We start with this section every year – while other credit unions don’t report on this at all. We are a community development credit union, and this is the core of why we as a credit union exist – our mission statement is to rebuild the local economy in ways that foster justice, to manage the assets of our members in responsible ways, and to serve those underserved by conventional financial institutions. We want to enable our members to make wise financial decisions – giving them the tools and the services needed to do so – and to build financial independence; and to build strong and vibrant neighborhoods. We want to provide and champion a cooperative, member-owned structure as a alternative and a better model than a for-profit, shareholder owned financial institution.
When we talk about our community impacts, we start with loans. Because this is one of our primary tools for building stronger neighborhoods. We take our members’ deposits – and lend them out. We don’t make “investments” other than investing in the local community by making home loans, small business loans, and providing access to fair, affordable credit. So you can see how we did this past year – we opened a total of $3.8 million new loans. That’s the first pie. We break out our services, and our impact, into three areas – homeownership, personal financial services, and small business. You can see the loans opened breakout – homeownership in red, personal in green, and small business in blue. The middle pie shows loans granted – which also counts draws on lines of credit opened in previous years, but used in 2012. That’s a total of $7.3 million in credit extended this year. The loans outstanding pie reinforces that we really do a lot of home lending – the majority of our loans are mortgages; nearly a quarter are loans to small businesses, and nearly a quarter are personal loans.
Homeownership is one of our big focuses – why? Homeownership is a great way to build intergenerational assets – can be passed down through the generations. Increased homeownership or owner-occupancy strengthens neighborhoods. These figures are for residential purchase, refinance, improvement & repair.
So out of the total $2 million loans originated, $861k was in home purchase loans, and the other $1.1 million was in home improvement, refinance, or a loans for a combo of both.
In addition to the loans opened this year, another $239,000 in credit was drawn in 2012 on home equity line of credits opened in previous years, for purposes like home improvements, repairs, debt consolidation.
80% of the purchase mortgages were to first-time homebuyers. We continue to offer a really great 1st Time Homebuyer Matched Savings program, through which we can offer “matching grants” of up to $9,500 to first-time homebuyers who save up to $2,000. We bring these “grant” funds from the Federal Home Loan Bank of NY, and the federal Assets for Independence program, into Syracuse. These agencies look to support homeownership, and in Syracuse it’s really appropriate – 40% of residents own their home while 60% rent. Nationally, it’s 60% who own and 40% who rent. Homes in Syracuse are also really affordable – often a mortgage payment may be less than a rent payment. Our program works to prepare people for the additional expenses and responsibilities that come with homeownership – budgeting for an emergency fund or for repairs, for example.
It’s not just about making loans – we want to provide people with the information, resources, tools they need to buy a home – or maybe improve their current home, or avoid foreclosure. We provide HUD approved housing and credit advising – and you can see the figures for our service in 2012.
I talked a little about our Homebuyer Matched Savings program before. In Syracuse – homes are affordable, but one barrier to homeownership is getting that chunk of money together for a downpayment and closing costs. To assist people to do this, we have a “matched savings” program – for every $1 you save, you can get a match of $4 or more.
MaryMayom is one of the 7 members who received a match to buy their first home in 2012. I strongly encourage you to read her story in its entirety, which can be found on pages 7 and 8 of the Annual Report. I’d also like to acknowledge Barb Kobritz, who interviews members and writes their stories beautifully.
Personal Financial Services – access to affordable and fair financial services is important. These are the figures for new personal loans originated in 2012
We have a program for predatory-alternative loans – a special deposit from the National Federal of Community Development Credit Unions enables us to make somewhat riskier loans – loans to members with no or low credit – by providing a reserve against any losses on those loans – 25%. 189 of our personal loans – half – were to members with no credit score or a credit score below 600.
In addition to the new loans opened, we had $3m in draws on lines of credit, available to our members when they needed it.
Education & Auto Matched Savings
Personal financial education – providing people with information and resources so that they can make wise financial decisions for themselves. We do workshops and classes on an array of topics, with youth and with adults. To do this work, we get grants ourselves or jointly with partners, but we also work to get service contracts to help us sustain these services – simply, getting paid by organizations that see the value in financial education.
You can read Jennifer’s full story on p 11 of the Annual Report
Now I’ll talk a little about the services that we provide to help build a strong local economy – services to support small business. You can see our lending figures here - we opened 23 new business loans in 2012, for $380k – 10% of all loan dollars. Our average loan size decreased from last year, and we did a lot more very “microenterprise” loans thanks to a program supported by the Gifford Foundation called Step Up Loans, launched in 2011 and continued during 2012. These very micro loans are for $2500 or less and are meant to help people step up income and step into a business; doesn’t require the full business application and helps people test their ideas. You can read about a couple of the members who used Step Up loans in 2012 on page 15 of the annual Report. We did not make any larger business loans over $50,000 this year – the National Credit Union Administration has focused on member business lending regulation because many large credit unions and CUSOs, credit union service organizations, have had some losses due to business lending. Their scale of biz lending is generally much much different from ours – credit union’s avg biz loan size is over $200,000. Our average is about $17,000, in 2012. However – we are facing this widespread regulatory crunch now, and being asked to do a lot more paperwork for these loans.
