2014Annual Report

Once again, Austin Telco experienced continued growth and expansion in 2014. Membership now stands at over 75,000 strong. As our membership grew this past year, so did our assets, indicating that members are taking full advantage of the products and services we have to offer. Our year-end total assets were an impressive $1,307,343,059.

2014 was also a strong year for lending. Loans increased by more than $50 million to end the year at $501,006,181 in total outstanding loans, while delinquencies remained low at .042%. This tells us that our members value the competitive rates we are able to offer and have a strong commitment to honor their financial obligations with their credit union.

Just as our members are committed to Austin Telco, we are committed to providing products and services to help our members succeed financially. In 2014 we launched new products and services that enhanced our members’ experience, including Instant Issue VISA Cards and the Austin Telco Car Buying Service powered by TRUECar. With Instant Issue, members can visit any of our full-service branches and receive a free customized card. Members can choose an image, select their PIN, and activate it instantly. Additionally, we launched the Austin Telco Car Buying Service powered by TRUECar®. Members who use the Austin Telco Car Buying Service have unlimited access to pricing information, valuation reports, and can choose to receive a Guaranteed Savings Certificate from nearby dealers.

2014 marked the opening of our newest location, Balcones Centre, located at 11149 Research Blvd. We will open a new location in Oak Hill in the second quarter of 2015. This new drive-thru only branch will be near the intersection of HWY 290 and William Cannon in the Oak Hill area.

We would like to thank our dedicated management and staff for a job well done. We have a staff of experienced professionals who work with our members to help them meet their financial goals, and serve them in a professional and courteous manner. We are proud to say that at Austin Telco, we have longevity in employee tenure, and we strive to provide a culture that fosters personal and professional development.

Austin Telco would not be such a tremendous success story without the dedication of our Board of Directors and the Supervisory Committee. We would like to thank all of them for their hard work and personal commitment. They are a talented group who share their expertise and knowledge to guide this organization toward continued success. Finally, we would like to thank our loyal members for putting their trust in us and making all these accomplishments possible.

James D. PoplinPresident/CEO

Report from the President/CEO & Board Chairman

Paul PaulsenChairmanBoard of Directors

Board of Directors

Paul PaulsenChairman

Charlene SpillmannVice Chairman

R.B. SmithTreasurer

Larry LantripSecretary

Fran BernsBoard Member

Steve ReadMembership Officer

Liz HeilingBoard Member

It is my pleasure to report that 2014 was a strong and steady financial year for Austin Telco. We have continued to grow in assets, loans, and number of members. Low expense ratios and loan growth were two key factors in producing a strong net income for 2014. A net income of $14,796,688 increased our total assets to $1,307,343,059. Our loan portfolio grew to $501,006,181, an 11.2% increase. We ended the year with a total capital increase of 11.46%. These results allow us to provide very competitive auto, home equity, and commercial real estate loan rates. Austin Telco’s Return on Assets last year was above peer at 1.149%, and we ended the year with a net worth ratio of 11.01%. These figures show the steady earnings performance for last year and over the life of Austin Telco. Austin Telco also saw a continuing increase in membership to over 75,000. More people in Austin are learning about the value of a credit union and making Austin Telco their primary financial institution. We are grateful for the continued support of our membership and the trust they demonstrate in the staff and Board of Directors.

