2009 Annual Report - Aerospace Federal Credit Union

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2009
ANNUAL
REPORT
M I S S I O N S TAT E M E N T
Aerospace Federal Credit Union is dedicated to delivering comprehensive
financial services, anticipating members’ needs and exceeding their
expectations, with unwavering commitment to sound business practices.
2009 OFFICIALS
Board of Directors
Lynn M. Friesen | Chair
Ray F. Johnson | Vice Chair
James W. Ford | Treasurer
Robert D. Matthews | Secretary
Col. Delane A. Aguilar
William H. Hiatt
Charlotte M. Lazar-Morrison
Joe M. Straus
Col. John F. Wagner (Ret.)
Supervisory Committee
Gary F. Hawkins | Chair
Susan J. Adams
Andrea L. Amram
Mark H. Goodman
Allyson D. Yarbrough
Advisory Committee
John A. Vesco
Recording Secretary
Elaine S. Lydon
Senior Management
Marvin L. Thomas
President/CEO
Cynthia R. Chafe
Vice President, Compliance
Gregory S. Moran
Vice President, Information Technology
Nancy H. Wood
Vice President, Member Services
Edward V. Casanova
Vice President, Real Estate Lending
Message from the P R E S I D E N T
Report of the C H A I R
The economic downturn of 2009 affected everyone in some
way. Whether it was the collapse of the housing market, rising
unemployment rates, retirement fund losses or price fluctuations
of the items you buy every day, the state of the economy was
the one topic that was always in the back of everyone’s mind.
For AFCU staff however, this was actually at the forefront of our
thoughts! The economy and its effects on our members were the focus of daily
conversations and decisions made.
I am especially pleased to report that your credit union
had a successful 2009 despite the turmoil in the financial
industry this year. Members found protection from the
financial storm with AFCU and, as a result, total assets
increased $73.7 million. Loan volume decreased $0.9 million,
reflecting the shift in savings behavior of U.S consumers.
By maintaining a low operating cost and minimal loan losses, AFCU returned
a bonus dividend to members for the third straight year.
Our job is to look out for the best interest of our members. We take pride in
remaining a safe and sound credit union among a sea of failing financial
institutions. Like a beacon in the storm, Aerospace Federal Credit Union
continues to be the one place members know they can trust to help them make
educated financial decisions. Members sought refuge at AFCU through a variety
of ways, including mortgage loans to take advantage of record-low rates and
balance transfers from other lenders to an AFCU Platinum Visa Rewards Credit
Card to get away from high interest rates and excessive fees.
While we had an outstanding year in 2009, we already have our sights set on
the horizon. AFCU will continue to enhance our product offerings in 2010 by
determining the best solutions for our members’ needs. Additionally, staff is
dedicated to the future implementation of products that will increase the ease
of account access for members while at home, on business travel or vacationing
outside the El Segundo area.
We thank you for the opportunity to fulfill your financial service needs and look
forward to serving you and your family for many years to come.
Marvin L. Thomas | President/CEO
The credit union implemented a few new products in 2009, including the
Platinum Visa® Rewards Credit Card, an expanded Share Certificate Account
offering and a full suite of Youth Accounts. AFCU also introduced online
account origination this year for both new and existing members.
The continued success of Aerospace Federal Credit Union would not be
possible without the dedication of the credit union management, and the
support of volunteers, committees and, most importantly, the members.
Thank you for your trust. We look forward to a prosperous 2010.
Lynn M. Friesen | Chair
Summary Statement of I N C O M E & E X P E N S E
Years ended December 31
The membership can look forward to another good year in 2010. We anticipate loan
demand will be constant and slower growth in member share deposits. Due to a
continued low-rate environment, we expect to see stable but lower interest income
in 2010.
James W. Ford | Treasurer
‘09
‘06
$46.0
‘05
‘07
‘08
‘09
$ in millions
‘07
‘08
$ in millions
$24.9
‘08
‘06
$46.9
‘07
$ in millions
Total
Reserves
‘05
$21.8
‘06
‘05
‘09
$42.3
‘08
$19.7
‘07
$ in millions
$312.8
‘06
$39.4
Member
Shares
‘05
Member
Loans
$21.2
• Total assets increased $73.7 million from $239.1 million to $312.8 million, a
30.8% increase.
