2014 ANNUAL REPORT FEBRUARY 19, 2015
PRESIDENT’S REPORT
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On behalf of our board of directors, management and staff of Gulf Credit Union, it is my honor to update you on the growth of Gulf Credit Union. Because of your trust and involvement, your credit union is able to thrive and provide so many important benefits, not only to our members, but also to our community.
Ron Burkhalter President
As a financial cooperative, our success is your success. When you participate in Gulf Credit Union, you are contributing to its growth. 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.
STATE OF OUR CREDIT UNION: FINANCIAL VIABILITY:
• Loan growth of 6.65% or $7.2M • Deposit growth of 3.69% or $7.6M • Asset growth of 4.45% or $9.8M • 2014 Member capital contribution over $940K
NEW PRODUCTS ON THE HORIZON:
• New phone banking product in 2015 • New debit card with EMV chip technology in 2015 • Member mobile banking experience improvements • Continuation of competitive loan rates for autos, personal loans and recreational products
COMMUNITY SCORECARD:
• Over $20K collected for Relay for Life and the American Cancer Society in 2014 • Active contributions to local schools with financial literacy sessions and other fundraisers • Food and toy drives for Community Care Prayer Outreach • Buckner Angel Trees • Project Celebrations for areas high schools • Awarded $10K in scholarships to high school seniors in 2014.
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As our membership grows, so do our assets, 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 of our staff 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, 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 staff and board so we can confidently serve you Thank you so much for being an integral part of our credit union family. On behalf of the entire staff and board, we look forward to a happy and successful 2015 for all of us.
L R D E
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FINANCIAL INFORMATION DECEMBER 31, 2014 ASSETS
MEMBERS’ EQUITY
Net Loans to Members
$115,754,068
Interest Income
$6,942,033
Available Liquidity (COH)
$14,725,830
Fee Income
$4,831,518
Investments
$78,500,173
Property & Equipment — Net
$5,337,084
Interest Receivable & Other Assets
$16,259,152
Total Assets
Total Operating Income
$11,773,551
Provision for Loan Loss
$191,575
Total Operating Income $230,576,307 After Loan Loss
LIABILITIES
$11,581,976
Other Operating Gain
$218,264
Operating Expense
$10,071,671
Members’ Deposits
$214,951,574
Net Income Before Dividends
1,728,569
Accounts Payable/Other
$2,454,796
Dividends To Members
788,279
Members’ Equity
$13,169,937
Increase In Equity
940,290
Total Liabilities & Members’ Equity $230,576,307
STATISTICAL INFORMATION FOR YEAR 2014 NUMBER
DELINQUENT LOANS
AMOUNT
47
2 to 6 months
$440,558
6
6 to 12 months
$107,650
3
12 months and over
$29,656
56
SUBTOTAL
$577,864
7,985
LESS THAN 2 MONTHS
$115,832,398
8041
TOTAL LOANS
$116,410,262
Loans Charged Off Year-to-Date Recoveries on Loans Charged Off Delinquency Percentage Estimated Solvency Ratio
$402,719 $37,365 0.50% 106.13%
28,710 Members at End of Period 4,525 Loans Year-to-Date $53,168,426
2010
FINANCIAL CHARTS & GRAPHS
2011
2012
MEMBERSHIP ANALYSIS
ASSETS
28,955
$28,500
$217,406,370
$218,376,020
$100,000,000
$218,017,053
$226,191,884
$150,000,000
$219,347,946
$29,000
$200,000,000
$28,000
28,710
29,987
$29,500
30,217
$30,000 $250,000,000
30,485
$30,500
$27,500 $27,000 $26,500
$50,000,000
$26,000 2010
2011
2012
2013
$25,500
2014
2010 2011 2012 2013 2014
LOAN ANALYSIS Legend $160,000,000
$126,000,000 2010
$127,000,000
$140,000,000 2011
$124,000,000
$120,000,000 2012
$108,000,000
$100,000,000
$80,000,000
2013
$115,000,000 2010
2011
2012
2013
2014
2014
2013
NOMINATING COMMITTEE
CHAIRMAN’S REPORT I am proud of and humbled by the level of trust you have placed in my fellow board members and me. In fact, I’d 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. Gulf Credit Union performed well in 2014. • Membership now stands at 28,710, representing over 7% of Jefferson, Orange and Hardin counties
Robert Adams Chairman The nominating committee was appointed at the October 23, 2014 Board of Directors meeting. Those on the committee are, Robert Adams, Karen Brown and Camille Jones. Two terms are up for election at the February 2015 annual meeting. The nominating committee respectfully nominates Harold Guilbeau and Libby Arnold. Respectfully Submitted, Robert Adams Chairman of the Nominating Committee
Johnny Lewallen Chairman
• Our 28,710 members have added more than $7,600,000 to their deposit accounts • You, the members and owners of this institution, have borrowed more than $53,000,000, adding more than 4,525 new loans • Whether you were a consumer or a commercial member, I am thrilled that you turned to your credit union for these financial needs. In 2014, you added more than $40,000,000 in consumer loans and $7,000,000 in commercial loans • Favorable interest rates and a strengthening economy motivated many of you to buy new vehicles and other household and commercial products • The median delinquency ratio in GCU is now 0.50%, which tells me you’re staying on top of your debt obligations and that is a sure sign of a recovering economy Your ongoing participation in Gulf Credit Union means that we will remain in a strong financial position to continue meeting your financial needs. I think you all recognize that as not-for-profit cooperatives, credit unions are different than banks. Though we have to make a profit to keep the doors open, 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 begin 2015, our mission and vision of creating relationships by 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 we wish you all the best for 2015!
AUDITOR’S REPORT The Certified Public Accounting Firm of Wathen, Deshong & Junker, 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 of the financial condition of Gulf Credit Union as of June 30, 2014, and the related statements of income, members’ equity and cash flows for the twelve months period then ended in conformity with accounting principles generally accepted in the United States of America. As a state-chartered financial institution, the credit union’s financial condition, asset quality, accounting practice and compliance with applicable laws and regulations are examined yearly by the State of Texas Credit Union Department. The credit union received a positive report.
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
EXECUTIVE STAFF
NAME Johnny Lewallen, Chairman Libby Arnold, Vice Chairman Camille Jones, Secretary Robert Adams, Treasurer Karen Brown Barry Gorman Carl Duplantis Harold Guilbeau Sue Guilbeau
Ron Burkhalter, President/CEO Linda Kiker, Vice President of Finance Cindy Winfrey, Vice President of Operations Jan Verdine, Vice President of Lending Shirley Manuel, Assistant Vice President of Lending Operations Todd Gaudin, Vice President of Commercial Lending Greta Smith, Human Resource Director Sue Rogers, Marketing Director Stephine Adams, Risk Management Director Kathy Wolford, Executive Assistant John Pat White, II, CRPC, Vice President of Wealth Management, Gulf Investment Group
GROVES
(Main Office) 5140 West Parkway P.O. Box 848 Groves, TX 77619 409.963.1191 / 800.448.5328
TERM ENDS 2016 2015 2016 2016 2017 2017 2017 2015 2016
BEAUMONT
BRIDGE CITY
MID COUNTY
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.