87th Annual Report
Allegent Community FCU 87th Annual Meeting and Report — October 15, 2021
Chairman’s Report
2021 was another year of strong financial and membership growth for your credit union. Through our competitive loan and deposit product offerings, the credit union was able to strengthen its already solid earnings and equity capital.
Your Board and Management team remains committed to our valued members, with the expectation that 2022 will be another year of significant financial achievement for the credit union.
The Board has made a concerted effort through our strategic initiatives to invest in state-of-the-art technology, infrastructure improvements and branch office renovations to ensure that every interaction with the credit union is a positive and rewarding experience.
Our goal is to enhance the member experience by providing financial services that are dedicated to your financial well-being while sharing in the credit union’s success.
As we look forward to 2023, your Board and Management team continues to seek opportunities to earn your trust. We are truly grateful for your loyalty.
We also remain committed to the communities we serve and promise to adhere to our core values of member appreciation, diversity, integrity, and innovation.
Thank you for your continued support!
Sincerely,
William F. Wells, Chairman
Treasurer’s Report
As of December 31, 2021, the Credit Union Total Assets are $265.0 million, which represents a 74.8% increase in comparison to year-end 2020, due to the merger of Allegent Community Federal Credit Union with Riverset Credit Union as of January 31, 2021.
The merger also resulted in an increase in Total Loans of 45.7%, for a portfolio balance of $144.6 million as of December 31, 2021, while Total Shares increased by 67.2% to a year-end total of $221.5 million as of December 31, 2021.
Total Loan Interest Income was $6.2 million for the year end December 31, 2021, an increase of 66.8% when compared to 2020, while overall Operating Income totaled $9.2 million, an increase of 102.3% when compared to the year ended December 31, 2020.
Our Total Dividend payout for the year ended December 31, 2021 was approximately $358,000, which was 47.4% lower than in 2020, due to the continued historically low-interest rate environment, in response to the COVID-19 pandemic.
Non-interest Expenses increased 93.0% in 2021 when compared to 2020, to a total of $7.6 million, due to the merger and several one-time expenses associated with the acquisition. Our Provision for Loan Losses Expense was increased to approximately $193,000, an increase of 98.2% when compared to 2020, due to the increased loan portfolio subsequent to the merger.
Although 2021 was a very challenging year for earnings across the entire spectrum of the financial services industry, the Credit Union was able to post Net Income of $1.5 million for the year ended December 31, 2021, while maintaining a strong Capital Ratio of 16.30%. The NCUA categorizes the credit union as “Well Capitalized”.
As a result of the merger, our membership increased to 21,511 members as of December 31, 2021, which was an increase of almost 50% when compared to December 31, 2020.
The success of the merger, as well as the increased membership base, our strong asset quality, and solid earnings are all a testament to Allegent’s continued success.
At Allegent Community Federal Credit Union, we will always adhere to the credit union mission and remain committed to serving you, our loyal members.
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 Allegent’s asset size to fulfill their annual audit responsibility via a choice of various alternatives. These alternatives include obtaining an independent audit in accordance with generally accepted accounting principles (GAAP) or performing procedures in accordance with the NCUA’s Supervisory Committee Guide.
For the fiscal year ended December 31, 2021, the Supervisory Committee engaged S.R. Snodgrass, P.C. to perform an opinion audit in accordance with generally accepted accounting principles (GAAP). The credit union also employs an Internal Auditor, Kimberly R. Golla, CPA to schedule and complete a comprehensive series of audits of internal controls throughout the fiscal year.
For fiscal year end December 31, 2021, the Supervisory Committee has chosen to direct and supervise the audit function in the same manner as year-end 2020.
The credit union, which is federally chartered, is also subject to periodic examinations by the National Credit Union Administration (NCUA).
Based on the results of the credit union’s internal audit reports, the GAAP opinion audit report from S.R. Snodgrass, P.C. and the NCUA Examination Report, it is the opinion of the Supervisory Committee that Allegent Community Federal Credit Union continues to be financially strong with adequate internal controls and an effective compliance program.
