A J O U R N E Y T O W A R D S E X C E L L E N C E
A N N U A L R E P O R T
Helping YOU live your best financial life
2019
PEFCU’s Commitment ........................................................................1
About Us ..............................................................................................2
Senior Leadership Team....................................................................3
President’s Message ..........................................................................4
Board of Directors ..............................................................................5
Chairman’s Message ..........................................................................6
Committee Reports ...........................................................................7
Financial Condition .........................................................................8-9
Income & Expenses ..........................................................................10
Mapping Our Journey ..................................................................... 11
2019 Fact Sheet ................................................................................12
Giving Back .......................................................................................13
C O N T E N T S
Headquartered in Lakeland, Fla., Publix Employees Federal
Credit Union (PEFCU) is a member-owned co-operative that
was founded in 1957 to meet the financial needs of Publix
Super Markets, Inc. associates and their family members.
PEFCU, with over $1 billion in assets, is ranked in the top five
percent of credit unions nation-wide. PEFCU maintains a
five-star rating by Bauer Financial and boasts an “A+” in
financial health. PEFCU remains committed to improving the
financial lives of its members and continues to expand its
membership throughout the southeastern U.S.
ABOUT US
PEFCU was envisioned by Publix Founder George Jenkins, John
Turner, and other leaders of Publix Super Markets. Mr. George was
known for his generosity, and he often helped Publix associates
in times of financial need. More than 60 years ago, someone
suggested to Mr. George a means by which all employees could
be helped on a broader scale—establishment of a credit union.
He and the other leaders believed that Publix’s hardworking
associates deserved access to better loans and savings options,
and the “people helping people” principle of a credit union fit
perfectly with Publix’s philosophy of supporting each other. They
applied for a credit union charter, and the plan was put into
motion.
Publix Employees Federal Credit Union (PEFCU) wasn’t built
with brick and mortar. PEFCU was built with people, by
people, and for people. We owe our success to the people
who share our trust, commitment, and values. Membership
is essential to the design of our not-for-profit co-operative,
and the members keep the credit union strong.
Our commitment to our members for 2020 is to give them
a sense of ownership. We listen to their feedback and value
their ideas. We will help them save money with lower loan
rates, earn money with higher dividends, and access their
money with improved technology.
We will continue our journey toward excellence.
George W. Jenkins
John A. Turner
Delivering the best value for lifelong relationships one member at a time
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Senior Leadership Team
Executive Vice Presidents
Senior Vice Presidents
Vice Presidents
Robert BreglerPresident/CEO
Cheryl BrownSVP, Chief People and
Organizational Excellence Officer
Kaylan BrughVP, Controller
Jim DoughertyVP, Branch Operations
Derrick PerryVP, Information Technology
Nicholas PhillipsVP, People Development
Kim WilliamsVP, Card and Digital Services
Ted HassenfeltSVP, Chief Information Officer
Erika HerndenSVP, Chief Experience Officer
Scott McKimSVP, Chief Lending Officer
Shannon PattenSVP, Chief Marketing Officer
Karen BoccaleriEVP,Chief Operating Officer
3
Arthur Ashe, a pioneer for many in the sport of tennis, once said, “Success is a journey, not a
destination. The doing is often more important than the outcome.” In 2019, Publix Employees
Federal Credit Union (PEFCU) had many outcomes to be proud of. We grew in assets, shares,
loans, investments, and reserves. As we had forecasted in 2018, we surpassed $1 billion in
assets in the first half of 2019. Only five percent of credit unions in the United States have
achieved that milestone! We are clearly thriving when compared to our peers.
These accomplishments are worthy of celebration. We were able to meet these milestones
because our members chose to trust us with their financial lives. PEFCU’s success is our members’
success. What I take from Mr. Ashe’s quote is that the celebration of last year’s accomplishments is not where we stop.
“Best” comes after “better” on our journey. How PEFCU lives out our brand is summed up in our new tagline: “Helping
You Live Your Best Financial Life.” We realize that the best outcomes in life require the best people. Last year, we
restructured our leadership team. This group of visionaries include some of the best talent in the industry. They will
accelerate the Credit Union into uncharted territories so that we can serve our members the best way possible. With
their commitment, we will provide you with the best financial tools, the best digital and in-person experiences, and the
best products in 2020.
