- Statements of Income
- Statements Of Financial Condition
- Chairman’s Report 2016
- Treasurer’s Report 2016
- Supervisory Committee’s Report 2016
- President’s Report 2016
Annual Report 2016
|Interest on Loans||$1,289,546||$1,375,285|
|Interest on Investments||840,705||925,400|
|TOTAL INTEREST INCOME||2,130,251||2,300,685|
|Dividends on Members’ Share Accounts||289,961||364,597|
|NET INTEREST INCOME||1,840,290||1,936,088|
|PROVISION FOR (recovery of) LOAN LOSSES||442,061||1,759,790|
|NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES||1,398,229||176,298|
|FEE AND OTHER OPERATING INCOME||385,020||397,329|
|Compensation and Benefits||1,019,456||985,234|
|Office Occupancy and Operations||874,590||874,137|
|Travel and Conference||36,669||48,343|
|Publicity and Promotion||17,379||38,770|
|TOTAL NON-INTEREST EXPENSE||2,115,209||2,114,005|
|OTHER INCOME (EXPENSE)||(186,766)||66,032|
Statements Of Financial Condition
Years Ended December 31, 2016 and 2015
|Cash and cash equivalents||$7,480,085||$6,708,944|
|Certificates of Deposit||22,915,000||23,710,711|
|Investment Securities – held to maturity||14,918,023||21,305,406|
|Investment Securities -available for sale||9,365,610||3,981,572|
|Investments in Credit Union Service Organizations||243,902||235,893|
|Loans Receivable, net||28,085,885||29,920,724|
|Accrued Interest Receivable||225,934||270,056|
|Furniture and Equipment, net||$12,258||$20,423|
|Member Capital Share Deposit||80,594||80,594|
|Prepaid Expenses and Other Assets||1,656,496||330,714|
|LIABILITIES AND MEMBER’S EQUITY|
|Accrued Expenses and Other Liabilities||1,437,020||1,101,749|
|Members’ Equity, Substantially Restricted||9,006,490||10,036,462|
|TOTAL LIABILITIES AND MEMBERS EQUITY||$85,660,642||$87,251,602|
The news this year was completely dominated by the campaign and election. From your Credit Union’s perspective what matters is reducing or eliminating the flood of new regulations coming out of Washington these past few years. Most are due to legislation enacted in response to the Mortgage Crisis and financial meltdown that followed. If you hear of “Dodd – Frank” or “the Durbin Amendment” in the news we hope to see changes to the legislation that have been detrimental, adopted in the rush to respond to the crisis.
Credit unions had nothing to do with creating the crisis, and it is difficult to see how any of the new regulations would have prevented, forestalled, or ameliorated it, yet new regs keep piling on. It is safe to say we’re hoping for changes in the regulatory environment.
While Metro had a profitable year, our net income was down and we missed several budget targets. We have taken actions which we expect will fix some problem areas and are monitoring the budget closely, expecting better results in 2017. Please see our Treasurer’s Report and Audited Financials for more information.
I want to thank Management and our Staff for their dedicated service to Metro’s membership.
Robert G. Morrison
The markets, the Federal Reserve, and the World waited, perhaps not so patiently, for the results of the U.S historic 2016 elections. As a result, Greater Metro endured yet another year of stagnant interest rates and challenging yields on the investment products our dedicated executive team considers whilst managing the membership’s portfolio. The Fed did blip rates up ½ point in December which offered some opportunity for the team during the last weeks of the year.
We continue to monitor closely any effects the Taxi Medallion investments may have on the Credit Union financial health. At the close of 2015 financial period, the NCUA commended our proactive funding of the Allowance for Loan Loss account in the amount of $1.6 million. After further adjustments, we now have a total of $1.4 million apportioned as of December 31, 2016. The NCUA, our auditors Wojeski, the Board, and Management all believe this figure is a sustainable solution for any potential loss. As the Taxi Medallion sector has waned as an investment opportunity, the Board has approved commercial real estate participation loans as a low risk attractive return on investment for management to add to its coffers in 2017. As always, Management is diligently focused on the safety and financial stability of the Credit Union, so as to ensure Greater Metro continues to be a strong membership institution, to grow our existing membership base, and to attract additional SEGs in our field of membership.
Included in this Annual Report is Greater Metro’s Balance Sheet and Income Statement for 2016 compared to 2015. For a complete report, please submit a written request to the Credit Union. Should you have any question, please contact me at email@example.com.
Rosemarie E. Stoffo
Chairperson Asset Liability 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. Any member who feels that their concerns are not being appropriately addressed, may escalate them to the Committee. In 2016 the volunteers were Thomas Amato, Thomas McCarthy, Andrea Nelson, John Forster and Vincent D’Agostino. Thomas Amato was selected as Chairperson
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 engages the public accounting firm of Wojeski & Co.to conduct an annual opinion audit of the Credit Union’s financials. In the course of this audit they are able to assess whether Management is effectively carrying out the plans and policies established by the Board. As usual, it’s worthwhile noting that Credit Unions are not required to have this financial opinion audit until they reach $500 million in assets. Your Volunteers and Management have always believed that this more extensive review is a way of further safeguarding the assets of the Credit Union.
The complete version of Wojeski’s Audited Report of the 2016 Financial Results may be obtained by requesting them from the Credit Union in writing.
In addition to the Annual Audit, the Supervisory Committee also engages Wojeski & Co. to perform monthly on-site internal audits to review specific aspects of the Credit Union’s operations.
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
Although the Presidential campaign and election dominated the news in 2016, credit unions were stifled by a continued low rate environment and ongoing concern over the Taxi Medallion industry. As we reported at last year’s annual meeting, our 2015 results were impacted by a charge of $1.6mm related to a drop in the market values of our Taxi Medallion Loan Participation portfolio. This was an aggressive pro-active action applauded by the regulators and affirmed by our auditing firm as they issued their opinion audit for 2015. As a result, our bottom line showed a loss of $1.5mm but our Net Worth Ratio remained strong at 12.7%.
In 2016 our operations yielded a bottom line of $64 thousand and a Net Worth Ratio of 12.97%. Credit Unions, their accounting firms and the NCUA spent the year strategizing on how to address the billions of dollars tied up in Taxi Medallion loans. Even with only $5.5mm in our portfolio, we have been spending an inordinate amount of resources meeting the requirements set by the NCUA in the handling of the loans. As was the case last year, an extension to produce audited statements was granted to us by the Regulator. We expect our Auditing firm to issue their opinion by June 30, 2017.
As is the case when reporting the results from the prior year, it is always with keeping our sights on the year to come. What can we do better? We believe our “Taxi” issues have stabilized. The Board approved a budget for 2017 cutting back further on expenses and re-emphasized to management the need to grow membership and revenue.
Work that began in 2016 to add the Dutch Kills Civic Association to our field of membership was finalized in 2017. This “community” association located steps from our main office should prove to be a successful partnership in both our futures. Besides reacquainting ourselves with a number of longtime sponsor organizations such as the Interchurch Center and the Population Council we are close to adding a large Queens housing cooperative to our field of membership. We believe that adding these groups will translate into fresh revenue streams sorely missing. Adding new members will also give us an opportunity to review fees, products and services and modify them where necessary.
I would like to assure the membership that I and the staff of Greater Metro are completely committed to the success of our Credit Union. We will do whatever we can to bring professional service and competitive products to our members.
President & CEO