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ERIE FCU IS A STRONG FINANCIAL INSTITUTION

Financial Overview

Fred Tonty, CFO

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The more things change — the more things stay the same — at least as far as the financial condition of Erie Federal Credit union goes. 2018 was another outstanding year for Erie FCU and very similar to 2017 — despite FED rate hikes, challenges in the local economy, increased regulatory pressure, government shutdowns, tariff battles and a very volatile stock market. Amid local and global chaos, Erie FCU continues to show financial strength as income exceeded $2.7 million, including a December declaration by the Credit Union to pay a Patronage Bonus of nearly $600,000 to our membership for a second straight year. The Bonus will be paid in January of 2019. Assets increased over $11 million as Erie FCU continues to expand its membership base in Erie and Crawford counties. Loans grew a robust 13.78%, once again far exceeding expectations as Erie FCU remains top of market in loan and deposit rates and product offerings. Capital remained very strong at 11.48%, well above NCUAs adequately capitalized threshold of 7%. (continued on next page)

Year Ending December 31, 2018

Assets

2018

2017

Member Loans $ 287,320,384 $ 252,530,214 Allowance for Loan Losses (2,142,790) (1,791,985) Cash 8,697,142 9,659,825 Investments 145,048,550 173,278,397 Building/Equipment 22,171,464 22,595,001 All Other Assets 31,373,765 9,542,472 Total Assets $ 492,468,515 $ 465,813,924

Liabilities Member Savings $ 422,832,410 $ 411,115,546 Reserves 5,365,745 5,365,745 Unrealized Loss/Gain for AFS CMOs (984,485) (578,893) Undivided Earnings 51,163,123 48,458,571 Other Liabilities 14,091,722 1,452,955 Total Liabilities $ 492,468,515 $ 465,813,924

Earnings Loan Interest $ 13,990,727 $ 12,277,797 Income from Investments 3,578,103 3,382,070 Fee & Other Income 7,655,866 6,908,664 Total Earnings $ 25,224,696 $ 22,568,531

Interest Expense $ (108,294) Dividends Total Interest Expense

$ (3,318,323) $ (3,426,617)

$ (58,977) $ (2,975,361) $ (3,034,338)

Operating Expense Compensation, Taxes, Training $ 8,751,414 $ 7,840,079 Occupancy & Operation 4,291,283 3,829,161 Promotion & Education 590,902 607,297 Loan Processing 2,326,410 2,074,781 Outside Operation Service 1,018,911 904,517 Member Insurance 15,354 14,951 Federal Supervision 118,277 97,984 Other Expenses 1,980,976 1,608,626 Total Operating Expenses $ 19,093,527 $ 16,977,396

Net Income

$ 2,704,552

$ 2,556,797

Profile for Erie FCU

2018 Erie FCU Annual Report  

2018 Erie FCU Annual Report

2018 Erie FCU Annual Report  

2018 Erie FCU Annual Report