85th Annual Report
Allegent Community FCU 85th Annual Meeting and Report — September 18, 2020
Chairman’s Report
In 2019, your credit union continued its tradition of strong financial performance with earnings of over $250,000. Additionally, the Board rewarded our solid and loyal membership base, through our competitive deposit product offerings, with dividends that exceeded $1.1 million dollars, a 42% increase over year-end 2018.
Loan offerings also allowed for continued growth, particularly in real estate lending, which grew by 9% during 2019. Your credit union remains on solid financial ground with our strong Capital position of over 13%, which is considered “Well Capitalized” by our NCUA regulatory agency.
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. In October 2019, Allegent opened its fourth Branch Office, our first in Butler County, located in Cranberry Township, PA.
The expectation is for 2020 another year of positive financial achievement for the credit union, as our Management team continues to seek opportunities for membership growth in the ever-changing credit union landscape. We are grateful for your support and are thankful for your trust in Allegent.
We will always value our loyal members and continually strive to achieve our goal of being Pittsburgh’s Premier Credit Union.
“Member Owned. Member Appreciated.”
Sincerely,
William F. Wells, Chairman
Treasurer’s Report
As of December 31, 2019, the Credit Union has Total Assets of $141,590,585, a 7.2% decrease in comparison to year-end 2018.
Total Loans increased in 2019 by 0.7% to a portfolio total of $104,459,494 while Total Shares declined by 8.7% to a year-end total of $122,753,538. Our Real Estate products, specifically our Home Equity loans that spearheaded growth of 8.9% in this area, led loans.
Loan growth led to an increase in Interest Income earned of 7.7% overall with real estate income rising by 8.8%.
Shares, although decreased, continues to pay a solid dividend to our members in the form of interest on Checking, Money Market, Traditional Savings and Certificates of Deposit.
Our Total Dividend payout for the year 2019 was 42.2% higher than in 2018 and a full 85% higher than in 2017.
We also have been able to reduce our Non-interest Expenses by 0.7% from 2018 and increase our Provision for Loan Losses by 19.4% thereby increasing our Allowance for Loan Losses by 4.2% over 2018.
As a result, our membership remained strong at 14,980 members, a less than 1% decrease in overall membership at year-end 2018. This in an era of the credit union industry shrinking and with significantly more competition from major financial institutions opening offices in our local communities.
Solid earnings of $250,000 for the year, allowed our Capital Ratio to grow to 13.19%, a 1.11% increase over year-end 2018. The NCUA categorizes our credit union as “Well Capitalized.”
Strong asset quality, low risk, steady earnings, and competitive dividends are a testament to Allegent’s continued success.
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!
Sincerely,
Robert Elias, 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 federally 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 in accordance with generally accepted accounting principles or performing procedures in accordance with the NCUA’s Supervisory Committee Guide.
For the fiscal year ended December 31, 2019, the Supervisory Committee directed the Credit Union’s internal auditor Kimberly R. Golla, CPA to perform procedures in accordance with the NCUA’s Supervisory Committee Guide. In addition to these examinations, periodic supervisory examinations were also performed directly by the NCUA. For the upcoming fiscal year-ending December 31, 2020, the Supervisory Committee has elected to have the Credit Union’s internal auditor again perform procedures in accordance with the NCUA’s Supervisory Committee Guide.
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.
SUPERVISORY COMMITTEE
Edward Peduzzi, Chairperson; George Buck; Kathleen Eisenbart; Robert Tate
Minutes of the 2019 Meeting
Chairman Mike Eddy called the meeting to order at 11:00am. There was a quorum of 32 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.
Terry O’Connor, head of the nominating committee presented the Board members up for re-election. Board members Mike Eddy, William Wells and John Ulaky were re-elected to 3-yr terms by acclamation.
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.
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 Board then congratulated Diane Petrucci, VP of Operations, on her 30 years of service and upcoming retirement.
The meeting was then adjourned at 11:30am.
Minutes submitted by Board Secretary Edward Peduzzi
Treasurer’s Report
| Number of Members | 14,980 |
| Loans made YTD (number) | 1,405 |
| Net Worth Ratio | 13.19% |
| Net Interest Margin | 2.63% |
| ROA YTD | 0.16% |
Statement of Financial Condition
As of: December 2019
| Assets: | |
|---|---|
| Total Loans | $ 104,459,493.64 |
| Less: Allow for Loan Loss | (219,339.73) |
| Net Loans: | $ 104,240,093.91 |
| Cash | 3,215,838.87 |
|
Investments: Available to Sale* |
|
| Federal Securities/Agencies | 8,424,947.00 |
| Federal Securities/MBS | 12,946,328.39 |
| U.S. Treasuries | – |
| Held to Maturity | 9,487,913.94 |
| Other Investments | – |
| Total Investments: | $ 30,859,189.33 |
| Accrued Income | 299,288.52 |
| Prepaid & Deferred Exp | 117,624.32 |
| NCUSIF Deposit | 1,295,787.24 |
| Land & Building (net) | 114,029.30 |
| Furniture & Equipment | 790,447.35 |
| Other Assets | 658,286.52 |
| $ 141,590,585.36 | |
| Total Assets | $ 141,590,585.36 |
| Liabilities & Equity: | |
| Accounts Payable | $ 19,614.25 |
| Dividends Payable | 17,320.89 |
| Taxes Payable | 1,355.71 |
| Other Liabilities | 139,539.41 |
| Total Liabilities | $ 177,830.26 |
| Shares | $ 122,753,538.27 |
| Regular Reserves | 2,643,455.36 |
| Undivided Earnings | 15,182,086.32 |
| Other Equity Acquired – Merger | 596,824.36 |
| Net Income (Loss) | 250,077.97 |
| Accumulated Unrealized Gain/Loss | (13,227.18) |
| Total Equity | $ 141,412,755.10 |
| Total Liabilities & Equity | $ 141,590,585.36 |
Statement of Financial Income
Period Ending: December 2019
| Operating Income: | |
|---|---|
| Interest on Loans | $ 3,830,513.74 |
| Inc. from Lns. of Liq Cr. Unions | – |
| Total | $ 3,830,513.74 |
| Income from Investments | 883,644.45 |
| Fees and Charges | 492,815.41 |
| Miscellaneous Operating Income | 111,188.49 |
| Total Operating Income | $ 5,318,162.09 |
| Operating Expenses: | |
| Compensation | 1,512,297.08 |
| Employee Benefits | 197,018.66 |
| Travel and Conference | 11,827.14 |
| Association Dues | 22,470.97 |
| Office Occupancy Expenses | 296,659.10 |
| Office Operations Expenses | 854,732.44 |
| Education & Promotional Exp. | 122,580.76 |
| Loan Servicing Expenses | 136,496.16 |
| Professional & Outside Services | 530,917.90 |
| Provision for Loan Losses | 198,175.00 |
| Members Insurance | – |
| Fed’l Supv./Exam Expenses | 40,500.00 |
| Cash Over & Short | 20,753.90 |
| Interest on Borrowed Money | – |
| Annual Meeting Expense | – |
| Misc. Operating Expenses | 37,724.98 |
| Share Draft Expense | – |
| Total Operating Expenses | $ 3,982,154.09 |
| Non-Operating Income/Expense | 83,196.41 |
| Gain (Loss) on Investments | – |
| Gain (Loss) on Disp. of Assets | 90.83 |
| Total Non-Operating Gains/Loss | $ 83,287.24 |
| Income (Loss) Before Dividends | $ 1,419,295.24 |
| Dividends | $ 1,169,217.27 |
| Net Income (Loss)** | $ 250,077.97 |
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