Family! WE ARE
2015 ANNUAL REPORT FEBRUARY 16, 2016
PRESIDENT’S REPORT On behalf of our Board of Directors, management and staff of Gulf Credit Union, I want to say what a pleasure it is to be here with all of you. 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 to our community.
Ron Burkhalter President
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.
STATE OF OUR CREDIT UNION: FINANCIAL VIABILITY:
• We had loan growth of 6.62% or $7.7M; • We had deposit growth of 3.17% or $6.8M; • We had asset growth of 3.45% or $7.9M; • We contributed to the member capital for 2015 of over $807K; NEW PRODUCTS ON THE HORIZON:
• We will be introducing remote deposit capture in 2016; • We will be introducing a new,
redesigned website in 2016; back to our schools with financial • We will be introducing a new literacy sessions and other member-friendly search engine to fundraisers; our website that will improve our • We had food and toy drives for members’ experience; Community Care Prayer Outreach; • We will continue to be very • We did angel trees for Buckner competitive on loan rates for Children & Family Services; autos, personal loans, recreational • We support the Project Celebrations products and commercial loans; for all of our area high schools; • We gave away $10K in high school COMMUNITY SCORECARD: scholarships in 2015. • We collected over $20K for Relay for Life and the American Cancer Society in 2015; • We are very active in contributing
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 on our products and in improving the delivery experience for you. Everything we do, whether it be our financial viability, new products, community involvement or staff training is geared toward 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 2016 for us all.
FINANCIAL INFORMATION DECEMBER 31, 2015 ASSETS
MEMBERS’ EQUITY
Net Loans to Members
$123,939,034
Interest Income
$7,099,957
Available Liquidity (COH)
$3,070,383
Fee Income
$5,256,633
Investments
$90,082,369 $14,913,926
Provision for Loan Loss
$481,343
$237,526,364
Total Operating Income After Loan Loss
$11,875,248
Other Operating Gain
$128,579
Operating Expense
$10,522,903
Total Operating Income
$12,356,591
Property & Equipment — Net $5,520,652 Interest Receivable & Other Assets
Total Assets
LIABILITIES Members’ Deposits
$223,074,673
Net Income Before Dividends
$1,603,887
Accounts Payable/Other
$2,312,396
Dividends To Members
$796,646
Members’ Equity
$12,139,296
Increase In Equity
$807,241
Total Liabilities & Members’ Equity $237,526,364
STATISTICAL INFORMATION FOR YEAR 2015 NUMBER
DELINQUENT LOANS
AMOUNT
63
2 to 6 months
$658,863
2
6 to 12 months
$18,336
0
12 months and over
$0
8,083
LESS THAN 2 MONTHS
$123,443,883
8,148
TOTAL LOANS
$124,121,082
65 SUBTOTAL
Loans Charged Off Year-to-Date Recoveries on Loans Charged Off Delinquency Percentage Estimated Solvency Ratio
$466,909 $44,223 0.55% 106.48%
$677,199
27,179 Members at End of Period 4,827 Loans Year-to-Date $54,738,356
FINANCIAL CHARTS & GRAPHS
MEMBERSHIP ANALYSIS
ASSETS
28,500 28,000
28,710
$237,526,364
27,500 27,000
27,179
$230,576,307
$218,376,020
$218,017,053
$50,000,000
$219,347,946
$100,000,000
$226,191,884
$150,000,000
28,955
29,000
$200,000,000
29,987
29,500
30,217
30,000
$250,000,000
30,485
30,500
26,500 2010
2011
2012
2013
2014
26,000
2015
25,500
2010 2011 2012 2013 2014 2015
LOAN ANALYSIS Legend $160,000,000 2010 $140,000,000
2011
$120,000,000
2012 2013
$100,000,000
2014 $80,000,000
2010
2011
2012
2013
2014
2015
2015
$126,000,000 $127,000,000 $124,000,000 $108,000,000 $115,000,000 $124,000,000
NOMINATING COMMITTEE
CHAIRMAN’S REPORT It gives me great pleasure to welcome you to the 77th annual meeting of Gulf Credit Union. I am pleased to serve as your chairman, and I am very humbled by the level of trust you have placed in me and my fellow board members. 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 2015.
Carl Duplantis Chairman The nominating committee was appointed at the November 19, 2015, Board of Directors meeting. Those serving on this committee are: Carl Duplantis (Chairman), Karen Brown and Harold Guilbeau. At the 2016 Annual Meeting, four Board of Directors’ terms will be up for election. The nominating committee respectfully nominates: Robert Adams, Johnny Lewallen, Camille Jones and Sue Guilbeau. Respectfully Submitted, Carl Duplantis Chairman of the Nominating Committee
Barry Gorman Chairman
• Membership at GCU now stands at 27,179, representing 7% of Jefferson, Orange and Hardin counties; • Our 27,179 members have added more than $6,800,000 to their deposit accounts; • You, the members and owners of this institution, have borrowed more than $54,700,000, adding more than 4,827 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 2015, you added more than $46,000,000 in consumer loans and $7,000,000 in commercial loans; • Even with a challenged economy, GCU committed to continue offering 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 0.55%, 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 GCU means that we will remain in a strong financial position to continue meeting your financial needs. Your strong participation reflects your recognition that GCU 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 close 2015 and look to 2016 our credit union team will continue to strive to improve your experience with the mission and vision of creating relationships by meeting your needs with the right product. 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 & 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, 2015. The related statements of income, members’ equity and cash flows for the twelve-month 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 TERM ENDS Barry Gorman, Chairman 2017 Libby Arnold, Vice Chairman 2018 Karen Brown, Secretary 2017 Robert Adams, Treasurer 2016 Johnny Lewallen 2016 Camille Jones 2016 Carl Duplantis 2017 Harold Guilbeau 2018 Sue Guilbeau 2016
Ron Burkhalter, President/CEO Linda Rials, 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
(Main Office) 5140 West Parkway P.O. Box 848 Groves, TX 77619 409.963.1191 / 800.448.5328
GROVES
BEAUMONT
2360 Dowlen Road Beaumont, TX 77706 409.860.3600
BRIDGE CIT Y 4721 Hwy. 87 South Orange, TX 77630 409.735.5156
GULF CREDIT UNION IS FEDERALLY INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION.
MID COUNT Y 2779 Aero Drive Port Arthur, TX 77640 409.729.8280