2012ANNUAL REPORT - Arizona Central Credit Union

2012
ANNUAL REPORT
Contents
Board of Directors
2
Supervisory Committee Report
3
Credit Committee Report
4
2012 Financials
5-6
About Arizona Central
7-8
Branch Locations & Hours
9-10
Supervisory Committee
John Riddle.................................................................... Chairman
Mark Denke..................................................................... Member
Sandy Watts..................................................................... Member
Patrick Huston................................................................. Member
Stephanie McQuillan....................................................... Member
Strategic Management Team
Todd A. Pearson ....................................................President/CEO
John Wright ....................................... Senior Vice President/CFO
Adam Jones ........................................ Senior Vice President/CIO
Janet Moodie .................................... Vice President, Operations
Mary Harwood.......................Vice President, Human Resources
Kathy Pluhowsky ...................Vice President, Risk Management
Yvette Casillas Clay ................................ Vice President, Lending
Mike Neill ........................ Vice President, Finance & Accounting
10
Branch Locations & Hours
Management Report
Robert Wolpert ............................................................. Chairman
Brian Raczynski..................................................... Vice Chairman
Larry Pfeiffer ..................................................................Treasurer
Kathleen Shanahan ..................................................... Secretary
Ted Dwyer ......................................................................... Director
John Riddle....................................................................... Director
Bob Kirby........................................................................... Director
Management Report
Branch Locations & Hours
Financial Focus
2012 continued the path to economic recovery across the country.
Arizona Central made great strides increasing our capital ratio from
7.75% in 2011 to 8.63% in 2012. Arizona Central’s financial picture
remains stable and shows that we are indeed a safe and financially
sound institution and as 2012 wound down, we held a year-end
net income of $3,486,972. This is an increase of $2,586,446 from
2011’s net income.
Member Service  Apply for a Loan
MOM TouchTone Teller
Call (602) 264-6421 or toll free 1-866-264-6421
www.azcentralcu.org
Branch Locations
Chandler..................................................1805 W. Chandler Blvd.
Flagstaff ............................................................2521 N. West St.
Flagstaff ..................................1948 S. Woodlands Village Blvd.
Glendale............................................................. 6901 W. Bell Rd.
Glendale................................................... 5552 W. Glendale Ave.
Phoenix ............................................ 2020 N. Central Ave., #100
Show Low .........................4451 S. White Mountain Rd., Suite D
Tempe ...............................................................3350 S. Price Rd.
Tucson .........................................................787 S. Alvernon Way
Tucson ................................................................ 2150 W. Ina Rd.
Although we have seen growth in many areas, we are still committed
to increasing our loan portfolio and making strides where in recent
years it has been difficult from an economic standpoint. In 2012 our
loans increased by $10,245,018.
Member Focus
We understand that our members have a choice in who they conduct
their financial business with. This is why in 2012 we made it our focus
to provide additional products and services that through member
feedback were determined to be a priority.
In 2012 we were excited to launch online services including
FinanceWorks, Popmoney, Funds Transfer, Mobile Banking, Text
Message (SMS) Banking and mobile apps for Apple and Android
products. Simply putting member’s finances at their fingertips.
ATM Locations – Available at all branches, plus:
 Maryvale Medical Center, 5102 W. Campbell Ave., Phoenix
(cash dispense only; near cafeteria)
Phoenix Baptist Hospital, 2000 W. Bethany Home Rd.,
Phoenix (cash dispense only; near cafeteria)
West Valley Hospital, 13677 W. McDowell Rd., Goodyear
(cash dispense only; in cafeteria)
Arrowhead Hospital, 18701 N. 67th Ave., Glendale
(cash dispense only; in cafeteria)
More than 50,000 surcharge-free Allpoint ATMs
In addition to our new online services Arizona Central introduced
the iStyle Checking Account for members 13 to 23 years old and
the ability to eSign documents further increasing the convenience of
membership.
Hours of Operation
Mon, Tue, Thr, Fri ............................................ 8:30 a.m. - 6 p.m.
Wed .....................................................................10 a.m. - 6 p.m.
Sat (select branches) ........................................... 9 a.m. - 1 p.m.
Indicates branches with Saturday hours
Arizona Central also hosted our first charity golf tournament which
benefited the Children’s Miracle Network. This was a very successful
event and we look forward to putting on another great tournament in
2013!
We would like to congratulate our Volunteer of the Year Jeri DiDay. Jeri
donated 126 hours of service in 2012.
Locations nationwide • www.cuswirl.com • 1-888-CU SWIRL
We thank you for choosing Arizona Central and look forward to serving
you in 2013.
