52nd Annual Membership Meeting
Thursday, May 25, 2023
Welcome
Agenda
Annual Meeting Minutes
Chair Report
Pages 2 – 3
Pages 4 – 5
CEO/Treasurer’s Report Page 6
Supervisory Committee Report Page 7
Nominating Committee Report Page 8
Financials Page 9
2022 Community Impact Report Pages 10 – 14
Thank You
Board of Directors
Bob Greek: Chair
Ted Stubenbordt: Vice Chair
Robert Flanyak: Treasurer
Broc Sleek: Secretary
Mary Ellen West: Director
Chuck Rogers: Director
Tim Blake: Director Supervisory Committee
Greg Madej: Chair
Wendy Kingsland
Mary Ellen West
Kelsey Beal
Eric J. Perrell
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Annual Membership Meeting Minutes
CHROME Federal Credit Union Meeting Minutes
51st Annual Membership Meeting Minutes
May 26, 2022
The 51st Annual Membership Meeting of CHROME Federal Credit Union was held on Thursday, May 26, 2022 at 5 pm, virtually on the ZOOM platform.
The following directors were present/absent (*indicates absence): Ted Stubenbordt, Robert Flanyak, Tim Blake*, Broc Sleek, Mary Ellen West, Chuck Rogers* and Robert Greek. The following supervisory committee members were present/absent (*indicates absent): Greg Madej, Mary Ellen West*, and Wendy Kingsland.
Twenty-one members of CHROME Federal Credit Union were present.
Chair Greek asked if there was a quorum present. The Secretary declared a quorum of directors and members present.
The Chair asked for a motion to dispense with the reading of last year’s minutes. Upon motion made by Mr. Stubenbordt and seconded by Mr. Madej, the motion carried was approved.
The 51st Annual Meeting was called to order by Chair Greek. He thanked everyone for coming and recognized Board members past and present. Mr. Greek proceeded to review the Chair Report. He highlighted CHROME’s primary focus is to ensure the strength of the Credit Union for today and strategic direction for years to come. Additionally, the Leadership of CHROME FCU is focused on implementing new ways to improve the Credit Union experience for all members. In closing, Mr. Greek mentioned CHROME is always looking for members interested in volunteering.
Chair Greek turned the meeting over to Mr. Flanyak who reviewed the President’s and Treasurer’s Report. Mr. Flanyak reviewed and highlighted how CHROME is measured. Mr. Flaynak noted Earnings and Capital were strong, considered “Well Capitalized” by the NCUA. Mr. Flanyak, additionally explained, our loans grew by expanding our services to small businesses and offering a 3% cash back promo for Credit Cards. Deposits were strong with many members receiving stimulus checks and paying off debt. Lastly, CHROME won the Dora Maxwell Social Responsibility Community Service Award for CHROME’s work in the community.
Following Mr. Flanyak’s report, the Chair turned the meeting over to Mr. Madej, Chair of the Supervisory Committee. Mr. Madej noted CHROME retained Zeno, Pockl, Lilly, and Copeland, A.C. to perform the Annual Independent Audit of the Credit Union as of December 31, 2021. Mr. Madej explained due to the pandemic and restrictions most of the examination work has taken place off-site with documents being securely transmitted electronically between CHROME the auditors. There were no questions on the Supervisory Committee’s report.
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Chair Greek then gave the 2022 Election Results.
In accordance with CHROME Federal Credit Union by-laws, Mr. Jim Naser, Mr. Broc Sleek and Mr. Tim Blake were appointed to the Nomination Committee by the Chairperson of the Board of Directors, Mr. Greek.
Chair Greek noted there were no petitions filed. The following candidates were elected to the Board of Directors of CHROME Federal Credit Union:
• Bob Greek, Term of 3 years
• Ted Stubenbordt, Term of 3 years
• Chuck Rogers, Term of 3 years
Chair Greek entertained any questions from the floor. There were no questions from the audience.
Chair Greek asked for a motion to approve all the reports submitted in the 51st Annual Meeting pamphlet. A motion was made by Ms. Morrissey and seconded by Mr. Naser. The motion carried.