SUPERVISORY COMMITTEE
Edward Peduzzi, Chairperson; George Buck; Jeremy Wells
Minutes of the 2021 Meeting
Chairman William Wells called the meeting to order at 10:00am. There was a quorum of 18 members that attended virtually via telephone conference call. A motion was passed to dispense with the reading of last year’s minutes. Chairman Wells then addressed the meeting with general comments reflecting the Credit Union’s strength and growth in total assets, shares and loans. Board member Terrance O’Connor presented the Board members up for re-election. Board members Palma Warner, George Gensure and Gerard Papariella were re-elected to 3-yr terms by acclamation.
The Chairman’s Report was read by Chairman William Wells, who discussed the Credit Union’s positive financial achievements, growth and technology enhancements.
The Treasurer’s report was read by Robert Elias, 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 Wells then opened the floor for questions and comments. There were no questions or comments.
The meeting was then adjourned at 10:15am.
Minutes submitted by Board Secretary, Edward Peduzzi
Treasurer’s Report
| Number of Members | 21,511 |
| Loans made YTD (number) | 1,348 |
| Net Worth Ratio | 16.30% |
| Net Interest Margin | 2.44% |
| ROA YTD | 0.58% |
Statement of Financial Condition
As of: December 2021
| Assets: | |
|---|---|
| Total Loans | $ 144,633,184 |
| Less: Allow for Loan Loss | (193,318) |
| Net Loans: | $ 144,439,866 |
| Cash | 89,670,496 |
|
Investments: Available for Sale |
|
| Debt Securities | 20,611,850 |
|
Held to Maturity |
|
| Debt Securities | – |
| Other Investments | 1,762,500 |
| Total Investments: | $ 22,374,350 |
| Accrued Income | 286,042 |
| Prepaid & Deferred Exp | 190,471 |
| NCUSIF Deposit | 2,320,360 |
| Land & Building (net) | 1,612,784 |
| Furniture & Equipment | 904,341 |
| Other Assets | 3,251,022 |
| $ 141,590,585.36 | |
| Total Assets | $ 265,049,732 |
| Liabilities & Equity: | |
| Accounts Payable | $ 7,824 |
| Dividends Payable | 1,421 |
| Taxes Payable | 5,753 |
| Other Liabilities | 275,624 |
| Total Liabilities | $ 290,622 |
| Shares | $ 221,546,093 |
| Regular Reserves | 2,643,455 |
| Undivided Earnings | 15,550,256 |
| Other Equity Acquired – Merger | 23,551,128 |
| Net Income (Loss) | 1,483,114 |
| Accumulated Unrealized Gain/Loss | (14,936) |
| Total Equity | $ 264,759,110 |
| Total Liabilities & Equity | $ 265,049,732 |
Statement of Financial Income
Period Ending: December 2021
| Operating Income: | |
|---|---|
| Interest on Loans | $ 6,154,179 |
| Inc. from Lns. of Liq Cr. Unions | – |
| Total | $ 6,154,179 |
| Income from Investments | 375,607 |
| Fees and Charges | 796,875 |
| Miscellaneous Operating Income | 1,917,273 |
| Total Operating Income | $ 9,243,934 |
| Operating Expenses: | |
| Compensation | 2,044,284 |
| Employee Benefits | 513,005 |
| Travel and Conference | 19,095 |
| Association Dues | 20,926 |
| Office Occupancy Expenses | 452,318 |
| Office Operations Expenses | 1,661,172 |
| Education & Promotional Exp. | 96,394 |
| Loan Servicing Expenses | 200,163 |
| Professional & Outside Services | 1,740,962 |
| Provision for Loan Losses | 192,644 |
| Members Insurance | – |
| Fed’l Supv./Exam Expenses | 31,824 |
| Cash Over & Short | (304) |
| Interest on Borrowed Money | – |
| Annual Meeting Expense | – |
| Misc. Operating Expenses | 598,978 |
| Share Draft Expense | – |
| Total Operating Expenses | $ 7,571,461 |
| Non-Operating Income/Expense | 84,039 |
| Gain (Loss) on Investments | – |
| Gain (Loss) on Disp. of Assets | 84,911 |
| Total Non-Operating Gains/Loss | $ 168,950 |
| Income (Loss) Before Dividends | $ 1,841,423 |
| Dividends | $ 358,309 |
| Net Income (Loss) | $ 1,483,114 |
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