Federally insured by NCUA
Products & services described in this brochure are subject to change without notice.
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Respectfully submitted,
Robert Wolpert, Chairman
Todd Pearson, President/CEO
Management Report
Community Focus
In 2012 Arizona Central continued to build our relationship with
local non-profit organizations that are near and dear to our hearts.
Throughout the year employees, family members, and friends
participated in 68 community engagement activities and donated
2,492 hours of service. Organizations Arizona Central supported in
2012 include Credit Union for Kids, Children’s Miracle Network and
the American Cancer Society.
Member Service Pledge
Supervisory Committee Report
ƒƒ To be available to assist you with your
financial transactions 24/7 by providing
a combination of live and automated
support options.
ƒƒ To maintain a positive, friendly attitude.
ƒƒ To give you our full and complete
attention so you feel as if you are the
only member we will assist all day.
ƒƒ To be knowledgeable about our jobs
and the credit union’s products and
services so we may assist you in
reaching your financial goals.
ƒƒ To be thorough in our interactions with
you to ensure we are meeting your
needs.
The volunteers of the Supervisory Committee are appointed by the Board
of Directors to watch over the members’ interests in Arizona Central Credit
Union. Each year we review credit union records to ensure the staff carried
out their duties responsibly and that Arizona Central was properly operated,
while maintaining all required documentation and conforming to federal,
state, and local laws and regulations.
To assist in these duties, the Committee retained the Certified Public
Accounting firm of Orth, Chakler, Murnane and Company, CPAs. This firm
conducted their regular audit of operations and verified members’ accounts
in order to issue an opinion on the credit union’s financial statements.
Arizona Central is state chartered and is regulated and examined by the
Arizona Department of Financial Institutions as well as the National Credit
Union Administration. As further protection of member funds, a $5 million
blanket surety bond covers such risks as embezzlement, theft, forgery, and
burglary. In addition, adequate casualty insurance is in force.
Respectfully submitted,
John W. Riddle, Supervisory Committee Chairman
Comparison Tables
Deposit Growth
$400
$400
2012
$356,980,553
$397,431,538
2011
$360,370,402
$395,543,331
2010
$200
$374,274,884
$404,819,561
$300
2010
2011
2012
$300
$200
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ƒƒ Member Share Accounts
ƒƒ LifeStyle Checking Accounts
ƒƒ Money Market Accounts
ƒƒ Certificates & IRAs
ƒƒ Health Savings Accounts
ƒƒ You-Name-It Savings Accounts
ƒƒ Central PointsTM Member Rewards
Program
ƒƒ New & Used Vehicle Loans
ƒƒ Credit Union Advantage & AutoSMART
ƒƒ Lines of Credit, Debt Consolidation &
Signature Loans
ƒƒ Mortgages & Home Equity Loans
ƒƒ Visa® Gold, Classic & Secured Credit
Cards
ƒƒ Quik Money Card (ATM-only card)
ƒƒ Small Business Savings, Checking &
Loans
ƒƒ eBRANCH Remote Deposit
ƒƒ FinanceWorks
ƒƒ Popmoney® & Funds Transfer
ƒƒ Mobile Banking, SMS Banking & Mobile
Apps
ƒƒ Payroll Deduction & Direct Deposit
ƒƒ MOM 24-Hour TouchTone Teller
ƒƒ CU Services® Network – Nationwide
shared branching
ƒƒ Allpoint Surcharge-Free ATM Network
ƒƒ eBRANCH Online Banking & Bill Pay
Services
ƒƒ Mechanical Breakdown Protection &
Guaranteed Asset Protection policies
ƒƒ MEMBER’S ChoiceTM Borrower Security
ƒƒ Arizona Central Financial Services*
ƒƒ Auto, Life & Homeowner’s Insurance
through CUNA Mutual Insurance Group
ƒƒ Clown Club Savings Program
(12 years old & younger)
ƒƒ CU Succeed Savings Program
(13-17 years old)
ƒƒ Free Notary Public Services
ƒƒ 24-Hour Depository
ƒƒ Vacation & Travel Discounts
* For tax advice, consult a tax advisor. For legal advice, consult your
attorney. Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc.
(CBSI), member FINRA/SIPC, a registered broker/dealer and investment
advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 5126109. Nondeposit investment and insurance products are not federally
insured, involve investment risk, may lose value and are not obligations
of or guaranteed by the financial institution. CBSI is under contract with
the financial institution, through the financial services program, to make
securities available to members.
About Arizona Central
Member Services & Benefits
The Supervisory Committee would like to thank the members of Arizona
Central Credit Union for the privilege of serving them.
Asset Growth
ƒƒ To be accurate when processing your
transactions and answering your
questions.
