MISSION Deliver valued solutions for all our members’ financial needs – whatever their stage in life.
LETTER FROM THE PRESIDENT My Fellow Members,
I’d like to begin this letter with a simple “thank you.” Your support over this last year has fueled our successes, and I am grateful for the confidence you’ve placed in our credit union. Your loyalty has allowed us to forge a solid path with enough growth and capital, to in turn provide you with a first-class financial institution.
CHRIS DICKMAN Chief Executive Officer
As I look back on the last year – a period of profound political and economic change – it is remarkable how much we have accomplished, not only in terms of financial performance, but in our steadfast dedication to help our members and communities throughout our footprint. Our world is changing faster than ever before. The traditional consumer expectations of price versus speed of service have all been drastically redefined by technology. It is our responsibility to understand those trade offs and react accordingly. While we are proud of our progress, we are even more grateful and humbled by the trust you’ve placed in us, as we strive to deliver unparalleled member service through all channels.
SERVING OUR MEMBERS & COMMUNITIES In 2019, CTFCU served over 37,000 members in nine communities.
We helped
253 individuals
249 Supply-filled Backpacks
SCHOOL SUPPLY DRIVE By partnering with schools and charitable organizations across our footprint, we were able to make a difference in the lives of 253 school children, with 249 supply-filled backpacks.
INTERNATIONAL CREDIT UNION DAY We celebrated International Credit Union Day across our branch network on October 17, 2019.
TOTALLY AWESOME AUTO LOANS To celebrate our 85th year of member service, our Totally Awesome Teams generated over $20 million in new vehicle loans!
CTFCU LEGACY SCHOLARSHIP We pride ourselves in giving back to our members and the communities we serve. In 2019, we continued our partnership with Carolinas Credit Union Foundation to award four CTFCU Legacy Scholarships, worth $1,000 each. Congratulations to our winners — Abbey, Destinee, Nicholas, and Rhett.
VALUED MEMBER RESPONSE I’ve had over 30 years of courtesy and smiles from these amazing people! — Mary
SANTA HELPER LOAN For each Santa Helper Loan opened in 2019, CTFCU donated $5.00 to support Humane Societies located in each of our markets. We raised over $2,000 to benefit the Humane Society of Charlotte, Pawmetto Lifeline in Columbia, Charleston Animal Society, Greenville Humane Society, and Second Chance Pet Adoptions in Raleigh.
1933 Around 60 credit unions existed in North Carolina 1934 Carolinas Telco Credit Union (CTCU) was formed when deposits were being taken in change and loose bills at the original “Old Dial Building” on North Caldwell St. in Charlotte, NC, to serve personnel of the Bell System. 1940 Over 120 credit unions existed in North Carolina 1937 The Board of Directors elected to become a state-chartered credit union. CTCU makes its first loan to a member for a tonsillectomy
1962 A new “Ninety-day” renewable loan service was made available to CTCU members. 1974 Second CTCU branch is opened in Raleigh, NC
1986 CTFCU began offering ATM cards to use at the new Automated Teller Machines across the US. CTFCU holds its first new car sale.
1977 CTCU branch on Crisman St. in Charlotte, NC is opened in a trailer.
1987 CTFCU Automated Teller Machines became available.
1979 CTFCU branch on Central Ave. in Charlotte, NC is opened. 1979 CTCU converted from a state charter to a federal charter and was renamed Carolinas Telco Federal Credit Union (CTFCU). 1978 The year of convenience took hold and CTCU began offering Visa® Credit Cards.
1988 CTFCU branch in Charleston, SC, is opened. 1997 CTFCU joins the Internet with ctelco.org CTFCU branch on SharonWest Rd. in Charlotte, NC, is opened. 1993 CTFCU branch in Greenville SC, is opened. CTFCU offered an “NFL Loan” when the Carolinas caught NFL fever. 1988 CTFCU branch in Gastonia, NC, is opened.
19 3 4 -2 0 19 2000 Online banking with NetBranch is offered to members. CTFCU branch on Outlet Pointe Blvd. in Columbia SC, is opened.
2016 Disaster Relief Loans helped over 300 members affected by Hurricane Matthew.
2005 CTFCU branch in Cornelius, NC, is opened. 2008 CTFCU’s Call Center begins to provide members with 24/7, “one-stop” telephone service. Rewards Checking and Health Saving Accounts were introduced. 2006 CTFCU converted to a TIP (Trade, Industry, and Profession) charter opening its field of membership to all telecommunications employees, retirees, and family members in North and South Carolina.
2017 The CTFCU Legacy Scholarship was created.
2019
CTFCU celebrates 85 Years of quality service for its m embers as a credit union.