The Credit Union was founded in hopes that the best financial options would help our members make the best financial
decisions. The journey toward the best requires us all to evolve. Our mission is to do our part in ensuring that you have
the best choices.
As a large, single sponsor non-profit cooperative, PEFCU primarily serves current and former Publix Super Markets
employees and their immediate family members. Just as Publix employees own Publix Super Markets, PEFCU members
own the Credit Union. That’s why it makes sense, as an owner, to do business with PEFCU. PEFCU features great loan
interest rates, very competitive share dividend rates, and lower and fewer fees than most of our competitors.
Thank you for your continued support. We look forward to delighting you in 2020 as we journey toward excellence
together.
Robert Bregler
Robert BreglerPresident/CEO
President’s Message
4
Board of Directors
Kindle BowdenSecretary
Linda HallVice-Chairman
Terry BrigmanChairman
Merriann MetzDirector
Jeff ChamberlainDirector
Jeff StephensDirector
Adrian BennettDirector
5
Chairman’s Message
“If we are always arriving and departing, it is also true that we are eternally
anchored. One’s destination is never a place but rather a new way of looking at things.” -Henry Miller
Every wise adventurer is grateful for a good anchor. The anchor will give
the explorer confidence to go as far as possible, knowing that there is a solid
foundation to return to. After reviewing the portfolio for 2019, it is clear that Publix Employees Federal Credit Union (PEFCU) has explored wisely. The creativity and improvements to the credit union have been beneficial, and the management of the numbers have kept us on a solid foundation.
As Chairman, I am proud to report that your PEFCU remains strong and secure to meet all your financial needs. PEFCU is also becoming more innovative to ensure new products and services are provided on a timely basis to meet your changing needs this year and in the future. We are here to serve you.
PEFCU continued to grow in 2019. As evidenced by the charts and financial reports contained in this Annual Report, PEFCU surpassed $1 billion in assets in 2019 for the first time ever. Our success is due to your continued loyalty and unwavering support. For this we are truly grateful.
PEFCU remained financially sound in 2019. The public accounting firm of Doeren Mayhew, CPAs and Advisors audited your Credit Union and rendered a clean opinion on its financial statements. Examiners from NCUA, our regulators, agreed that PEFCU remained financially sound. In addition, Bauer Financial gave PEFCU a “five-star” rating (their highest rating) once again.
PEFCU remained secure in 2019. Our annual information security review, conducted by Computer Services Inc., confirmed the Credit Union has continued to maintain a strong and dedicated effort of protecting member assets and non-public personal information.
PEFCU remained competitive in 2019. Fees and charges to members remained at a minimum. PEFCU does not charge fees for many products and services that other banks and credit unions charge for, and when fees are necessary, they are usually lower than those charged by our competitors.
PEFCU remained a single sponsor Credit Union in 2019. As a single sponsor Credit Union, membership is primarily limited to current and former employees of Publix Super Markets and their immediate family members. This common bond allows
us to focus on the specific needs of the Publix family. PEFCU was founded in 1957 as another exclusive benefit for the Publix family and it remains so today.
PEFCU remained innovative in 2019. The Senior Leadership Team was established; new positions were created, and we recruited new talent who brought fresh ideas. We upgraded our Guaranteed Asset Protection (GAP) insurance by adding Auto Deductible Reimbursement. We enhanced our member experience by automating Travel Notification for debit and credit cards and implemented member self-enrollment in mobile banking. We’ve expanded our digital and social presence and updated and streamlined numerous marketing materials. We have continued to invest in our employees through ongoing training, enhanced benefit offerings, and creating performance accountabilities that align with our vision and mission to provide stellar value and service to our members. We are committed to continually improving your credit union, and you can expect many more improvements in 2020 and beyond.
PEFCU continued to give back to our communities. Giving back to the communities we serve remained a priority for PEFCU employees. Throughout the year, we partnered with several non-profit agencies to provide support when and where they needed it most. We encouraged our employees to volunteer in the community and provided year-round opportunities for them to give back. PEFCU has given back to the community through ongoing volunteer service projects. Over 1/3 of our employees have volunteered nearly 250 hours of their time to support the communities where we serve.
