OUR MISSION Deliver valued solutions for all our members’ financial needs – whatever their stage in life.
CHRIS DICKMAN Chief Executive Officer
LETTER FROM THE PRESIDENT
My Fellow Members, It’s an understatement to say that this past year has been one of the most challenging in Carolinas Telco Federal Credit Union’s 87-year history. Our organization, nation, and global community experienced changes that we couldn’t have imagined previously. The way we work, live, and even our thinking has been upended like few other times in history. In the United States, the stressors brought on by the COVID-19 pandemic exposed deep societal, racial, and political fissures in our society. As the entire country was thrust into lockdowns, employers responded by shifting to remote work, while others closed their doors altogether. Millions of Americans were suddenly faced with dwindling options and scarce resources while attempting to survive in a grim new reality. Albeit in varied and different ways, we have all experienced the swift and far-reaching impacts of COVID-19. This was a year defined by stay-at-home orders, school closings, business shut-downs, and the loss of important milestones and moments in our lives. At the time of this writing, over 500,000 Americans have perished from COVID-19. While we will never stop mourning their loss, we can honor their memory by remaining committed to keeping each other safe. There is no mandate more important than doing our part to halt the spread of this virus. In response to the initial COVID-19 stay-at-home orders, we implemented remote work processes for our back-office support staff and critical employees. From March 18 - June 11, 2020, we closed our branch lobbies and exclusively served members via branch drive-thru lanes, digital banking, and through our contact center. We again closed our branch lobbies on January 19, 2021, due to a surge of positive COVID-19 cases
in our service areas. Other mitigating plans included creating critical workflows to keep our accounting, card services, electronic payments, and lending functions running without interruption. The transition required time, software, and equipment to ensure our remote workforce was equipped to fulfill their responsibilities and meet CTFCU’s service standards. To that end, creating a safe environment for our employees and members continues to be of utmost importance. We implemented the following safeguards in our branches: •
Installation of plexiglass shields at all member service areas.
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Hand sanitizing stations were made available for all members and employees.
•
Masks were provided for everyone in our branches and offices.
•
Social distancing markers were installed in every branch.
•
We limited the number of persons permitted inside our offices at one time.
•
COVID-19 education was provided to staff and credit union members through online platforms.
Even amid these daunting challenges, our Board Of Directors and Executive Team moved forward with plans to upgrade our internal and external technology platforms. This proved to be especially difficult as all parties were required to communicate and collaborate remotely, due to stay-at-home orders. In addition to their regular duties, our employees worked countless evenings and weekends for almost a year to prepare our systems for conversion. Our new core processor, online banking, mobile applications, and automated telephone banking systems were launched successfully on March 1, 2021. Thanks to the dedication of our talented staff, we have positioned ourselves to
offer our members exciting new products and services. These new platforms position us well to quickly scale our technology in an ever-changing world of advancements. This monumental undertaking will provide our members with a best-in-class, onestop-shop for all their financial needs for many years to come. Another strategic decision implemented in September 2020, increased our credit union’s competitive advantage in the markets we serve. CTFCU’s Board Of Directors ratified the approval from credit union regulators to change our membership charter. This means we can now serve an expanded group of potential members, allowing us to grow at a much faster pace. This gives us the ability to offer better loan and deposit rates and create more opportunities to give back to our communities through increased charitable endeavors. When we closed our books for the year ending 2020, we saw assets reach a record level of $552 million, an increase of approximately $107 million (24%), up from around $445 million at the close of 2019. Despite several negative macroeconomic factors and a low-interest-rate environment, we booked net income of $1.3 million in 2020. While this was significantly lower than our pre-pandemic expectations, I am proud of our credit union’s production, despite unprecedented headwinds. In closing, let me extend my heartfelt gratitude to all our members and every one of our extraordinary teammates for your patience and support as we continually re-engineer our business for operational success. I am also grateful to our volunteer Board Of Directors, who devote their valuable time each year in helping us fulfill our mission. I look forward to our future with hope and inspiration for what I believe we can achieve together.