Chair Greek asked for a motion to adjourn the 51st Annual Meeting. A motion was made to adjourn by Mr. Flanyak, seconded by Mr. Stubenbordt. The motion carried. The meeting was adjourned at 5:32 pm.
Secretary Chair
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2023 Chair Report
On behalf of the Board of Directors, I would like to thank you for joining us in this celebration of our 52nd year here at CHROME Federal Credit Union. We began as Employees of Washington Steel and today our field of membership includes these eight Southwest Pennsylvania counties – Allegheny, Armstrong, Beaver, Butler, Greene, Fayette, Washington and Westmoreland.
There are many advantages of Credit Unions over Banks:
• Fewer fees and requirements: Credit unions are more likely to offer checking accounts without monthly maintenance fees or minimum balance requirements.
• Better rates on saving accounts and loans: Credit unions offer higher interest rates on savings accounts and lower rates on loans-exactly what consumers want.
• Attentive member/customer service: Credit unions are smaller and committed to serving their members, not investors. Credit union representatives will give you personalized attention and HELP you identify the best products for your needs.
Credit unions work closely with their federal regulators to make certain that they are adhering to the strict rules and regulations set forth to ensure the protection of the financial health of member deposits. The National Credit Union Administration (NCUA) insurance guarantees up to $250,000 per share owner, per insured credit union, for each account ownership category, should the credit union close or go into conservatorship.
Here at CHROME our financial strength has not wavered and will continue to withstand the test of time. We offer the latest in technology and online banking ease 24/7. We don’t have sales goals or quotas to hit when it comes to our products. The GOAL is to HELP and serve our membership with their specific needs. We are growing every day, introducing more members to the credit union advantage. During the past 52 years, CHROME has served our members through recession and inflation. Our volunteers and professionals have demonstrated courage, determination, and dedication to the principles that have allowed our credit union to grow. As a financial cooperative, we don’t have the pressure of having profits to pay investors. Our members’ financial needs are top priority period! We provide the human touch!
There are many advantages to your membership in CHROME. It is no secret that we want to be your primary financial institution; we all know it’s important to not put all of your eggs in one basket; however; we would like to have the majority. That means we would like your savings and checking accounts; we appreciate your loan business, and we want to help with your investments needs. The more business you do with us, the more you benefit from the relationship that we build together. A long-term partnership allows us to better anticipate your needs so we can recommend the appropriate products and services, such as our home banking system.
It is evident that our continued success is in direct relationship to our members’ participation in our common purpose of providing competitive products and services that, in turn, enhance our members’ personal financial well-being.
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As a member-owned financial service cooperative, CHROME is always looking for interested members who would like to participate in leading our organization for the benefit of all members. If you would like to volunteer for any position, please send a letter of interest. In your letter, be sure to provide any credit union-related experience, your credit union philosophy, and why you are interested in serving. As I can personally attest, being a volunteer in the credit union movement for 50 years has been a rewarding endeavor.
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2023 CEO/Treasurer’s Report
The financial results CHROME Federal Credit Union posted in 2022 can be summarized in one word, Outstanding!
As our communities started to emerge from a global pandemic, CHROME was there to help our member-owners with their lending and deposit needs.
Loan balances grew by over 15%, on par with our peers, with credit cards, home equity, and commercial loans leading the way. As part of our evaluation process, we look for ways to save our members money. From September to December, we saved our members an average of $150 a month, or $1,800 a year, by refinancing their high-interest loans from other lenders into CHROME. Members used that savings to reduce debt or create a rainy-day emergency fund.
Loan delinquencies remained substantially lower than our peers, which is a testament to our sound underwriting and collections practices, along with the commitment of our borrowers to make good on their obligations. When our members fall on hard times, we work to get them on the right track with common sense suggestions. When our collections manager receives thank you notes from members, we know we are doing something right.
Without members putting their funds into CHROME, we could not fund as many loans as we did in 2022. Deposit growth was well above our peers at 7.5% as members searched for a safe place for their funds.
