Annual Report 2012 Al Credit Union 2013 - Alabamaacua.alabama.gov/PDF/reports/04986-Annual-Report... · Montgomery, AL 36130 Dear Governor Bentley: It is my pleasure to present the

ANNUAL REPORT

of

ALABAMA CREDIT UNION ADMINSTRATION

of the

STATE OF ALABAMA

FOR THE CALENDAR YEAR ENDING

DECEMBER 31, 2012

April 22, 2013 The Honorable Robert Bentley Governor of Alabama Alabama State Capitol Montgomery, AL 36130 Dear Governor Bentley: It is my pleasure to present the following Annual Report of the Alabama Credit Union Administration to you and the people of Alabama. The report covers the year 2012 and contains information concerning the activities of the agency, including financial and statistical highlights for the sixty-eight state chartered credit unions the agency is responsible for regulating, supervising and chartering. Sincerely yours, Larry D. Morgan, CCUE, CFP Administrator

STATE OF ALABAMAALABAMA CREDIT UNION ADMINISTRATION

1789 CONG. WM. L. DICKINSON DR., MONTGOMERY, ALABAMA 36109-2601TELEPHONE: (334) 271-2381 • FAX (334) 409-9635

www.acua.alabama.gov

ROBERT BENTLEY

GOVERNOR

LARRY D. MORGAN, CCUE, CFPADMINISTRATOR

Alabama Credit Union Administration 2012 Annual Report

ACUA ADVISORY BOARD

MEMBER

Larry D. Morgan……….…………………………………ACUA Administrator/CEO Ex-Officio Member Chairman of the Board

Steve Nix …………………………………………………President First Educators CU Birmingham, AL

Joey Hand…………………………………………………President ēCO CU Birmingham, AL

Linda Cencula……………………………………………..President Alabama Telco CU Birmingham, AL

Charles Faulkner………………………………………….President Jefferson CU Birmingham, AL

Greg McClellan…………………………………………...President Max CU Montgomery, AL

Greta Webb-Williams……………………………………..Supervisory Committee Guardian CU Montgomery, AL

Board Member ……..…………………………………….Vacant


ACUA PERSONNEL

Larry D. Morgan……………………………………………………..Administrator/CEO

EXAMINING STAFF

Lloyd H. Moore….………………………………………………..Assistant Administrator Peter C. Ukeje……………………………………………Bank Examinations Coordinator James M. Arndt, Jr…………………………….…………Bank Examinations CoordinatorRobert J. Russell.…………………………………...........Bank Examinations CoordinatorTrey Ragland…………………………………………..….…….State Professional Trainee Marie H. Steele…………………………………………………………Contract Examiner

ADMINISTRATIVE SUPPORT STAFF

Christy J. Ealum.………………………………………….….………..Executive SecretaryJan D. Reeves…………….…………………………...Administrative Support Assistant II

LEGAL COUNSEL

Mark J. Williams………………………………………………….Retained Legal Counsel

AGENCY WEB SITE

www.acua.alabama.gov


BIOGRAPHICAL INFORMATION FOR AGENCY STAFF

Larry D. Morgan – Administrator B.S. Business Administration/Accounting and Management, 1967 – Auburn University Mr. Morgan worked with the Alabama Credit Union League as a Field Auditor from 1968 to 1972. APCO Employees Credit Union President for 38 years from 1973 to 2010. Certified Credit Union Executive (CCUE), Certified Financial Planner (CFP), Who’s Who in America’s Credit Unions, Corporate America (Alabama Corporate) Board of Directors from chartering to February 2011, Alabama Service Center Board of Directors from inception to December 31, 2010, Credit Union Managers Association Director and Official, Birmingham Chapter of Credit Union Directors and Officials, CUES Alabama Chapter Official, Alabama Credit Union Administration Advisory Board Member, served on several League Committees. Lloyd H. Moore – Assistant Administrator B.S. Business Administration / Finance, 1987 – Auburn University Montgomery Mr. Moore currently serves in the position of Assistant Administrator. He has a total of 21 years of service with ACUA and previously served in the roles of credit union examiner and supervisor of examiners. Prior to joining ACUA, his professional experience includes employment as an auditor in the banking industry and as a credit union examiner with the National Credit Union Administration (NCUA). He was employed in the credit union industry for 2 years while attending college. Mr. Moore is a State Certified Public Manager and is a Certified State Credit Union Examination Supervisor with NASCUS. Peter C. Ukeje – Bank Examinations Coordinator B.S. Business Administration, 1983 - Alabama A&M University Masters of Business Administration (MBA), 1985 – Alabama A&M University Mr. Ukeje has been a credit union examiner with ACUA since September of 1991. Prior to joining ACUA, he served for 4 years in the U.S. Army as a supply sergeant. Mr. Ukeje is a NASCUS Certified State Credit Union Examiner. James M. Arndt, Jr. – Bank Examinations Coordinator B.S. Business Administration, 1987 – Auburn University Mr. Arndt has attained 16 years of experience serving as a credit union examiner with ACUA. He brought knowledge to ACUA after having served eleven years as a manager in the consumer finance and banking industries. Mr. Arndt is also a NASCUS Certified State Credit Union Examiner.


