Making a positive impact.

Transcription

Making a positive impact.
The Chambers | Members since 1991
Making a
positive impact.
2013 Annual Report
®
Making a positive impact. Since 1940, iQ Credit Union has been
making a positive impact on the people and communities we serve.
You can see it in the ice cream shops, florists, coffee brewers and other
small businesses who have accounts with iQ. You can see it in the many
charitable events we sponsor — helping those in need throughout
the communities we serve. You can see it through our continued
commitment to the educational community. And you can see it in the
financial products we provide to you every day — products designed
to save you time, save you money and make your life a little easier.
Bryan & Leticia | Members since 2009
Making a positive impact is what we’re all about.
3
CEO Report
CEO Report
For nearly 75 years, iQ Credit Union has been providing local residents with the very best in affordable financial services. Since
1985, I have had the distinct honor of serving as President and CEO — a position I will be retiring from this coming October.
Before we get to that, let’s review 2013, a year in which iQ Credit Union continued to make a positive impact — on individuals,
on families, on businesses and on communities.
A new site for a new day.
Big numbers for small business.
2013 by the numbers.
2013 was a record year for Member Business Loans. A strong local business community is the lifeblood of any great city. So as
Southwest Washington continued to regain its economic vitality, iQ Credit Union was on the front lines, helping more small
businesses than any other year in our history.
Rolling out the welcome mat.
We spread the word that when you’re in the market for a home loan, iQ Credit Union has money to lend — and members
heard us loud and clear. It’s nice to know that the American Dream of home ownership is alive and well. Thanks to increased
mortgage staff and an innovative (and time-saving) new Online Mortgage Center, 2013 was a banner year for home loans.
In addition to the variety of new loan types introduced, loans for manufactured homes have now been added to the roster.
On the move.
In an effort to reduce costs and maximize our existing space, we closed our Hazel Dell Operations Center in the summer of 2013,
relocating all departments affected into other iQ buildings across the area. Our Data Center also moved. Our Hazel Dell branch,
formerly located inside the Operations Center, moved to a more convenient location near Target in Hazel Dell.
Web sites today have evolved to become more user friendly. That’s why the new iQ website was created with you in mind. It is
sleek, condensed and easy to use, with a new look that features member photos throughout. The information you need is never
more than a click or two away. Access to your secure online account has never been easier. Check it out at iQcu.com.
In nearly every way measurable, 2013 was a successful year for iQ Credit Union. Loans grew by nearly 18 percent, assets grew by
5 percent and our net worth rose from 8.39 percent to 8.91 percent. Financially strong, fiscally responsible — that’s the iQ Credit
Union of yesterday, today and tomorrow. Always here for you.
While iQ will still be here years from now, I will be stepping down and retiring this coming October. It seems like just yesterday
that I started here. The year was 1985. We had a single branch, 36 employees, 9,500 members and assets of $38 million. Since that
time, we’ve changed our name, increased our focus on community and grown to nine member branches (and five high school
campus branches), 189 employees, nearly 50,000 members and assets topping $500 million. And through
it all, the thing I’ll remember most fondly is my interactions with you, our members. On the phone and
speaking with you at community events. Twenty nine years has been a great run for me and I’ve enjoyed
every minute of it. iQ is a robust and dynamic credit union and it will be fun watching it continue to
grow and thrive. It’s been my privilege to help make a positive impact on your personal and business
finances over the years. Thank you again for all your support.
Roger Michaelis
President/CEO
rogerm@iQcu.com
4
5
Chairman’s Report
A Change of Leadership
The Board of Directors of a member-owned credit union has a number of important responsibilities. Chief among them is the
responsibility to select, hire and support the most skilled and effective leader (CEO) they can find. The job of chief executive
of a modern day credit union is enormously challenging. That individual must run the credit union in a manner that meets
the changing financial needs of the members and that complies with the growing myriad of state and federal regulations that
govern credit union operations. In today’s competitive financial environment, the importance of the CEO to the success of the
organization cannot be overstressed.
For the past 29 years, our Credit Union has benefited and prospered from the leadership provided by Roger Michaelis. His tenure
with iQ exceeds that of any current board member. Roger came to work for Clark County School Employees Credit Union
(CCSECU) in 1985. In the Board Chairman’s Report from the 1984 annual meeting, Board Chairman Dave Kooken congratulated
his Board for their selection of Roger to replace CEO Tom Sargent. Dave talked about the “smooth transition of leadership” that
occurred. At the time Roger took over, CCSECU had amassed $38 million in assets. A total of 36 employees served the needs of
the 9,500 members.
