Caring for you and the communities we serve.
TABLE of CONTENTS
Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Chairperson Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Supervisory Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Treasurer Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Statement of Financial Condition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Nominating Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 GECU Cares 2021 Round-Up. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2022 Strategic Direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Sponsorships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Improving the Quality of Financial Lives
BOARD of DIRECTORS
Mary Cay Vessells
Cheryl Hill
1st Vice Chairperson
2nd Vice Chairperson
Richard Ille
Timothy D. Ballinger
Jerry Cabe
Perry Engstrom
Gayle Nyswonger
Robert Peak
Secretary/Treasurer
President & CEO
Supervisory Committee
Annual Meeting Committee
Nominating Committee
Teller for Board of Directors Election
Clifford Hackney, Chairperson Frank Dossman Michael Johnson, Chairperson
CPA Firm BKD, LLP
2
Michael Johnson
Chairperson
Jill Lingo, Kelly Blount, and Angela Bachmann CUBallot
CHAIRPERSON Report Mary Cay Vessells Chairperson In terms of financial health, I am pleased to report another successful year for our Credit Union. The financial foundation upon which General Electric Credit Union (GECU) rests is structurally sound. The theme from the Credit Union’s 2021 overall efforts was Performance Through Principles. Having successfully worked through the pandemic’s impacts in 2020, we wanted to ensure we performed well again in so many important ways. First and foremost, we wanted to be there to meet our members’ financial needs. In addition to opening two new branches in Eastgate and South Lebanon, we continued our investment in digital technology. This allowed us to give you the ability to schedule branch appointments online and utilize the Secure Chat feature in our mobile app.
4
With these and other efforts, we grew our total Online Banking and mobile app user base by nearly 20% and 21%, respectively, compared to 2020. In addition to our digital efforts, 2021 also saw growth for many of our products and services. We opened nearly 7,000 checking accounts, a 23% increase over the prior year. Members continued to keep their GECU debit card “top-of-wallet” as card usage also saw a significant increase compared to 2020, with 23% more transactions. On the lending side, we financed over 35,000 automobile loans for $1.1 billion, an increase of 28%. We also closed more than 125 business loans for more than $231 million. Our credit cardholding members continued to take advantage of our cards’ great rates and excellent features. In fact, our credit card transactions for the year increased by 11% compared to 2020.
Members continued to keep their GECU debit card top-of-wallet as card usage also saw a significant increase compared to 2020, with 23% more transactions. Our teams worked hard through their daily challenges in 2021, and we were there to support them. We continued to offer numerous learning opportunities to help our team members deepen their understanding of our products and services, as well as job skills, compliance, financial counselor certifications, and additional development topics. Additionally, our ongoing Foundations of Leadership Program provided professional development resources for nearly 100 executive and management leaders.
In 2021, we expanded our commitment to giving back to our communities, through a variety of initiatives. Our GECU Cares program provided team members an avenue to donate their time and energy to numerous giveback events. Team members also reached into their own pockets to support local organizations. Through sponsorship participation and donation dollars, our Sponsorship Committee helped support several worthy causes each quarter of the year. Likewise, we continued our annual tradition of awarding the Robert A. Cunningham Memorial Scholarship to local high school seniors who embody the spirit of volunteerism. I’m excited to build upon the momentum from last year’s giveback efforts to make an even bigger impact in 2022.
is the most powerful way to make a difference. We’re just at the beginning of this year’s journey, and I look forward to the many opportunities we have to demonstrate our care for you, our team members, and our communities. As we continue through the year, please let us know what we can do to continually improve your experience as a GECU member; sharing your voice helps us learn and evolve as your financial partner.
If we can take anything away from the past two years, it’s that caring for one another
5
National Foodbank Day
Check Presentation to The Magnolia Resource
6
Habitat for Humanity
SUPERVISORY COMMITTEE Report Clifford Hackney Supervisory Committee Chair The primary responsibility of the Supervisory Committee, working with both internal and external auditors, is to protect the welfare of the Credit Union’s members, officials, and team members. Safety of funds, protection of members’ balances, and the determination of accuracy in maintenance of accounts and records are under our authority. Your role is to report to this committee any transaction you consider unusual or not in agreement with your records. Working together, we will ensure the continued protection of funds for the Credit Union. In 2021, the financial records of your Credit Union were audited on a continual basis and we found them to accurately represent the true financial
condition of the Credit Union. Additionally, we conducted several account verification audits by asking members to confirm the accuracy of the Credit Union’s records against their own. Under the direction of the Supervisory Committee, the certified public accounting firm of BKD, LLP assisted us by performing our annual audit. The annual examination by the State of Ohio and the National Credit Union Administration was also performed and the Credit Union was found to be in compliance with the laws and regulations set forth by the Ohio Division of Financial Institutions and the National Credit Union Administration. Based on the results of these audits, I am pleased to report your Credit Union is well managed and financially sound.
