2019 ANNUAL REPORT — February 18, 2020 —
PRESIDENT AND CHAIRMAN’S REPORT On behalf of the Board of Directors, Management, and Staff, we welcome you to the 81st Annual Meeting of Gulf Credit Union. We all want to thank you for being loyal members of Gulf Credit Union and allowing us to serve you. It is our pleasure to report the conditions of the credit union for 2019. We completed a full year operating on our new and improved core computer system. While
Todd Gaudin, President
this was a necessary change, the impact on our members did not go unnoticed, and we again thank you for your cooperation and understanding. We are excited to say we have improved electronic services, enhanced products and increased internal efficiencies. During 2019 our credit union endured the impact of several life events which included tropical storm recoveries, a plant explosion and changes in our Executive Management team. Everything we do, whether it be our financial viability, new products, community involvement or training our staff, is geared towards our desire to serve our members. As we navigate 2020, we are committed to providing exceptional member service, competitive and innovative products/services and financial and member growth. We look
Barry Gorman, Chairman
forward to a refreshed vision and exciting future for our credit union. Thank you for your membership, your support and for being an important part of our credit union family. On behalf of the entire staff and our Board, we look forward to a prosperous and rewarding year.
FINANCIAL SNAPSHOT FOR 2019 • We contributed over $2.9 M to member capital • While we saw a drop in total loans, we saw an increase in consumer and commercial loans • Delinquency ratio of .27% well below our peer average • We experienced a decline in total membership of 4% (contributed to account purge post conversion)
COMMUNITY INVOLVEMENT FOR 2019 • Contributed over $27,000 to local charities, schools, local chambers and community events • Our Gulf Helping Hands volunteer initiative allows our employees to volunteer their time for opportunities to help make a difference in people’s lives, which in turn, makes a positive impact in our community • Contributed $11,512 via employee donations and fundraisers to the Cornerstone Credit Union Foundation whose initiative is to promote and provide financial education, professional development, and disaster relief to credit union employees • Awarded $10,000 in scholarships to area students • We support the Project Celebrations for all of our area’s high schools • Hosted food and school supply drives for Community Care Prayer Outreach • Volunteered over 400 hours at 59 events • Sponsored 18 local organizations and events
FINANCIAL INFORMATION
December 31, 2019
ASSETS
OPERATING INCOME / EXPENSE
Net Loans to Members $ 153,008,145 Available Liquidity (COH) 25,308,692 Investments 63,295,229 Property & Equipment – Net 6,049,491 Reserve (650,423) Interest Receivable & Other Assets 30,923,944
Interest Income Fee Income
Total Assets
$
277,935,078
LIABILITIES Members’ Deposits Accounts Payable/Other Members’ Equity
$
255,759,613 2,237,771 19,937,694
Total Liabilities & Members’ Equity
$ 277,935,078
$
Total Operating Income
8,809,277 5,469,539 14,278,816
Provision for Loan Loss
(668,532)
Total Operating Income After Loan Loss
13,610,284
Other Operating Gain/(Loss) Operating Expense
(71,714) (9,856,852)
Net Income Before Dividends Dividends to Members Increase in Equity
3,681,718 (719,930) $
STATISTICAL INFORMATION FOR YEAR 2019 NUMBER
DELINQUENT LOANS
AMOUNT
40
2 to 6 months
$375,969
5
6 to 12 months
$37,617
1
12 months and over
$4,390
46
Subtotal
$417,977
8,470
Less than 2 months
$142,080,831
736
Loan Participation
$10,509,336
Total Loans
$153,008,145
Loans Charged Off Year-to-Date $711,169 Recoveries $80,194 Delinquency Percentage 0.27% Estimated Solvency Ratio 1.08% 25,952 Members at End of Period 5,110 Loans Year-to-Date
$61,787,363
2,961,788
FINANCIAL CHARTS & GRAPHS $300,000,000
ASSETS
$50,000,000
2015
2016
2017
2018
$277,935,078
$100,000,000
$247,528,776
$150,000,000
$237,526,364
$200,000,000
$278,245,740
$309,437,484
$250,000,000
2019
MEMBERSHIP ANALYSIS
28,000
25,952
26,940
26,000
27,414
26,500
26,955
27,000
27,179
27,500
25,500 25,000
2015 2016 2017 2018 2019 LOAN ANALYSIS Legend
$160,000,000
2015 $140,000,000 2016 $120,000,000
2017 2018
$100,000,000
$124,000,000 $142,000,000 $152,000,000 $155,000,000 $153,000,000
$80,000,000
2019 2015
2016
2017
2018
2019
NOMINATING COMMITTEE
AUDITOR’S REPORT
Johnny Lewallen, Chairman of the Nominating Committee
The Nominating Committee was appointed at the October 24, 2019 Board of Directors meeting. Those serving on this committee are: Johnny Lewallen (Chairman) Robert Adams Libby Arnold
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 18, 2019.
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, 2018 and 2017, 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 Two positions with a 3 year term are up for election at the February 18th, 2020 Annual Meeting. The nominating committee respectfully nominates: Barry Gorman Karen Brown Respectfully Submitted, Johnny Lewallen Chairman of the Nominating Committee
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, 2018 and 2017, 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
TERM ENDS
NAME
TERM ENDS
Barry Gorman, Chairman
2020
Libby Arnold
2021
Johnny Lewallen, Vice Chairman
2022
Carl Duplantis
2021
Karen Brown, Secretary
2020
Camille Jones
2022
Robert Adams, Treasurer
2022
EXECUTIVE STAFF Todd Gaudin, President/CEO Linda Rials, Chief Financial Officer Stephine Adams, Chief Operations Officer
MANAGEMENT STAFF Kristy Byers, Assistant Vice President of Lending
Dawanda Minor, Mortgage Loan Manager
Greta Smith, Human Resource Director
Tracy Chesser, Commercial Loan Officer
Sue Rogers, Marketing Director
John Pat White, II, CRPC, Vice President of Wealth Management, Gulf Investment Group
Kathy Wolford, Executive Assistant Amanda Skinner, Project Manager
GROVES (Main Office)
BEAUMONT
BRIDGE CITY
MID COUNTY
5140 West Parkway P.O. Box 848 Groves, TX 77619 409.963.1191 / 800.448.5328
2360 Dowlen Road Beaumont, TX 77706 409.860.3600
4721 Hwy. 87 South Orange, TX 77630 409.735.5156
2779 Aero Drive Port Arthur, TX 77640 409.729.8280
GULF CREDIT UNION IS FEDERALLY INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION.