2017 Year in Review: Letter from the President/CEO · 2017 Year in Review: Letter from the...
Transcript of 2017 Year in Review: Letter from the President/CEO · 2017 Year in Review: Letter from the...
2017 Year in Review: Letter from the President/CEO
Happy New Year! It’s been another successful and busy year for Community 1st Credit Union. We began 2017 with $579 million in
assets, and thanks to our strong and empowered team we have continued to grow to over $615 million in assets with over 57,000
members. This growth wouldn’t be possible without you, our loyal members.
We pride ourselves in staying connected to our communities. In 2017, we participated in over 200 local events, donated over
$125,000 to local sponsorships, and provided over $40,000 in college scholarships. We also partnered with many local schools and
organizations to offer over 100 hours of financial education courses.
We have the right technology for today and tomorrow. In November, C1st was the first financial institution in Grinnell, IA to offer an
Interactive Teller Machine (ITM). An ITM offers extended banking hours and the ability to talk with a live member service representative
through cutting edge technology. We now have three ITMs in our network, with more coming in the future. In December, we launched
new digital wallet solutions including Apple Pay, Samsung Pay and Android Pay. We also made it even more convenient to contact us.
You can now reach a Member Service Representative via text @ 641.638.5015 and schedule an appointment with us by visiting
c1stcu.com.
We are here to improve the lives of our members. C1st was awarded a Financial Assistance Award grant in the amount of $596,000
from the Treasury Department CDFI (Community Development Financial Institutions) Fund in the fall. We were the only credit union in
Iowa and one of only 55 Credit Unions in the entire country to receive an award. With this grant we are creating an affordable,
alternative loan to be launched in 2018.
We’re always looking for ways to expand and improve. In December, we completed a renovation of our Ottumwa-South branch
(Richmond Ave.). In addition, last fall we began an extensive remodeling project to our branch in Centerville. The project will add
almost 1,000 square feet and has a June 2018 completion date. The upgrades include additional office space, an expanded
conference room, added restrooms, an employee break room and reconfigured teller and drive-up areas including a drive-up ITM.
We want our members to achieve financial success. In December, C1st Investment Services was launched through a strategic
partnership with CUNA Mutual. C1st now offers professional financial planners to help identify and meet your investment objectives.
You can take advantage of a wide range of investment products including stocks, bonds, mutual funds, annuities, tax-deferred
investments and more.
We are creating unique and fun experiences. For the second year in a row, Community 1st Credit Union was named a Top Workplace in
Iowa, moving up nearly 15 spots from last year! The results of our employee survey prove we have something special going on here.
Thank you again for your membership and for your continued investment in your financial cooperative. I wish you all a wonderful
2018!
Sincerely,
Greg Hanshaw, President/CEO
A Letter from the Board Chairman
C1st Member/Owners:
Community 1st Credit Union has been in business for 81 years, and we have had another successful year! I am happy to
report we are stronger than ever. We have 16 branches in 14 communities and have grown to over $615 million in assets,
serving over 57,000 members. Community 1st Credit Union remains financially strong and we look forward to continued
growth in 2018.
In 2017, C1st staff successfully completed multiple projects, including:
Developed and launched a “bump up” CD product
Launched a Drive-Up Interactive Teller Machine (ITM) in Grinnell.
Launched C1st Investment Services
Introduced Samsung Pay and Android Pay
Developed a Project Management Team
Received a grant from the Treasury Department CDFI (Community Development Financial Institution) to develop a
new loan product.
Received Top Workplace in Iowa award
Remodeled the Ottumwa-South (235 Richmond Ave.) branch.
Kicked off a major remodel project for the Centerville branch.
During 2017, the Credit Union board and management team worked hard to develop a strategic plan that supports the
Mission, Vision and Core Values of our credit union. This strategic plan is full of enhancements for the Credit Union, and the
C1st team is excited to share it with our members.
The board and management team continue to think of new ways to improve your credit union. The entire Board of Directors
would like to thank you, the owner/member, for your business and making our credit union successful. We are excited and
confident about the future of Community 1st Credit Union! Please feel free to contact me or other board members with any
questions or comments. We are here to serve you.
Thank you - for the Board,
John Mayberry
Board Chairman
A Letter from the Audit Committee Chairman
From Your Audit Committee:
The Audit Committee acts as the “watchdog” of the credit union to protect and safeguard member assets. Responsibilities include reviewing the
outside audits conducted at the credit union, monitoring of policies established in accordance to law for compliance, discussing concerns of the
credit union that may arise, evaluating financial statements and reviewing Board of Director meeting minutes.