Chris Dickman
SERVING OUR MEMBERS & COMMUNITIES In 2020, CTFCU served over 31,000 members in nine communities.
COVID-19 Response & CTFCU “Stimulus” Plan We introduced our own “Stimulus Plan” to assist our members who were negatively impacted by COVID-19, and implemented several changes across our organization to continue business operations safely.
To ensure the health and safety of our employees and members, we made the difficult decision to close our branch lobbies during the Spring of 2020. We continued to offer in-person member service through our drive-thrus, at our ATMs, and through our electronic platforms. While we understood the possible inconvenience this change could cause, CTFCU was committed to doing our part to slow the spread of COVID-19. Additionally, we developed our version of a “Stimulus Plan” to help our members who were negatively impacted by the pandemic’s economic hardships. CTFCU offered loan discounts on new auto, motorcycle, and some unsecured loans. We lowered or eliminated fees for real estate loans and even offered rebates. Members were permitted to take a one-time, penaltyfree withdrawal of up to $10,000 from a CD or Christmas Club account. To provide further relief, we waived insufficient funds fees and other punitive charges. These measures provided much needed assistance to our members during an unprecedented time.
School Supply Drive By partnering with schools and charitable organizations across our footprint, we donated 334 school supply items to several organizations throughout the Carolinas.
First in Families/ InReach - Charlotte NC
Chapel Grove Elementary School - Gastonia, NC
Teachers’ Supply Closet - Charleston , SC
Central Ave. Branch - Charlotte, NC
Woodruff Rd. Branch - Greenville, SC
International Credit Union Day
Outlet Point Branch - Columbia, SC
We celebrated International Credit Union Day across our branch network on October 15, 2020.
Home Run Rates Auto Loan Promo Our Home Run Rates Auto Loan Promo generated approximately $20 million in new vehicle loans. Team members participated in the promo by wearing our custom baseball jerseys on Fridays, and taking photos while encouraging our members to open auto loan accounts.
$20 Million in Auto Loans
Crisman St. Branch - Charlotte, NC To celebrate the success of our auto loan promo, we gave away YETI® coolers to three lucky members. Over 1200 entries were received during the three-month drawing period. Creedmore Rd. Branch - Raleigh, NC
Valued Member Response
I have completed auto loans with Leigh Anna and she is always fantastic! Love working with her and Carolinas Telco always has great rates! - Lauren H., Crisman Branch
Mortgage Loans In 2020, requests for mortgage-related services increased dramatically in all of our markets. To meet this demand, we expanded our mortgage team and improved our processes during the year. Through December 31, CTFCU booked 242 mortgage units totaling over $50 million, and opened 92 home equity lines (HELOC) for approximately $9.9 million.
MORTGAGE
$50 Million CTFCU grew mortgage loans by about $27 million when compared with our production during the same period in 2019.
Valued Member Response
HELOC
$9.9 Million New home equity line (HELOC) volume increased by $6 million during 2020 versus 2019.
The staff at Carolinas Telco could not be any better. They are friendly and go above and beyond to help me. They give correct information & always find the best solutions for my account. Thank you for taking care of me and my family for years. - Roni S., Greenville Branch
Mortgage Team MARLA Lending Manager
SHERRE
Mortgage Loan Specialist
CHRISTIAN Mortgage Loan Processor I
EMILY
Loan Admin. Specialist
LIN
Mortgage Loan Processor II
CTFCU Legacy Scholarship We pride ourselves in giving back to our members and the communities we serve. In 2020, we continued our partnership with Carolinas Credit Union Foundation to award several CTFCU Legacy Scholarships, worth $1,000 each. Congratulations to our winners!
