assist ance of your Sant a Helper Loans. A big thank you to our friends at the Humane Societ y of Charlot te for celebrating with us.
Best in the world! They have a great st af f that cares for their client s. - David, Valued Member
SWITCH 2 SAVE SUCCESS! We booked $21 MILLION in tot al c ar loans, which is the highest produc tion for a vehicle loan c ampaign in C TFCU histor y. Go team!
Letter from the Chairman Our all-volunteer Board of Directors worked diligently in assisting the credit union’s leadership with planning and oversight in 2017. I am happy to report another tremendous year of growth and improvement. Carolinas Telco FCU continues to showcase stellar performance in a number of areas, especially when compared with other credit unions. This is evidenced by our position in the top 15% of credit unions, from a net worth perspective. We also possess strong credit quality in our lending portfolios, while still making loans available to those who need them most. While financial performance is important, it’s people who make the difference. At Carolinas Telco, serving the financial needs of our members still remains our most important calling.
Larry W. Davis
Board of Directors Larry W. Davis, Chairman E. Leland Haywood, Vice Chairman Mitchell D. McIntosh, Secretary John A. Gentry III, Treasurer Lyn Bowen, Director William L. Flowers, Director Eugene W. Mitchell Jr., Director James W. Rhodes, Director Larry E. Shumpert, Director William B. Smith, Director Eddie M. Veale, Director
The Board of Directors sincerely applauds our employees for their dedication, and our members for their continued support of Carolinas Telco FCU.
Supervisory Committee Mitchell D. McInctosh, Chairman Maurice Holloway, Committee Member Daniel Lugo, Committee Member Wendy McPherson, Committee Member
The Supervisory Committee is made up of one director and four additional volunteer members of the credit union. We are charged with the responsibility of ensuring that CTFCU is operating in full compliance with established rules and regulations. The Doeren Mayhew Firm performed the annual financial audit for the year ended December 31, 2017. Based on our review of the audit and analysis performed during the year, it is the opinion of the Supervisory Committee that CTFCU is operating in accordance with the bylaws of the organization and rules and regulations of the National Credit Union Administration.
Treasurer Report John A. Gentry III, Treasurer From a financial prospective, our overall results for 2017 were positive. Net income from continuing operations totaled approximately $3.7 million. That gain was diluted by a one-time charge of approximately $5.2 million, which was due to the liquidation of our defined benefit plan. This decision was due mainly to the Board’s desire to allow our employees to take ownership of their accrued funds. Other operating results include member deposits increasing to over $356 million. In addition, net loans receivable increased to over $226 million and net members grew by more than 1,000, bringing our total to over 35,000.
$65
MILLION
14.42%
$22
$8
2017 C apit al Dollars
MILLION
2016 to 2017 G row th in Net Loans Receivable
2017 Net Wor th Ratio
MILLION
2016 to 2017 G row th in Members’ Shares
Financial Highlights Below are the 2016 and 2017 financial highlights, which were obtained from financial statements, which were audited by the Doeren Mayhew firm.
CONDENSED STATEMENTS OF REVENUES, EXPENSES AND DIVIDENDS Operating Revenue
*Dec. 31, 2017
*Dec. 31, 2016
Gross Interest on Loans
$9,397,553
$8,263, 722
Investment Income
$4,222,544
$3,968,540
Other Income
$4,093,204
$3,901,787
Total Income
$17,713,301
$16,134,049
Operating Expenses
$17,903,230
$12,379,365
Income Before Dividends
($189,929)
$3,754,684
Dividends
$1,379,202
$2,357,701
Net Income
($1,569,131)
$1,396,983
* For the year ended. // Above is certain information concerning the financial position and results of operations of Carolinas Telco FCU, as of the dates indicated. This data is derived from, and should be read in conjunction with, the audited financial statements of Carolinas Telco FCU.
CONDENSED STATEMENTS OF FINANCIAL CONDITION Assets
Dec. 31, 2017
Dec. 31, 2016
Loans Receivable - Net
$225,687,807
$203,036,922
Cash and Equivalents
$18,766,345
$18,489,748
Investments
$187,059,412
$169,579,271
Property and Equipment - Net
$4,740,301
$3,745,550
Other Assets
$14,881,797
$13,649,380
Total Assets
$451,135,662
$408,500,871
Liabilities and Equity
Dec. 31, 2017
Dec. 31, 2016
Liabilities
$2,912,676
$2,247,476
Note Payable
$30,000,000
$0
Members’ Shares
$355,591,699
$346,889,111
Statutory Reserve
$11,222,510
$11,222,510
Undivided Earnings
$53,817,592
$55,386,723
Accumulated Other Comprehensive Loss
($2,408,815)
($7,244,949)
Total Liabilities and Equity
$451,135,662
$408,500,871
800-622-5305 ctelco.org
All information current as of March 9, 2018, and all information, including rates, are subject to change. All services, such as loans, credit cards and checking accounts, are subject to approval. For information regarding the rates and services you may qualify for, contact any credit union branch.