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ANNUAL REPORT 2016
Supporting our communities through life’s greatest adventures.
Federally Insured by NCUA.
AGENDA 2016 ANNUAL MEETING
Friday, April 28, 2017 at 10am Western Rockies Federal Credit Union
2302 North Avenue Grand Junction, CO 81501
Welcome Robert Witt Chairman, Board of Directors
and Krisit L. Porter, President/CEO
Pledge of Allegiance Doug Steiner
Introductions and Acknowledgements Robert Witt
Presentation of Employee Service Awards Robert Witt and Kristi L. Porter
Annual Meeting Robert Witt 1. Call to Order 2. Declaration of Quorm 3. Nominating Committee Report 4. Minutes of the 80th Annual Meeting 5. Reports
A. Borad of Directors B. Supervisory Committee C. Loan Committee D. Presidents’ Report E. Financial Reports
6. Old and New Business 7. Announcement: 2017 Members of Doug Steiner the Board of Directors 8. Adjournment Robert Witt
Board of Directors Executive Meeting
REPORT Nominating Committe
The Nominating Committee opened the two Board vacancies to the membership of Western Rockies Federal Credit Union. Notice for Self-Nomination was posted in the October 2017 newsletter. The notice for Nomination by Petition was presented in the January 2017 newsletter. Interested candidates were invited to contact CJ Schoenbeck, Nominating Committee Chairman or Gail Webb, Director of Human Resources.
In an effort to select qualified candidates for positions on the Board, many factors are considered by the committee. Among those factors were length of membership, special skills, and handling of personal accounts.
The Nominating Committee nominates the following members for vacancies on the Board of Directors of Western Rockies Federal Credit Union: • Robert Witt • Janet Johnson
Respectfully Submitted, CJ Schoenbeck - Chairman Leo Rinderle Nathan Brundridge
MINUTES 80th Annual Meeting
Held April 20, 2016
Mr. Bob Witt, Chairman of the Board of Directors, welcomed the members to the 80th Annual Meeting of Western Rockies Federal Credit Union.
The meeting was held at the Fruita Branch Lobby, in Fruita Colorado and it was attended by approximately 30 members.
Leo Rinderle, Board of Directors Vice-Chairman, led the membership in the Pledge of Allegiance.
Mr. Witt introduced the Board of Directors that were present: Leo Rinderle, CJ Schoenbeck, Janet Johnson, Nathan Brundridge and Don Hobbs. Ms. Kristi Porter introduced the management team to the membership; Kim Lindemann, Clarice Hawkins, Jenny Parrott, Deb Scenters, Sandra McClinton and Gail Webb. Ms. Porter informed the membership that Lorena Escalante received a 10-year service award and Deb Scenters received a 20-year service award, and Cherie Martinez received a 25-year service award and presented them with a plaque and gift. Mr. Bob Witt informed the membership that Kristi Porter received a 35-year service award and presented her with a plaque and gift.
Mr. Witt called the 80th Annual Meeting to order at 1:30 pm.
Mr. Witt asked Mr. Hobbs, Secretary, if a quorum was present, and he acknowledged that a quorum was present. Janet Johnson informed the membership that the Nominating Committee nominated three incumbents, CJ Schoenbeck, Nathan Brundridge and Leo Rinderle, for three available seats on the Board of Directors of Western Rockies Federal Credit Union. A motion was made, seconded and approved to appoint CJ Schoenbeck, Nathan Brundridge and Leo Rinderle to the Board of Directors for Western Rockies FCU for a 3-year term.
Mr. Witt asked for a motion to approve the minutes of the 79th Annual Meeting. A motion was made, seconded and approved to accept the minutes as written. Mr. Witt then asked for a motion to approve the Board of Directors Report, Supervisory Committee Report, Loan Committee Report, President’s Report and Financial Reports as written. A motion was made, seconded, and approved to accept the reports as written. Mr. Witt asked if there was any new or old business to come before the membership, and there was none.