ƒƒ To show respect for your busy schedule
by assisting you in a timely and efficient
manner.
ƒƒ To be accountable for finding the
answers you need and minimizing the
need to refer you to another employee
or department.
ƒƒ To work as a team so we can serve you
better.
ƒƒ To consistently provide excellent service
so you’ll be proud to be a member of
Arizona Central Credit Union.
About Arizona Central
Credit Committee Report
During 2012 Arizona Central’s lending staff booked over $115.6 million
in new loans, more than doubling gross new loan volume from the
previous year. This total includes mortgage loans booked at ACCU and
sold on the secondary market. Although loan growth came from all
areas, commercial and mortgage lending channels saw the greatest
increase. The Visa Credit Card program generated 455,106 transactions
and $27,373,708 in purchases.
Vision
Helping people achieve financial success for every stage of life.
Total loans outstanding for the year were $207,553,661.23 as compared
to 2011 year end, $197,308,643.30. Our total first mortgage loan
portfolio serviced by ACCU ended with 238 loans for a total of $35.5
million. We booked first mortgage real estate loans totaling over $46.3
million, including loans sold.
Mission
We will become the primary financial institution for members, contribute to the wellbeing of the community, and maintain financial strength and stability promoting sound
growth and member loyalty. We will do whatever it takes to provide exceptional service
and expert guidance to help our members achieve their financial success.
Service Standards
Respectfully submitted,
Yvette Casillas Clay, Credit Committee Chairman
ƒƒWhen you speak to one of our employees you can expect to receive a FRIENDLY SMILE
and a SINCERE GREETING.
ƒƒWe’ll treat you with respect and CALL YOU BY NAME during your transaction.
ƒƒWe’ll take time to answer your questions and OFFER ADDITIONAL ASSISTANCE so you
feel comfortable about your financial decisions.
ƒƒFinally, we’ll THANK YOU FOR YOUR BUSINESS because we know that serving you, our
member, is our highest priority.
Arizona Central staff working at the Garden of Tomorrow for In Service, February 2012.
1st Annual Golf Tournament benefiting the Children’s Miracle Network. November
2012.
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Supervisory Committee Report / Credit Committee Report
Our Committee is purposeful and dedicated to reviewing the quality
and trends affecting our portfolio and overseeing effectiveness and
administration of credit related policies. We look to forward to 2013 and
meeting our aggressive strategic goals.
Statement of Financial Condition
2012
2011
ASSETS
Loans: Net Allowance for
Loan Losses
Corporate Account Deposits &
Certificates
Marketable Investments
Fixed Assets
$201,805,661
Interest on Loans
$187,005,643
Interest on
Investments
Total Interest Income
5,354,585
Total Dividends &
Interest Expense
3,501,4252,724,225
Net Interest Income
30,834,96687,387,101
111,106,238
74,979,539
29,871,183
28,934,981
5,644,720
5,497,121
NCUSIF Deposit
3,574,711
3,660,136
Provisions for Loan Losses
Net Interest Income After
Provision
397,431,538395,543,331
6,896,834
4,614,115
Total Member Deposits
356,980,553
360,370,402
Total Liabilities
363,877,387
364,984,517
33,554,151
30,558,814
Members’ Capital
TOTAL LIABILITIES &
MEMBERS’ EQUITY
*
$14,372,755
1,964,7311,926,034
14,472,631
16,298,788
903,175
1,276,598
13,569,456
15,022,190
707,597
4,407,227
12,861,85910,614,963
Fees & Charges
4,973,920
4,550,033
Other Non-Interest Income
5,398,072
4,938,935
Total Non-Interest Income
10,371,992
9,488,968
Compensation & Benefits
8,027,060
7,544,397
Occupancy
4,787,1604,757,570
Operations
4,466,6124,151,967
NON-INTEREST EXPENSE
LIABILITIES Total Payables
$12,507,900
NON-INTEREST INCOME
Accrued Interest, Prepaid &
Other Assets
TOTAL ASSETS
2011
INTEREST INCOME & EXPENSE
Total Loans Held for Sale (HFS)*,
Cash & Accounts Receivables
11,092,634
Corporate Capital & Other
Investments
2012
$397,431,538$395,543,331
HFS is new category in 2012
Marketing
727,632861,931
Professional Fees
194,394
197,249
NCUA Share Insurance
339,598
915,035
Other Non-Interest Expense
999,867
853,283
Total Non-Interest Expense
19,542,322
19,281,431
Gain/(Loss) on Investments
& Fixed Assets
(204,557)
78,027
$3,486,972
$900,526
NET INCOME (Loss)
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2012 Financials
Statement of Income