2015 PECU Annual Report (power point)

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N e w l y C o m p l e te d 4 2 nd S tr e e t P E C U L o c a ti o n | R o u n d R o c k , T e x a s

Members who followed PECU on Facebook, Twitter and YouTube were eligible to win monetary and gift prizes.

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2016 annual meeting agenda

savings & loan rates

I.

Call Meeting to order

II.

Ascertain that a quorum is present

III.

Appoint Recording Secretary and establish rules and procedures for Meeting

IV.

Minutes of the 2015 Annual Meeting

V.

Reports A. Board of Directors—David Burrell B. President—Gary Whitcomb

VI.

Unfinished business, if any

VII.

New business

VIII.

Report of the Nominating Committee

IX.

Elections

X.

Door Prizes

XI.

Adjourn

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2015 annual meeting minutes The annual meeting of Public Employees Credit Union (PECU) was held at the Embassy Suites North in Austin, Texas on March 2, 2015 with 118 members present. It was called to order at 7:00 p.m. by the Chairman of the Board of Directors, David Burrell. Chairman Burrell welcomed all members and guests to the annual meeting and introduced himself as the Board Chair. He confirmed with Merrily Porter, PECU’s General Counsel, that a quorum was present. After ascertaining that a quorum was present, he appointed Marc Broddrick as recording secretary.

reports Chairman Burrell referred to the Board of Directors report as printed in the Annual Report. He commented that 2014 was a banner year for PECU, in terms of loans. The credit union loaned nearly $92 million in 2014 with a net increase of nearly $25 million.

Chairman Burrell then commented about PECU’s e-Services and their ease of use, including the new mobile apps. In closing, he congratulated staff for their accomplishments of 2014 and recognized the Board for their efforts in providing for quality financial products and services while also maintaining the financial stability and strength of the credit union. No questions were asked from the floor.

Gary Whitcomb, PECU President, presented the President’s Report. He began by welcoming everyone to PECU’s 62nd annual meeting. He reported that Public Employees Credit Union performed well financially in 2014 and that all members, whether they were savers, borrowers, or both, contributed to the growth of the credit union and that by doing so, they make a statement of trust in their credit union. Mr. Whitcomb then discussed the Walnut Creek remodel and the new Round Rock branch currently under construction. He thanked members for their patience during the remodel and noted that it was done to increase employee efficiency and enhance the appearance of the branch. The new Round

Rock branch will bring a higher quality of service to the members who use Round Rock in that it will have a larger lobby and offices for ease of member transaction and privacy.

Additionally, the new branch will have a walk up and drive thru ATM’s and will offer deposit automation, allowing members to deposit cash or checks at all hours of the day. In closing, Mr. Whitcomb thanked the Board for their dedication and talent. He then proceeded to introduce the senior management team and thanked staff for working hard to meet the needs of the members and for making 2014 a successful year. p

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offering

more

report of the nominating committee

free services Chairman Burrell called upon Hal ten Brink, PECU’s Chairman Emeritus, to give the report of the nominating committee. He reported that there were two vacancies on the Board and the nominees were Jennifer Soldano and Will Etheredge. No other nominations were received for a position on the Board of Directors.

BOARD MEMBERS

elections David Burrell, Chairman Hal ten Brink, Chairman Emeritus Lanny Wadle, Vice Chairman Jennifer Soldano, Treasurer

Chairman Emeritus ten Brink presented the incumbents Soldano and Etheredge for re-election. Member, Richard Vander Straten, moved that the nominees be accepted by acclamation. Winston Anderson seconded and the nominees were accepted with a voice vote of the membership.

Tommy Gregg, Secretary Claire McGuinness, Assistant Treasurer Will Etheredge, Assistant Secretary

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board of directors report Welcome to the Annual Meeting of PECU. We are proud to have served State employees and members of the communities that we serve with their financial services needs since 1952. We continue to deliver a wide variety of financial products and services to our members in a professional and personal manner. We strive to deliver exceptional service to our members at all times. Our vision is to be the premier financial institution in the communities that we serve to enable our members to reach their financial goals. We strive to reach that vision with everything that we do. Our vision guides us to make decisions that benefit the members of PECU. 2015 was another good year for PECU. Interest rates remained low and we continued to provide a variety of loans to our members at record low rates. Total assets on December 31, 2015 totaled $310,089,403, an increase of $14,505,072 since December 31, 2014. Member deposits on December 31, 2015 totaled $285,327,574, an increase of $13,812,142 since December 31, 2014.

We loaned over $80.5 million to our members in 2015, enabling total outstanding loans to grow to $175,100,416 on December 31, 2015, an increase of $11,003,403 since December 31, 2014.

We are very pleased with the performance of our

loan portfolio, and that we could help many of our members with their lending needs.

We strive to make our product and service offerings convenient to access for our membership. We continue to invest in technology to increase our product and services availability and improve service levels for our members. The use of our e-Services continues to increase as we add functionality to our EFT services. PECU e-Services are a suite of free web-based products that allows members to conduct business with PECU electronically.