Mr. Witt thanked the membership for attending and the meeting was adjourned at 1:40 pm.
Respectfully submitted, Robert Witt, Chairman Leo Rinderle, Vice Chairman Gail Webb, Recording Secretary
REPORT Board of Directors
The Board of Directors met at regular monthly meetings to address business and financial matters as well as concerns of your credit union. Additional meetings for asset/liability management, planning, executive evaluation, annual budget and board education were also part of the Board of Directors activities.
In 2016, despite the volatility in the financial market with the presidential election, Western Rockies FCU remained sound and stable. This past year we focused on you, our members, by adding electronic services and updating our main branch parking lot. Credit Unions are continually faced with new rules and regulations as we, your management team and Board of Directors ensure both the application and the compliance of all rules and regulations at your credit union.
The Board of Directors strives to provide you with the best possible cooperative financial institution available. We, along with management, monitor the local, state, and national economic climate closely to keep your credit union in sound financial condition.
In 2017, the Board of Directors and management will be diligent in monitoring any and all economic impact to the financial well-being of Western Rockies FCU. We will, in turn, implement policies to keep it a safe and sound financial institution for our members.
Respectfully submitted, Robert Witt, Chairman Don Hobbs, Secretary C.J. Schoenbeck, Treasurer Doug Steiner, Board Member Janet Johnson, Board Member Nathan Brundridge, Board Member Leo Rinderle, Board Member
REPORT Supervisory Committe
The Supervisory Committee of Western Rockies Federal Credit Union is created according to NCUA regulations. Committee members are volunteers appointed by the Board of Directors. The Supervisory Committee is an integral part of the operating team as it represents the entire membership. It is responsible for reviewing and evaluating the performance of elected officials and employees in order to make recommendations for improvements. The committee has engaged the independent CPA firm of Ferrin & Company, LLC to perform specified audit and testing, thereby verifying procedures on the Committee’s behalf to fulfill the annual audit requirement.
In 2016, the Committee performed monthly verification of closed member accounts and responded to all letters requesting follow-up. The Committee also conducted quarterly unannounced visits to all the branches for teller drawer and vault cash counts. At the same time, they accounted for Traveler Checks, Money Orders and CU checks.
The Supervisory Committee is pleased to report that, to our knowledge, management, staff, and elected and appointed volunteers of Western Rockies Federal Credit Union continue to competently perform the duties for which they are responsible. The audit demonstrates that the credit union is in a healthy financial state.
Respectfully submitted, Marie Neuberger, Chair Bob Thome, Member Samantha Moe Swingle, Member
REPORT Loan Committe
The Loan Committee appointed by the Board of Directors and representing the membership, has the authority for action on loan requests from members. The committee meets daily and as necessary. The committee prepares and presents a monthly report to the Board of Directors.
In 2016, 874 loan requests were received and the loan committee and loan officers approved 789 for a 90% approval rate, which resulted in $22,490,011.00 in new advances.
CU Direct Connect is an indirect loan program through which members can get their vehicle loan with Western Rockies while they are at any of the 460 CU-Direct Connect car dealerships in Colorado. In 2016, the credit union received 1,501 applications from which the credit union and CU Direct Connect approved 879 loans for an approval rate of 59%.
At the end of 2016, Western Rockies had 142 Home Equity Line of Credit loans with outstanding balances of $2,868,593.22
248 applications to skip a loan payment were approved during the 2016/2017 holiday promotion.
The loan committee received 438 VISA applications, approved 407 which was a 92% approval rate for the year.
The credit union ended the 2016 year with a loan-to-share ratio of 45.27%.
Respectfully submitted, Sandra McClinton Brenda Burke Lorena Escalante Ele Watson
REPORT President & Chief Executive
2016 was a year when we focused very sharply on the Western Rockies experience for members. We hope you choose to do your banking with us because the Credit Union offers you something special and very different from what the big banks are offering. As a Western Rockies member, this is – literally – your credit union. We exist only because you have made the choice to be an owner in this not-for-profit financial cooperative. Our investments this year were all about making your experiences with us as rewarding, convenient, and fun as they possibly can be!