BIOGRAPHICAL INFORMATION FOR AGENCY STAFF (CONTINUED)

Robert J. Russell – Bank Examinations Coordinator B.S. Business Administration / Finance, 1990 – Auburn University Montgomery Mr. Russell has a total of 13 years experience examining credit unions, including 2 ½ years with the National Credit Union Administration (NCUA). He also has 9 years of experience serving in various positions in the banking and financial services industry, including 4 years with a credit union. Mr. Russell is a NASCUS Certified State Credit Union Examiner. Trey Ragland – State Professional Trainee B.S. Business Administration, 2012 –University of Alabama Birmingham Mr. Ragland joined ACUA as a trainee in June of 2012. Marie H. Steele – Contract Examiner Mrs. Steele joined ACUA as a contract examiner in 2006. She has 25 years of experience working in the financial services industry, including 8 years managing Dixie Craft Employees Credit Union in Goodwater, Alabama. In addition, Mrs. Steele spent 5 years managing and 3 years owning and operating a small finance company. She received certification from CUNA in 2007 as a Bank Secrecy Act Compliance Specialist. Mrs. Steele is also a NASCUS Certified State Credit Union Examiner. Christy J. Ealum – Executive Secretary Mrs. Ealum has been employed with the State of Alabama for 28 years. She began working with the state in 1984 with the Department of Finance Division of Purchasing, and has worked with the Department of Revenue, Department of Public Safety, and the General Contractors Board. Mrs. Ealum began employment with the Alabama Credit Union Administration in 2005 as an Administrative Support Assistant I. Mrs. Ealum was promoted to Administrative Support Assistant II in 2007 and to Executive Secretary in 2011. Jan Reeves – Administrative Support Assistant II B.S. Business Education, 1980 – Auburn University Mrs. Reeves joint ACUA in November 2011. Formerly a judicial assistant for a Montgomery County District Court Judge through the Administrative Office of Courts, she has over 25 years experience as a legal assistant.


Mission Statement The Alabama Credit Union Administration’s mission is to provide effective supervision and regulation in order to affirm the future viability of credit unions and the safety of deposits therein, promote the unencumbered commerce between the citizens of Alabama and credit unions, allow for innovations in services, products, and technology that maximize credit unions’ capabilities to provide service, and assure that Alabama state credit unions provide professional, and competent financial services to the citizens of Alabama regardless of means. Authority and Responsibility Established in May of 1985 by Legislative Act 85-457 (the Act), the Alabama Credit Union Administration is an independent state agency devoted exclusively to chartering, regulating, and supervising Alabama state chartered credit unions. The ACUA is one of only a very few state agencies nationwide that enjoys such independence. The Alabama Credit Union Administration was accredited by the National Association of State Credit Union Supervisors (NASCUS) in 1998. Accreditation standards are reviewed every five years. In January, 2009, the agency was reaccredited by NASCUS for five years. The Act provides for the annual examination of each credit union’s books and records for safe and sound operation. On every such examination, inquiry is made as to the conditions and resources of the credit union, the mode of conducting and managing the affairs of the credit union, and the action of its directors, officers, and management. The agency’s examiners also inquire into the investment of the funds (deposits) of the credit union, the safety and soundness issues affecting the credit union, and whether the requirements of its charter and applicable laws have been complied with. In addition to annual examinations, multiple examinations shall occur whenever, in the judgment of the Administrator, the condition of a credit union or the public’s best interest render additional examinations necessary. The ACUA also approves charters for new credit unions, supervises mergers, liquidations, bylaw changes, field of membership changes, and promulgates regulations as necessary. Examining staff, in their capacity, assist credit unions in practicing due diligence, increasing efficiency and ensuring strong internal controls. Examiners also review compliance with applicable laws and regulations, and oversee corrective actions where required. When necessary, ACUA may augment its regulatory presence through the issuance of Memoranda of Understanding (MOU’s), Letter of Understanding and Agreements (LUA’s), Cease and Desist Orders (C&D’s), and Conservatorship Orders.


Administrator’s Report

I would like to extend my sincere appreciation to each credit union employee and official who contributed to the success of our state’s credit unions in 2012. The year 2012 saw improvement in the earnings of our state’s sixty-eight (68) credit unions from the previous year. However, the effects of the great recession that ended in 2009 have finally disappeared with loan balances increasing by 8% in 2012. Even though interest rates remain at historical lows, many of our credit unions were able to pay their members an above market dividend rate while maintaining exceptional capital levels expected of a properly managed credit union.

