2020 ANNUAL REPORT
2021 AGENDA VERIFICATION OF QUORUM Catherine Paraschos Chairperson CHAIRPERSON’S REPORT Catherine Paraschos PRESIDENT’S REPORT Keith Kearney
VISION STATEMENT
InvesTex Credit Union will develop lasting relationships that promote our members’ quality of life and financial well-being.
MISSION STATEMENT
InvesTex Credit Union is dedicated to the highest quality service for its members, while maintaining a solid financial foundation. Our core values reflect the strong character of our members and our growing relationship with them.
• APPROVAL OF MINUTES OF 2020 MEETING Catherine Paraschos REPORT OF THE TREASURER Allan Griffin, Jr. • UNFINISHED BUSINESS Catherine Paraschos • NEW BUSINESS, OTHER THAN ELECTIONS Catherine Paraschos
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ELECTION OF DIRECTORS Stephen Havemann
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• ADJOURNMENT Catherine Paraschos
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OPERATIONAL CHANGES
The credit union, staff and members implemented many changes during 2020 due to the Covid-19 pandemic. The credit union was able to quickly set up remote services enabling staff to work from home. Almost every member need was met remotely or in the drive-thru while the lobbies were temporarily closed. The pandemic created serious challenges, and for many worlwide, great hardship. The credit union helped to ensure the safety of staff and members, and with appropriate precautions in place, remained open and available for the needs of the membership. Implemented Text Messaging alerts to members for potential fraud from debit card transactions increasing overall speed and efficiency resolving the integrity of those transactions. Implemented a Social Media presence with Facebook and Instagram. Began offering 0% promotion on all new Credit Cards. Converted to Member First Mortgage improving access to low rates, low closing cost home purchases. Began offering FREE Network of Realtors to members through our new HomeAdvantage service. Began offering Home Buying seminars presented by Member First Mortgage. The credit union continues to evaluate, and update facility and software systems access and controls to ensure the integrity, security, and privacy of member information.
BOARD OF DIRECTORS TERM EXPIRATION DATES AS OF 12/31/2020 CATHERINE PARASCHOS (Position 2) Chairperson April 2021 DR. BOB WILLIAMS (Position 3) Vice Chair & Building Committee Chair April 2021 DOROTHEA PICKENS (Position 5) Secretary & Supervisory Committee Chair April 2022 ALLAN GRIFFIN JR. (Position 9) Treasurer & Compensation Committee Chair April 2023 DAN CALVERT (Position 1) Director April 2021
TERESA DOSSMAN (Position 6) April 2022 WILLIAM “BILL” LAKIN (Position 4) Director April 2023
MANAGEMENT KEITH KEARNEY President/CEO DEBRA WEIR Executive Vice President KELLY PAYNE SR Vice President Human Resources GAIL RUSSELL SR Vice President Operations DAVID DURHAM Vice President Branch Administration JANA (ANDERS) GONZALES Vice President Business & Community Development
STEPHEN HAVEMANN (Position 7) Technology/Marketing & Nominating Committee Chair April 2023
RENE PAREDEZ Vice President Accounting
PHYLLIS KENNEDY (Position 8) ALCO Committee Chair April 2023
RICK SULFRIDGE Vice President Asset Management & Collections
MATT SPISAK Vice President Lending
JOHN TOMSON Vice President Information Technology
2020 Annual Meeting Minutes April 16, 2020
Due to the stay-at-home order issued by the Governor of Texas, the 2020 Annual Meeting was held via teleconference call on Thursday, April 16, 2020. Directors present on the call were Catherine Paraschos, Dorothea Pickens, Teresa Dossman, Allan Griffin, Dr. Bob Williams, Phyllis Kennedy, Stephen Havemann, Dan Calvert and William (Bill) Lakin Jr. The credit union management team and various staff members were participants on the call to establish a quorum. The annual meeting was officially called to order at 6:04 p.m. The Board Chairperson, Catherine Paraschos, ascertained that a quorum was present as required through the taking of a roll call. Ms. Paraschos welcomed everyone to the 2020 Annual Meeting and noted this was the first virtual meeting in InvesTex’s history. She thanked all for their participation and urged everyone to stay safe during this difficult time. Ms. Paraschos also expressed her gratitude to the IT Department for their efforts which allowed for staff to work remotely. She then called upon Mr. Keith Kearney, CEO, to present the President’s Report. Prior to giving his report, Mr. Kearney expressed his appreciation to the credit union Board for their service and support. Mr. Kearney led his report with a recap of what steps InvesTex had taken to continue its operations and protect staff during the COVID19 pandemic. Measures taken included the following: • There were 42 employees set up to work from home thus far; some would work exclusively from home while others would rotate within their departments; • Business hours were reduced in conjunction with the closure of all branch lobbies; • Staff must maintain a safe social distance and must wear a mask while in the office. Once onsite, employees must remain at the office (no leaving