On the product side, we made sure you had your choice of high-value checking options, competitive loans, and quality investment and insurance services – delivered by friendly and knowledgeable staff, whose primary goal is to help you choose the right accounts for your individual situation. We engaged members with fun and informative financial education on our social media pages, in-branch and at community events. We launched an all-new website, making it easier and more intuitive for members to find information they’re seeking; and, we revealed a bold new look for the Western Rockies Financial brand. Unlike some banks, which seek to maximize profits for shareholders, our credit union makes decisions based on our members’ best interest over the long term. In 2016, that led us to make a number of strategic investments – some of them costly – however, your Credit Union remains fiscally strong and on track for a positive 2017.
As you read this report and recall the many ways we’ve been at work for you, I hope that Western Rockies commitment to you and your family’s financial well-being, now and in the future, comes through loud and clear. We want you to know that we value your business, and we hope you’ll be sure to let us know if there’s anything we can do to improve your experience with us.
Kristi L. Porter President & Chief Executive
FINANCIALS 2016 Financial Statements
2015 2016 2016
ACTUAL ACTUAL BUDGET
Income:
Interest on Loans $2,367,007 $2,574,395 $2,675,489
Income from Investments 508,749 $772,547 487,863
Other Operating Income 1,810,465 $1,800,409 1,852,016
Gain (Loss) on Disposition of Assets 4,592 $7,623 0
Non-Operating Income 47,077 $208,694 54,000
Total Income $4,737,890 $5,348,423 $5,069,368
Expenses
Employee Compensation $2,233,065 $2,362,285 2,237,021
Travel & Conferences 13,595 $25,781 24,000
Association Dues 22,792 $22,387 22,800
Office Occupancy 237,051 $259,405 300,191
Office Operations 1,255,924 $1,353,506 1,211,519
Member Education/Marketing 101,289 $123,718 204,000
Loan Servicing 403,401 $491,587 470,557
Professional & Outside Services 254,934 $244,919 270,661
Provisions for Loan Losses 12,135 $269,998 6,184
Members Insurance Premiums 10,693 $0 34,279
Federal Operating Fees 20,062 $20,706 20,933
Cash (Over) & Short 1,597 $563 2,180
Interest on Borrowed Money 53 $22 0
Misc. Operating Expenses 24,378 $34,243 33,239
Dividend Expenses 104,951 $97,500 100,721
Total Expenses $4,695,920 $5,305,495 $4,938,285
Net Gain (Loss) $41,970 $42,928 $131,083
*Rounded to nearest dollar
2016 Income
Interest on Loans, 50.01%
Interest on Investments,
Other Operating Income, 34.98%
15.01%
Salary & Benefits 44.53%
Other Operating Expenses 53.25%
2016 Expenses
Member Insurance
0.39%
Dividends 1.84%
Comparative Financial Statement
2014 2015 2016
ASSETS:
Loans $45,663,737 $47,062,076 $53,421,454
Allowance for Loan Losses -473,458 -445,546 ($470,807)
Cash 10,068,309 4,803,656 $3,863,246
Federal Agency Securities 25,019,508 37,660,276 $5,273,977
Mortgage Back Securities - - $27,943,406
Municipal Bonds - - $6,759,392
Deposits Alloya Corporate Credit Union 5,718,427 7,130,080 $6,686,956
Deposits National Share Ins. Fund 951,427 1,001,754 $1,062,510
Deposits Other Credit Unions 13,038,000 8,492,000 $5,704,000
