MEMBER FOCUSED - Connexus Credit Union

A MESSAGE FROM YOUR PRESIDENT
2014 ANNUAL REPORT
MEMBER
FOCUSED
FOR 80 YEARS
A MESSAGE FROM YOUR PRESIDENT
S
ince 1935, we have been adding new chapters
to our Connexus story, and in 2014 we once
again expanded on our previous achievements.
As always, we are guided by our Connexus family
values. We remain steadfast to being memberfocused and mission-driven. Our continued growth
and strong balance sheet allowed us to give more
back to our members in the form of lower loan rates
and higher deposit yields. Our solid foundation led to
continued membership growth, investments in
our employees, and enhancements to our
technology systems.
With an effective merger date of January 1st,
2014, we started the year by welcoming members
and employees of Cintel Federal Credit Union to
Connexus. With $71M in assets and over 8,500
members, Cintel’s Select Employee Groups (SEGs)
included Cincinnati Bell and Convergys. In February,
we unveiled a new portfolio of Adjustable Rate
Mortgage (ARM) products in response to member
and marketplace needs. To ensure our technology
systems kept pace with our membership growth, we
completed a core platform upgrade in March.
In May and June, we gave extra attention to the
communities we serve by participating in “Serve with
Liberty” activities and leading several “Relay for Life”
fundraising activities. We have proudly served as the
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official presenting sponsor of the Wausau-based
Relay for Life since 2006.
To provide our members with industry leading
technology, better data security, and new features like
mobile deposit and personal financial management
tools, we converted to a new online/mobile banking
platform in July. Since the Cintel-to-Connexus core
system integration took place in August, these new
members went directly into our new online/mobile
banking platform.
October was another milestone month as
members of Endura Financial Federal Credit Union
(EFFCU) voted in favor of merging with Connexus.
With $350M in assets and over 27,000 members across
the country, Endura Financial has proudly served
Minneapolis-based SEGs such as Honeywell and ATK.
In November, plans were solidified to consolidate the
majority of our back office operations and Member
Call Center into our new Corporate Cove location in
Wausau, WI. Since December 31st marked the final
day of our employee benefit lease arrangement with
Liberty Mutual, new Connexus employee benefit
plans were introduced and implemented by
January 1st, 2015.
Accomplishing even a few of these achievements
would have qualified as a successful year for most
institutions, so we are proud to add this many pages
to our Connexus story. It is very rewarding to witness
the synergy between our Board of Directors, business
partners, and employees. We made significant strides in
2014 to provide our members with exceptional savings,
extraordinary service, and uncompromising security of
their financial assets and personal data.
We appreciate the patronage and loyalty of each and
every member. And just as we have always done, we will
continue to strive to earn and retain our members’ trust.
Regards,
J. David Christenson
President / CEO
Connexus Credit Union
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BALANCE SHEET
2013
ASSETS
Cash
Investments
Member Loans
$
7,265,690
13,580,173
2014
$
45,436,650
55,958,935
466,200,255
834,640,097
Fixed Assets, net
5,514,704
10,860,763
NCUA Insurance Deposit
3,786,595
7,579,817
Other Assets
20,757,085
40,239,817
Total Assets
$517,104,502
$994,716,079
Total Liabilities
Total Reserves & Liabilities
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30,266
ONLINE BANKING USERS
180
EMPLOYEES
165,701
MEMBERS
LOCATIONS
$ 84,958,604
76,912,564
45,831,383
81,422,636
98,334,716
2,349,618
27,737,724
49,986,038
4,264,753
$ 203,455,132
165,980,602
61,559,320
163,726,559
123,427,280
59,339,187
53,678,347
43,815,430
9,151,961
$471,798,036
$884,133,818
RESERVES
Reserves & Undivided Earnings
CALL CENTER CONTACTS
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LIABILITIES
Member Shares
Term Share Certificates
IRA Accounts
Checking Accounts
YES Money Market
Money Market Elite
Non-Member Deposits
Corporate Borrowings
Other Liabilities
171,966
$ 45,308,466
$ 110,582,261
$517,106,502
$994,716,079
Federally Insured by NCUA.
The financial statements
for the credit union are in
order and were reported in
accordance with generally
accepted accounting
principles (GAAP).
