penn state federal annual report · 2020. 12. 1. · penn state and community visibility continued...
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PENN STATE FEDERAL
Annual ReportAnnual ReportDear Members,
We are very excited to be celebrating 61 years of success! It is with great pleasure that we present to you the Penn State Federal Credit Union 2019 Annual Report. In 1959, a group of faculty from the College of Agriculture started Penn State Federal Credit Union as a very small financial cooperative totally run by volunteers. Penn State Federal has evolved to a full service $191 million-dollar financial institution with three locations and 49 employees. Today, as yesterday, our mission and commitment remain the same - members helping members everyday in the ordinary and extraordinary moments of their lives.
FINANCIAL SNAPSHOT Penn State Federal ended the year with $184.7 million in assets, a decrease of $483.1 thousand over 2018. The total deposit growth declined 1.89 % compared to a growth of 2.27 % in 2018; loan growth was down 4.49 % compared to a growth of 11.23 % in 2018. Gross income was $7.8 million and gross operating expense was $ 5.7 million. Gross expense was less than budgeted due to a re-examination of expenses and the prevailing low market interest rates. Dividend expenses for the year were lower than budget. A total of $2.1 million was added to undivided earnings. At year end, the average asset net worth ratio was 10.67 %. The Credit Union remains financially strong with a total asset net worth ratio of 10.33 % and total capital of $19 million.
FINANCIAL EDUCATION 2019 presented opportunities for Penn State Federal representatives to provide financial education to our members. Checking Account Basics were presented to math students at State College Area High School. In addition, a Credit Union employee is a member of the Diversified Occupations Advisory Committee at SCASD. Teen Financial Education Classes were offered online to our Teen Club members. Visits were made to our Company Partners, where a representative was available to provide information about financial products and services. A series of Retirement Planning seminars were offered by our Morgan Stanley Certified Financial Planner.
SOCIAL RESPONSIBILITY Penn State and community visibility continued to be a focus in 2019. Penn State Federal’s trellis at The Penn State Arboretum provides visibility of our support to the University. In addition to THON and the Penn State Federal Trustee Scholarship though PSU, the Credit Union participated in the Grad Fair at the Penn State Bookstore. The Credit Union awarded five scholarships to high school graduating seniors to help reduce the financial burden of pursuing a postsecondary education. The Credit Union also tabled at several of our Select Employer Groups (SEGs). The Credit Union sponsored the Children’s Sidewalk Sale at the Central Pennsylvania Festival of the Arts. Penn State Federal participated in a variety of community events: The Y Feeds Kids Weekend Backpack Food Program through the YMCA of Centre County, the Jared Box Project, the Broadband Project for the Centre County Federation of Public Libraries, Summer Reading Program at Schlow Library, Fourth Fest Firecracker 4K race, State College and Bellefonte Little Leagues, local travel softball teams, First Night, Toys for Tots, the Food Bank, and various other nonprofit events.
FIELD OF MEMBERSHIP Penn State Federal was originally chartered as a credit union for faculty and staff at all of Penn State’s campuses. In the 1990’s students were added to the field of membership. In addition, small employee and association groups (SEGs) have requested and been approved to be added to our field of membership.
CONTINUITY & TRANSITION The Board of Directors and Management Team continued to work well together which created an environment conducive to personal and organizational growth. The Strategic Plan and Business Goals were updated for 2018-2020.
COMMITMENT Penn State Federal’s Board, Management Team and Staff are moving forward to achieve our vision that Penn State Federal Credit Union will be the preferred financial institution for the Penn State Community. Our continued successes are attributed to you, our members, staff and volunteers. We give a very special “thank you” to our membership for your support of Penn State Federal over the years and we look forward to our continued future together.
Penn State Federal, that’s my Credit Union!
Cheryl Barr, CEOBob White, Chairman of the Board 20201919
Board of DirectorsBob White, ChairJane Agnelly, Vice ChairJean Songer, SecretaryTheresa Cummins, TreasurerLynn DuBois, DirectorGail Hurley, DirectorSusan Morse, DirectorJudy Mudgett, DirectorKimlyn Patishnock, Director
Management TManagement TeameamCheryl Barr****, CEOMarnie Derabasse**, Senior Lending Vice PresidentSteve Komir***, ControllerDan Lestz****, CIO/CSOLori McTavish***, Senior Marketing Vice PresidentDonna Trapp***, Senior Human Resources Vice President
SuperSupervisorvisory Committeey Committee To the members of the Penn State Federal Credit Union:
The Penn State Federal Credit Union Supervisory Committee is comprised of members of the Credit Union who voluntarily serve its members in ensuring the Institution is financially and operationally sound. Following the mandate set forth in the Federal Credit Union Act and in compliance with the provisions set forth in the National Credit Union Administration’s (NCUA) rules and regulations, the Supervisory Committee of the Penn State Federal Credit Union engaged Doeren Mayhew, Certified Public Accountants to perform the annual financial statement audit. Doeren Mayhew issued its opinion that the credit union’s financial statements for the year ended December 31, 2019, are presented fairly in all material respects. Importantly, Penn State Federal Credit Union had no weaknesses in its controls over financial reporting. In other words, you can be assured that the Board of Directors, Supervisory Committee and management team are fulfilling their fiduciary responsibilities for sound fiscal stewardship.