ANNA
ELISE
NICOLE
CAITLIN
Valued Member Response
KAYE
I have been a member of this credit union for over 20 years now and just don’t know the words to describe the employees at this branch; specifically, Mr. Jackson. His level of professionalism, kindness, and willingness to always assist is impeccable, making him a true gem and amazing asset to this financial institution. - Sharon B., Central Branch
340
total Santa Helper Loans opened
Santa Helper Loans For each Santa Helper Loan opened in 2020, CTFCU donated $5.00 to support Humane Societies located in each of our markets. We raised over $1,700 to benefit the Humane Society of Charlotte, Pawmetto Lifeline in Columbia, Charleston Animal Society, Greenville Humane Society, and Second Chance Pet Adoptions in Raleigh.
$1,700 raised to Support Humane Societies
Membership Charter Change Since our founding in 1934, Carolinas Telco Federal Credit Union (CTFCU) solely focused on serving the financial needs of telecommunications workers and their families in North and South Carolina. As the years progressed, the concentration of eligible members decreased drastically, due to changing business conditions within the telecommunications industry we served. In response, CTFCU’s Executive Team crafted a plan to modify the credit union’s former single common bond membership charter. The National Credit Union Administration (NCUA) issued approval of CTFCU’s new multiple common bond charter in September 2020, allowing the credit union to embark on a new path forward. CTFCU’s updated charter makes credit union membership more widely available. Individuals belonging to an affiliated Select Employer Group (SEG) or Association, can now join the credit union. Also, residents within select zip codes deemed by the NCUA to be underserved areas for financial services are eligible. Finally, all Legacy Members (immediate family, household members, and current CTFCU members) will still retain their membership status.
Associations
Underserved Areas
Legacy Members
Select Employer Groups (SEG)
Technology Conversion Throughout 2020, CTFCU’s core teams were busy selecting vendors and planning a full-scale technology conversion. The project included a complete overhaul of all internal systems, external platforms, and online/mobile banking. We kicked off the project shortly before the first COVID-19 lockdowns began in March 2020. In light of this new reality, the credit union was faced with a decision: Postpone our plans, or push forward for the benefit of our members. We decided to continue with the upgrade, and after an entire year and a fully remote implementation, we’re proud to report a successful launch of our new platforms on March 1, 2021.
Online Banking
Automated Phone Banking Service
Mobile Banking
Valued Member Response
CardControl App
Self Service Online Account Options
I absolutely love my credit union. They have helped me out in so many ways! I’m so happy I decided to come back to them, after leaving [another bank] which was a nightmare! The staff is great, they make you feel like family! - Jasmine D., Central Branch
LARRY W. DAVIS Chairman
LETTER FROM THE CHAIRMAN
As we reflect on all that was 2020, it’s easy to focus on the collective challenges we faced in our nation, communities, and families. Even for a credit union as well-capitalized as ours is, CTFCU still had to grapple with the new reality of doing business during a global pandemic. Our infrastructure was tested like never before, as employees had to shift to remote work quickly, and members demanded increased access to electronic services. Mandated lockdown orders and sudden job losses meant unexpected financial hardship for many of our members. This dramatic drop in economic activity within our markets led to an equally swift decrease in the credit union’s loan and fee income. Despite these daunting circumstances, we took a long view and continued to act in our members, employees, and stakeholders’ best interest. Even before the pandemic, the Board Of Directors was busy working alongside our Senior Leadership Team to implement several new initiatives meant to position our credit union for the future. Two of the most impactful measures for our long-term success were updating our membership charter and overhauling our legacy technology. Carolinas Telco Federal Credit Union’s roots stretch back to 1934, when we were founded to serve Bell Telephone System’s employees in Charlotte, NC. We continued as Bell South’s and then AT&T’s credit union until we eventually opened membership to all telecommunications workers in North and South Carolina in 2006. While we remained steadfast in our commitment to our core member base, the telecommunications industry underwent massive changes, mergers, and restructuring. After much consideration, we decided to expand our membership charter to protect CTFCU’s long-term viability. To paraphrase the main idea of Professor George Land’s “Grow or Die: The Unifying Principle of Transformation” (1973), every business must continue to evolve or be displaced by more innovative firms. In September 2020, we launched our new membership charter, and now anyone in our markets can join Carolinas Telco FCU. From our viewpoint, this change coupled with our new online/ mobile technologies will allow the credit union to readily adapt to an evolving business climate. While 2020 fell short of our initial financial targets, we still ended the year on a positive note. Loan production, deposit growth, and net income were all in positive territory. When many financial institutions chose to cut workers to make a profit, we added employees as we look to grow our credit union. As the past year continues to fade into our collective memories, I hope we never forget just how resourceful and resilient we are. The Board Of Directors remains eternally grateful for the continued dedication of our staff and the loyalty of our members as we strive to ensure CTFCU’s success for our current and future members.