• An average dividend rate of 2.02% was paid on shares for the year, compared
to 2.96% in 2008. Total dividends paid of $5.1 million represents 34.9% of the
Credit Union’s total income of $14.5 million for 2009.
• Loans decreased $0.9 million from $46.9 million to $46.0 million. The average
return on loans for the year was 5.5% and was down slightly from the 6.1%
yield earned in 2008.
• Investments increased $70.5 million from $184.3 million to $254.8 million,
an increase of 38.3%. The average return on investments for the year was 3.8%,
compared to 4.7% for 2008.
Total
Assets
$ 2,059,696
325,401
113,368
54,725
28,340
143,586
266,668
1,854,532
1,882,729
$ 6,729,045
418,908
$ 3,120,932
$33.5
Your Credit Union experienced favorable financial performance in 2009. Key
elements include:
$283.0
Report of the T R E A S U R E R
$239.1
$502,697
213,452,377
1,580,557
20,220,827
3,302,666
$239,059,124
$ 1,732,817
239,773
96,300
37,034
28,432
135,568
153,840
0
1,299,606
$ 3,723,370
640,666
$ 2,135,194
$213.5
LIABILITIES & EQUITY
$928,963
Accounts Payable & Accrued Liabilities
282,995,601
Member Shares 1,580,557
Regular Reserve 23,341,759
Retained Earnings 3,918,237
Unrealized Gain/Loss on Investments $312,765,117
TOTAL LIABILITIES & EQUITY OPERATING EXPENSE
Salaries & Benefits Data Processing Communications Auditing Fees Stationery & Supplies Education & Promotion Depreciation & Amortization
Share Insurance
General Expenses
TOTAL OPERATING EXPENSE
Non Operating Income
NET INCOME
$216.1
(390,000)
697,140
184,332,942
1,384,107
410,933
2,069,261
3,661,122
$239,059,124
$194.6
(670,000)
1,062,256
254,803,584
1,171,422
1,596,982
2,544,736
6,299,070
$312,765,117
2008
$ 2,651,836
8,354,863
11,006,699
6,107,732
4,898,967
318,931
$ 5,217,898
$220.5
Less: Allowance for Loan Loss Cash Investments Accrued Interest Receivable Property and Equipment NCUSIF Deposit Other Assets TOTAL ASSETS Years ended December 31
INTEREST INCOME
2009
Loans to Members $ 2,481,660
Investments 8,557,020
TOTAL INTEREST INCOME 11,038,680
Less: Dividend on Member Shares
5,054,851
NET INTEREST INCOME 5,983,829
Other Operating Income 3,447,240
TOTAL OPERATING INCOME $ 9,431,069
$199.0
2008
$ 46,893,619
$240.4
2009
$ 45,957,067
$220.1
ASSETS
Loans to Members $20.9
Summary Statement of F IN A N C IA L C O N D IT IO N
‘09
Report of the S U P E R V I S O R Y C O M M I T T E E
The Federal Credit Union Act requires the Supervisory Committee to make or cause
to be made a comprehensive annual audit of the books and affairs of the Credit
Union. The Supervisory Committee has retained a professional accounting firm,
which specializes in auditing Credit Unions, to conduct an independent audit of the
Credit Union’s financial statements. In addition, a separate firm has been retained
to audit the business practices of the Credit Union. The audited financial statements
are available for review at the main office of the Credit Union.
Gary F. Hawkins | Chair, Supervisory Committee
Contact Information
P.O. Box 90735
Los Angeles, CA 90009
Telephone 310-336-5030
Toll-Free 800-795-2325
Fax 310-336-8212
Email mbrsrvcs@aerofcu.org
Office Hours
Monday, Tuesday, Thursday & Friday
8:00 a.m.–4:00 p.m. (PST)
Wednesday
10:00 a.m.–4:00 p.m. (PST)
AeroAccess
Online Account Access
www.aerofcu.org