The Alabama Credit Union Administration will continue to take a proactive approach in working with credit union management to resolve regulatory issues and safety and soundness problems while emphasizing the need for credit unions to enhance member services. Alabama’s credit unions need to offer their members all of the consumer financial services that the banks offer but with lower fees and with a more efficient and user friendly delivery platform. As a member owned financial institution, your goal should be to operate as efficiently as possible in order to benefit your members with low cost loans, higher deposit yields and low fees for services. By keeping your operating costs at a minimum, a credit union can meet the true definition of a cooperative group of members helping members. It is very important to encourage your membership to get involved in the election process and annual meeting in order to make sure that qualified men and women are serving as officials.

Credit union management and officials know that change is constant and with change of any type such as economic, regulatory, legal or any other, the changes will bring new challenges for management and boards in conducting business. As you face new challenges, please evaluate your strategic plan, marketing plan and capital preservation plan in order to properly meet the needs of your members.

The goal of our agency is to keep losses to the NCUA and the American Share Insurance Funds from occurring. Our agency strives to be pro-active as we try to identify emerging problems and provide the proper level of supervision in order to correct problems before losses occur.

During 2012 we issued a new charter to Gateway Credit Union located in Montgomery. We also

added two existing credit unions in Family Savings Credit Union of Gadsden and Alabama Rural Electric Credit Union of Montgomery as they converted from federal charters to Alabama chartered credit unions. We did not have any credit unions to merge or liquidate in 2012 thus we increased our number of credit union by three to a total of sixty-eight. We did not have to conserve any of our credit unions during the year and overall our financial ratings continue to improve. Our supervision policy encourages a working relationship with the insurers, other regulators and of course credit union officials and management. We are accomplishing this policy by performing more offsite monitoring and analysis. In addition we utilize follow up on-site contacts as needed and all of our credit unions receive an on-site comprehensive examination annually. Many of our examinations are joint exams with examiners from the insuring agencies.

Our agency continues to operate on a sound financial basis as our annual operating fee income

continues to exceed our operating costs. We thank Governor Bentley and the Legislature for their continued support of Alabama’s credit unions. We pledge to the citizens of Alabama to dedicate our efforts in making Alabama’s credit unions the safest and financially strongest credit unions in America.


REPORT OF THE ASSISTANT ADMINISTRATOR

2012 was a year of continued growth for Alabama credit unions. Total Assets for all Alabama credit unions under the Administration’s supervision, including Corporate America Credit Union, decreased approximately (-0.25%) from $12.41 billion to $12.38 billion.

Shares and deposits in all Alabama state chartered natural person credit unions increased from $7.97 billion in 2011 to $8.81 billion in 2012, a 10.6% increase. Credit union membership in state chartered credit unions increased from 922,811 to 1,013,260, a 9.80% annualized growth rate. Alabama chartered credit unions employed 2,421 individuals full-time and 285 part-time as of year-end 2012.

Net Worth for all Alabama state chartered natural person credit unions (excluding Corporate America Credit Union) increased 10.2% to $1,120,086,380. However, the Net Worth ratio as a percentage of Total Assets decreased from 11.19% in 2011 to 11.15% in 2012.

The total amount of delinquent loans (loans greater than 2 months delinquent) increased by $10.5 million or 17.82%. The ratio of delinquent loans to total loans increased from 1.42% in 2011 to 1.54% in 2012. Loan losses, measured as the ratio of loans charged off during the year (net of recoveries) to average loans, decreased from 0.69% to 0.64%.

Return on Average Assets (the ratio of net income to average assets) for all natural person credit unions decreased from 0.74% in 2011 to 0.66% in 2012. The net interest margin, or difference between interest income and interest expense measured against average assets, decreased from 2.76% in 2011 to 2.57% in 2012. Interest rates still remained low and competition for loan business among lenders continues to be intense. The average yield on loans for credit unions decreased from 6.25% in 2011 to 6.09% in 2012.

There was one new charter granted in 2012 and no liquidations or dissolutions. The Administration currently oversees sixty-eight (68) credit unions. These are made up of sixty-five (65) federally insured natural person credit unions, two (2) non-federally insured natural person credit unions, and one (1) federally insured corporate credit union (Corporate America).


