25437.01 DTCU AR04.qxd - LibertyOne Credit Union

2008
ANNUAL
REPORT
Board of Directors
Calvin Smith
Chair
Linda Kunze
Vice Chair
Charles Ramirez
Treasurer
David Williamson
Secretary
Judith Bekisz
Director
Jimmie Johnson, Sr.
Director
Don Rawe
Director
Gerald Alfred
Advisory Director
Credit Union Staff
Kim Birchett
Jennifer Kahan
Minnie Busby
Mary Larson
Leah Calderon
Simona Marmalichi
Angelia Carter
Chandra McPhearson
Donna Fullen
Asa Mercadel
Mike Funk
Tammy Musso-Dyer
Julie Garris
Kiley Priddy
Cindy Johnson
Minnie Sierra
Dawn Kaegael
Agenda
Call to Order
CALVIN SMITH, Board Chair
Invocation
JIMMIE JOHNSON, SR.
Determination of Quorum
DAVID WILLIAMSON, Board Secretary
Reading of 2007 Annual Meeting Minutes
DAVID WILLIAMSON, Board Secretary
Comments from the Chair
CALVIN SMITH, Board Chair
Comments from the President
MIKE FUNK, President
New Business
CALVIN SMITH, Board Chair
Unfinished Business
CALVIN SMITH, Board Chair
Reporting of Nominating Committee
Door Prizes
CALVIN SMITH, Director
Adjournment
Comments from the Chair
Dear Board of Directors, Administration, Credit Union Staff and Members:
I thank you for affording me the opportunity to serve on your board of
directors; and for the distinct pleasure of being the Chair of LibertyOne for
2008-2009. I am very pleased to say that, while many other credit unions
have failed, we have made tremendous strides during these recessionary
times. LibertyOne just keeps rolling along under the fine leadership of Mike
Funk and Mary Larson.
Many questions were raised about our solvency and the CEO handled
them expeditiously and assured all of our members that their money is safe
at this credit union. This kind of service during troubling times continues to
demonstrate LibertyOne’s commitment to quality service and an extension
of the fiduciary responsibility entrusted to the board of directors.
We are continuing to grow. I am sure that you all have heard about the
assessments that all credit unions will endure in order to bail out our less
fortunate money lenders. Don’t worry, LibertyOne ensures you that all is
well on this home front. Just like the phoenix rising from the ashes and
regenerating itself, we are proud to say that LibertyOne will lend a hand to
those institutions and remain secure and confident in its diligence to our
members.
Our home loan and home equity program is strong; our free worldwide ATM program has grown exponentially, and, our loan program, CD and
IRA programs are very sound. We continue to flourish in the face of adversity experienced by so many other financial institutions.
In this regard, you must know that as Chair of this board of directors, I
am proud to announce a potential expansion project. We may have an
opportunity to expand westward to Arlington, TX. This would give
LibertyOne the ability to service a greater part of the membership that lives
in that part of the metropolitan area. LibertyOne would be able to increase
its membership base and provide a much needed service to other federal
employees housed on the west side of the Dallas and Tarrant county areas.
We are grateful for the vision and forward thinking of our management staff.
I thank all of the board, staff and employees for our commitment to quality
service rendered to our members.
I want you to also know that I am proud, pleased and happy to be a part
of a financial institution that stands up for and furthers the financial stability
of its membership.
Calvin R. Smith, Chair
Board of Directors
Financial Highlights
(Years ended December 31)
2008
2007
$ 2,764,666.01
895,908.65
738,584.29
4,399,158.95
$ 2,624,889.24
1,082,908.91
802,015.16
4,509,813.31
$
779,245.34
211,376.25
60,379.82
601,774.30
92,530.38
40,093.82
116,913.44
318,602.12
11,293.11
56,027.20
$ 2,288,235.78
$
Non-Operating Gains or Losses
Dividend on Deposits
$
$
NET INCOME
$ 345,073.92
INCOME
Interest from Loans
Income from Investments
Other Operating Income
Total Income
EXPENSE
Employee Compensation
Employee Benefits
Travel & Conference Expense
Office Operations Expense
Education & Promo Expenses
Loan Servicing Expense
Professional and Outside Services
Provision for Loan Losses
Operating Fees
Miscellaneous Expenses
Total Operating Expense
0.00
1,765,849.25
746,418.41
193,303.07
42,437.80
582,980.72
80,249.08
43,167.69
98,978.20
268,923.46
10,857.74
45,779.31
$ 2,113,095.48
0.00
2,103,267.32
$ 293,450.51
Distribution
of Earnings
DISTRIBUTION OF EARNINGS
Interest Paid
to Members
Expenses
Net Income
$ 1,765,849
2,288,236
345,074
$4,399,159
$ 0.40
0.52
0.8
$ 1.00
Interest Paid
to Members
Expenses
40%
52%
Net
Income
8%
Comments from the President
2008 was a trying and yet rewarding year for LibertyOne Credit Union.
Interest rates have dropped so much that it makes it harder for us to make
enough spread between what we pay out and what we take in. We added
real-time ATM and debit card transactions as well as real-time online banking at no cost to our members. The economy has certainly had an impact on
us, but thanks to the conservative approach we have taken over the years,
we are in good position to weather the storm and continue to give our
members the best options in financial services.