The Audit Committee meets once a month. Members of the Audit Committee are: Anne Leathers (Chairman), Lowell McClure, and Carolyn Walker
(Secretary).
The Audit Committee continues to use Petersen & Associates to conduct the external annual audit of the credit union. Your Audit Committee
considers all comments from the C.P.A. firm, State and Federal Auditors, as well as our credit union members so as to insure that your credit union is
financially sound.
Respectfully Submitted,
Anne Leathers
Audit Committee Chairman
A Letter from the Credit Committee Chairman
The Credit Committee has two responsibilities – to serve the needs of our membership and protect your investment in Community 1st
Credit Union. We acknowledge the value and importance of being member owned! In fact, our credit union is a combination of
committees, Board of Directors, administration and members. The credit union committees and the Board of Directors work directly for
the members, volunteering their time and effort to ensure high quality service and products.
The Credit Committee meets every quarter in January, April, July, and October prior to the regular board meeting. The committee
consists of three members of the board (Edith Cabrera-Tello, John Mikelson and Rex Stewart) and two members of the management
team (Teri Ortgies and Jim Holle). It is the responsibility of the credit committee to determine the loan policies and procedures and
bring those items to the Board of Directors. C1st continues to offer competitive, diversified loans, including auto, home equity,
mortgage, personal and business/ag loans.
On December 31, 2017, C1st had $544,860,412 in loans, representing a positive year. Also, monthly deposits and net income has
increased. Net income for 2017 was $3,607,598. Members continue to receive the best possible rate, saving a significant amount in
interest. We have made enhancements to mortgage loan information online. This strategy allows our members to obtain detailed
mortgage loan history. C1st also continues to find additional ways to secure debit and credit cards and decrease delinquency.
In a perfect world, getting a loan should be as simple as walking in to see the loan officer, signing your name and walking out with the
money. Government regulations, prior credit history and privacy laws make lending far more difficult than that. The Credit Committee
continually strives to minimize the complexity of borrowing money.
Thank you for investing your money, trust, faith and business in Community 1st Credit Union. Investing in us allows us to give more back
to our communities, such as giving $42,000 in scholarships to local high school seniors and launch new products/services, such as the
new C1st Investment Services options. We will continue to serve you in the spirit of the credit union community. By voluntarily devoting
time and effort to improve the credit union, the Credit Committee is an excellent example of members helping members. We do our
best to treat fellow members like we would like to be treated.
Edith Cabrera-Tello
Credit Committee
ACTUAL ACTUAL
12/31/2017 12/31/2016
ASSETS
Loans 544,860,412.20 510,599,669.61
Allowance for Loan Loss (3,504,574.16) (3,310,615.61)
Other Receivables 56,849.61 42,752.62
Cash in Bank 6,683,998.17 7,344,148.88
NCB 36,499,208.67 31,815,408.21
Investments 1,216,341.42 1,454,373.30
Prepaid Expenses 716,056.16 633,230.61
Loans Available for Sale 2,798,159.87 1,284,752.05
Fixed Assets 17,988,935.30 18,748,500.91
Accrued Income 2,449,558.28 2,199,461.53
Other Assets 12,195,545.06 9,108,335.27
TOTAL ASSETS 621,960,490.58 579,920,017.38
LIABILITIES
Borrowed Funds 13,000,000.00 13,000,000.00
Accounts Payable 3,783,816.01 4,679,017.71
Other Liabilities 1,236,002.09 1,096,819.88
Payrolls 0.00 0.00
Accrued Dividends 0.00 0.00
Accrued Taxes 484,085.47 460,007.92
Accrued Expenses 193,957.40 192,287.05
Shares 380,352,968.78 351,141,954.48
Certificates 167,095,337.04 157,143,204.64
TOTAL LIABILITIES 566,146,166.79 527,713,291.68
EQUITY
Equity 52,206,725.70 49,507,298.75
Net Income 3,607,598.09 2,699,426.95
TOTAL EQUITY 55,814,323.79 52,206,725.70
TOTAL LIABILITIES & EQUITY 621,960,490.58 579,920,017.38
0.00 0.00
12/31/17
Community 1st Credit Union
Statement of Condition
YTD YTD
12/31/17 12/31/16
Income