Prompt Corrective Action, Capital Requirements & Capital Preservation Plans In 1998, with the passage of the Credit Union Membership Access Act, Congress required the establishment of minimum capital standards for all federally insured credit unions. The act also required that the National Credit Union Administration (NCUA) develop a system of “Mandatory Supervisory Actions (MSAs)” designed to ensure that all credit unions remain at least “adequately” capitalized. These actions range in severity from the establishment of a Net Worth restoration plan to required transfers of earnings and restrictions on asset growth. In order to avoid the imposition of MSAs, credit unions should endeavor to retain capital at the determined “well capitalized” level. That level, determined by measuring the ratio of Net Worth (Equity Capital exclusive of the Allowance for Loan & Lease Losses and Accumulated, Unrealized Gain or Loss on Available for Sale Investments) to Assets, is 7%. Credit unions with less than 6% of Net Worth to Assets are classified as undercapitalized, significantly undercapitalized and/or critically undercapitalized. NCUA has developed a series of both “Mandatory Discretionary Supervisory Actions” (MSA’s) and “Discretionary Supervisory Actions’ (DSA’s) to better supervise these situations. For 2012, no Alabama state chartered credit union would be considered undercapitalized according to the basic capital requirements of the federally-driven Prompt Corrective Action ruling. In addition to the above mentioned federally imposed minimum capital requirements, Title 5-17-19 (a) of the Code of Alabama authorizes ACUA to require additional reserves which the Administrator finds necessary under particular circumstances to protect the ongoing interest of each credit union and its member depositors. Such circumstances may include, but are not limited to, increasing loan losses, investment losses, and / or deteriorating economic conditions (in general or specific to the credit union). The Administrator recognizes that these or other conditions could ultimately cause a credit union to suffer financially and erode member confidence in a credit union’s ability to offer competitive products and services and remain viable in the financial sector. ACUA Regulation, Section 6, which supports this measure, requires every state chartered credit union to create and submit to the Administrator a written annual Capital Preservation Plan each year. The plan will be in effect for that calendar year unless rejected by the Administrator within 60 days of being submitted. The submission of such plans must not be later than May 1st of each year. Finally, each state chartered credit union shall make a reserve transfer in accordance with their approved Capital Preservation Plan by December 31st of that year; provided that the Administrator may reduce the amount of such transfer upon good cause.

Total Assets Total Assets 2011 2012 Credit Union Location 12/31/2011 12/31/2012

1 1 CORPORATE AMERICA IRONDALE 3,332,474,690$ 2,342,750,301$ 2 2 APCO EMPLOYEES BIRMINGHAM 2,129,509,795$ 2,305,460,527$ 3 3 MAX MONTGOMERY 913,542,767$ 981,263,652$ 4 4 ALABAMA ONE TUSCALOOSA 598,041,442$ 616,738,382$ 6 5 LISTERHILL SHEFFIELD 540,798,525$ 600,889,859$ 5 6 ALABAMA TELCO BIRMINGHAM 573,111,373$ 591,180,985$ 7 7 ALABAMA TUSCALOOSA 479,100,383$ 549,206,141$ 8 8 FAMILY SECURITY DECATUR 462,036,582$ 488,813,178$

N/A 9 FAMILY SAVINGS GADSDEN 281,035,068$ 303,211,267$ 9 10 TVA MUSCLE SHOALS 268,398,695$ 279,247,437$

15 11 FIVE STAR DOTHAN 183,531,146$ 251,608,110$ 10 12 WINSOUTH /FKA COMMUNITY GADSDEN 238,265,247$ 233,283,689$ 12 13 GUARDIAN MONTGOMERY 212,083,152$ 228,846,971$ 11 14 ALABAMA TEACHERS GADSDEN 213,837,372$ 226,204,314$ 13 15 ALABAMA STATE EMPLOYEES MONTGOMERY 195,366,761$ 206,097,281$ 14 16 NEW HORIZONS MOBILE 187,863,325$ 197,128,568$ 16 17 FORT MCCLELLAN ANNISTON 167,030,520$ 184,054,879$ 17 18 MUTUAL SAVINGS BIRMINGHAM 161,285,876$ 152,059,722$ 18 19 ALABAMA CENTRAL BIRMINGHAM 124,564,002$ 127,685,355$ 19 20 FIRST EDUCATORS BIRMINGHAM 117,229,807$ 124,477,197$ 20 21 ēCO BIRMINGHAM 113,561,771$ 119,044,644$ 21 22 TUSCALOOSA TEACHERS TUSCALOOSA 106,629,239$ 114,825,700$ 23 23 HERITAGE SOUTH SYLACAUGA 78,457,556$ 83,032,622$ 22 24 NORTH ALABAMA EDUCATORS HUNTSVILLE 79,372,691$ 81,069,136$ 24 25 NAHEOLA PENNINGTON 72,710,901$ 75,354,998$ 25 26 MOBILE EDUCATORS MOBILE 69,351,594$ 71,161,149$ 26 27 JEFFERSON BIRMINGHAM 66,059,539$ 67,621,907$ 27 28 VALLEY TUSCUMBIA 60,478,504$ 62,845,255$ 29 29 TUSCALOOSA TUSCALOOSA 53,501,827$ 59,707,702$ 31 30 RIVERDALE SELMA 48,821,358$ 55,233,094$ 30 31 CHAMPION COMMUNITY COURTLAND 50,333,827$ 53,773,975$ 28 32 LANDMARK FAIRFIELD 55,204,757$ 51,259,102$ 32 33 SECURE FIRST BIRMINGHAM 46,722,654$ 44,541,993$ 33 34 DCH TUSCALOOSA 32,454,350$ 29,803,204$ 34 35 LAUDERDALE COUNTY TEACHERS FLORENCE 29,413,115$ 29,457,124$

