2021 ANNUAL REPORT February 22, 2022
PRESIDENT AND CHAIRMAN’S REPORT In 2021, we once again remained committed to providing our members with financial services to live life, dream big, and achieve financial success.
Todd Gaudin, President
For the past two years every American and every financial institution has had to face challenges from the COVID-19 pandemic. Your health and safety, and the health and safety of our staff, are very important to us. A benefit from the pandemic to mention was that we have been able to determine which functions and job roles could be done well in a remote work environment, which will allow us to attract and retain talent in the future for certain departments. Our Marketing team partnered with a new advertising agency and revived our previous “Yes! Yes! You Can!” campaign. We are focused on highlighting our products and services in numerous channels and media outlets.
Johnny Lewallen, Chairman
To ensure growth and succession planning, our Board and Management teams added several new team members, made changes to our organizational structure, and elected 2 new directors to join the Board. Our Mission and Vision statements were revised, and we are utilizing them in our culture, staff development and business strategies going forward. We made donations to several organizations throughout the communities we serve, sponsored events at various high schools, city chambers, and other charitable causes. We also awarded scholarships to several students in the area to further their education. Looking ahead in 2022, we are in the final design stages of our new Administration Building and plan to break ground in the 2nd quarter of this year. Branch enhancements in Mid County, Groves, Beaumont, and Bridge City are also planned and should also be completed during the 2nd quarter. These projects are part of our digital transformation strategy which will allow us more opportunities for deposit and loan growth and assist in our field of membership expansion goals. We will continue to explore opportunities in Hardin County as well as additional counties.
Providing digital banking services is going to be an important focus in our business model in the coming year and will allow us to tap into an under-served segment and provide growth opportunities in areas where we do not have brick and mortar branches. Expanding our footprint, perfecting departmental efficiencies, and completing 2022 initiatives will ensure we remain relevant and competitive in our industry. As always, we will keep a close eye on industry trends, rate fluctuations, earnings spread, and our overall efficiency ratio. We definitely feel that 2022 will be a year of growth, opportunity, and expansion. While we are still adapting and learning, it is fair to say that your credit union has proven that it is capable of weathering the various storms that may come our way. “Together We Can” continue our success.
FINANCIAL SNAPSHOT FOR 2021 • An increase in total assets of 6.6% • Return on Assets of 1.27% compared to our peers at .92% • Delinquency ratio of .39% compared to our peers at .43% • Reduced our loan charge offs by 37% and increased our recoveries by 9% over 2020 • A decrease in expenses of 9% from 2020 • We contributed over $4.1 M to member capital
FINANCIAL INFORMATION December 31, 2021 ASSETS
Net Loans to Members Available Liquidity (COH) Investments Property & Equipment – Net Reserve Interest Receivable & Other Assets Total Assets
LIABILITIES
$144,548,610 59,978,168 94,673,506 5,409,765 (657,240) 32,670,494 $
336,623,303
Members’ Deposits Accounts Payable/Other Members’ Equity
$
306,819,337 1,426,095 28,377,871
Total Liabilities & Members’ Equity
$
336,623,303
Members at End of Period
24,378
OPERATING INCOME / EXPENSE Interest Income Fee Income
$
Total Operating Income
6,707,386 6,408,064 13,115,450
Provision for Loan Loss
(246,490)
Total Operating Income After Loan Loss
12,868,960
Other Operating Gain/(Loss) Operating Expense
896,574 (9,011,581)
Net Income Before Dividends Dividends to Members Increase in Equity
4,753,953 (607,334) $
4,146,619
FINANCIAL CHARTS & GRAPHS ASSETS
$350,000,000 $300,000,000
$336,623,303
$100,000,000
$315,708,715
$150,000,000
$277,935,078
$200,000,000
$278,245,740
$250,000,000
$50,000,000
2018
2021
2020
27,000 26,500
26,940
MEMBERSHIP ANALYSIS
2019
25,500 25,000
25,627
25,952
26,000
24,378
24,500 24,000 23,500 2018
LOAN ANALYSIS
2019
2020
2021
$160,000,000
Legend $140,000,000 $155,000,000
2018
$120,000,000
$153,000,000
2019 $150,000,000
$100,000,000
2020 $145,000,000
$80,000,000
2018
2019
2020
2021
2021
NOMINATING COMMITTEE
AUDITOR’S REPORT
Joshua Lege, Chairman of the Nominating Committee
The Nominating Committee was appointed at the October 28, 2021 Board of Directors meeting. Committee members are Joshua Lege (Chairman), Barry Gorman and Logan Delcambre. Three positions with a 3-year term are up for election at the 2022 Annual Meeting.
The Certified Public Accounting Firm of Wathen, DeShong & Juncker, LLP 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 March 30, 2021. 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, 2020 and 2019, and the related statements of income and comprehensive income, member’s 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, 2020 and 2019, 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.
MISSION STATEMENT To build lifelong relationships one experience at a time. BOARD OF DIRECTORS
NAME Johnny Lewallen, Chairman Barry Gorman, Vice Chairman Karen Brown, Secretary Robert Adams, Treasurer Logan Delcambre Joshua Lege Camille Jones
TERM ENDS 2022 2023 2023 2022 2024 2024 2022
EXECUTIVE STAFF
Todd Gaudin, President/CEO Stephine Adams, Chief Operations Officer Bambi McGinn, Chief Information Officer Linda Rials, Chief Financial Officer Kathy Wolford, Executive Assistant
MANAGEMENT STAFF
Veronica Chaney, AVP of Branch Operations Tracy Chesser, AVP of Lending Georgetta Carvin, Risk Management Director Sue Rogers, Marketing Director Amanda Skinner, Business Systems Director Greta Smith, Human Resources Director Kristy Byers, Consumer Lending Manager Lana Faulk, Collections Manager Lacy Martin, FSR Manager Stefanie Miguez, Support Services Manager Dawanda Minor, Mortgage Lending Manager Nate Sanford, IT Manager Benji Sticker, Accounting Manager
GULF INVESTMENT GROUP
John Pat White II, CRPC, Vice President of Wealth Management
GROVES
5140 West Parkway Groves, TX 77619
BEAUMONT
2360 Dowlen Road Beaumont, TX 77706
BRIDGE CITY
4721 Hwy. 87 South Orange, TX 77630
409.963.1191 / 800.448.5328 GULF CREDIT UNION IS FEDERALLY INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION.
MID COUNTY
2779 Aero Drive Port Arthur, TX 77640