for lunch) until the end of their shift. • Various other actions taken were discussed. Mr. Kearney noted these, and other actions, should assure staff and members the credit union is doing everything possible to maintain a safe environment. Along those lines, Mr. Kearney referenced a report issued by CUNA that explored the COVID19 recession and its impact on credit unions. The report indicated economic growth would be muted for 2020 as supply chains rebuild. CUNA expects a significant decline in auto loan growth in 2020 and noted discretionary spending had all but ceased. Less fee (ATM, NSF, courtesy pay) income has been collected yet savings growth is expected to spike the first half of 2020 as members face the unknown. Mr. Kearney noted overall, the credit union industry is in good shape; every recession has seen the markets recover in one year. While it remains to be seen what will happen in the remainder of 2020, Mr. Kearney stated taking care of the members and staff will continue to be his main priority. Ms. Paraschos presented the Annual Meeting Minutes from 2019 for review. Upon motion by Stephen Havemann, seconded by Bill Lakin Jr, it was unanimously VOTED: to accept the minutes of the 2019 Annual Meeting as presented. Next, Ms. Paraschos called on Mr. Allan Griffin to present the Treasurer’s Report. Mr. Griffin noted growth in 2019 was strong for home equity and vehicle loans which led the way with 9.01% and 3.73% growth over 2018, respectively. Certificates of deposit (savings and IRA) grew 59.4%. The credit union ended 2019 with $222 million in assets, $105 million in loans, $97.8 million in investments and $200.5 million in member deposits. Total equity grew 4.76%. CliftonLarsonAllen LLP conducted an annual review of the books and records of the credit union in 2019. As treasurer, Mr. Griffin stated the credit union continued to be a strong and efficiently managed institution as detailed in the Annual Report. Upon motion by Allan Griffin seconded by Katie Spencer, it was unanimously VOTED: to accept the Treasurer’s Report as presented. Ms. Paraschos asked if there was any Unfinished Business. There was none. Ms. Paraschos asked if there was any New Business (other than Elections). There was none. Ms. Paraschos introduced Ms. Teresa Dossman, Committee Chair, to give the Nominating Committee’s Report. Ms. Dossman first thanked the credit union management as well as her fellow Committee Member, Ms. Dorothea Pickens, for her contributions to the nomination process. Ms. Dossman then introduced the nominees being presented for election: Mr. Stephen Havemann (Position #7), Ms. Phyllis Kennedy (Position #8), Mr. Allan Griffin Jr. (Position #9) and Mr. William Lakin Jr. (Position #4). Ms. Dossman explained that all nominees had met the qualifications to be elected to the Board and confirmed there were no nominations by petition as required by the election rules. Therefore, upon motion by Teresa Dossman, seconded by Dr. Bob Williams, it was unanimously VOTED: to accept the election of the nominees as presented by acclamation. Upon completion of the Nominating Committee’s Report, a motion was made to keep the current slate of officers as outlined below effective at the completion of the 2020 Annual Meeting: • President: Catherine Paraschos • Vice President: Dr. Bob Williams • Treasurer: Allan Griffin • Secretary: Dorothea (Dottie) Pickens Upon a motion by William Lakin Jr, seconded by Teresa Dossman, it was unanimously VOTED: To accept the current slate of officers for 2020. Ms. Paraschos called for the adjournment of the Annual Meeting at 6:44 p.m. Upon motion by Teresa Dossman, seconded by Dorothea Pickens, the meeting was declared adjourned at 6:44 pm.
Treasurer’s Report
Our task with this report is to summarize the events of the past year and present a picture of the financial health of InvesTex Credit Union. But this year we must also consider the physical, mental and emotional health of our organization and its members. After the deaths of more than 500,000 Americans over the last 12 months, we need to feel safe when going about our daily lives and we need to recognize and grieve the incredible loss we have all suffered. With vaccines finally becoming available widely we firmly believe that 2021 will be a better year financially but we will continue to take the necessary precautions to make InvesTex a place that is safe for your money and your health. In the midst of the COVID-19 crisis we were finding new safer ways to accommodate members needs while limiting direct contact. Many years ago InvesTex prepared a pandemic response policy but even after dealing with multiple hurricanes and other natural disasters this new challenge reminded us of the importance of the fact that InvesTex Credit Union is people. People helping people through a cooperative financial institution. And because of who we are and what we are, the goal of our organization is to “make life better” for our members, including being available through multiple channels for all of the services we offer and providing not just safety for our financial lives but for the health of our members and employees. In 2020, with outstanding leadership, dedicated