2019 marks 85 years since Carolinas Telco Federal Credit Union (CTFCU) first opened its doors for members in need of the Credit Union’s services. When CTFCU originally served the personnel of Southern Bell Telephone & Telegraph, the company’s bonds were decorated with wonderfully ornate details. These illustrations featured the ancient Greek Pantheon deities, Athena and Hermes, the embodiment of wisdom and communication. Even today, these traits are still a powerful representation of our Credit Union and the telecommunications industry we serve.
GREENVILLE BRANCH RELOCATION On November 12, branch operations in Greenville resumed following a successful relocation. Representatives from each area of the credit union were on-site to ensure all systems were properly functioning for the benefit of our members.
VALUED MEMBER RESPONSE I sincerely appreciate the top-notch banking experience... — Brittany
NEW ATMs In 2019, CTFCU installed many new ATMs to serve our members across North and South Carolina.
LETTER FROM THE CHAIRMAN
On behalf of the Board of Directors and our entire team, I am pleased to report another banner year of outstanding financial results for CTFCU. Our credit union continues to outperform many of our peers in key metrics including, return on assets, operating expense, and net worth. As we look toward the future, the Board has approved several strategic initiatives to replace our legacy technology systems. Over the coming years we will implement new financial, lending, online/mobile banking, and core platforms. This enormous undertaking will significantly improve the efficiency of our business, allowing us to provide additional convenience to our members. Whether you choose to do business with us in a branch or remotely, we’ll be here to deliver the services you expect. We are grateful for the opportunity to serve you and are excited about the future we’re building together.
LARRY DAVIS Chairman
Larry W. Davis
E. Leland Haywood
Mitchell D. McIntosh
John A. Gentry III
William B. Smith
Lyn Bowen
Chairman
Secretary
Director
Vice Chairman
Treasurer
Director
BOARD OF DIRECTORS The Board of Directors sincerely applauds our employees for their dedication, and our members for their continued support of Carolinas Telco Federal Credit Union.
William L. Flowers
Director
James W. Rhodes
Director
Larry E. Shumpert
Director
SUPERVISORY COMMITTEE
VALUED MEMBER RESPONSE
The Supervisory Committee is made up of one Chairman and two volunteer Committee Members. 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 ending December 31, 2019. 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 by-laws of the organization and regulations set forth by the National Credit Union Administration.
Lyn Bowen
Chairman
Maurice Holloway
Committee Member
Daniel Lugo
Committee Member
Best car buying options in the state. — Matt
TREASURER’S REPORT $71 MILLION 2019 Capital Dollars
$32.31 MILLION
2018-2019 Growth in Net Loans Receivable
15.95%
2019 Net Worth Ratio
$13.61 MILLION
2018-2019 Growth in Members’ Shares
From a financial perspective, Carolinas Telco FCU experienced another year of positive results. Total net income from continuing operations totaled approximately $4.03 million. Other operating highlights include total member deposits and loans increasing to over $371 million and $272 million, respectively. 2019 was another solid growth year with more than 1,770 new members, bringing our total credit union membership to well over 37,000.
JOHN A. GENTRY III Treasurer
FINANCIAL HIGHLIGHTS Below are the 2019 and 2018 financial highlights, which were obtained from financial statements, audited by the Doeren Mayhew firm. CONDENSED STATEMENTS OF REVENUES, EXPENSES, AND DIVIDENDS OPERATING REVENUE
*Dec. 31, 2019
*Dec. 31, 2018
$12,125,941
$10,515,465
$4,157,397
$4,332,113
$4,774,864
$4,967,798
$21,058,202
$19,815,376
$15,353,938
$14,473,991
$5,704,264
$5,341,385
Dividends
$1,676,132
$3,358,195
NET INCOME
$4,028,132
$1,983,190
Gross Interest on Loans Investment Income Other Income TOTAL INCOME Operating Expenses INCOME BENEFITS DIVIDENDS
* 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 Loans Receivable — Net
Dec. 31, 2019
Dec. 31, 2018
$272,879,451
$240,570,325
Cash and Equivalents
$16,212,898
$7,661,062
Investments
$141,941,687
$175,134,245
Property and Equipment — Net
$5,264,831
$4,867,326
Other Assets
$9,186,422
$9,551,821
$445,485,289
$437,784,779
TOTAL ASSETS LIABILITIES AND EQUITY Liabilities
Dec. 31, 2019
Dec. 31, 2018
$2,740,644
$5,893,828
--
$11,000,000
Members’ Shares
$371,918,203
$358,303,506
Statutory Reserve
$11,222,510
$11,222,510
$59,828,914
$55,800,782
($224,982)
($4,435,847)
$445,485,289
$437,784,779
Note Payable
Undivided Earnings Accumulated Other Comprehensive Loss TOTAL LIABILITIES AND EQUITY