We continue outperforming our peers in Capital reserve accumulation and Earnings, which makes our federal regulators happy. At the same time, it gives us the ability to give back to our community and invest in new technology and staff development, with the purpose of helping to improve the financial well-being of our member-owners.
Our efforts received outside validation:
• The readers of the Observer-Reporter voted CHROME as the “Best Overall Business Washington County.”
• Our regional trade association, CrossState Credit Union Association, awarded us the Dora Maxwell Social Responsibility and Community Service Award, which makes us eligible for the national award.
• Bauer Financial, the nation’s premier independent bank and credit union rating firm, awarded CHROME their highest rating of 5 Stars for financial strength.
Our successes would not have been possible without the guidance of our dedicated volunteer Board of Directors and Supervisory Committee members, our enthusiastic employees, and the loyalty and support of our 14,600 member-owners.
Respectfully Submitted,
Robert Flanyak President/CEO/Treasurer
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2023 Supervisory Committee Report
The Supervisory Committee is a committee that is appointed by the Board of Directors and consists of existing members of the credit union. This committee must have a minimum of three and no more than five members. Committee members in 2022 included Gregory P Madej, Chair, Mary Ellen West, Wendy Kingsland and newly appointed members Kelsey Beal and Eric Perrell.
The primary function of the Supervisory Committee is to ensure that the Board of Directors and senior management are executing the policies of the credit union as governed by the National Credit Union Administration. The Supervisory Committee also monitors the general ledgers and the overall financials of the credit union ensuring limited risk in investments, lending and to ensure that the credit union remains profitable, liquid and well capitalized.
The Supervisory Committee retained Zeno, Pockl, Lilly, and Copeland, A.C., to perform the Annual Independent Audit of the financial statements of CHROME Federal Credit Union. ZPLC issued the audit findings with a clean opinion and no issues noted. Most of the examination work has been taking place off-site with documents being securely transmitted electronically between CHROME and the auditors. This process has worked smoothly.
Respectfully Submitted,
Gregory P. Madej Chair, Supervisory Committee
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2023 Nominating Committee Report
In accordance with CHROME Federal Credit Union by-laws, Jim Naser, Broc Sleek, and Ted Stubenbordt were appointed to the Nomination Committee by Chair of the Board of Directors.
Since no petitions were filed, the Nomination Committee submits the following members to fill a position on the Board of Directors:
• Robert Flanyak, Term of 3 years
• Mary Ellen West, Term of 3 years
• Tim Blake, Term of 3 years
Respectfully Submitted, Nomination Committee
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Financials
Key Metrics
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12/31/2022 12/31/2021 Total Loans $ 141,963,896 $ 122,843,148 Cash and Investments $ 42,076,210 $ 44,112,018 Fixed Assets $ 5,627,267 $ 5,799,385 NCUA Share Ins Fund Deposit $ 1,509,627 $ 1,474,781 All Other Assets $ 3,703,500 $ 1,932,908 TOTAL ASSETS $ 194,880,500 $ 176,162,240 Total Liabilities $ 6,248,409 $ 428,169 Total Shares $ 163,389,075 $ 152,052,755 Total Equity $ 23,766,218 $ 20,109,273 Net Income $ 1,476,798 $ 3,572,043 TOTAL LIABILITIES & EQUITY $ 194,880,500 $ 176,162,240 Capital Ratio 12.95% 13.44% 10.65% Return on Assets 0.80% 2.11% 0.68% Loan/Share Ratio 87.39% 81.30% 67.59% Delinquency Ratio 0.19% 0.19% 0.51% Loan Growth 15.52% 6.80% 16.19% Share Growth 7.46% 6.98% 4.94% Members/Employees 337 358 361
12/31/2022 12/31/2021 Peer
2022 Community Impact Report
Over $20K in sponsorships & donations to local community organizations and foundations
In 2022, CHROME ‘s focus was on community connectedness through volunteering and education. These two community impact pillars were at the center of every event, sponsorship, outreach, program, and volunteering effort made by CHROME and its employees.
As a resource for financial and vocational education to the community we serve, the goal was to increase access and awareness, find more ways to provide resources to the community, and to connect with other nonprofits and programs with aligned priorities to help them deliver on their mission.