employees and loyal and supportive members, InvesTex Credit Union continued our journey towards that goal. In a year of continued uncertainty worldwide, we stand committed to our guiding principles and to serving you. You can count on us! Every day we are looking for new and better ways to protect our members security. These moves demonstrate a serious and ongoing commitment to our membership and the communities we serve. Although we have no new locations on the map for 2021, we are looking and expect to continue to grow in membership and seek new ways to provide our great services and products to new communities as we meet the needs of the InvesTex family. Loan growth for 2020 was strong at 5.84% overall. During the year, Mortgage loans grew by 32%, Home Equity loans grew 30% and Vehicle loans grew by 7.93% (new) and 3.30% (used). Deposits grew by 12.65%. Total assets grew by 12.50%. The credit union continues to expand all loan programs, especially mortgage and home equity lending by providing low closing costs, low loan rates and flexible terms. The Credit Union ended 2020 with $250 million in assets, $111 million in loans, $117 million in investments, and $226 million in member deposits. Total Equity grew 3.27%. InvesTex Credit Union enlisted the services of CliftonLarsonAllen LLP to conduct the Supervisory Committee Annual Review of the books and records of the credit union for the12-month period ended March 31, 2020. The review was accomplished in accordance with the National Credit Union Administration Rules and Regulations and the Federal Credit Union Act. The Texas Credit Union Department also performed an examination of InvesTex Credit Union as of December 31, 2019, and we are pleased to report that the credit union continues to be a strong and efficiently managed institution. As always, we must thank each of you for your continued support and involvement with our credit union. Your loyalty and support during the many changes and business interruptions experienced in 2020 due to the Covid-19 pandemic exemplify the cooperative nature of credit unions and the trust you have honored us with as we endeavor to serve you and all the families of InvesTex Credit Union. When you are planning to buy a vehicle or look for a new home, remember to check with InvesTex first. Your success drives our success and it should not end there. Let your friends, neighbors, relatives and coworkers know how valuable your membership is to you. When you have an organization you trust to provide quality products and services, shouldn’t you be spreading the word. In a year with so many changes, we especially want to thank the InvesTex staff for their efforts in making life better for you. Our common goal is the financial success of every member of the credit union and every employee from CEO to front line Member Service Representative shares that goal. We believe our credit union is strongest when our members are financially sound and we will continue “Investing in Texas by Investing in You!” Thank you, Allan Griffin, Jr. Treasurer
STATEMENT OF CONDITION As of December 31 ASSETS 2020 2019 LOANS TO MEMBERS 111,130,499 105,001,111 ALLOWANCE FOR LN LOSSES (935,851) (851,371) TOTAL ACCOUNTS RECEIVABLE 63,901 190,699 CASH IN BANK/ON HAND 3,416,028 1,703,144 INVESTMENTS 116,510,486 97,809,428 ALL OTHER ASSETS 19,942,934 18,488,906 TOTAL ASSETS 250,127,998 222,341,917 LIABILITIES ACCOUNTS PAYABLE 2,276,817 1,783,624 TOTAL LIABILITIES 2,276,817 1,783,624 EQUITY MEMBER SHARES 225,937,896 200,575,137 MEMBER CAPITAL 21,913,285 19,983,156 TOTAL EQUITY 247,851,181 220,558,293 LIABILITIES + EQUITY 250,127,998 222,341,917
OPERATING STATEMENT As of December 31
INCOME INCOME FROM LOANS 5,159,505 5,233,462 INVESTMENT INCOME 1,804,848 2,171,177 OTHER INCOME 3,772,353 4,206,622 TOTAL INCOME 10,736,706 11,611,262 EXPENSES OPERATIONS EXPENSES 8,522,166 8,544,922 LOAN LOSSES 642,485 835,813 OTHER EXPENSES 210,624 183,361 TOTAL EXPENSES 9,375,276 9,564,097 NET BEFORE DIVIDENDS 1,361,430 2,047,165 DIVIDENDS TOTAL SHARES 7,558 46,513 TOTAL CHECKING 16,441 53,786 TOTAL MONEY MARKET 16,606 3,851 TOTAL IRA SHARES 59,658 94,710 TOTAL IRA 117,946 94,247 TOTAL CERTIFICATES 1,041,956 768,076 TOTAL DIVIDENDS 1,260,165 1,061,183 NET AFTER DIVIDENDS 101,265 985,982 GAIN (LOSS) INVESTMENTS 557,307 (10,604) TOTAL NON-OP INC/EXP 557,307 (10,604) NET INCOME 658,572 975,378
Building A Community Together
LOCATIONS Aldine Branch
Atascocita Branch
NLW-Heights Branch
Cypresswood Branch
Tomball Branch
FM1960 Branch & Corporate Office
905 Aldine Bender Houston, TX 77032
230 Cypresswood Dr. Suite H Spring, TX 77388
5212 Atascocita Rd. Humble, TX 77346
24922 Tomball Pkwy Suite 100 Tomball, TX 77375
HOURS OF OPERATION
1614 N. Durham Houston, TX 77008
8404 FM 1960 Bypass Rd. W Humble, TX 77338
CONTACT INFORMATION
Lobby Hours
Monday-Friday (except Thursday) 8:30 AM to 5:00 PM Thursday 9:00 AM to 5:00 PM Saturday 8:30 AM to 3:00 PM
Drive-Thru Hours Monday-Friday 8:30 AM to 6:00 PM Saturday 8:30 AM to 3:00 PM
eBranch
Monday-Friday 8:30 AM to 6:00 PM Saturday 8:30 AM to 3:00 PM
Office
(281)449-0109
Fax (Corporate) (281)446-2298
Audio Response (281)442-4917
Visit Us Online InvesTexCU.org
Info@InvesTexCU.org