In addition to the external audit, Penn State Federal’s Chief Internal Auditor performed regulatorily required audits, evaluated internal controls and performed additional audit testing as deemed necessary. All reviews were noted to be satisfactory.
The National Credit Union Administration, the Credit Union’s federal regulator, conducted an examination during 2019 and had no material findings. Penn State Federal Credit Union was approved in 2019 for an extended exam cycle due to being a well-managed, low risk Federal Credit Union. All Credit Union deposit accounts are insured to $250,000 and IRA accounts are insured to $250,000 by the NCUA.
The Supervisory Committee commends the Board of Directors and staff of the Credit Union for their adherence to established principles of fiscal responsibility. Their dedication and expertise have provided a strong foundation that will enable your Credit Union to have continued growth and financial stability.
In closing, as Chairperson of the Supervisory Committee, I would like to express my gratitude to the Board of Directors of the Credit Union and their Staff for the expedient manner in which they carried out the Governor’s mandates regarding COVID–19 safeguards. While at the same time ensuring that the banking needs of our members are being met during this difficult time in our history.
Respectfully submitted,Roy James Orr Jr.Chairperson, Supervisory Committee4/29/2020
Committee MembersCommittee Members
Ro y James Orr, Jr., ChairJudy MudgettSue SmithRick Tabor, Chief Internal Auditor
Liabilities & Equity 2019 2018Liabilities
Accounts Payable $476,596 $219,458
All Other Liabilities $301,981 $181,840
Total Accounts Payable/Other Liabilities
$778,551 $401,298
Share Savings $86,271,648 $86,527,357
Share Club $205,523 $195,505
Money Market $16,197,109 $16,708,537
Share Draft $50,079,192 $51,396,410
Share IRA $6,919,624 $7,252,367
Term Share Certificates $5,236,478 $6,014,113
Net Shares/CDs $164,909,575 $168,094,289
TOTAL LIABILITIES $165,688,126 $168,495,587
Equity
Regular/Statutory Reserves $1,932,167 $1,932,167
Undivided Earnings $17,156,419 $15,023,708
Other Comprehensive Income
$(70,500) $(262,148)
TOTAL EQUITY $19,018,086 $16,693,727
TOTAL LIABILITIES AND EQUITY
$184,706,212 $185,189,314
Income & Expense 2019 2018Operating Income
Loan Interest Income $4,279,047 $4,129,090
Investments Income $1,787,661 $1,467,863
Other Operation Income $1,735,236 $1,784,978
Gross Income $7,801,944 $7,381,932
Operating Expense
Salaries $2,379,527 $2,254,263
Benefits $762,513 $725,238
Travel & Conference $22,167 $21,963
Association Dues-League $17,901 $15,412
Office Occupancy $478,820 $454,148
Office Operation $790,975 $768,009
Education & Promotion $88,044 $88,016
Loan Expense $176,393 $207,920
Professional/Outside Services
$537,638 $527,055
Provision for Loan Loss $333,924 $197,353
Members Insurance $4,833 $4,588
Federal Supervision & Exam $49,895 $47,565
Interest on Borrowed Money $135 $99
Misc. Operation $68,379 $70,496
Gross Expense $5,711,145 $5,382,125
Net Operating Incomebefore Dividends
$2,090,798 $1,999,807
Non-operating Gain (Loss)on Investments $12,325 $0
Other Non-Operating Inc/(Exp)
$750 $0
Dividends Paid $95,186 $60,182
N. I. (LOSS) BEF NCUSIF $2,008,687 $1,939,625
NCUSIF STABILIZATION EXPENSE
$0 $0
NET INCOME (LOSS) $2,008,687 $1,939,625
2019 United Way Day of Caring 2019 Central PA Arts Festival Children’s Day
2019 Park Forest Preschool Holiday Gift Boxes
Financials
Assets 2019 2018Loans
Loans to Members $74,721,633 $78,587,052
Loan Participations $871,742 $1,229,715
VISA Loans $5,054,612 $5,013,210
Mortgages $4,930,885 $4,649,117
Student Loans $925,129 $1,083,228
Total Loans to Members $86,504,002 $90,562,321
VISA Cash Advances $1,200 $10,500