172,800 lbs of produce handed out with assistance of CHROME employees to the community through The Salvation Army Monthly Produce Drive Thru
8 School Districts supported through sports, academic, & theater sponsorships, donations, financial literacy programs, & guest classroom speakers
100 High School Students attended a “Fun with Budgeting” breakout session with CHROME FCU
This focus showed up in various activities like financial education to student and women groups, guest teaching experiences at local high schools, handing out thousands of pounds of produce every month, and more. CHROME’s outreach in the past year continued to reach more underserved groups and provided more access to important resources for the whole community.
Through education, CHROME worked with local school districts to provide vocational resources to students interested in finance, cybersecurity and the marketing industries. They gave of their time and knowledge hosting workshops for local accounting students, teaching classes at local high schools, and stepped into needs the schools had for local field experts.
Also, through education, the commitment to providing Financial Wellness to All was rolled out to the membership and the community as a whole. CHROME amped up the financial education sharing by being available at community events like the All for Her event, hosting around 400 women who attended for motivational and education resources. Employees went the extra mile to host “Fun with Budgeting” break-out
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1,251 Presents
sessions, a webinar “Money Concepts for Teens & Young Adults” for high school students and their parents. Through CHROME’s nonprofit partnership with GreenPath Financial Wellness, we were able to provide a website full of financial education tools and connection to financial counselors all complimentary to the community.
Our financial resources are made available to everyone, members and nonmembers. Our goal is to serve our members and provide them the best resources to find the path to live financially well, but we would be remiss to not take the tools we have available and provide it to our communities that need it as well. Working together for the advancement of the whole community, particularly our underserved, helps everyone win.
CHROME employees continue to rise to the call to serve their community through their volunteer efforts. Every employee clocked volunteer hours in 2022, with an average of 17 hours each. CHROME’s leaders, employees, and Board of Directors are engaged in the betterment of the community through action. The hours of distributing produce to those in need, helping to prepare local families to go back to school with the supplies and backpacks their children need to be successful, and rolling up their sleeves to donate blood are a few examples that demonstrate that commitment.
We may not be the biggest financial institution in town or have the biggest budget to donate to every organization, but our team members are committed to jumping in and making a difference through action. We are proud to see the accomplishments of our team in the community, and look forward to continuing to be a valuable resource for many years to come!
78 Blood Donations in partnership with Vitalant and the American Red Cross 776 Volunteer Hours performed by CHROME employees Average 17 hours per employee 100% of all employees logged community service hours
CHROME employees assisted with The Salvation Army’s Toy Distribution for children & teens to receive their wish list Christmas gifts Page 11
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CHROME hosts Trinity High School’s Accounting students for a day at the credit union.
CHROME employees, Marti Miller & Anthony Zanolla, pack vehicles with food produce boxes at The Salvation Army’s monthly Produce Drive Thru.
CHROME President & CEO, Bob Flanyak, and Senior Vice President, Chief Lending Officer, Jim Naser, pack bookbags with supplies for The Salvation Army’s Back to School Efforts.
CHROME’s Chairman of the Board, Bob Greek, rolls up his sleeve for his 92nd lifetime blood donation!
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CHROME’s Senior Vice President, Chief Information Security Officer, Eric Kirk, joins Trinity High School’s Intro to Cybersecurity class for a guest lecture.
CHROME’s Senior Vice President, Chief Talent Officer and nonprofit, Christopher Kitchen’s Executive Director pose for a photo for snacks collected to go to the pantries at Children’s Hospital for parents caring for a child.
CHROME Federal Credit Union is announced first place in the Observer-Reporter’s Best of the Best awards, Best Credit Union and Best Overall Business Washington County, as voted on by the community.
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CHROME’s Director of Retail Operations, Michele Wilson and Director of Marketing, Jasmine Hughes, teach “Fun with Budgeting” a breakout session at the Power of Her conference which included students from each High School in Washington County.
CHROME Care employees, Beth Dillard & Jenna Bartug, ring the bell at Sam’s Club in December for The Washington Salvation Army.
