2018 ANNUAL REPORT — February 19, 2019 —
PRESIDENT’S REPORT
Ron Burkhalter, President
On behalf of our Board of Directors, management and staff of Gulf Credit Union, I want to thank you for being here and say what a pleasure it is for our Board and staff to serve you. Because of your trust and involvement, our credit union is able to thrive and provide so many important benefits, not only to our members but to our community. As a financial cooperative, our success is your success. When you participate in the credit union, you are contributing to its growth. And because of our cooperative structure, we are able to return our profits back to you, the owners and members, by offering competitive rates, new products, enhanced services, and additional points of service. It is my privilege to provide the state of our credit union for our 2019 annual meeting.
FINANCIAL VIABILITY: • We had loan growth of 1.80% or $2.7M • We had deposits decrease by 10.69% or $31.4M (attributed to Hurricane Harvey) • We had assets decrease by 10.08% or $31.1M (attributed to Hurricane Harvey) • We contributed to the member capital for 2018 of over $1.8M
NEW PRODUCTS DELIVERED: • We implemented a new core operating system • DocuSign—this service provides the ability to electronically sign loan forms and other credit union documents without having to visit a branch • Remote control card feature is now available where you can turn your debit cards on and off • E-alerts for your accounts are available to monitor your balances and transactions • We now offer a service called “Change Saver” where your daily debit transactions are rounded up and the difference can be transferred to your savings or club account • Bill pay has been improved • You can now add and open new suffix/trailer account online • We now offer “Touch ID” for quicker access to our mobile app • We now offer new and improved mobile deposit methods • We now offer loan applications through our mobile app
• We will continue to offer competitive loan rates for autos, personal loans, recreational products and commercial loans
COMMUNITY SCORECARD: • We collected over $7K for Relay for Life and the American Cancer Society in 2018 • We collected over $9.5K for Cornerstone Credit Union Foundation–this organization financially assisted several of our GCU employees during the aftermath of Hurricane Harvey • Our Gulf Helping Hands volunteer initiative allows our employees to volunteer their time for opportunities to help make a difference in people’s lives, and has made a positive impact in our community • We hosted food and toy drives for Community Care Prayer Outreach • For Christmas, we hosted a collection for residents of a local skilled nursing facility • We hosted a collection for “Stockings for Soldiers” and sponsored ten Christmas stockings for U.S. military troops stationed overseas • We support the Project Celebrations for all of our area’s high schools • We awarded $10K in high school scholarships in 2018
As our membership grows, our assets grow, which indicates that you are taking full advantage of the products and services we have to offer. We are very cognizant of the member expectations of our staff as reflected in our constant training on our products and in improving the delivery experience for you. Everything we do, whether it be our financial viability, new products, community involvement and staff training, is geared towards our desire to fulfill our mission and vision of creating relationships with our members by matching a need with a product. We know that when we fulfill our mission and vision, that each household will improve financially. As we embark on the year ahead, my commitment to you today is that Gulf Credit Union will continue to: • Grow responsibly, while listening and responding to your needs; • Continue to explore and deliver innovative product/service solutions; • Develop our Board and staff so we can confidently serve you. Thank you so much for being an integral part of our credit union family. On behalf of our Board and staff, we look forward to a happy and successful 2019 for us all.
FINANCIAL INFORMATION December 31, 2018 ASSETS
OPERATING INCOME / EXPENSE
Net Loans to Members Available Liquidity (COH) Investments Property & Equipment – Net Reserve Interest Receivable & Other Assets Total Assets
$155,197,669 $6,839,884 $82,697,246 $6,768,691 $842,180 $25,900,070 $278,245,740
LIABILITIES Members’ Deposits Accounts Payable/Other Members’ Equity Total Liabilities & Members’ Equity
$262,627,160 $2,130,486 $13,488,094 $278,245,740
Interest Income Fee Income Total Operating Income
$9,055,730 $5,515,786 $14,571,516
Provision for Loan Loss Total Operating Income After Loan Loss
($660,390) $13,911,126
Other Operating Gain/(Loss) Operating Expense Net Income Before Dividends Dividends to Members Increase in Equity
($253,688) ($11,066,509) $2,590,929 ($698,236) $1,892,693
STATISTICAL INFORMATION FOR YEAR 2018 NUMBER 56 3 1 60 8,506 921 Total Loans Loans Charged Off Year-to-Date Recoveries Delinquency Percentage Estimated Solvency Ratio
DELINQUENT LOANS
AMOUNT
2 to 6 months 6 to 12 months 12 months and over
$394,987 $68,611 $12,465
Subtotal Less than 2 months Loan Participation $155,833,000
$476,063 $142,248,980 $13,107,957
$742,570 $136,942 0.31% 105%
26,940 Members at End of Period 4,873 Loans Year-to-Date
$58,791,060
FINANCIAL CHARTS & GRAPHS $300,000,000
ASSETS
$100,000,000
$50,000,000
2014
MEMBERSHIP ANALYSIS
2015
$247,528,776
$150,000,000
$237,526,364
$230,576,307
$200,000,000
2016
2017
$278,245,740
$309,437,484
$250,000,000
2018
30,500 30,000 29,500
28,500 28,000
28,710
29,000
26,000 25,500
26,940
26,500
27,414
27,179
27,000
26,955
27,500
2014 2015 2016 2017 2018
LOAN ANALYSIS Legend
$160,000,000
$115,000,000
2014
$140,000,000
$124,000,000
2015 $142,000,000
$120,000,000
2016 $152,000,000
$100,000,000
2017 $155,000,000
$80,000,000
2018 2014
2015
2016
2017
2018
NOMINATING COMMITTEE
Carl Duplantis, Chairman of the Nominating Committee
The Nominating Committee was appointed at the October 25, 2018, Board of Directors
CHAIRWOMAN’S REPORT It gives me great pleasure to welcome you to the 80th annual meeting of Gulf Credit Union. I am pleased to serve as your chairwoman and I am very humbled by the level of trust you have placed in me and my fellow board members. In fact, I would like to take this opportunity to thank my fellow board members for their dedicated service, commitment, and passion, because they have contributed greatly to the success of our credit union. As you see in the Annual Report, Gulf Credit Union performed well in 2018.
