2023 ANNUAL REPORT February 20, 2024
PRESIDENT AND CHAIRMAN’S REPORT
Todd Gaudin, President
On behalf of our Board of Directors, management and staff of Gulf Credit Union, I want to thank you for being here this evening. As we begin our 85th year, I want to say what a pleasure it is for our Board and staff to serve you. We all know that credit unions are different. That’s why we’re here today. As members, you are equal owners, and we are accountable to you. Every one of you, equally. You make the decisions and participate through your vote. So, thank you for taking time out of your busy schedule to be here and take an active role in your credit union. Since the pandemic, members have recognized and valued their trusted credit unions even more. As the financial landscape continues to shift in a post-COVID world, Gulf Credit Union works diligently to provide the best value and experience for our members. While we’ve seen some improvements to the economy, challenges remain and have caused the financial industry to develop more innovative and efficient processes.
Johnny Lewallen, Chairman
World issues have caused the financial industry to rethink many of its standard business practices, working to come up with innovative and more efficient processes moving forward. It’s a top priority of Gulf Credit Union to meet the challenges of our current economy, political landscape, infrastructure, and environment head-on while embracing digital technologies and transforming into a modern and flexible business that serves our members and our community. We are your credit union, here to serve you, and we couldn’t do it without your input and involvement! This past year we completed our branch enhancements that include virtual suites in all locations. The construction process of our new Administration building is coming to an end, and we should be operating from that location by the end of the first quarter. Our video banking app, Gulf Anywhere, is thriving as we are more accessible to our membership wherever you are. We supported a wide range of local initiatives in our communities, area Chambers of Commerce, schools, organizations, and businesses. We provided financial literacy education in the community as well as awarded scholarships to graduating seniors. Here at Gulf Credit Union, we take pride in having a wide range of financial tools, products, and services to meet all your needs. As we look to the future, exciting opportunities await. Our partnership with Kasasa can be instrumental in enhancing your banking experience. I encourage you to visit with our staff to see how you can benefit from this product!
We have achieved significant milestones. Our financial stability has allowed us to provide competitive rates, innovative products, and personalized services. We’ve expanded our digital offerings, making banking more convenient for you. Our commitment to financial literacy programs has empowered our members to make informed decisions. While we continue to focus on the technological aspect of banking and providing more convenient virtual avenues, we still offer face to face service for our members. We have staff ready to fulfill our mission “to build lifelong relationships one experience at a time”, whatever method you choose. As our member-owners, you are integral to our credit union family, and we are sincerely grateful that you’ve chosen Gulf Credit Union as your financial partner. Let us continue this journey together, guided by our shared values and a goal of financial empowerment. We wish you and your family a healthy and prosperous 2024.
FINANCIAL SNAPSHOT FOR 2023 • Capital/Asset Ratio of 10.22 (above 7% is considered well capitalized by our regulators) • Return on Assets of .37% • Increase in Fixed Assets of 53.6% • Delinquency Ratio of .31% • Although we had a decrease in total loans, we saw an increase in our loan income • We contributed $1.2 M to member capital
FINANCIAL INFORMATION December 31, 2023 ASSETS
OPERATING INCOME / EXPENSE
Total Loans to Members Available Liquidity (COH) Investments Property & Equipment – Net Reserve Interest Receivable & Other Assets Total Assets
$168,774,586 17,210,052 86,249,417 16,332,969 (1,051,395) 30,468,715 $ 317,984,344