Loan Income 24,445,158.97 22,615,014.46
Investment Income 363,479.72 75,109.71
Fees/ Charge Income 7,214,620.81 6,794,997.78
Miscellaneous Operating Income 1,376,132.71 1,267,537.63
TOTAL INCOME 33,399,392.21 30,752,659.58
Expenses
Employee Compensation 9,746,919.96 9,143,325.35
Employee Benefits 3,298,487.31 2,893,391.99
Education & Travel 422,469.97 443,895.89
Association Dues 92,920.90 88,815.14
Office Occupancy 1,916,054.94 1,661,914.25
Furniture & Equipment Mtc 1,130,240.51 842,637.10
Stationary & Supplies 664,194.00 806,222.50
Insurance 153,924.51 150,482.31
Depreciation 2,066,823.16 1,901,636.79
Miscellaneous Expense 2,485.28 (609.36)
Promotion 1,341,539.70 1,347,457.29
Loan Service Expense 720,381.30 654,366.40
Supervision/ Exam Fees 131,972.50 109,775.62
Outside Services 2,063,830.70 2,047,557.18
Provision Expense 1,682,651.00 2,020,820.00
Cash Over/ Short (1,262.55) 2,465.95
Interest Expense 222,250.31 219,253.09
Miscellaneous Operating Exp. 189,840.09 311,505.62
Dividend Expense 3,947,778.72 3,329,689.80
Gain / loss on sale of assets (32,858.19) (2,870.28)
TOTAL EXPENSE 29,760,644.12 27,971,732.63
Extraordinary Expense 31,150.00 81,500.00
NET INCOME 3,607,598.09 2,699,426.95
Community 1st Credit Union
Statement of Income
12/31/17
BOARD OF DIRECTORS MEETING
Market on Main
January 23, 2017 at 6:00 PM
Members of the Community 1st Credit Union held their 80th Annual Meeting at Market on Main in Ottumwa.
Chairman D. Dave Boyer called the meeting to order at 6:05 p.m. Quorum was reached with 61 people in attendance.
Minutes of the last annual meeting reviewed. A motion was duly made and seconded to approve the minutes after making
corrections. M/C
D. Dave Boyer introduced the Board Members and the Audit committee members.
Outgoing board member Jason Eubanks was presented with a plaque for his 10 years of service.
Staff members introduced themselves along with job titles.
Old Business: President and CEO Greg Hanshaw reviewed highlights from 2016 and some things to look forward to in 2017.
New Business: The 2018 Annual meeting date was set to 22 January 2018.
Election Results: Rex Stewart , Anne Leathers, and Dwain Russell will serve a 3 year term. John Mickelson will serve a 1
year term.
2017 C1st Board of Directors:
John Mayberry – Chairman Edith Cabrera-Tello
Tim Elliott – Vice Chairman Lowell McClure
D. Dave Boyer – Chief Financial Officer John Mikelson
Dwain Russell – Secretary Anne Leathers
Rex W. Stewart
A motion was duly made and seconded to adjourn. M/C Adjourned at 7:00 p.m.
D. Dave Boyer, Chairman John Mayberry, Vice Chairman
Community 1st Credit Union Branch Locations
1420 S. Clinton Street
301 E. Franklin
1030 Sierra Dr. N.E.
999 N. 18th
1934 Court Avenue
2501 W. Burlington
205 West Street
300 S. Jefferson Way
1008 W. Bell Ave., Suite 103
1800 E. Washington Street
1311 A. Ave. West
739 Pennsylvania Avenue
235 Richmond Avenue
1940 Venture Drive
500 Main Street
303 S. 2nd Avenue
2018 Board of Directors Candidates
John Mayberry: A member since 1982 and resides in Bloomfield, IA with his wife
Carol. He is retired from John Deere Ottumwa Works and currently employed at Mid-States Mfg. in Milton, IA. Currently, John is Chairman of the C1st Board of Directors. He is a member of the Davis County Fair Board and Twin State Truck/Tractor Pullers Association.
John Mickelson: Retired after a career in the military and a resident of the Columbus
Junction area. John is a board member of the Iowa Able Foundation and active in the Iowa City VA Medical Research Foundation. John was appointed to the C1st Board of Directors in January 2016.
Bianca Myers: Director of Marketing & Community Relations of Indian Hills Community
College. She recently received her PhD in Education Leadership & Administration from Iowa State University. Bianca has been a C1st member for over 10 years and resides in Ottumwa with her husband, Chris, and young son.
Courtney Jones: Manager of Donor Services at Mississippi Valley Regional Blood
Center. Courtney has a Masters in Health & Human Performance/ Exercise Science from Oklahoma State University. She has been a member of C1st for 5 years and resides in Ottumwa with her husband, Austin and young daughter. Courtney is a former President of the Lions Club in Ottumwa, IA and member of United Way’s Reading Buddies program.