Free Worldwide ATMs – I think I mention this in my report nearly every
year, but I think it is an unbelievable benefit and others have tried to do this,
but they all have limitations and restrictions on it. To my knowledge, we are
the only financial institution in the country that allows you to use any ATM
machine in the world as many times as you want to and not only doesn’t
charge you a fee, but also pays the fee the ATM owner charges! We pay over
$10,000 each month to other financial institutions so our members can
access their money whenever and wherever they want – for free!
Many members are contacting us about mortgage loans as rates are
extremely low and we have taken a very conservative approach to our
mortgage lending, so we do not have the financial problems that others
do related to risky lending. We are helping many members refinance their
mortgages or even get their first homes, so call us and check it out; I bet we
can help!
We believe that we are all in this together and we will be here to help
you get through these tough economic times. So, please call us and tell us
what you need and we will do our best to help you achieve your financial
goals. Also, take a minute to tell a family member or co-worker about us as
we are here for all U.S. Government workers and their families in the
Dallas/Fort Worth area.
If there is anything I can do for you at any time, please call me at
214-413-5588, extension 101 or email me at mfunk@libertyonecu.com.
Mike Funk
President
(in millions)
$9
,7
78
,6
39
$9
,1
77
,7
40
$8
,7
98
,8
78
$10
$8
,6
70
,9
39
$12
$1
0,
23
9,
39
3
Total Reserves
$8
$6
$4
$2
$50
$5
1,9
37
,1
43
$4
8,
94
3,
69
6
2008
71
,5
07
,3
68
(in millions)
$5
8,
3
$60
2007
$5
7,0
66
Total Deposits
2006
84
,4
49
2005
$5
4,
4
2004
$40
$30
$20
$10
2004
2005
2006
2007
2008
2008 New Loans
3
$1,272,668
$2,701,733
$1,016,301
$2,060,338
$1,922,810
$1,327,072
$1,552,925
$1,175,517
$1,015,247
$2,097,293
$1,373,667
$1,645,818
Balance Sheet - Assets
BALANCE SHEET - ASSETS
PERSONAL LOANS
New Car
Used Car
Boats,Motorcylces, RV
Signature
Credit Cards
First Mortgage
Home Equity
Other Loans
Total Personal Loans
Allowance for Loan Losses
Net Personal Loans
CASH
Total Cash on Hand
INVESTMENTS
SWC Membership
SWC CMF
Banks and S&Ls
NCUSIF
U.S. Government & Agencies
Unrealized Gain / Loss
Other Investments
Total Investments
806
1,211
140
2,026
1,093
82
107
116
5,581
$ 12,946,718.22
12,730,967.00
1,848,571.16
3,830,926.18
1,483,148.84
8,953,929.47
2,703,230.64
909,635.86
$ 45,407,127.37
($314,904.49)
$ 45,092,222.88
$
374,095.06
$
673,591.33
4,120,008.51
4,368,793.40
510,895.76
13,466,286.47
88,512.29
0.00
$ 23,228,087.76
FIXED ASSETS
Furniture & Fixtures
Leasehold Improvements
Computer Equipment
Total Fixed Assets
$
$12,327.56
39,881.76
57,958.12
110,167.44
OTHER ASSETS
Total Other Assets
$
402,784.46
TOTAL ASSETS
$ 69,207,357.60
Balance Sheet –
Liabilities and Equity
ACCOUNTS PAYABLE
Accounts Payable
Notes Payable
Taxes Payable
Total Accounts Payable
ACCRUED INTEREST PAYABLE
IRA Certificates
Regular Certificates
Total Accrued Interest
OTHER LIABILITIES
Accrued Expenses
Outstanding Checks
Other Liabilities
Total Other Liabilities
MEMBERSHIP EQUITY
Share Savings
Christmas Club
Free Checking
Prime Checking
IRA Savings
IRA Certificates
Regular Certificates
Total Membership Equity
RESERVES
Regular Reserves
Undivided Earnings
Investment Allowance
YTD Net Income
Total Reserves
TOTAL LIABILITIES AND EQUITY
$
$
$
$
$
$
511,391.93
0.00
15,835.91
527,227.84
10,230.53
58,826.07
69,056.60
70,875.00
244,455.04
-251.93
315,078.11
$ 21,952,351.31
33,173.88
1,604,866.85
2,968,341.03
346,058.70
4,972,096.62
26,494,618.54
$ 58,371,506.93
$
1,536,891.07
7,954,010.84
88,512.29
345,073.92
$ 9,924,488.12
$ 69,207,357.60
Total Membership Equity
Savings
37.66%
Checking
7.83%
IRA
9.11%
Regular Certificates 45.39%
Total Personal Loans
New Car
28.51%
Used Car
32.11%
Signature
8.44%
Credit Cards
3.27%
Mortgage Loans
Other Loans
25.67%
2.00%
MISSION STATEMENT
"LibertyOne Credit Union
seeks to be our members
primary financial institution
and will adhere to the
highest ethical standards
while maintaining a sound
financial foundation."
DALLAS SERVICE CENTER
1100 Commerce , #615
Dallas, TX 75242
24 HOUR TELEPHONE TELLER
214-413-5588 option 1
800-672-1320 option 1
FARMERS BRANCH SERVICE CENTER
4050 Alpha Road, #120
Farmers Branch, TX 75244
PHONE
214-413-5588
800-672-1320
BEDFORD SERVICE CENTER
4101 Airpor t Freeway, #141
Bedford, TX 76021
EMAIL
libertyone@libertyonecu.com
www.libertyonecu.com
FAX
214-413-5593
HOME LOANS
800-366-6041
MASTERCARD CUSTOMER SERVICE
800-299-9842
www.ezcardinfo.com