• As our CEO will note in his address, membership at GCU now stands at 26,940, representing 9% of Jefferson, Orange and Hardin counties • Our 26,940 members have added more than $11,342,000 to their deposit • •
meeting. Those serving on this committee are Carl Duplantis (Chairman), Barry Gorman and
•
Libby Arnold. Three terms are up for election at the Februay 19, 2019, Annual Meeting. The nomination committee respectfully nominates Camille Jones, Robert Adams and Johnny Lewallen. Respectfully Submitted, Carl Duplantis, Chairman of the Nominating Committee
Libby Arnold, Chairwoman
•
accounts You, the members and owners of this institution, have borrowed more than $58,791,060, adding more than 4,873 new loans Whether you are a consumer or a commercial member, we are so appreciative that you turned to your credit union for these financial needs. In 2018, you added more than $58,101,084 in consumer loans and $3,956,000 in commercial loans Even with a challenged economy, GCU continued to offer favorable interest rates; as a result, many of you were still motivated to buy new vehicles and other household and commercial products The median delinquency ratio in GCU is now 0.31%, which tells me you’re staying on top of your debt obligations, and that is a sure sign of an improving household confidence in seeking new debt.
Your ongoing participation in Gulf Credit Union means that we will remain in a strong financial position to continue meeting your financial needs. Your strong participation reflects your recognition that Gulf CU is a not-for-profit cooperative, and we are different than banks. Though we have to make a profit to keep the doors open, one main difference is we don’t have shareholders waiting with their hands out– there are no shareholders. When we can, we distribute those profits back to you. By exercising sound business and service strategies, we can help you navigate your life-cycle challenges, weather these uncertain economic periods, and recognize the true benefits of your membership. As we closed 2018 and look to 2019, our mission and vision of creating relationships and our core values we operate by will ensure that we are meeting your needs with the right product. Our credit union team will continue to strive to improve your experience. You can be proud and confident that as we continue to improve our financial viability, enhance products, invest in our community, and increase our knowledge of your needs, our mission and vision for you will be accomplished. Thank you so much for your membership, and all the best for the coming year!
AUDITOR’S REPORT The Certified Public Accounting Firm of Wathen, DeShong & Juncker, L.L.P., was retained by the credit union’s Board of Directors to perform a comprehensive audit of the institution’s financial statements. The firm issued an opinion on the financial condition of Gulf Credit Union on April 5, 2018.
REPORT ON THE FINANCIAL STATEMENTS We have audited the financial statements of Gulf Credit Union, which comprise the statements of financial condition as of December 31, 2017 and 2016, and the related statements of income and comprehensive income, members’ equity, and cash flows for the years then ended and the related notes to the financial statements.
OPINION In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gulf Credit Union as of December 31, 2017 and 2016, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
VISION STATEMENT
Gulf Credit Union’s vision is to “create a relationship” with members. Our vision is met by matching our member’s need with the right product.
MISSION STATEMENT
From generation to generation, Gulf Credit Union is your partner in fulfilling your financial dreams.
BOARD OF DIRECTORS NAME Libby Arnold, Chairwoman Carl Duplantis, Vice Chairman Camille Jones, Secretary Robert Adams, Treasurer Karen Brown Barry Gorman Johnny Lewallen
GROVES (Main Office)
5140 West Parkway P.O. Box 848 Groves, TX 77619 409.963.1191 / 800.448.5328
EXECUTIVE STAFF TERM ENDS 2021 2021 2019 2019 2020 2020 2019
BEAUMONT
2360 Dowlen Road Beaumont, TX 77706 409.860.3600
Ron Burkhalter, President/CEO Todd Gaudin, Chief Lending Officer Stephine Adams, Chief Operations Officer Linda Rials, Chief Financial Officer Kristy Byers, Assistant Vice President of Lending Greta Smith, Human Resource Director Sue Rogers, Marketing Director Kathy Wolford, Executive Assistant Amanda Skinner, Project Manager Dawanda Minor, Mortgage Loan Manager John Pat White, II, CRPC, Vice President of Wealth Management, Gulf Investment Group
BRIDGE CITY
4721 Hwy. 87 South Orange, TX 77630 409.735.5156
GULF CREDIT UNION IS FEDERALLY INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION.
MID COUNTY
2779 Aero Drive Port Arthur, TX 77640 409.729.8280