7
TREASURER Report Richard Ille Secretary/Treasurer As your Treasurer, I am delighted to report we remain one of the most financially sound credit unions in the country. While we were still presented with various economic challenges, we continued to grow at a significant pace and maintained momentum into 2022. The Credit Union is $3.9 billion in total assets holding our place as one of the largest locally based financial institutions in the Greater Cincinnati area. In 2021, we strengthened and grew an already strong loan and deposit portfolio; our loan portfolio finished the year at $2.9 billion while our share portfolio was at $3.3 billion. In addition to our growth, the safety and soundness of the Credit Union remains solid. Our financial strength can
8
be seen within our capital and retained earnings, or our net worth. Our Total Equity is over $340.5 million and considered well-capitalized. I’m truly proud of what GECU accomplished throughout 2021. We worked through our mission of Improving the Quality of Financial Lives while also remaining dedicated to the credit union philosophy of “People Helping People.” Looking ahead, we will continue to support the evolving needs of our members every day, and find new ways to give back to the communities we serve. I look forward to continuing my role in 2022, representing the Credit Union as a member of the Board of Directors and participating in its continued growth.
Operation Give Back: Holiday Cheer Initiative
Eastgate Branch: National Member Service Week Matthew 25: Ministries
STATEMENT OF FINANCIAL CONDITION 2021
2020
$343,246,038
$642,103,820
538,457,495
172,123,357
2,939,899,783
2,972,714,258
(27,401,022)
(18,451,288)
9,406,824
8,288,585
97,123,948
152,616,763
$3,900,733,066
$3,929,395,495
$3,258,723,388
$3,308,716,020
301,500,403
314,463,023
$3,560,223,791
$3,623,179,043
Statutory Earnings
$13,346,094
$13,346,094
Retained Earnings
332,165,101
291,989,011
(5,001,920)
881,347
$340,509,275
$306,216,452
$3,900,733,066
$3,929,395,495
ASSETS Cash and Equivalents Investments Loans to Members Less: Allowance for Loan Losses Deferred Income Other Assets TOTAL ASSETS LIABILITIES Deposit Accounts Other Liabilities TOTAL LIABILITIES
MEMBERS’ EQUITY
Net Unrealized Gain/Loss on Investments TOTAL MEMBERS’ EQUITY
TOTAL LIABILITIES AND MEMBERS’ EQUITY
ASSETS 2021
$3.9B
2021
$3.3B
2020
$3.9B
2020
$3.3B
2019
10
DEPOSITS
$3.4B
2019
$2.9B
STATEMENT OF INCOME
2021
2020
Total Interest Income
$116,111,732
$118,648,064
Total Interest Expense
(38,896,380)
(53,530,031)
$77,215,352
$65,118,033
INCOME
NET INTEREST MARGIN
Loan Loss Provision Expense
(13,199,964)
(19,585,079)
NET INTEREST INCOME
$64,015,388
$45,532,954
Non-Interest Income
$43,353,642
$25,300,919
Non-Interest Expenses
(67,192,941)
(58,330,821)
NET INCOME
$40,176,089
$12,503,052
$ 3.9B
$ 340.5M
in TOTAL ASSETS
in TOTAL EQUITY
in DEPOSITS
MEMBERS
LOANS 2021
$2.9B
2021
2020
$2.9B
2020
2019
$ 3.2B
$2.7B
2019
226,609 189,397 198,064
11
NOMINATING Committee Report Michael Johnson Nominating Committee Chair General Electric Credit Union’s Board of Directors is comprised of volunteers elected by its membership. What truly makes the Credit Union great is the dedication and many hours of volunteerism of our board. Our Board sets the direction of the Credit Union and assists with setting policies, approving budgets, and helping to direct strategic planning. We work to keep our members’ and the community’s best interests at heart. It is the responsibility of the Nominating Committee to select a pool of candidates interested in serving on the Board of Directors, to fill vacant positions. In accordance to our by-laws, in January 2022, the Secretary of the Board, Mr. Richard Ille, caused a ballot to be sent to all eligible members of record as of December 31, 2021. Those
12
voting needed to complete their ballot and submit it for receipt by midnight on March 3, 2022. This year’s candidates are listed below in alphabetical order. Incumbent candidates are italicized: • • • • •
Paul Derham Cheryl Hill Richard Ille Robert Peak Alan Shusner
The Nominating Committee thanks the candidates for participating in this election process. Their willingness to serve in this volunteer capacity shows their active interest in the Credit Union, its membership, and continued growth. Their dedication demonstrates how GECU cares for the wellbeing of those throughout the Greater Cincinnati community. The results of our election are announced at the Annual Meeting.