Commercial Banks 6,806,000 4,816,000 $3,476,000
Other Investments - - $0
Land and Buildings 2,747,114 2,974,561 $3,603,637
Furniture, Fixtures, and Equipment 343,872 318,690 $261,339
Other Assets 1,271,289 668,547 $3,390,592
Total Assets $111,154,226 $114,482,093 $120,975,702
LIABILITIES:
Demand Deposits 62,931,682 66,166,637 72,545,333
Share Certificates 9,914,395 8,446,223 8,745,807
Individual Retirement Accounts 4,593,974 4,514,828 3,709,954
Checking Accounts 23,435,304 25,520,841 27,213,200
Regular Reserves 2,658,024 2,658,024 2,658,024
Undivided Earnings 7,627,862 7,669,832 7,712,760
Unrealized Gain/Loss on Investments - (98,536) (928,977)
Other Comprehensive Income (536,161) (879,784) (1,126,699)
Accrued Expenses 153,017 173,598 212,737
Accounts Payable 376,130 310,430 233,562
Total Liabilities and Reserves $111,154,226 $114,482,093 $120,975,702
Number of Members 14,601 14,240 13,334
Number of Loans 8,431 8,291 9,088
Financial Graphs 2012-2016
90,000,000.00
95,000,000.00
100,000,000.00
105,000,000.00
110,000,000.00
115,000,000.00
120,000,000.00
125,000,000.00
130,000,000.00
DEC 12 DEC 13 DEC 14 DEC 15 DEC 16
ASSETS 2012 -- 2016
40,000,000.00
42,000,000.00
44,000,000.00
46,000,000.00
48,000,000.00
50,000,000.00
52,000,000.00
54,000,000.00
56,000,000.00
DEC 12 DEC 13 DEC 14 DEC 15 DEC 16
LOANS 2012 -- 2016
85,000,000.00
90,000,000.00
95,000,000.00
100,000,000.00
105,000,000.00
110,000,000.00
115,000,000.00
DEC 12 DEC 13 DEC 14 DEC 15 DEC 16
SAVINGS 2012 -- 2016
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
DEC 12 DEC 13 DEC 14 DEC 15 DEC 16
DELINQUENCY 2012 -- 2016
OUR TEAM 2016 Employees
Western Rockies Management Kristi L. Porter - President/CEO
Kimberley Lindemann - Executive Vice President
Clarice Hawkins - Director of Accounting & Finance Sandra McClinton - Director of Lending Jenny Parrott - Director of Operations
Gail Webb - Director of Human Resources
Sta˜
Tammy Bauer Katlyn Brandstoettner
Brenda Burke Maria Cordova
Kasadey Crawford Shannon Davidson Michelle Didonato
Wendy Duran Marisela Duval
Lorena Escalante Brianne Galloway
Cynthia Gleed Patti Hamilton Cheryl Hogan Lori Houston
Keegan Keltner Janet Kime
Jacqueline King Sherry Klements
Tiffany Lopez
Cherie Martinez Bonnie Moring John Peresta Arin Pilquist Rosalin Pribble Diane Razee Elizabeth Schwartz Lori Simpson Marilyn Smith Rebecca Sroufe Linda Swartz Amber Thomas Kristin Valles Robin Volgamore Daniel Waalkes Eleanor Watson Billi Wood Kara Wooley Laesha Yeager
OUR TEAM 2016 Volunteers
Board of Directors Robert Witt - Chairman Don Hobbs - Secretary
CJ Schoenbeck - Treasurer
Doug Steiner - Member Janet Johnson - Member
Nathan Brundridge - Member Leo Rinderle - Member
Supervisory Committee
Dennis Crawford Marie Neuberger
Samantha Moe Swingle Bob Thome
Community Involvement
Career Center, Grand Junction Chamber of Commerce, Battlement Mesa/ Parachute Chamber of Commerce, Fruita Chamber of
Commerce, Palisade Chamber of Commerce, Rifle Chamber of Commerce, Silt Chamber of Commerce, Fruita Fall Festival, Salvation
Army Giving Tree, Western Rockies Federal Credit Union Schoarlships, Western Colorado Credit Unions, Fruita 4th of July
Celebration, Rifle High School, Grand Junction Area Realtors Association, Community Food Bank of Grand Junction