N/A 36 ALABAMA RURAL ELECTRIC MONTGOMERY 27,340,955$ 28,476,220$ 35 37 SOCIAL SECURITY BIRMINGHAM 27,015,364$ 27,806,947$ 40 38 ENERGEN BIRMINGHAM 20,116,549$ 24,607,046$ 36 39 WOLVERINE DECATUR 22,804,453$ 22,564,785$ 37 40 MOBILE GOVERNMENT EMPLOYEES MOBILE 22,178,467$ 22,239,111$ 38 41 HEALTH BIRMINGHAM 20,768,336$ 22,096,436$

ForAlabama's Natural Person & Corporate Credit Unions Ranked by Assets

CY 2011 and 2012

Total Assets Total Assets2011 2012 Credit Union Location 12/31/2011 12/31/2012

41 42 AZALEA CITY MOBILE 19,068,361$ 21,272,077$ 39 43 MILESTONE BIRMINGHAM 20,580,669$ 19,039,886$ 42 44 RAILWAY EMPLOYEES MUSCLE SHOALS 16,873,441$ 16,525,072$ 44 45 ALABAMA RIVER MONROEVILLE 14,153,635$ 15,539,155$ 43 46 CITY TUSCALOOSA 14,420,130$ 14,618,807$ 45 47 ALLIED JACKSON 13,223,107$ 13,736,758$ 47 48 FEDERAL EMPLOYEES BIRMINGHAM 12,354,438$ 13,567,559$ 46 49 OPP MICOLAS OPP 12,969,079$ 13,193,415$ 49 50 MOBILE POSTAL EMPLOYEES MOBILE 10,811,556$ 10,894,769$ 48 51 CRAIG SELMA 10,852,078$ 10,594,651$ 50 52 L & N BIRMINGHAM 10,734,681$ 10,298,432$ 55 53 SHORELINE MOBILE 7,804,822$ 9,515,802$ 53 54 PIKE TEACHERS TROY 7,900,529$ 8,348,538$ 52 55 BRASSIES ANNISTON 8,276,232$ 7,572,513$ 54 56 BLUE FLAME MOBILE 7,889,088$ 7,391,872$ 56 57 ALABAMA POSTAL BIRMINGHAM 6,798,105$ 7,290,789$ 51 58 TUSCALOOSA COUNTY TUSCALOOSA 8,618,692$ 7,259,569$ 57 59 CHEM FAMILY ANNISTON 6,331,419$ 6,439,725$ 58 60 CITY OF BIRMINGHAM GENERAL EMPLOYEES BIRMINGHAM 5,746,952$ 6,200,169$ 59 61 BIRMINGHAM POLICE BIRMINGHAM 5,404,114$ 5,803,054$ 60 62 CHEMCO MCINTOSH 4,625,936$ 4,808,154$ 61 63 FIREMAN’S BIRMINGHAM 3,914,035$ 4,214,243$ 62 64 POSTAL EMPLOYEES HUNTSVILLE 3,230,401$ 3,197,544$ 63 65 DIXIE CRAFT EMPLOYEES GOODWATER 2,722,676$ 3,038,288$ 64 66 O’NEAL BIRMINGHAM 2,659,972$ 2,875,320$ 65 67 EMPLOYEES SAVINGS MONTGOMERY 2,536,680$ 2,688,482$

N/A 68 GATEWAY MONTGOMERY N/A -$

CY 2011 and 2012

Alabama's Natural Person & Corporate Credit Unions Ranked by AssetsFor

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7,37

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739

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ITY

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167,

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T

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5 O

ther

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me*

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Tot

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mpl

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Com

pens

atio

n &

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fits*

103,

706,

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115,

352,

256

11.2

118,

656,

594

2.9

123,

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3.7

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845,

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CU

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biliz

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and

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men

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752.

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& O

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1.60

1.57

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2.43

1.92

1.39

1.09

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574.

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01 *

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es /

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530.

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2.97

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2.76

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456

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58.5

562

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12.