The GECU Cares program continues to be a success thanks to the hard work and dedication of our team members. Thank you to Team GECU for volunteering to support your passions, doing good, and giving back!
Fundraising and Donations Team members raised a grand total of over $13,000 for 7 local organizations.
Holiday Cheer with Operation Give Back: Over $5,000 total in donations and purchased gifts for 34 local children.
Volunteering 1,110 hours donated by
150 team members, in service to our communities.
790 individual hours logged with our Do-Good Program, serving 50 area nonprofits.
200 hours were spent with our
Giveback Crew at 25 volunteer events and 8 seminars with local nonprofits.
Equip-A-Kid Backpack Drive with Beech Acres Parenting Center: Over $3,000 total in donations and 200+ backpacks filled with supplies.
Western Kentucky Tornado Outbreak: 60 volunteers spent 120 hours with Matthew 25 to put together 1,079 boxes of supplies for impacted families.
Costumed for a Cure with The Leukemia & Lymphoma Society: $1,215
Giveback Partners
Brain Cancer Awareness Month with The Cure Starts Now: $1,200
$30,000 donated to 3 local
Other Initiatives: $2,682 Red, White & Blue Jeans with Honor Flight Tri State, SOUPer Bowl with La Soupe, March Madness Fundraiser with Saturday Hoops, and Cones for the Cure with The Cure Starts Now.
organizations:
Music Resource Center La Soupe Operation Give Back
13
2022 STRATEGIC Direction Timothy D. Ballinger President & CEO Coming out of another year of the pandemic, our team hit the ground running at the start of 2021 and never let up. We had a clear focus on many projects and initiatives we wanted to achieve, all while making a positive impact at every turn. We navigated economic challenges while continuing to do what comes naturally for us – caring for our members, each other, and our communities. Caring is in our DNA; it’s what we do every day. What differentiates us from others is how we do that. Before looking ahead further into 2022, I would like to reflect on the difference GECU made in 2021. The Credit Union has always believed in spreading goodwill throughout the Greater Cincinnati area. Our team members continually demonstrate this through their endless compassion and generosity. In 2021, the Credit Union and our team members gave back to local organizations and the community in numerous ways through our GECU Cares program. This employee volunteer
14
and giveback initiative offered our team members several opportunities each month to support our communities. In fact, our Giveback Crew (team members who sign up to volunteer their time) spent more than 200 hours volunteering for local events and learning about many regional non-profit organizations. As part of this, in December, we supported Matthew 25: Ministries to help those impacted by the Western Kentucky tornado outbreak; our compassionate team quickly jumped into action and spent three days putting together supplies for affected families. Team members also gave generously through the GECU Cares program by donating their own money to several local organizations. A few highlights include: over $5,000 raised in donations and purchased gifts for 34 local children through our Holiday Cheer initiative with Operation Give Back; over $3,000 raised in donations, including 200+ backpacks filled with supplies for Beech Acres Parenting Center’s backpack drive; and over $1,200 raised for the Leukemia & Lymphoma Society
through our annual Costumed for a Cure event. Our team members’ generosity and dedication to helping the community didn’t end there. Through our Do-Good Program, which empowers each team member to find their passion and get involved on their own free time, they volunteered more than 790 hours supporting causes and organizations close to their heart. This resulted in serving an additional 50 area nonprofits. As well, through our Sponsorship Committee, we supported 20 community organizations with nearly $90,000 in donations. We also funded $12,000 through our Robert A. Cunningham Memorial Scholarship Program, awarding six college-bound high school seniors. Looking ahead, we will build on many of the efforts from last year; 2021 produced several material enhancements to the Credit Union upon which the 2022 Strategic Plan has built upon to further improve its strategic, operational, and financial performance. For instance, we recently introduced a financial coaching program that formally certifies GECU team members to help our members thrive in
their financial lives by coaching them on: spending wisely, building savings, borrowing responsibly, and planning for the future. This program represents our dedication to fostering professional growth and elevating and enhancing team members’ capabilities to effectively counsel members. There is tremendous enthusiasm for this program as our team members are passionate about growing their skillsets and creating impactful moments for members. Watch for more information in the coming months as we build upon this program, and as more team members become Certified Credit Union Financial Counselors.