Members use remote access e-Services to access their accounts, transfer funds, pay bills, make deposits, apply for quick-decision loans, set up eAlerts and receive e-Statements. PECU’s eServices are available 24 hours a day, 7 days a week via the internet. Our secure Apple and Android mobile apps give you immediate access to your PECU accounts and e-Services from your mobile device. All of our e-Services are free and very easy to use.

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We’re local.

We’re all about

YOU. board of directors report We offer in person financial services at our six locations with knowledgeable and professional employees. Major improvements to our facilities continue to enhance the service levels at our main office and branch locations. Hopefully you have been able to visit our new Round Rock branch located at 15800 RM 620 North and our newly remodeled branch in Walnut Creek located at 8013 Centre Park. The improvements at these offices enhance the member experience

and improve employee efficiencies. The totally free ATM network and totally free shared branching network continue to grow. Members can perform transactions at over 335 free ATMs and over 5,000 worldwide shared branching offices.

Your Board of Directors is composed of professionals that represent you, the member owners of PECU. We believe in the credit union

system, a financial cooperative system of which we are proud to be a part of.

The Board is appreciative of the management and employees of PECU. The Board would like to thank the employees for their dedication to providing professional and courteous service to the members of PECU.

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TOTAL ASSETS

253,182 268,015 281,151 285,446 295,584 310,089

2010

2011

2012

2013

2014

2015

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115,869 114,170 131,095 134,784 164,097 175,100

2011 180,000 170,000 2012 160,000 2013 150,000 2014 140,000 2015 130,000 120,000 110,000 100,000 2010

2011

2012

2013

2014

2015

2014

2015

NET WORTH EQUITY

TOTAL MEMBER DEPOSITS 26,000

300,000

231,942 245,969 258,585 264,560 271,515 285,328

2010 25,000

20,060 20,977 21,430 22,708 23,936 24,980

2011 24,000 in $1000'S

2010 280,000 2011 2012 260,000 2013 2014 240,000 2015

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TOTAL LOANS

2010

in $1000's

in $1000's

270,000 260,000 250,000 240,000

in $1000's

at-a-glance

2010 320,000 2011 310,000 2012 300,000 2013 290,000 2014 280,000 2015

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220,000

2012 2013 22,000 2014 2015 21,000 23,000

20,000

200,000

19,000 2010

2011

2012

2013

2014

2015

2010

2011

2012

2013

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assets

LOANS Personal Loans Real Estate Loans Allowance for Loan Loss Net Loans Cash, on hand Investments Marketable Securities Catalyst Corporate Credit Union Nat’l Credit Union Share Insurance Fund Other Investments Total Investments Other Assets Land and Building Other Fixed Assets Accrued Interest Deferred Assets Other Assets TOTAL ASSETS

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139,021,405 36,079,011 (342,582) 174,757,834 944,431 90,722,646 32,023,846 2,576,192 1,851,103 127,173,787 5,225,934 611,547 604,658 360,705 410,508 $310,089,403

LIABILTIES Accrued Interest and Dividends Accounts Payable Accrued Expenses Other Liabilities Dormant Accounts SHARES AND DEPOSITS

59,794 500,349 281,423 106,755 31,268 285,327,574

EQUITY Reserves & Undivided Earnings

23,782,240

TOTAL LIABILITIES AND EQUITY

$310,089,403

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income statement

INCOME Interest on Loans Income from Investments Fee and Other Income Non-Operating Income TOTAL INCOME

5,990,293 1,303,001 1,661,593 192,883 9,147,769

EXPENSES Employee Compensation and BeneďŹ ts Travel and Conference Expense Office Occupancy Expense Office Operations Expense Educational and Promotional Expense Loan Servicing Expense Professional & Outside Services Provision for Loan Losses Member Insurance Supervision & Examination Miscellaneous Expenses

3,798,030 24,370 684,437 1,311,921 313,168 317,073 447,072 427,798 2,501 32,898 131,357

TOTAL EXPENSE

7,490,624

INCOME BEFORE DIVIDENDS

1,657,145

Dividends

613,466

NET INCOME

$1,043,679

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member-owned

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WEB ADDRESS

cooperative MAILING ADDRESS P.O. Box 2205 Austin, TX 78768-2205 CENTRAL TEXAS PHONE NUMBER 512.474.1955

PECU LOCATIONS Main Office 306 E. 10th St. P.O. Box 2205 Austin, TX 78768-2205 Central Branch 1200 W. 42nd St. Austin, TX

Walnut Creek Branch 8013 Centre Park Dr. Austin, TX

Round Rock Branch 15800 RM 620 North Austin, TX

Oak Hill Branch 5838 Hwy. 290 West Austin, TX Drive Thru Branch

Beaumont Branch 4241 Eastex Freeway P.O. Box 7430 Beaumont, TX 77726-7430 Tel: 409.892.3171

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