Board of DirectorsTerry Brigman, Linda Hall, and Jeff Chamberlain were re-elected to the Board in 2019 for additional three-year terms. The Nominating Committee has nominated current Board members Adrian Bennett and Kindle Bowden for re-election to the Board in 2020 for additional three-year terms. Both agreed to serve if elected.
In closing, I would like to thank my fellow Board members for their leadership and dedication, the members of the Supervisory and Credit Committees for their dedication, the management and staff of the Credit Union for their hard work, and you our members, for your continued loyalty and support.
Respectfully submitted,
Terry Brigman Board Chairman
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The Supervisory Committee is appointed by the Board of Directors and is responsible for the annual financial audit. To assist the Supervisory Committee, the Credit Union has selected the accounting firm of Doeren Mayhew CPAs and Advisors. The primary focus of the annual audit is to determine the completeness of financial statements and the ownership of assets and liabilities.
The findings indicate that the 2019 financial statements accurately represent the results of operations and the financial condition of the Credit Union. Federal examiners representing the National Credit Union Administration (NCUA) also conducted their required annual examination and found the general condition of the Credit Union to be financially sound.
Respectfully submitted,
Meghan Vazquez Meghan Vazquez Chair, Supervisory Committee
Supervisory Committee Report
Credit Committee Report
The Credit Committee is appointed by the Board of Directors and has final decision-making authority on all loan applications. Our lending underwriters have authority to review and decide on loan application requests and will review many scenarios for approving loan requests.
In 2019, our lending teams approved 8,894 loan applications totaling more than $165.6 million. This included Mortgage Loans, Automobile Loans, Credit Cards, Unsecured Loans, and Loans secured with Publix Super Markets, Inc. Shares of Stock.
Respectfully submitted,
Scott McKimScott McKimCommittee Chairperson and Chief Lending Officer
Committee Members Lisa Merchant Cindy White
Committee MembersKaren BoccaleriLynn KensingerJamie WallsJayne CouchDebbie Ruis, Recording Secretary
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Financial Condition
0
200
400
600
800
1000
1200
2015 2016 2017 2018 2019
ASSETS SHARES NET LOANS NET INVESTMENTS NET RESERVES
HISTORICAL GROWTH ANALYSIS(IN MILLIONS)
SHARE ACCOUNT ANALYSISDECEMBER 31,2019
SHARE 45%
BASE IRA 5%
IRA CERTIFICATE 6%
CERTIFICATE 14%
P.D.M.A. 15%
SHARE DRAFT 15%
SHARE45%
SHARE DRAFT15%
P.D.M.A.15%
CERTIFICATE14%
IRA CERTIFICATE6%
BASE IRA5%
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Financial Condition
0
200
400
600
800
1000
1200
2015 2016 2017 2018 2019
SHARES DRAFTS PDMA CERTIFICATES IRA CLUBS
SHARE ACCOUNT GROWTH(IN MILLIONS)
LOAN ACCOUNT ANALYSISDECEMBER 31,2019
AUTO35%
SIGNATURE6%
OTHER5%
MORTGAGE22%
PUBLIX STOCK24%
VISA8%
PUBLIX STOCK 24%
VISA 8%
AUTO 35%
SIGNATURE 6%
OTHER 5%
MORTGAGE 22%
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Income & Expenses
STATEMENT OF FINANCIAL CONDITIONAS OF DECEMBER 31, 2019
RESULTS OF OPERATIONSAS OF DECEMBER 31, 2019
DISTRIBUTION OF NET OPERATING INCOMEAS OF DECEMBER 31, 2019
2019 2018 INC. (DEC.)
2019 2018 INC. (DEC.)
2019 2018 INC. (DEC.)
ASSETS:
TOTAL ALL INCOME
NET OPERATING INCOME: $18,377,775 $16,434,171 $1,943,604
TOTAL DISTRIBUTION: $18,377,775 $16,434,171 $1,943,604
TOTAL ASSETS $1,047,172,592 $968,965,584 $78,207,008
LIABILITIES:
TOTAL LIABILITIES $8,548,882 $8,958,878 ($409,996)
TOTAL MEMBER EQUITYTOT. LIABILITIES & CAP.