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332

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237

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40.0

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61.0

556

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52.2

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Tot

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53.6

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Tot

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93.3

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93.6

293

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47.4

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OTH

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fact

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3; D

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1 (o

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annu

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Rat

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naly

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Fed

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and

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Ala

bam

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Cha

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Dec

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4.62

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E0.

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llow

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for L

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to D

elin

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.43

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879

.15

82.1

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REA

L ES

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LO

AN D

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age

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otal

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ble

Rat

e an

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loon

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yea

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181.

931.

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52O

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l Est

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d/H

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/Bal

loon

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ns D

elin

quen

t > 2

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0.86

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stat

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RE

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ptio

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inqu

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2 M

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otal

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and

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t Opt

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inqu

ent >

2 M

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R 1

st a

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/ Tot

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o R

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as B

usin

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stat

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DQ

> 1

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4.07

4.09

3.34

4.00

Tota

l Rea

l Est

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s D

Q >

2 M

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l Est

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Loan

s1.

021.

341.

431.

281.

63M

ISC

ELLA

NEO

US

LOAN

LO

SS R

ATIO

SC

harg

e O

ffs D

ue T

o B

ankr

uptc

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TD) /

Tot

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TD)

32.1

429

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31.2

028

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26.3

3* N

et C

harg

e O

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Cre

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ards

/ A

vg C

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2.94

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1.99

1.66

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ly G

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eed

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harg

e O

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Avg

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300.

350.

320.

310.

38*

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- 1s

t Mor

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/ A

vg 1

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280.

240.

250.

190.

35*

Net

Cha

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Offs

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RE

Loa

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vg O

ther

RE

Loa

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370.

820.

650.

960.

56* N

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/ A

vg In

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and

Pay

men

t O

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0.28

0.00

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* N

et C

harg

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ffs -

Leas

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vg L

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s R

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000.

005.

570.

570.

00*

Net

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rge

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dire

ct L

oans

/ A

vg In

dire

ct L

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0.90

1.08

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0.71

0.64

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et C

harg

e O

ffs -

Par

ticip

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n Lo

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/ Avg

Par

ticip

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5.48

1.58

0.73

0.05

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Mem

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usin

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Loan

s / A

vg M

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r Bus

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s Lo

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0.64

2.28

0.60

0.54

0.82

SPEC

IALI

ZED

LEN

DIN

G R

ATIO

SIn

dire

ct L

oans

Out

stan

ding

/ To

tal L

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16.6

717

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16.6

415

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Alabama Natural Person Credit Unions Consolidated Financial Performance Data

Alabama Credit Union Administration

2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$5,401,389,956

$5,849,787,196

$6,951,306,241

$7,444,300,366

$7,970,598,529

$8,815,468,386

TOTAL SHARES AND DEPOSITS

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$6,240,095,960 $6,735,212,828

$7,918,195,972 $8,450,645,073

$9,081,838,406

$10,039,904,307

TOTAL ASSETS



2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$5,401,389,956

$5,849,787,196

$6,951,306,241

$7,444,300,366

$7,970,598,529

$8,815,468,386

TOTAL SHARES AND DEPOSITS

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$6,240,095,960 $6,735,212,828

$7,918,195,972 $8,450,645,073

$9,081,838,406

$10,039,904,307

TOTAL ASSETS



2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$168,498,554

$207,311,749

$303,251,146

$324,376,515 $315,395,303

$353,956,155

TOTAL BUSINESS LOANS

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$1,344,997,877 $1,532,024,395

$1,817,286,505 $1,827,192,256 $1,874,339,045

$2,052,121,978

TOTAL REAL ESTATE LOANS



2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$1,296,234,022 $1,536,412,824

$1,924,945,351 $2,135,439,055

$3,015,378,923

$3,456,935,919

TOTAL INVESTMENTS

*12/31/200712/31/2008

12/31/200912/31/2010

12/31/201112/31/2012

$33,668,750 $35,088,217 $35,667,906

$28,871,270

$53,865,512 $53,862,248

TOTAL NOTES AND INTEREST PAYABLE



2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$771,645,961

$811,517,559 $906,123,438

$951,282,044 $1,016,618,631

$1,120,086,380

TOTAL NET WORTH

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$44,514,164 $34,779,519

$45,193,508

$46,526,933

$65,128,113 $63,442,152

TOTAL NET INCOME (LOSS)



2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$771,645,961

$811,517,559 $906,123,438

$951,282,044 $1,016,618,631

$1,120,086,380

TOTAL NET WORTH

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$44,514,164 $34,779,519

$45,193,508

$46,526,933

$65,128,113 $63,442,152




2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$771,645,961

$811,517,559 $906,123,438

$951,282,044 $1,016,618,631

$1,120,086,380

TOTAL NET WORTH

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$44,514,164 $34,779,519

$45,193,508

$46,526,933

$65,128,113 $63,442,152




2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$3,555,189,085 $3,765,037,936