Allowance for Loan Loss $(430,544) $(357,710)
Net Loans Outstanding $86,074,658 $90,215,111
Loans Held For Sale $296,900 $0
ATM Accounts Receivable $42,199 $62,629
Cash $1,793,911 $2,094,070
Investments
US Govt Obligations $28,292,725 $29,182,740
MidAtlantic Corporate CU $12,031,306 $14,269,572
PSFCU CD Portfolio $48,892,000 $42,159,000
Visa Inc Stock - AFS $200,030 $141,063
Net Investments $89,416,062 $85,752,375
Other Assets
Prepaid Accruals $378,757 $305,821
Land & Buildings $4,727,592 $4,777,031
Accrued Income $320,218 $306,998
NCUSIF Deposit $1,640,915 $1,651,595
CUSO-CU24 $0 $8,684
CUSO $15,000 $15,000
Net Other Assets $7,082,482 $7,065,129
TOTAL ASSETS $184,706,212 $185,189,314
AdministrationCindy Greendoner****Marjorie Groff*Theresa Irvin**Rick Tabor
Back Office ServicesShannon Ballenger***Tom Dicus***Melanie StimerPaige Wolford
Business ServicesLori BelkoMichele Steinbugl Conklin*Kent CorlAmy Ieraci**
Information SystemsSam Bacza-NelsonJustin Maddox**Steve Northamer**Chris Snyder**Nate Socoski*
Lending Services Gene Eichenlaub**Michela HallTina Hepfer**Katie Lyons*Chelsea MooreDarla Owlett***Linda Pelton*Shannon KellermanPaul Stodart****Beth WalkerDoug Welch**
MarketingGail Jones****
Member ServicesChristine Boone****Jeff Drapcho**Ashleigh EganTatiana FavorsAngela GatesJamie Gilham*Alyson GrossAnnette HestresTina HibbertTina Hyduke**Carol KuhlenKylie RutherfordJulie Sealy*Patty Supko**
Lori BelkoVice President of Business Lending- Temporary Housing Foundation Board Member- Central PA 4th Fest Committee Member- Central PA Festival of the Arts Volunteer- Risk Management Association Board Member
Michele Steinbugl Conklin,Chief Credit Officer- Central PA RMA Chapter Board President and Education Committee Chair- Chair of the State College YMCA Managing Board- YMCA of Centre County Board Vice Chair- YMCA of Centre County Annual Giving Campaign Co-Chair- YMCA of Centre County Fiscal Planning Committee- Central PA 4th Fest Committee Member- Western Pennsylvania SBA Lenders Advisory Board Member- Volunteer for various non-profits’ special event days through Centre County - Various 5K Walk/Run Volunteer- RSVP Pen Pal
Marnie Derabasse, Senior Lending Vice President- Centre County United Way Board Member - Centre County United Way Finance Committee
Tom Dicus,Operations Coordinator- Central Blair County Relay for Life Participant
Jamie GilhamTeller Service Representative- United Way Day of Caring Volunteer
Tina HepferLoan Service Representative- The Y Feeds Kids Weekend Backpack Food Program Volunteer
Tina Hyduke, Member Service Representative- Pennsylvania Historical Association Treasurer
Gail Jones,Marketing & Business Relationship Coordinator- Orchard Creek Homeowner’s Association Vice President- American Red Cross Blood Donor- The Y Feeds Kids Weekend Backpack Food Program Volunteer- SCASD - Diversified Occupations Committee Member- United Way Day of Caring Volunteer
Dan LestzCIO/CSO- Central PA 4th Fest Volunteer- First Night Volunteer
Justin Maddox,Systems Analyst- The Y Feeds Kids Weekend Backpack Food Program Volunteer- United Way Day of Caring Voluntee- Bellefonte Faith VBS- Bellefonte Faith Serving Seniors- Centre County Habitat for Humanity
Lori McTavish,Senior Marketing Vice President- Youth Softball Volunteer- Centre Elite Gymnastics Volunteer- United Way Day of Caring Volunteer
Donna Trapp, Senior Human Resources Vice President- AAUW Annual Used Book Sale Chair- United Way Day of Caring Volunteer- Community Cafe Volunteer
* Denotes at least 5 years of service** Denotes at least 10 years of service*** Denotes at least 15 years of service****Denotes at least 20 years of service
2019 United Way Day of Caring
2019 Jared Boxes
Thanks to the Penn State Federal Team Members who are committed to helping in our community!