61% of business loans originated were to businesses owned by women and people of color, 32% of the dollars lent out.
We talked about loans opened – we also disbursed $746k on lines of credit for businesses. Having a line of credit can be critically important for a business, and in a time when we hear about businesses having their credit line shut off or called at other financial institutions, we are proud of this figure.
More than loans – we provide workshops and one-on-one assistance to our business members & the community at large.
We also have a matched savings program for entrepreneurs – this is a 1:1 or 2:1 match, and we’ve had a couple of programs – one for entrepreneurs with low to moderate income, and another program with Start Up NY, which is a collaborative program based here out of the South Side Innovation Center that supports people with a disability who would like to start or grow their business. Funding for the matches comes from the federal Assets for Independence program, Catholic Charities, and a grant from the Gifford Foundation.
Abigail Henson, owner of LoFo, used a Matched Savings Account and a microloan to help finance the start of her restaurant. You can read more about her business journey on pages 13 – 14 of the Annual Report – and you can taste for yourselves at dinner tonight, because the food is by LoFo!
It’s really easy to dig yourself into a financial hole that’s very hard to climb out of. That’s part of why we feel financial education for the youth in our community is so important. We started with student saving days, mainly with younger kids. Then, we opened a student-run branch at Fowler High School, named Falcons Trust. In 2012, we’ve been busy at Henninger and Nottingham, working with students who are organizing to open their own student-run branches. If you haven’t already read our latest issue of Commonwealth (the 100th!), check out the “centerfold” for some photos and more info. At Henninger, different classes are getting in on this – with the Tech Ed students for example constructing the furniture for the new branch, while another group is doing a market survey. The Youth Life Skills Video Project is another amazing project that wrapped up in 2012 – students at Fowler HS worked over 2 years to create video segments to go along with a financial education instructional guide. Students created storyboards, scripts, worked filming equipment, and acted in these stories about Buying a Car, Opening an Account, and Getting Out of Your Parents House. Students worked at CU branches – transitioning from working in Fowler branch to the CU in the spring & summer; in 2012 Jackson Nguyen and Kenny Hyunh worked during the summer. In 2013, Salaam Hargrove joined the team. Support by CNY Works.
Capacity to grow, cope with fluctuations, and assume strategic risks
This slide shows DQ ratios. Next slide shows Charge Off ratios.
This slide shows CO ratios. Next slide shows DQ ratios.
Cooperative Federal Annual meeting 2013.03 presentation
Welcome!2013 Annual Membership Meeting
Agenda Call to Order ___________________________________ 3:10 Minutes ________________________________________ 3:19 2012 Community Impact Report _____________________ 3:20 2012 Treasurer’s Report ___________________________ 3:30 Elections _______________________________________ 3:45 Unfinished Business _______________________________ 3:55 New Business: Celebration Year, The Economy, and New Services______ 3:55 Q&A _________________________________________ 4:15 Election Results __________________________________ 4:50 Meeting Evaluation _______________________________ 4:55 Adjournment & Dinner _____________________________ 5:003/17/2013 Cooperative Federal Annual Meeting 2
Governance Reports Please see the Welcome Table for copies of the following:• Board of Directors’ Report - Full Version• Credit Committee Report• Supervisory Committee Report (Inside the Annual Report – p. 25)
Community ImpactsChristina Sauve, Assistant Treasurer
Loan Impact Summary Loans Opened Loans Granted Loans Outstanding $3.8M $7.3M $15.9M New loans opened Loan funds disbursed Aggregate loan and (approved loan amount (LOC draws and term LOC balances and LOC limits) loan disbursements) at 12/31/12Homeownership $2.0 M Homeownership $2.2 M Homeownership $8.9 MPersonal $1.4 M Personal $4.1 M Personal $3.4 MSmall Business $380K Small Business $1.0 M Small Business $3.5 M3/17/2013 Cooperative Federal Annual Meeting 5
Homeownership Strengthening neighborhoods. Building family assets. 2012 Mortgage Lending • Residential Purchase, Refinance, Improvement & Repair Home Loans Loans Opened 2012 ($) Originated: 45 $2.0 million3/17/2013 Cooperative Federal Annual Meeting 6
Homeownership 2012 Mortgage Lending • Residential Purchase, Refinance, Improvement & Repair • Housing Loans Originated: 45, $2.0 million – Purchase Loans: 15, $861 K o 80% to First Time Homebuyers • Home Equity LOC Disbursements: $239 K3/17/2013 Cooperative Federal Annual Meeting 8