$ 41,009,567

$ 21,121,199

$ 10,558,541

$ 9,382,888

$ 111,674,397

$ 5,099,765

$ 833,901

$ 116,774,161

$ 1,250,977,421

$ 1,133,530,895

19,037

$ 401,606,843

$ 252,012

70,461

39,487

20132012Gross Income

Operating & Provision Expense

Net Income

Dividends

Undivided Earnings

Regular Reserves

Allowance for Loan Loss

Total Equity

Total Assets

Member Savings

Number of Loans Outstanding

Loans Outstanding

Delinquent Loans

Number of Members

Number of Checking Accounts

Treasurer’s Fiscal Report

$ 41,529,948

$ 21,853,252

$ 12,367,781

$ 7,332,502

$ 124,042,177

$ 5,099,765

$ 920,170

$ 129,141,942

$ 1,268,799,323

$ 1,149,158,587

20,675

$ 450,654,170

$ 336,154

72,517

41,228

R.B. SmithTreasurer

Report from the Treasurer

The Supervisory Committee is appointed by the Board of Directors to monitor and report on the activities of the credit union on behalf of the members. Our two main objectives are to ensure that the financial responsibilities of the credit union are met, and to make sure that the credit union is protecting and being responsible with our members’ assets of more than $1.3 Billion.

We achieve these objectives through the annual verification of members’ accounts, the ongoing internal audits performed by the Cornerstone Credit Union League Financial and Technology Resources group, and our annual CPA audit. In addition to our audit functions, we also monitor policies and procedures to protect members from fraud and errors, review internal controls, meet with auditors and Federal regulators, consider suggestions for improvement to the operations of Austin Telco, and respond to any concerns or complaints that members may direct to our committee.

Once again, we received the highest rating possible on this year’s examination from our regulators, the National Credit Union Administration (NCUA). The CPA firm, of CliftonLarsonAllen, LLP, was retained by the Supervisory Committee to perform our annual audit. As in previous years, our committee is delighted to report that the financial condition of ATFCU is strong and sound; a credit union that will continue to grow and flourish.

We would like to thank everyone that took part in our success. To the volunteer members of the Supervisory Committee and Board of Directors, thank you for your faithful service to the credit union. Also, I would like to extend a special thanks to our management team, staff, and loyal members for another outstanding year.

Report from the Supervisory Committee Chairman

David WestlundChairman Supervisory Committee

Supervisory Committee

David WestlundChairman

Joe BainSecretary

Paul TidrickMember

Larry LantripBoard Liaison

AssetsNet Loans to Members $ 500,017,650Loans Held for Sale $ 294,570Cash on Hand $ 10,061,267Investments $ 734,169,628Land & Building $ 45,537,226Furniture & Equipment $ 1,293,483Other Assets $ 15,969,235Total Assets $ 1,307,343,059

Liabilities & EquityMember Deposits $ 1,165,929,236Other Liabilities $ 3,609,282Regular Reserves $ 5,099,765Undivided Earnings $ 138,838,865Unrealized G/L (AFS) Securities [$ 5,083,419]Other Comprehensive Income [$ 1,050,670]Total Liabilities & Equity $ 1,307,343,059

Distribution of IncomeTotal Gross Income $ 43,435,681Operating Expense $ 21,780,578Non-Operating Income -Gain [Loss] on Disp of Assets $ 828Gain [Loss] on Investments $ 13,017Dividend Expense $ 6,632,325Provision for Loan Losses $ 239,935Change to Undivided Earnings $ 14,796,688

Statement of Financial Condition

2010 - 2014 Asset Growth

$1.2

68 B

illio

n

$1.2

50 B

illio

n

$1.2

13 B

illio

n

$1.0

83 B

illio

n

2010 2011 2012 2013 2014

$1.3

07 B

illio

n

ManagementJames D. Poplin, President/CEOTony Rawls, SVP, Lending/CLO

Karen Smith, SVP, Human Resources & Branch OperationsRobert Hernandez, SVP, Finance/CFO

Jim Howey, VP, LendingRaye Anne Cawthon, VP, Accounting

Pamela W. Cotton, VP, Member ServicesChristopher Mraz, VP, Information Technology/CIO

Kathleen Miller, AVP, Administrative ServicesSandie Peña, AVP, Branch Operations

Georgia Hayes, AVP, Information TechnologyJeannie Rowell, AVP, Lending

Katrina Levenick, AVP, Marketing

InvocationCall Meeting to Order

Determination of a QuorumReading and approval of 2014 minutes

Officers ReportsNew Business

Election of the Board of DirectorsUnfinished Business

Adjournment of the Meeting

2015 Annual Meeting Agenda