Annual Report 2013

Annual Report 2013

Statements of Income
Years Ended December 31, 2013 and 2012



Interest on Loans $1,537,408 $1,477,353
Interest on Investments 1,058,655 1,179,303
TOTAL INTEREST INCOME 2,596,063 2,656,656
Dividends on Members’ Share Accounts 519,667 620,382
NET INTEREST INCOME 2,076,396 2,036,274
PROVISION FOR (recovery of) LOAN LOSSES 67,500 128,113
Compensation and Benefits 1,015,572 983,133
Office Occupancy and Operations 844,307 882,143
Professional Fees 82,538 91,347
Travel and Conference 30,399 41,866
Publicity and Promotion 32,539 24,512
Loan Servicing 6,650 10,951
Other 134,843 64,622
TOTAL NON-INTEREST EXPENSE 2,146,848 2,098,574
OTHER  INCOME (EXPENSE) (6,370) (13,940)
NCUA Stabilization Expense 58,007 70,449
NET INCOME(LOSS) $238,873 $184,782

Statements Of Financial Condition
Years Ended December 31, 2013 and 2012



Cash and cash equivalents $4,455,244 $8,542,664
Certificates of Deposit 22,177,178 31,567,287
Investment Securities – held to maturity 29,098,704 24,598,704
Investment Securities -available for sale 0 0
Investments in Credit Union Service Organizations 248,021 221,956
Loans Receivable, net 36,084,137 30,617,733
Accrued Interest Receivable 304,840 272,076
Furniture and Equipment, net $56,606 $23,625
NCUSIF Deposit 725,088 741,566
Member Capital Share Deposit 80,594 80,594
Prepaid Expenses and Other Assets 609,920 303,401
TOTAL ASSETS $93,840,332 $96,969,606
Members’ Shares $81,184,247 $85,093,124
Accrued Expenses and Other Liabilities 527,284 296,888
TOTAL LIABILITIES 81,711,531 85,390,012
Members’ Equity, Substantially Restricted 12,128,801 11,579,594


Chairman’s Report 2013

From 2006 through 2012 Metro almost doubled in asset size, to $97 Million.  Last year we took a breather.  Some of those deposits were undoubtedly “flight to safety” after the mortgage crash and financial instability.  With the Dow up by 25% and the S&P up by almost 30% last year some “reallocation” was expected, and a small, slow decline in deposits in 2013 actually worked to make our total financial posture better.

We doubled our first mortgage portfolio and continue to offer the best savings rates available, two areas of special focus for us.  We ended 2013 in excellent financial shape.    Please see our Treasurer’s Report for details on our financial performance.

With the economy showing improvement we will continue to offer our Members the best financing, savings, and credit products available anywhere.  I want to thank our staff and volunteers for their performance in 2013 and look forward to next year.

Sincerely, Robert G. Morrison


Treasurer’s Report 2013

As you will see from the attached audited financial report, Greater Metro enjoyed another successful year on several fronts. Net income was higher than last year’s. With interest rates still at anemic levels, it was a challenge replacing earnings from higher yielding maturing investments. To some extent our commitment of getting funds to our members in the form of real estate loans helped by increasing loan interest income. Controlling delinquencies added to the bottom line and possibly a sign that the recovery is around the corner, there was a smaller regulatory assessment for the bailout of 2008. All indications are that Credit Unions may have seen the last of the bailout assessment expenses. The Credit Union’s end of year Net Worth Ratio increased to 13.2% from 12.5% a year earlier, once again identifying us as a well-capitalized financial institution.

Management and staff, under the direction of your Board, achieved the results above while providing the membership with competitively high savings rates and low loan rates.

As Treasurer, I work closely with management throughout the year reviewing the actual financial results and how they compare to the budget. As Treasurer, I also hold the position of Chairman of the Asset Liability Committee (ALCO). It is ALCO’s responsibility to closely monitor risk factors associated with the strategies employed by the Credit Union. To this end, policies on investment and liquidity follow regulatory guidelines and are strictly adhered to. ALCO engages a third party vendor to conduct a thorough quarterly analysis of the Credit Union’s adherence to those policies, evaluate the risk associated with the positions taken and recommend strategies to mitigate risk should Interest rates rise or decline in the future.

