84th Annual Report - Allegent Community Federal Credit Union

84th Annual Report

Allegent Community FCU 84th Annual Meeting and Report — March 14, 2019

Chairman’s Report

In 2018, your credit union continued its tradition of strong financial performance with an increase in earnings of 423% over year end 2017. In addition to maintaining our solid and loyal membership base through competitive loan and deposit product offerings, the credit union remains on solid financial ground with our strong Capital position.

Our Board and Management team remains committed to you, our valued members, through upgraded technology enhancements, as well as other infrastructure improvements and branch office renovations that will allow us to remain competitive in our marketplace. The expectation is for 2019 to be another year of positive financial achievement for the credit union, thus providing opportunities for our valued members to grow with us and share in the success through your trust in Allegent.

Here at Allegent, we truly believe in the credit union mission and are honored and committed to serve you, our loyal members.

Thank you for your continued support!

Michael B. Eddy, Board Chairman

Treasurer’s Report

As of December 31, 2018 the Credit Union’s Total Assets are $152,500,657 which is a decrease of 0.5% from year end 2017. Our Total Shares declined by 0.6% to a total of $134,363,658, while our Certificates of Deposits grew by 7.4% to a total of $43,149,827.

The Credit Union showed an increase in Non-Interest Income of $153,879 or 24.7% totaling $776,199. Non-interest Expense grew by 0.1% or $5,508 over 2017 for a total of $3,779,522. Our Interest Income grew by 7.3% to $4,373,648 and Interest Expense was higher by 30.2% totaling $822,134. This means the Credit Union paid out over $190,000 more in dividends to our members in 2018 than in 2017.

The Credit Union’s total membership at year end 2018 stands at 15,090 which is 9.0% lower than last year’s end total of 16,589.
A total of 1,388 new loans were made in 2018 in the amount of $34,449,604 raising our Total Loans to $103,662,020, a 1.5% increase over 2017.

Our Delinquent ratio remained strong at 0.44% compared to our peers’ which average 0.81%. The total loan loss provision for the year was $166,000, a reduction of 24.4% over 2017. Total loans Charged Off in 2018 amounted to $196,728.

The Credit Union ended 2018 with net income of $382,193 an increase of 423.5% over year end 2017. The Credit Union’s Capital Ratio increased by 0.31% in 2018 to a Capital Ratio of 12.08%, which is categorized as “Well Capitalized” by the NCUA.

William F. Wells, Treasurer

Supervisory Committee Report

The Credit Union falls under the federal jurisdiction of the National Credit Union Administration (NCUA). NCUA regulations permit supervisory committees of federal chartered credit unions of our asset size to fulfill their annual audit responsibility via a choice of various audit alternatives. These alternatives include obtaining an independent audit with generally accepted accounting principles or obtaining an audit in accordance with the NCUA’s Supervisory Committee Guide.

For the fiscal year ended December 31, 2018, the Supervisory Committee directed the Credit Union’s internal auditor Kimberly R. Golla, CPA to perform an audit in accordance with the NCUA’s Supervisory Committee Guide procedures. In addition to these examinations, periodic supervisory examinations were also performed directly by the NCUA. For upcoming fiscal year-ending December 31, 2019, the Supervisory Committee has elected to have the Credit Union’s internal auditor again perform an audit in accordance with the NCUA’s Supervisory Committee Guide procedures.

Based on the results of the Credit Union’s internal audit reports, the NCUA Examination Reports, and other information provided to the Committee, it is the opinion of your Supervisory Committee that Allegent continues to be financially strong, has adequate internal controls, and has an effective compliance program.

Edward Peduzzi, Chairperson; George Buck; Kathleen Eisenbart; Robert Tate

Minutes of the 2018 Meeting

Chairman Mike Eddy called the meeting to order at 11:00am. There was a quorum of 19 members, consisting in the main of board members and Allegent staff. Chairman Eddy then addressed the meeting with general comments reflecting the Credit Union’s strength and growth in total assets, shares and loans. Chairman Eddy also highlighted our strong capital position as well as the loyalty of our members.

The Treasurer’s Report was read by William Wells, Treasurer, who discussed the Credit Union’s financial statement.

The Supervisory Committee Report was read by Ed Peduzzi, Supervisory Committee Chairman, who reviewed the committee’s audit responsibilities.

Terry O’Connor, head of the nominating committee presented one Board member up for re-election. Board member Palma Warner was re-elected to a 3-year term by acclamation.

Chairman Eddy then opened the floor for questions and comments. There were no questions or comments so the drawing for the member prize then ensued.

The meeting was then adjourned at 11:20am.

Minutes submitted by Board Secretary Edward Peduzzi

Treasurer’s Report

Statement of Financial Condition
As of: December 2018

Total Loans $ 103,662,020.03
Less: Allow for Loan Loss (210,651,24)
Net Loans: $ 103,451,368.79
Cash 2,987,282.10


Available to Sale*

    Federal Securities/Agencies 14,227,816.85
    Federal Securities/MBS 16,208,035.60
    U.S. Treasuries
Held to Maturity 12,713,974.73
Other Investments
Total Investments: $ 43,149,827.18
Accrued Income 337,060.97
Prepaid & Deferred Exp 134,148.02
NCUSIF Deposit 1,336,230.92
Land & Building (net) 116,054.66
Furniture & Equipment 287,162.32
Other Assets 701,522.59
  $ 152,500,657.55
Total Assets $ 152,500,657.55
Liabilities & Equity:  
    Accounts Payable $ 17,368.40
    Dividends Payable 8,194.37
    Taxes Payable 0.55
    Other Liabilities 189,070.86
Total Liabilities $ 214,634.18
Shares $ 134,363,658.89
Regular Reserves 2,643,455.36
Undivided Earnings 14,799,893.07
Other Equity Acquired – Merger 596,824.36
Net Income (Loss) 382,193.25
Accumulated Unrealized Gain/Loss (500,001.56)
Total Equity $ 152,286,023.37
Total Liabilities & Equity $ 152,500,657.55

Statement of Financial Income
Period Ending: December 2018

Operating Income:  
Interest on Loans $ 3,494,352.26
Inc. from Lns. of Liq Cr. Unions
Total $ 3,494,352.26
Income from Investments 881,547.38
Fees and Charges 480,837.96
Miscellaneous Operating Income 201,378.67
Total Operating Income $ 5,058,116.27
Operating Expenses:  
    Compensation 1,540,481.35
    Employee Benefits 204,970.05
    Travel and Conference 9,517.98
    Association Dues 22,278.02
    Office Occupancy Expenses 285,482.90
    Office Operations Expenses 1,154,691.77
    Education & Promotional Exp. 96,993.73
    Loan Servicing Expenses 133,194.24
    Professional & Outside Services 228,090.28
    Provision for Loan Losses 166,000.00
    Members Insurance
    Fed’l Supv./Exam Expenses 40,483.77
    Cash Over & Short (886.59)
    Interest on Borrowed Money 340.74
    Annual Meeting Expense
    Misc. Operating Expenses 37,611.55
    Share Draft Expense
Total Operating Expenses $ 3,919,249.79
Non-Operating Income/Expense 93,606.76
Gain (Loss) on Investments
Gain (Loss) on Disp. of Assets (28,146.35)
Total Non-Operating Gains/Loss $ 65,460.41
Income (Loss) Before Dividends $ 1,204,326.89
Dividends $ 822,133.64
Net Income (Loss)** $ 382,193.25