Larry W. Davis
CTFCU 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.
E. Leland Haywood
Larry W. Davis
Vice Chairman
Chairman
William L. Flowers
Mitchell D. McIntosh
James W. Rhodes
Director
Treasurer
Larry E. Shumpert
Director
Director
Lynwood Bowen
Director
Supervisory Committee 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, 2020. 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 (NCUA).
Lynwood Bowen
Chairman
John A. Gentry III
Committee Member
Valued Member Response
Daniel Lugo
Committee Member
We have been using this [credit union] for 9 years now. We operate a small business through this [credit union] as well as my personal account so I have to visit or talk to them very often. The customer service has been excellent every time! It is a [credit union] where everybody knows who you are and they make you feel like family. I can not say enough good things about all the people that work there. - Cool Change Heating and Air
MITCHELL D. MCINTOSH Treasurer
Treasurer’s Report
$72.38 Million
2020 Capital Dollars
$51.72 Million 2019-2020 Growth in Members’ Shares
Despite increased COVID-19 related operating costs and lower than expected income, Carolinas Telco FCU experienced another year of positive results. Total net income from continuing operations totaled approximately $1.33 million. Other operating highlights include total member deposits and loans increasing to over $423 million and $292 million, respectively. Our total member count decreased slightly due to system clean-up efforts to purge dormant accounts. However, member applications remained strong, and we closed out 2020 with 31,698 members.
$19.23 Million 2019-2020 Growth in Net Loans Receivable
13.11% 2020 Net Worth Ratio
Financial Highlights Below are 2020’s financial highlights, when compared with 2019. These figures were obtained from financial statements, audited by the Doeren Mayhew firm.
CONDENSED STATEMENTS OF REVENUES, EXPENSES, AND DIVIDENDS OPERATING REVENUE Gross Interest on Loans Investment Income Other Income TOTAL INCOME Operating Expenses INCOME BEFORE DIVIDENDS Dividends NET INCOME
*Dec. 31, 2020
*Dec. 31, 2019
$12,821,698
$12,125,941
$3,696,108
$4,157,397
$4,464,343
$4,774,864
$20,982,149
$21,058,202
$17,894,031
$15,353,938
$3,088,118
$5,704,264
$1,758,162
$1,676,132
$1,329,956
$4,028,132
* 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, 2020
Dec. 31, 2019
$292,113,222
$272,879,451
$21,149,637
$16,212,898
$220,021,864
$141,941,687
Property and Equipment — Net
$4,948,255
$5,264,831
Other Assets
$13,893,441
$9,186,422
$552,126,419
$445,485,289
Cash and Equivalents Investments
TOTAL ASSETS
LIABILITIES AND EQUITY
Dec. 31, 2020
Dec. 31, 2019
$3,181,738
$2,740,644
$50,000,000
--
Members’ Shares
$423,642,243
$371,918,203
Statutory Reserve
$11,222,510
$11,222,510
Undivided Earnings
$61,158,870
$59,828,914
Accumulated Other Comprehensive Loss
$2,921,058
($224,982)
$552,126,419
$445,485,289
Liabilities Note Payable
TOTAL LIABILITIES AND EQUITY
ctelco.org 1-800-622-5305
All information current as of March 17, 2021, 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.