Audit Committee:
Lyle Beck
Ron Dins
Todd McDonald
Steve Raether
Mark Steinberg
Tom Seuntjens
INCOME STATEMENT
INTEREST INCOME
Member Loans
Investments
Total Interest Income
2013
2014
$ 20,677,133
105,485
$ 29,513,415
896,486
$20,782,618
$30,409,901
$4,048,025
1,111,036
$4,984,954
881,849
$5,159,061
$5,866,803
4,042,551
13,850,921
12,648,149
28,015,906
$5,815,187
$9,175,341
INTEREST EXPENSE
Members’ Accounts
Term Share Certificates
Total Interest Expense
Non-Interest Income
Non-Interest Expense
2013
2014
TOTAL ASSETS
2012
2011
2010
Net Income
$319,736,099
$356,486,477
$458,533,838
$517,106,502
$994,716,079
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CELEBRATING 80 YEARS OF SUCCESS
SAVINGS
As a credit union founded on cooperative principles,
we are committed to helping our members save both
time and money. In 2014, these savings were passed
on through low-rate auto loans, affordable biweekly
payment options and high-yield deposits. We save
you time through quick turnarounds on new loans and
deposits and by providing the confidence that you
don’t need to spend hours and hours to get the best
rate in the marketplace.
We were honored to be recognized by Bankrate.com,
for the 3rd year in a row, as offering two of the top
11 high-yield checking products for national financial
institutions. Additional national recognition from
online reviewers like DepositAccounts.com followed
in the second half of the year as we launched our
12-Month Step-Up Share Certificate – holding the top
rate nationally for over seven months.
SERVICE
We understand our members formed and own
the credit union, so we constantly strive to provide
extraordinary service to every member, every time.
As our membership grows, so does the call volume
we handle daily. We have responded to this growth
by expanding our Member Call Center staffing, hours
and online chat support. Member Representatives
are also available to support members through the
secured Message Center within Online Banking
and via email.
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Our commitment to
service was further
demonstrated through the
addition of our new Online Banking Mobile App,
which features mobile deposit. Members across the
United States are now able to snap a picture of their
check for convenient, quick and secure deposits.
SECURITY
Keeping member data safe and secure is a top
priority. In 2014, the senior management team, under
direction from the Board of Directors, created a five
year security development plan. This plan lays out
upgrades needed to keep pace with technology
and member demand - while remaining focused
on data security.
Our commitment to uncompromising security
was enhanced with the addition of our Fraud/Risk
department and the appointment of a Chief Risk
Officer. This department will help identify theft and
debit/credit card fraud – allowing us to proactively
notify members and reduce the potential impact
of such events.
The new Online and Mobile Banking platform,
rolled out to members in June, features multi-factor
authentication and enhanced security features for
a safer user experience.
Lastly, we are proud to report we are a financially
strong and stable credit union.
A MESSAGE FROM THE BOARD
O
n behalf of the Connexus Board of Directors,
it is rewarding to look back at our credit
union’s accomplishments in 2014.
Connexus continued to deliver on our mission
to help members achieve their personal financial
objectives by anticipating their needs, and exceeding
their expectations, with superior service and
products. In order to deliver on our mission, the
right employees must be in place. If you were to look
behind the scenes within Connexus, you would find
a collaborative and cohesive employee culture, as
well as a thoughtful strategy on how we will remain
disciplined in attracting and retaining
quality employees.
In addition, we experienced another year of strong
financial performance, with 48% growth in our asset
base, due in large part to our merger with Endura
Financial Federal Credit Union. In the end, that
growth affords us the ability to continue investing in
our employees, to keep pace with technology, and
to improve our product and service offerings. In turn,
those investments ultimately come back to
benefit our members.
by helping safeguard our members during the
various 2014 data breaches at several prominent
national retailers. We will continue to move forward in
implementing new technologies and operations
to serve our members well.
In summary, the road ahead looks very promising
for your credit union. We want you to feel great
about your decision to invest in us - we want you to
feel proud to be a member of Connexus Credit Union.
Thank you for your membership and your continued
loyalty. We look forward to what we will accomplish
together in 2015.
Sincerely,
Steven A. Zeinemann
Board Chair
As an example, we upgraded our online and mobile
banking platform to enhance security and add
useful features such as mobile deposit, budgeting
tools and savings goals. We also created a new
Risk Management department that is charged
with protecting our members from ever-increasing
incidences of identity theft and debit/credit card
fraud. These initiatives quickly revealed their value
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A MESSAGE FROM YOUR PRESIDENT
800.845.5025 | ConnexusCU.org