FIBRE FEDERAL CREDIT UNION 2016 Annual Report
1 #1 Best Bank or Credit Union 2016 Tenth year in a row -Longview Daily News Best of Readers Poll #1 Best Bank/Best Credit Union 2016 -YOU Magazine s Best of the Best Businesses on the Central Oregon Coast #1 Best Place to Work 2016 Third year in a row -Longview Daily News Best of Readers Poll Top 200 Healthiest Credit Unions 2016 Third year in a row -DepositAccounts Next Top Credit Union Executive 2016 Shannon Cahoon, Community Outreach Coordinator -Credit Union Executive Society
CEO & BOARD OF DIRECTORS REPORT For 80 years, Fibre Federal Credit Union has been making a difference in our members lives. Last year was no exception. Because we re a not-for-profit, member owned financial cooperative, we save our members money in the form of better rates and fewer fees. In fact, the credit unions of Washington and Oregon saved their members an average of $96 in 2016. It s no wonder credit unions now serve nearly half the residents of Washington and Oregon. But our commitment to improving the communities we serve goes beyond providing financial services. Fibre Federal invested $130,000 in sponsorships and community contributions in 2016. Over the past 5 years, we ve raised $239,000 for Doernbecher Children s Hospital. Our staff volunteered over 1,700 hours in their communities last year, serving numerous non-profits. One example is Snacks for Kids. Staff members volunteered nearly 100 hours last year at St. Helens Elementary School in Longview, delivering healthful snacks to the classrooms each Friday afternoon. Snacks for Kids is funded entirely by staff members, who raised $6,000 for snacks in 2016 alone. Because of our incredible staff, we were voted #1 Best Place to Work for the third year in a row by The Daily News Best of readers poll. We provide very competitive wages and benefits to our 277 staff members, who in turn support their communities with their spending power and volunteer efforts. Fibre Federal also saw remarkable growth in 2016. Loans increased 6% from $590,108,196 to $626,281,823. We ended the year with 12.59% in net worth; well above the 7% that the NCUA considers well capitalized. We gained 2,353 new members, for a total of 89,643. Assets increased 6% to $989,276,869, setting us on a path to break the one billion dollar mark this year. For the third year in a row, we were named one of the Top 200 Healthiest Credit Unions.
We were busy with several service improvements in 2017. In the spring, Fibre Federal joined TLC in the CO-OP Shared Branch Network. Now all of our members can access over 5,400 credit union branches nationwide. In the fall, we began to replace existing ATM cards, Debit Cards, and Credit Cards with chip technology, thus reducing our members exposure to card fraud. In November, we successfully completed a system upgrade which brought our 13,000 TLC members on the Oregon coast onto Fibre Federal s operating system. As a result, members now have full access to 14 branches in 7 counties in the Lower Columbia region and the Oregon Coast. On December 30, we bid a fond farewell to our CEO for the past 15 years, Larry Hoff. Larry received the Lifetime Achievement Award from the Northwest Credit Union Association in October in recognition of his work to promote the credit union movement and charitable organizations. We will all miss Larry s quick wit and soft heart, and we wish him all the best in his retirement. In 2017, we re forging ahead with a number of new initiatives, including a remodel of our Ocean Beach branch and a roll out of instant issue credit and debit cards. We re researching Online Banking providers with the goal of finding one platform that provides enhanced and innovative online access to both TLC and Fibre Federal members by the end of 2018. We ve also partnered with Lower Columbia College to offer Matched Education Savings Accounts for lowincome students. There s never been a better time to be a part of the Fibre Family! -Christopher Bradberry, CEO Terry Alsteen, Chairman of the Board
2016 BY THE NUMBERS: Positively impacting the communities we serve 1,725 staff volunteer hours, serving 31 staff volunteer hours, serving non-profits 10 adult presentations/ reality fairs
57 759 classroom events, reaching $130,017 in sponsorships and in sponsorships and community contributions students 60.75 hours served by Rose hours served by Rose Harrell of Tillamook, our top volunteer