As noted above, this annual report contains a condensed version of our audited financials along with an opinion from our auditing firm. A complete report may be obtained by written request. Feel free to contact me at if you have any questions or comments regarding the financial details.

I can assure you that every volunteer and employee takes pride in providing their very best in their service to the membership. We look ahead to 2014 with optimism for even better results for the Credit Union and therefore for You- Our Members!

Respectfully Submitted:
Vincent D’Agostino


Report of the Supervisory Committee

The Credit Union Supervisory Committee consists of volunteer members appointed by the Board of Directors. The Supervisory Committee acts as a link between the board, management, and the membership. In 2013 the volunteers were Chairperson Thomas McCarthy, Steven Goldberger, Andrea Nelson, Rosemarie Stoffo and John Forster.

Once appointed by the Board of Directors, this Committee acts independently of the Board and carries out its oversight duties on behalf of the membership. In addition to providing a link to the members, the Supervisory Committee is also responsible for conducting an internal audit and to review that management is effectively carrying out the plans and policies established by the Board. The Supervisory Committee again retained the outside accounting firm of Wojeski and Company to audit the Credit Union’s practices and internal controls, and to render a decision on the financial reports that Management prepares. The year-end audit resulted in receiving an unqualified opinion, indicating that Wojeski is comfortable with the reporting done by the Credit Union’s Management, and the financial condition of the Credit Union as of December 31, 2013

To provide an extra level of comfort, the Committee has retained the services of Wojeski and Company, who provided us with the services normally performed by an internal audit function. Monthly, an accountant from Wojeski and Company makes an on-site visit to the Credit Union to review particular aspects of the Credit Union’s operation. A strict schedule has been prepared and approved to assure that all operations of the Credit Union are reviewed multiple times during the year.

The Supervisory Committee is established to serve all members, and to respond to any concerns or questions that may arise. The Committee may be independently contacted at:

Supervisory Committee
Greater Metro Federal Credit Union
31-10 37th Avenue, Suite 403
Long Island City, New York 11101

An email address is also available for members to contact the Supervisory Committee to voice any concerns or complaints. The address is:

Thomas McCarthy


President’s Report – 2013

Bringing competitively priced products and convenience services to our members have been and continue to be primary objectives of Greater Metro. In order to do so, another objective is for the Credit Union to maintain profitability. Meeting these objectives has been successful but not without its challenges, especially in this drawn out low interest rate environment.

During 2013, many members took advantage of our low mortgage rates as the Credit Union doubled its real estate portfolio from 2012. Our MasterCard rates are among the lowest nationally. For our savers, the rates on our term certificates were among the highest offered and our members who couldn’t lock up funds for longer periods were also rewarded with competitive rates on savings, checking and money market accounts.

We added a new Shared Branch network to the existing US Net Universal Network that many of our members utilize and we worked with our service partners and vendors to keep a lid on cost increases. The framework was set to enhance electronic services both on our online banking products and on our plastics, which would be rolled out throughout 2014.  A survey feature on our online banking platform was successfully tested during our logo selection process. We plan to use this feature going forward to obtain member feedback and gauge satisfaction.

So how do we pay for the above and newer services in 2014? We managed to modestly increase our bottom line from 2012 and maintain a strong capital position through increased lending, exhausting limited re-investment opportunities and by controlling and reducing expenses. A lean human resource team stretches itself to meet all of the operational, financial and compliance requirements of a strictly regulated financial institution while providing dedicated service to You- the Member/Owners.

Even with the best of intentions, there are the occasional bumps in the road resulting from a tight budget and lean staff. Some of the enhancements mentioned above take longer to be delivered. The VA Hospital Branch’s hours had to be cut back and it can be frustrating not getting one’s call to the main office picked up by the third ring.

As we move into and through 2014 we may not resolve all “call answering” issues (although every call is returned) but we will restore five day coverage to the VA Branch as soon as practical. We expect enhancements to be delivered on our Plastic program and for our On-line Banking platform, “It’s Me 247”. We also expect to be profitable, in a safe and sound capital position, and in a position to maintain your continued support and loyalty to Greater Metro Federal Credit Union.

Peter Nalaskowski
President & CEO