Building off the momentum from 2021, we will be expanding our physical footprint in the Greater Cincinnati area. In addition to the opening of our Liberty Way location, we are targeting a few more potential new branches in 2022, including a location on the west side of Cincinnati. Likewise, we are looking to grow our presence further in Kentucky. These locations will be your financial community center – a place where you can talk with us about your accounts, mortgage, and investments; you’ll receive expert guidance no matter where you are in your financial journey.
With these and many other initiatives on the horizon, there’s never been a more exciting time to be part of GECU. Staying true to our mission of Improving the Quality of Financial Lives, we’re always learning and evolving to find ways to meet your needs and strengthen our relationship together. Similarly, we will deepen our commitment to giving back to our communities and being a continual source of positivity and compassion. Your Credit Union stands strong to support you with the products, professionals, and dedication inherently within us; and, we will do it with care.
We are also in the final stages of developing our General Electric Credit Union Foundation which will house our: GECU Cares program, scholarship program, sponsorship program, and additional non-profit work. In the coming months, with the introduction of the General Electric Credit Union Foundation, we will materially expand how we demonstrate our care and dedication to the communities we serve.
15
SPONSORSHIP, it’s in our DNA. The GECU Sponsorship Committee consists of leadership from many areas of the Credit Union. This team is committed to making the most impact with each local contribution, and is dedicated to the credit union philosophy of “People Helping People” by advocating for our members and serving our communities. In 2021, we donated a total of $87,725 in support to a number of worthy causes.
Q1
Q2
Aiden Kramer Raffle Fundraiser Gold Sponsor
HART Animal Rescue Adoption donation
Bowles Center for Diversity and Outreach Bronze Sponsor of the Middle and High School Student Diversity Education and Leadership Conference
Brighton Center Wine over Water event
Back the Heroes Rumble Captain Sponsor of the 3rd Annual Car Show Habitat for Humanity Annual Blueprint Sponsor Sharonville Youth Organization Annual Red Sponsor
Beech Acres Parenting Center Foster Care Recruitment Campaign, Title Sponsor Cincinnati Children’s Star Shine Hospice Endowment Fund The Cure Starts Now The Hyde Park Blast, Stage Sponsor St. Rita’s School for the Deaf Annual Golf Outing Hole Sponsor The Alzheimer’s Association The Walk to End Alzheimer’s
Wine over Water
16
The Hyde Park Blast
Animal Rescue Fund Donation
Beech Acres Parenting Center Equip-A-Kid Back Pack Drive
Q3
Q4
La Soupe All La Souped Up, Pace Car Sponsor
City of Lebanon Annual Horse Drawn Carriage Parade
Holly Hill Child and Family Solutions Summertime at Holly Hill Donation
Village of South Lebanon Military Memorial Donation
Beech Acres Parenting Center Equip-A-Kid Backpack Drive
United Way of Kentucky Kentucky Tornado Relief Fund Donation
Reach Out Lakota Play it Forward, Birdie Sponsor Bay Star EquiCenter Donation Hearing Speech + Deaf Center 5th Annual Service Award Gala Donation Grant Us Hope Butterfly Bash Community Sponsor Northern Kentucky NAACP Freedom Fund Gala Ad Sponsor
17
513.243.4328 l gecreditunion.org l 800.542.7093 10485 Reading Road l Cincinnati, OH 45241 Insured by NCUA | Equal Opportunity Lender | GECU NMLS #449875