- Statements of Income
- Statements Of Financial Condition
- Chairman’s Report 2014
- Treasurer’s Report 2014
- Supervisory Committee’s Report 2014
- President’s Report 2014
Annual Report 2014
Statements of Income
Years Ended December 31, 2014 and 2013
|Interest on Loans||$1,463,097||$1,537,408|
|Interest on Investments||950,364||1,058,655|
|TOTAL INTEREST INCOME||2,413,461||2,596,063|
|Dividends on Members’ Share Accounts||460,616||519,667|
|NET INTEREST INCOME||1,952,845||2,076,396|
|PROVISION FOR (recovery of) LOAN LOSSES||60,000||67,500|
|NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES||1,892,845||2,008,896|
|FEE AND OTHER OPERATING INCOME||398,929||428,462|
|Compensation and Benefits||935,799||1,015,572|
|Office Occupancy and Operations||842,123||844,307|
|Travel and Conference||62,217||30,399|
|Publicity and Promotion||38,985||32,539|
|TOTAL NON-INTEREST EXPENSE||2,045,759||2,146,848|
|OTHER INCOME (EXPENSE)||0||(6,370)|
|NCUA Stabilization Expense||0||58,007|
Statements Of Financial Condition
Years Ended December 31, 2014 and 2013
|Cash and cash equivalents||$7,214,446||$4,455,244|
|Certificates of Deposit||19,650,796||22,177,178|
|Investment Securities – held to maturity||28,348,704||29,098,704|
|Investment Securities -available for sale||1,753,665||0|
|Investments in Credit Union Service Organizations||221,552||248,021|
|Loans Receivable, net||33,547,345||36,084,137|
|Accrued Interest Receivable||275,876||304,840|
|Furniture and Equipment, net||$36,514||$56,606|
|Member Capital Share Deposit||80,594||80,594|
|Prepaid Expenses and Other Assets||146,740||609,920|
|LIABILITIES AND MEMBER’S EQUITY|
|Accrued Expenses and Other Liabilities||599,977||527,284|
|Members’ Equity, Substantially Restricted||11,818,072||12,128,801|
|TOTAL LIABILITIES AND MEMBERS EQUITY||$91,984,790||$93,840,332|
Chairman’s Report 2014
It appears that 2014 may signal the end of the “financial crisis” for Credit Unions. All credit unions, which self-insure, have been paying extra assessments to cover the losses from those that failed. Several Corporate Credit Unions, large specialized organizations which served as a backbone to the credit union system were liquidated, and a second fund, and assessment, was created to manage those failures. No federal bailouts were involved, as Credit Unions repaid billions into their National Credit Union Share Insurance Fund and the Temporary Corporate Credit Union Stabilization Fund, managed by the NCUA. It now appears that no extra assessment is expected for 2015, perhaps marking the end of the “financial crisis” for us.
Total cost to Metro since 2008: About $1 Million, even though we didn’t make a single “subprime” mortgage loan, invest in any Mortgage-backed securities (the packages of regular and “subprime” mortgages sold as securities that became toxic), nor had a single investment fail to pay. We don’t take unnecessary risks with our Members’ deposits and through it all Metro remained healthy and grew considerably in assets.
In 2014 we were profitable, made our budget, improved our financial posture, and continued to invest in new services, functions and features. Please see our Treasurer’s Report for the financial details and the President’s Report for details on what’s going on that will affect you and your Credit Union.
As always I want to thank our volunteers who serve on the Board of Directors and the Supervisory Committee for their time and talent, and I thank our Staff for recording another successful year.
Sincerely, Robert G. Morrison
Treasurer’s Report 2014
On behalf of Greater Metro Federal Credit Union I am honored to present the Audited Financial Reports for the period January through December 31, 2014. Its Balance Sheet and Income Statement are presented to you for your review.
Although the economy is showing signs of recovery and the unemployment is at its lowest in several years, still, there are people who continue to experience financial hardship. In the same way, some financial institutions have also experienced those challenges and Greater Metro is no exception. However, we have managed our resources quite well by reducing expenses and controlling delinquency. This enables us to provide competitive returns on savings as well as low interest rates on loans.
The credit union system is exercising and increasing its influence in America’s economy, therefore, it demands strong and effective leadership to protect its assets and continue to deliver quality financial services to its members.
Having the responsibility as Treasurer and Chairman of the Asset Liability Committee (ALCO), I worked closely with management throughout the year to ensure that the fiscal objectives of the credit union are being met. This includes monitoring our risk factors as it relates to short and long term investments. It is also ALCO’s responsibility to comply with regulatory guidelines and policies and to strategically implement the necessary changes that will mitigate any current and future interest rate risk.
I am pleased to report that the Credit Union’s Net Worth as of December 31, 2014 is 13.68% compared to the prior year’s 13.2%. This increase in net worth is indicative that your credit union is moving in the right direction despite the economic challenges. The attached audited financial statements and its opinion are condensed for the purpose of this meeting. You can request a complete copy by written request and if you have questions regarding this report, you may contact me at email@example.com.
As we look ahead in 2015, I believe that great opportunities are in the horizon for our credit union and we stand ready to take advantage. I can attest to you that myself, and every other volunteer including the staff take our responsibility seriously and we strive to deliver the best possible service to you.
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 2014 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, 2014
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:
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: firstname.lastname@example.org
President’s Report – 2014
Another year of expecting rates to finally begin their upward move passed by without any increase. In fact, certain rates dropped between the year-ends. Since our Balance Sheet is primarily comprised of interest sensitive products, our financial results were therefore on par with those of the prior year. Net Income was $248k as compared to $239k in 2013 and our Net Worth Ratio increased from 13.2% to 13.68%.
In 2014 we laid the framework for several operational initiatives to bring enhanced and new services to our membership. A single sign on feature was available to those of our members who hold our credit cards. They could access detailed card information through our on-line banking platform. Even members who didn’t sign up benefitted, since our on-line banking platform began to display summary credit card information for all. Our VA Hospital Branch went back to a five day schedule. Although we had hoped to deliver more in 2014, being at the mercy of vendors and networks delayed most of the initiatives to 2015. Projects launched on our Mobile App, Remote Deposit Capture, a redesigned Website, and newly designed plastics will land throughout the first half of 2015.
Not only will we be issuing all of our members new plastics, our credit and debit cards will incorporate the industry’s move to EMV Chip technology to address the growing problem of account compromises. With limited but dedicated staffing resources and closely monitoring all expenses, the credit union plans to continue rolling out additional services in 2015. Most will be electronic in nature as we enhance our existing member experiences with our on-line banking product “It’s Me 247”. More importantly, the enhancements should make Greater Metro and its products more accessible to new members.
New Members! New Borrowing Members! Will be the targets and our primary goal throughout 2015 and beyond. We will be reaching out to our Existing SEGs, New Groups and even merger partners to grow. With our continued focus on the technological front, we are confident that these necessary electronic services along with the personal service that our existing members have come to rely on and enjoy, will help bring in and keep a new wave of members that are essential for our healthy future.
President & CEO