LIABILITIES Members’ Deposits Accounts Payable/Other Members’ Equity
$ 287,049,406 7,848,856 23,086,082
Total Liabilities & Members’ Equity
$
Members at End of Period
317,984,344 23,929
Interest Income Fee Income
$
8,424,779 6,972,450
Total Operating Income
15,397,229
Provision for Loan Loss
(978,961)
Total Operating Income After Loan After Loan Loss
14,418,268
Other Operating Gain/(Loss) Operating Expense
(100,379) (11,962,466)
Net Income Before Dividends Dividends to Members
2,355,423 (1,163,097)
Increase in Equity
$ 1,192,326
FINANCIAL CHARTS & GRAPHS ASSETS
$350,000,000
2021
2022
$317,984,344
$150,000,000
$322,334,166
$200,000,000
$315,708,715
$250,000,000
$336,623,303
$300,000,000
$100,000,000 2020
25,750 25,500 25,250
25,627
MEMBERSHIP ANALYSIS
2023
25,000 24,750
24,000
24,119
24,378
24,250
23,750 23,500
LOAN ANALYSIS
2020
2021
2022
23,929
24,500
2023
$180,000,000
Legend $160,000,000 2020 $150,000,000 $140,000,000
2021 $145,000,000
$120,000,000 $100,000,000
2022 $176,000,000
2020
2021
2022
2023
2023 $167,000,000
NOMINATING COMMITTEE
Robert Lovelace, Chairman of the Nominating Committee
The Nominating Committee was appointed at the October 26, 2023 Board of Directors meeting. Those serving on this committee are: Karen Brown Barry Gorman Robert Lovelace (Chairman) Two positions with a 3 year term are up for election at the February 20th, 2024 Annual Meeting. The nominating committee respectfully nominates: Joshua Lege Logan Delcambre Respectfully Submitted, Robert Lovelace, Chairman of the Nominating Committee
AUDIT COMMITTEE REPORT Gulf Credit Union’s Audit Committee oversees and reviews internal audits, external audits, and regulatory examinations. In carrying out its duties, the committee also ensures Gulf Credit Union’s financial condition is accurately presented in the financial statements by engaging an independent firm annually. Wathen, DeShong & Juncker, a certified public accounting (CPA) firm, serves as the Credit Union’s independent external auditor. They performed a comprehensive audit of the Credit Union’s 2022 financial statements. The firm issued an opinion on the financial condition on April 27, 2023. In all substantial respects, the Credit Union’s financial statements present fairly the financial position of Gulf Credit Union as of December 31, 2022, and 2021. The accounting practices, cash flows, and operations aligned with generally accepted accounting principles in the United States of America. Additionally, the Texas Credit Union Department (TCUD), the regulatory agency for Texas state-chartered credit unions performed an annual examination. TCUD conducted the 2023 examination as of September 2023, and the Credit Union received an overall rating indicative of a well-managed credit union serving its members’ needs. The 2024 approved Board of Directors’ meeting fee is $100 per Board of Directors’ meeting and $150 per special meetings. Estimated board meeting fees in 2024 are $10,000.00.
Submitted by, Karen Brown, Audit Committee Chair
MISSION STATEMENT To build lifelong relationships one experience at a time. BOARD OF DIRECTORS
NAME
TERM ENDS
Johnny Lewallen, Chairman Barry Gorman, Vice Chairman Logan Delcambre, Secretary/Treasurer Karen Brown Joshua Lege Robert Lovelace Dustin Marsh
2025 2026 2024 2026 2024 2025 2025
ADVISORY DIRECTOR
Jason Howard
2025
EXECUTIVE MANAGEMENT
Todd Gaudin, President/CEO Stephine Adams, Senior Vice President/Chief Operations Officer Linda Rials, Senior Vice President/Chief Financial Officer Kathy Wolford, Executive Assistant
SENIOR MANAGEMENT
Veronica Chaney, AVP of Operations Tracy Chesser, AVP of Lending Amanda Daigle, AVP of Technology Sue Lane, AVP of Marketing
Amanda Baldwin, Talent & Benefits Director Georgetta Carvin, Internal Audit and Compliance Director Belinda George, Ed. D, Community Experience Director Josh Prudhomme, IT & Facilities Director
Changes to Board, Executive/Senior Management, or Bylaws and Articles of Incorporation in 2023 Sue Lane promoted to AVP of Marketing Amanda Daigle promoted to AVP of Technology Amanda Baldwin promoted to Talent and Benefits Director Bambi McGinn, CIO employment ended
Bylaw Amendments:
Added Members of the Cornerstone Credit Union Foundation to our field of membership
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