$4,243,817,984 $4,200,054,336 $4,164,781,591

$4,509,472,267

TOTAL LOANS

*12/31/200712/31/2008

12/31/200912/31/2010

12/31/201112/31/2012

$45,889,098 $55,092,545

$67,887,686 $65,439,328

$58,981,798 $69,492,734

TOTAL DELINQUENT LOANS (2 MONTHS DELINQUENT OR MORE)



2012 Annual Report

$27,857,551

$36,885,140

$50,465,443

$42,170,309 $37,369,998 $36,070,177

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

TOTAL LOANS CHARGED OFF

$5,320,804

$8,461,900

$7,081,445

$7,947,836

$8,681,510 $8,137,812

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

TOTAL LOANS RECOVERED



2012 Annual Report

Due to overlapping fields of membership as reported on NCUA 5300 Call Reports

832,253

873,586

944,719 914,063

922,811

1,013,260

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

NUMBER OF CURRENT MEMBERS

*12/31/200712/31/2008

12/31/200912/31/2010

12/31/201112/31/2012

9,709,301

13,626,392 16,701,163

16,603,806 18,194,817

18,834,962

NUMBER OF POTENTIAL MEMBERS

Current Month Previous Month Previous Year12/31/12 11/30/12 12/31/11

ASSETS

Cash and Cash Equivalents $987,305,071 $1,294,367,283 $1,300,255,880Investments - Hold to Maturity $0 $0 $0Investments - Available for Sale $1,296,759,457 $1,334,253,310 $1,955,898,091Investments - Other $615,406 $539,202 $90,591FHLB Stock $12,648,800 $12,648,800 $27,626,400Loans - Credit Union $30,593,683 $31,073,185 $28,218,094Loans - Participation $0 $0 $0Fixed Assets $3,145,447 $3,191,266 $3,342,680Other Assets $1,368,622 $1,372,622 $1,189,940Accrued Income on Investments $3,679,791 $3,706,270 $6,799,585Accounts Receivable $5,651,073 $5,593,295 $7,677,149Prepaid Expenses $982,951 $741,855 $1,032,264

TOTAL ASSETS $2,342,750,301 $2,687,487,089 $3,332,130,674

LIABILITIES AND MEMBERS' EQUITY

Borrowings and Other LiabilitiesFHLB Advance $170,000,000 $170,000,000 $190,000,000Notes Payable $0 $0 $0Accounts Payable $1,587,082 $6,761,392 $13,852,976Accrued Interest Payable $39,599 $109,937 $194,040Accrued Expense Payable $1,875,384 $1,213,408 $748,543Accrued Interest Payable - FHLB Note Payable $936,934 $588,404 $1,156,925

Total Borrowings and Other Liabilities $174,439,000 $178,673,141 $205,952,484

Members' EquityQuarterly Shares $5,935 $5,935 $5,782Corporate Funds $691,988,618 $813,947,941 $698,386,864Compensating Balance $0 $0 $0Super Corporate Funds $0 $0 $48,108Funds Advantage $788,714,991 $952,570,472 $737,931,788Super 30 $309,975,000 $348,860,000 $1,014,410,000Certificates of Deposit $240,442,000 $257,344,000 $535,845,629

Total Shares and Certificates $2,031,126,544 $2,372,728,348 $2,986,628,170

CapitalMembership Capital Account $8,709,028 $8,709,028 $8,717,297Nonperpetual Capital Account $22,127,664 $22,127,664 $21,059,403Tier I Capital

PIC/PCC $99,647,921 $99,647,921 $99,647,921Other Reserves $0 $0 $0Undivided Earnings $14,857,066 $20,004,769 $20,915,482Net Income $0 ($1,489,747) $0

Total Tier I Capital $114,504,987 $118,162,943 $120,563,403

Total Regulatory Capital $145,341,680 $148,999,635 $150,340,103

Accumulated Unrealized Gains/Losses AFS Securities ($5,943,558) ($11,428,458) ($9,208,563)Accumulated Other Comprehensive Income/Pension Income ($2,213,365) ($1,485,578) ($1,581,519)

Total Members' Equity $2,168,311,302 $2,508,813,948 $3,126,178,190

TOTAL LIABILITIES AND MEMBERS' EQUITY $2,342,750,301 $2,687,487,089 $3,332,130,674

Corporate America Credit UnionConsolidated Statement of Financial Condition

December 31, 2012

Current Previous Year-to Year-to Year-toMonth Month Date Date Date

12/31/12 11/30/12 12/31/12 12/31/11 Change

INTEREST INCOMEInvestment Income $1,162,003 $924,267 $18,843,673 $43,671,953 ($24,828,280)Reverse Repo Income $0 $0 $0 $0 $0Interest on Loans $32,424 $27,246 $339,054 $177,756 $161,298