$1,038,623,710$1,047,172,592
$960,006,706$968,965,584
$78,617,004$78,207,008
TO: DIVIDENDSTO: CAPITAL
$6,673,602$11,704,173
$5,651,465$10,782,706
$1,022,137$921,467
TOTAL EXPENSES $32,839,056 $30,021,536 $2,817,520 NET OPERATING INCOME: $18,377,775 $16,434,171 $1,943,604
LOAN LOSS PROVISION $1,580,200 $965,122 $615,078
MEMBER EQUITY:MEMBER SHARESCAPITAL
$892,699,828$145,923,882
$833,669,488$126,337,218
$59,030,340$19,586,664
LOANS(NET)CASHINVESTMENTS(NET)FIXED ASSETS(NET)OTHER ASSETS
$432,542,218$10,807,732$570,143,172$4,709,837$28,969,633
$414,740,146$7,751,590$527,189,290$6,792,318$12,492,240
$17,802,072$3,056,142$42,953,882($2,082,481)$16,477,393
INTEREST ON LOANS/VISAINVESTMENT INCOMEOTHER INCOME GAIN(LOSS) ON INVESTMENTSON ASSETSGROSS INCOME
$22,254,743$12,687,308$15,206,298$2,685,025($36,343)$52,797,031
$21,939,456$10,293,439$15,146,473$0$41,461$47,420,829
$315,287$2,393,869$59,825$2,685,025($77,804)$5,376,202
OPERATING EXPENSES:ADMINISTRATIVEMARKETING & EDUCATIONOFFICE OPERATIONSOFFICE OCCUPANCYLOAN SERVICINGPROFESSIONAL SERVICESEXAMINATION EXPENSESDATA PROCESSINGMISCELLANEOUS EXPENSES
$17,517,991$702,938
$2,576,551$1,289,373$2,397,523$1,658,561$261,102$5,509,644$925,373
$15,443,993 $610,404
$2,615,649$1,333,933$2,388,477$1,456,315$249,421$5,255,499$667,845
$2,073,998$92,534
($39,098)($44,560)$9,046$202,246$11,681$254,145$257,528
ACCOUNTS PAYABLEOTHER LIABILITIES
$2,129,812$6,419,070
$1,764,123$7,194,755
$365,689($775,685)
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Mapping Our Journey
We are proactive in providing stellar financial services throughout all
phases of our member’s life.
Vision
Delivering the best value for lifelong relationships one
member at a time.
Mission
Leadership
Culture
Agility
Execution
Pillars
Sponsor RelationshipEmployee ExperienceMember Experience
Core Competencies
Values
Caring: We enhance the employee and
member experience
Inclusive: We foster an environment where
everyone feels valued and respected
Transparent: We create trustworthy relationships with our
employees and members
Accountable: We are committed and are responsible
for a standard of excellence for our employees and members
Innovative: We consistently challenge the status quo
to provide a stellar employee and member experience
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Annual Report 2019 Fact Sheet
100,000+TOTALmember count
BILLIONin assets May 2019
$1of PEFCU employees VOLUNTEERED in the community
1/3
Year of Service to
PEFCUM e m b e r s
62nd
Member Satistfaction S C O R E75
return onASSETS1.16%
LARGESTCredit Union i n F l o r i d a
18th
in NetWORTH13.92%A C T I V E
mobile banking app users53THOUSAND
n e a r l y
MILLIONloans booked$165
O V E R
volunteer hours of COMMUNITY S U P P O R T
250approximately
L O A Napplications reviewed
23THOUSAND
approximately
28SECONDS
to answer MEMBER CALLS in the Contact Center
avg. of
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Giving Back
Pembroke Pines - Local Food Bank
Lakeland - Wacky Tacky Pink Day
Altamonte Springs - Wacky Tacky Pink Day
Altamonte Springs - School Supplies for Seminole County
Royal Palm Beach - March of Dimes
Jacksonville Helping Hands
Norcross - Local Food Bank
Lakeland - Carol Jenkins Women & Children Center
Sarasota - Easter Baskets
Royal Palm Beach - American Red Cross Making Strides Against Breast Cancer
Sarasota - All Faiths Food Bank
Jacksonville - Feeding the Homeless
Pembroke Pines - March of Dimes
PEFCU enthusiastically supported our community in 2019. We initiated in-branch events, local sponsorships, and other philanthropic commitments to help make our community a better place. Thank you to our partners and volunteers who
were involved in these inspirational efforts.
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Helping YOU live your best financial life
Visit us at www.pefcu.com