From 1985 to 2014 the story of iQ is one of continued growth and success. Today our field of membership extends beyond Clark
County and the teachers/educators who live there. Today our service area includes the entire state of Washington. Our nearly
50,000 members have amassed more that $500 million in assets. Our staff of 189 employees serves the needs of our members at
nine branches, including Clark College, and five high school branches.
In 2005, iQ merged with City Employees Federal Credit Union. In 2014, we will complete a consolidation with Lacamas
Community Credit Union. The consolidation of these two strong, service-oriented credit unions will create an even stronger
organization with 15 branch locations serving the needs of nearly 70,000 members.
The storied success of our Credit Union has not gone unnoticed. Roger is recognized as an outstanding leader by the financial
industry and the Vancouver community that he, his wife Teresa, and daughter Larissa call home. As a result, he serves as a
6
Chairman’s Report
member (often chairman) of numerous regional and national committees, councils, task forces and boards. Roger received
Washington Credit Union League’s Distinguished Professional Award in 2004 and the League’s Mark of Excellence Award in 2006.
Roger also gives generously of his time having served on community boards and organizations including the Evergreen School
District Foundation, the March of Dimes Foundation Oregon Chapter, and Vancouver Rotary. In addition, he has been an
advocate for social and community issues deemed important by our members.
iQ’s history is closely linked with public education in the Vancouver community. At the direction of our members, much of
iQ’s community involvement and philanthropic support has focused on strengthening education and health for children in
our community. With Roger’s leadership, iQ has taken a lead role in support of local school district ballot measures, providing
funding and allowing citizen committees free use of our facilities for meetings and as phone call centers. We provide funding to
school district foundations and for teacher orientations and training. iQ’s “Read with MeSM” program has provided more than
66,000 books for children. Another important initiative, “Credit Unions for Kids,” has raised more than $10 million in support of
Doernbecher Children’s Hospital. Roger has been instrumental in the success of these efforts.
Roger Michaelis has announced his intention to retire in October 2014. He will leave behind a legacy that
will be difficult to match in years to come. Those who serve on iQ’s current board have begun the difficult
task of selecting his replacement. We will proceed with diligence and care, knowing this is the most
important task we will perform on behalf of our members.
Although the name is not yet known to us, I have every confidence that the Board Chairman’s Report
of 2014 will include statements about the “smooth transition of leadership,” similar to those made by
Chairman Dave Kooken in 1984.
Dr. James Sork
Chairman, Board of Directors
directors@iQcu.com
7
supervisory committee Report
Chris, Stephanie & Emmett | Members since 2005
The Supervisory Committee is responsible for ensuring that our member’s funds are protected at all times. To accomplish this
goal, the committee performs specific duties including: overseeing an annual independent audit of the credit union, verifying
members’ accounts, reviewing internal accounting systems and controls and ensuring that all policies and procedural guidelines
are followed. The Supervisory Committee works closely with our Internal Audit department to perform these duties.
For the fiscal year ending June 30, 2013, iQ retained the audit firm of Moss Adams, LLP to perform the annual audit of its
financial statements. The audit determined that iQ’s financial statements accurately represent the financial condition of the
Credit Union. This external audit is performed in addition to annual state and federal examinations. All audit results and their
management recommendations are reviewed by the Supervisory Committee and forwarded to the Board of Directors.
Our Committee is pleased to report that iQ Credit Union is a financially sound organization, operating in compliance with state
and federal regulations. This assessment is supported by the results of the regulatory examination performed by the National
Credit Union Administration and the Washington Department of Financial Institutions.
Your support as members of iQ is appreciated, and we look forward to serving the organization
in the coming year.