Total Interest Income $1,194,427 $951,514 $19,182,727 $43,849,710 ($24,666,982)

INTEREST AND DIVIDEND EXPENSEInterest on Borrowed Money $0 $0 $0 $0 $0Interest on Reverse Repo $0 $0 $0 $0 $0Interest on FHLB $701,892 $679,250 $8,850,424 $9,310,586 ($460,162)Quarterly Share Dividend $0 $0 $0 $0 $0Corporate Funds Dividend $5,613 $5,430 $132,259 $194,996 ($62,737)Super Corporate Funds Dividend $0 $0 $220 $1,922 ($1,702)Funds Advantage Dividend $54,247 $56,075 $643,569 $973,385 ($329,815)Super 30 Dividend $43,025 $44,433 $968,184 $4,089,987 ($3,121,803)CD Dividend $231,562 $267,524 $4,600,956 $9,896,647 ($5,295,691)MCSD Dividend $149 $145 $1,768 $10,377 ($8,610)NCA Dividend $19,054 $18,440 $307,885 $128,450 $179,435PIC I and II Dividends $8,301 $8,033 $97,393 $107,949 ($10,556)

Total Interest and Dividend Expense $1,063,844 $1,079,330 $15,602,658 $24,714,298 ($9,111,640)Net Interest Income $130,584 ($127,816) $3,580,069 $19,135,411 ($15,555,343)

NON-INTEREST INCOMEFee Income $383,022 $381,304 $3,639,892 $2,183,527 $1,456,365Other Income $72,484 $73,304 $803,567 $3,260,968 ($2,457,402)

Total Non-Interest Income $455,506 $454,608 $4,443,459 $5,444,496 ($1,001,037)

NON-INTEREST EXPENSECompensation $561,696 $331,282 $4,398,455 $4,054,443 $344,012Employee Benefits $146,366 $129,818 $1,740,505 $1,317,440 $423,065Travel & Conference $21,105 $29,170 $477,883 $754,510 ($276,627)Association Dues $2,314 $1,783 $26,615 $25,469 $1,146Office Occupancy $2,436 $2,211 $31,706 $41,470 ($9,763)Office Operation $215,989 $233,990 $2,738,743 $2,556,367 $182,376Marketing & Educational $8,158 $19,132 $179,871 $579,851 ($399,980)Professional Services $137,440 $124,137 $1,473,929 $2,525,293 ($1,051,364)Exam Fees $20,717 $20,717 $248,600 $136,730 $111,870Miscellaneous $19,265 $19,873 $656,579 $329,776 $326,803

Total Non-Interest Expense $1,135,484 $912,112 $11,972,886 $12,321,349 ($348,463)Net Operating Expense $679,978 $457,504 $7,529,427 $6,876,853 $652,574

Provision for Loan Loss $0 $0 $0 $0 $0OTTI Loss ($2,775,785) $0 ($2,775,785) ($6,970,864) $4,195,079Gain (Loss) Sale of Assets $6,049 $0 $40,560 $489 $40,072Gain (Loss) Sale of Investment $14,685 $417,879 $2,967,525 $1,996,208 $971,317

RETURN ON ASSETS ($3,304,447) ($167,441) ($3,717,058) $7,284,391 ($11,001,449)

Taxes $0 $0 $0 $271,830 ($271,830)

NET INCOME AFTER TAXES ($3,304,447) ($167,441) ($3,717,058) $7,012,560 ($10,729,618)

Corporate America Credit UnionConsolidated Statement of Income and Expense

For the Month Ended December 31, 2012

Corporate America


2012 Annual Report

*12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$1,302,481,642 $1,536,024,478

$2,187,195,204

$3,700,236,525

$3,332,130,679

$2,342,750,300

TOTAL ASSETS OF CORPORATE AMERICA CREDIT UNION

*12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

$43,777,822

$87,081,752

$126,898,957

$150,340,103

$142,671,945

TOTAL REGULATORY CAPITAL

Corporate America


2012 Annual Report

*12/31/2009 12/31/2010 12/31/2011 12/31/2012

232

369

554 569

TOTAL MEMBERS

*12/31/2011 3/31/2012 6/30/2012 9/30/2012 12/31/2012

155 172

190 195 199

ITEM PROCESSING(CUs)

Documents

Annual Report 2012 Al Credit Union 2013 - Alabamaacua.alabama.gov/PDF/reports/04986-Annual-Report... · Montgomery, AL 36130 Dear Governor Bentley: It is my pleasure to present the