STATEMENT OF FINANCIAL CONDITION Dec. 31, 2015 Dec. 31, 2016 Gross Loans $ 590,108,196 $ 626,281,823 Allowance for Loan Loss (4,269,553) (4,085,894) Loan Discount (4,126,519) (1,450,560) Net Loans 581,712,125 621,554,244 Cash & Equivalents 40,653,211 49,370,755 Investments 227,021,428 233,340,555 Cash and Investments 267,674,639 282,711,310 Foreclosures & Repossessions 675,186 719,949 Fixed Assets 38,984,981 38,538,024 Other Assets 45,650,603 45,753,344 Total Assets $934,697,534 $989,276,869 Total Liabilities 10,767,2395 11,760,797 Regular Shares 319,554,684 353,382,212 Checking Shares 197,453,630 220,427,559 Money Market Shares 116,585,289 121,757,126 Certificate Shares 171,512,137 159,359,537 Shares 805,105,740 854,926,435 Undivided Earnings 120,473,472 124,566,601 Other Comprehensive Income (1,648,917) (1,976,963) Equity 118,824,555 122,589,638 Total Liabilities & Equity $934,697,534 $989,276,869
STATEMENT OF INCOME & EXPENSE 2015 2016 Total Interest Income 26,743,764 29,859,275 Total Interest Expense 2,598,360 2,483,679 Net Interest Income 24,145,404 27,375,595 Fee Income 3,244,485 4,759,296 Other Income 2,831,009 3,278,165 Credit Card Program 1,277,881 1,367,466 Debit Card Program 3,792,824 4,391,085 Loan Origination Income 645,620 869,907 Non Operating Gain/Loss 263,548 338,465 Non Interest Income 12,055,365 15,004,385 Compensation & Benefits 19,477,964 22,242,617 Travel & Conference 400,814 389,427 Office Occupancy 1,885,173 2,063,753 Office Operations 3,737,384 4,060,227 Education & Promotion 502,741 656,742 Loan Servicing 1,729,448 1,851,323 Professional Services 1,522,972 2,254,139 Member Insurance 0 0 Operating Fee 156,575 175,175 Misc Operating 1,776,912 2,627,612 Non Interest Expense 31,189,983 36,321,015 Provisions for Loan Losses 1,368,078 2,143,212 Net Income $3,642,707 $4,093,127
SUPERVISORY COMMITTEE REPORT Your Supervisory Committee was comprised of three volunteers in 2016: Kelli Harding, Jeff Skeie, and me. Associate Committee members Julie Palmer and Gloria Rigney also assisted. We have the responsibility to oversee and verify that the Credit Union has and maintains an internal control framework that provides reasonable assurance to the reliability and integrity of the financial statements and compliance with laws and regulations. We fulfill this responsibility primarily in two ways. We meet regularly with our Internal Auditor, Luci Sherard, who assists us in verifying compliance with our internal control framework. We also engage an external audit firm, Moss-Adams, LLP to audit the financial statements and the operational controls surrounding those financial statements in accordance with generally accepted auditing principles. Committee members attend regular monthly Supervisory Committee meetings, as well as monthly meetings of the Board of Directors. At these meetings we review the work of the Internal Auditor, management, and the external auditor to ensure that the Committee s responsibilities are properly discharged. Based on our audits and the reports of other experts, the Committee is satisfied that the records of Fibre Federal are accurately maintained and the Credit Union is in compliance with applicable laws and regulations. We thank the Credit Union management and staff for their diligent work that ensures such a well run organization. Jerry Howell, Supervisory Committee Chair
LOANS ASSETS $600 mil $900 mil $500 mil $400 mil $800 mil $300 mil 2012 2013 2014 2015 2016 $700 mil 2012 2013 2014 2015 2016 MEMBERS 80,000 70,000 60,000 2012 2013 2014 2015 2016
2016 BY THE NUMBERS: Credit Unions in Washington & Oregon Source: 2016 Northwest Credit Unions Economic Impacts Report $96 Average amount Average amount saved per member saved per member $7.7 BILLION Total economic impact
$528 MILLION Direct benefit provided to members 5.5 MILLION Credit unions members (nearly 50%)
BOARD OF DIRECTORS SUPERVISORY COMMITTEE Terry Alsteen, Chair John Barker, 1st Vice Chair Greg Berg, 2nd Vice Chair Jack Courtney, Secretary Gloria Rigney Jan Dennis Steve Mealy Norm Beckers Alden Bebe Jerry Howell, Chairman Kelli Harding, Secretary Jeff Skeie, Associate Julie Palmer, Associate Gloria Rigney, Associate
A DIVISION OF CREDIT UNION P.O. Box 1234 822 Commerce Avenue Longview, WA 98632 360.423.8750 800.205.7872 www.fibrecu.com Federally Insured by NCUA The complete audited financial statements are available at the main office of the credit union.