Jil Click
Chairman, Supervisory Committee
directors@iQcu.com
8
9
statement of condition
statement of condition
2012
2013
ASSETS
Total Loans $271,206,518$319,612,507
Allowance for Loan Loss
($4,506,951)
($4,004,201)
Cash and Cash Equivalents
$ 7,537,685
$ 5,819,915
Total Investments $166,075,513$137,894,226
Land and Building
$ 15,638,747
$ 16,652,135
Fixed Assets
$ 1,888,975
$ 2,239,170
Other Assets$ 26,713,936$ 31,105,189
Total Assets $484,554,423$509,318,941 LIABILITIES
Accounts Payable
$ 3,793,431
$ 4,100,942
Share Certificates$ 54,342,056 $ 49,734,311
Checking Accounts$126,562,424$133,600,192
Money Market $111,981,028$116,698,076
Deferred Compensation
$
530,058
$
475,270
Regular Shares$119,003,024$134,443,472
IRA’s$ 30,364,235$ 28,201,408
Regular Reserves
$ 12,761,288
$ 12,761,288
Undivided Earnings$ 25,216,879$ 29,303,982
Total Liabilities $484,554,423$509,318,941
10
INCOME
Interest on Loans
$
Interest on Investments
$
Other Operating Income
$
Total Gross Income
$
EXPENSES
Employee Salary/Benefits
$
General & Administrative
$
Provision for Loan Loss
$
Other Interest Expense
$
Dividend Expense
$
Reserve Transfers
$
Total Expense$
Members
2012
14,760,671
1,411,457
9,595,630
25,767,758 2013
$
$
$
$
14,381,459
1,302,772
10,933,149
26,617,380
9,840,397
$ 10,693,893
8,853,984
$ 9,450,706
860,480 $
625,227
93
$
299
1,496,361
$ 1,132,512
4,716,443 $ 4,714,743
25,767,758$ 26,617,380
48,448
49,471
11
board committees
Budget
*Jil Click
Jim Rinta
Ed Maxwell
Steve Porter
DeWayne Ledbetter
Governmental Affairs
*Steve Porter
Jaye Folsom
Arlene Hett
Laurie Kusch
Ed Turk
Danette LaChapelle
Nominating
*Ed Maxwell
Doug Lehrman
Larry Kingsella
Laurie Kusch
Carol Newton
12
LKE Corporation | Members since 2003
Clark Financial Services
*Jim Sork
Don Kitterman
Larry Kingsella
Roger Michaelis
Linda Barber
Human Resources
*Sharon Eastman
Doug Lehrman
Marsha Carner
Joseph Nutting
Ed Maxwell
Terry Nelson
Laurie Kusch
DeWayne Ledbetter
Kari Stansberry
Executive
*Jim Sork
Sharon Eastman
Doug Lehrman
Ed Maxwell
Roger Michaelis
Business Services
*Don Kitterman
Steve Porter
Larry Nelson
Jim Rinta
Ed Turk
Jim Jones
Ed Franks
Julie Arenz
401(k)
*Sharon Eastman
Doug Lehrman
DeWayne Ledbetter
Information Security
*Joseph Nutting
Jaye Folsom
Carol Newton
Brian Loos
Nate Silva
Imogene Patrick
Brad Wood
Chris O’Malley
Betsy Arfmann
Policy
*Jim Sork
Evie Grendahl
Jim Neveu
Larry Kingsella
Jessica Crouse
Ed Turk
Asset/Liability Mgmt.
*Doug Lehrman
Sharon Eastman
Ed Maxwell
Jim Sork
Roger Michaelis
Ed Turk
DeWayne Ledbetter
Facilities
*Evie Grendahl
Ron Allbaugh
Jodie Sharp
Don Kitterman
Brad Lothspeich
Mike Bomar
Chris O’Malley
Imogene Patrick
Danette LaChapelle
Board Reorganization
*Ed Maxwell
* Denotes Chairman
13
Our Branches
14
Battle Ground
109 SW First Street, Ste 101
Battle Ground, WA 98604
Hazel Dell
8901 NE Hazel Dell Avenue, Ste 111
Vancouver, WA 98665
Camas
1615 NW 6th Avenue
Camas, WA 98607
Ridgefield
2 South 56th Place, Ste 105
Ridgefield, WA 98642
Clark College • Gaiser Hall
1933 Ft. Vancovuer Way
Vancouver, WA 98663
Salmon Creek
13505 NE 10th Avenue
Vancouver, WA 98685
Downtown
1313 Main Street
Vancouver, WA 98660
Vancouver Mall
7017 NE Vancouver Mall Drive
Vancouver, WA 98661
Fisher’s Landing
2620 SE 165th Avenue
Vancouver, WA 98683
High School Branches
Battle Ground, Camas
Evergreen, Skyview and Union
Minit Mart | Members since 2006
15
®
www.iQcu.com | 360.695.3441 | 1.800.247.4364 | Federally insured by NCUA