Homeownership 2012 Mortgage Lending • Residential Purchase, Refinance, Improvement & Repair • Housing Loans Originated: 45, $2.0 million – Purchase Loans: 15, $861 K Loans Opened 2012 ($) 80% to First Time Homebuyers3/17/2013 Cooperative Federal Annual Meeting 9
Homeownership “Home Base” • HUD-approved housing, credit, and financial counseling • Open to members and nonmembers • 229 clients served in 2012 – Credit, Budgeting, & Financial Mgt: 159 – Pre-Homeownership: 40 – Foreclosure Prevention: 303/17/2013 Cooperative Federal Annual Meeting 10
Homeownership Homebuyer Matched Savings • Open to low and moderate-income first time buyers • Participants get at least $7,500 in matching grants • 7 members received $52,500 in downpayment assistance matching grants in 2012 • 31 members enrolled as of 12/31/123/17/2013 Cooperative Federal Annual Meeting 11
Mary Mayom, a housekeeper at St. Joe’s and a New American from the Finding a New HomeSudan, got $8,500 in matching grants to purchase her house on the Northside –and established a great credit score in the process. Her mortgage is actually a 3/17/2013 Cooperative Federal Annual Meetinglittle less than her former rent! 12
Personal Services Fair access to affordable credit. 2012 Consumer Lending • New/used auto, debt consolidation, credit builder, credit cards, lines of credit, and other personal uses Loans Opened 2012 ($) Personal Loans Originated: 376 $1.4 million3/17/2013 Cooperative Federal Annual Meeting 13
Personal Services 2012 Consumer Lending • New/used auto, debt consolidation, credit builder, credit cards, lines of credit, and other personal uses • Personal Loans Originated: 376, $1.4 million Loans Opened 2012 ($) Anti-Predatory: 189 $479 K3/17/2013 Cooperative Federal Annual Meeting 14
Personal Services 2011 Consumer Lending • New/used auto, debt consolidation, credit builder, credit cards, lines of credit, and other personal uses • Personal Loans Originated: 376, $1.4 million – Anti-Predatory Loans: 189, $479 K • LOC Disbursements: $3.0 million3/17/2013 Cooperative Federal Annual Meeting 15
Personal Services Education & Auto Matched Savings • Open to members with modest means saving for higher education expenses, or to purchase a vehicle necessary for school or work • Participants get $1 - $2 for every $1 saved, for up to $2,000 in matches • 3 members received $3,000 in matches in 2012 • 7 members enrolled as of 12/31/123/17/2013 Cooperative Federal Annual Meeting 16
Personal Services Financial Education • Workshops and courses on budgeting, credit, money management, homeownership, car buying … and more! • English, Spanish and ESL • 455 adults and youth attended our classes in 2012 • Service contracts with partnering nonprofits and credit unions help us reach out and sustain our development services. • Credit Consultations at Free Tax Prep Sites help us spread the word about asset-building opportunities3/17/2013 Cooperative Federal Annual Meeting 17
Jennifer Burton learned about our financial counseling program during a credit presentation at her GED class, and started working to improve her credit score through our office hours at CNY Works. Less than a year later, she’s paid off past-due debts and raised her score by 120 points! “That’s the main word. Care. Other places wouldn’t take the time out to care.” - Jennifer3/17/2013 Cooperative Federal Annual Meeting 18
Small Business Development Building an independent, local economy. 2012 Small Business Lending • Microloans, working capital, equipment, commercial real estate and responsible, local landlords Loans Opened 2012 ($) Business Loans Originated: 23 $380 K3/17/2013 Cooperative Federal Annual Meeting 19
Small Business Development 2012 Small Business Lending • Microloans, working capital, equipment, commercial real estate and responsible, local landlords • Business Loans Originated: 23, $380 K Loans Opened 2012 ($) 32% to businesses owned by women or people of color (61% of loan #)3/17/2013 Cooperative Federal Annual Meeting 20
Small Business Development 2012 Small Business Lending • Microloans, working capital, equipment, commercial real estate and responsible, local landlords • Business Loans Originated: 23, $380 K – 32% to M/WBEs – Average non-RE loan size: $12,632 • Revolving Credit Disbursements: $746 K3/17/2013 Cooperative Federal Annual Meeting 21
Small Business Development Education & Advising • Workshops and one-on-one assistance with planning, credit, business finance and more • 52 workshop participants • 39 one-on-one clients in 2012, supporting 81 local jobs (FTEs) – includes 25 M/WBEs with 51 FTEs3/17/2013 Cooperative Federal Annual Meeting 22
Small Business Development Matched Savings • Gifford Foundation/Start Up NY partnership • Participants get $1-$2 for every $1 saved, for up to $2,000 in matches • 7 businesses received $16,000 in matches in 2012 • 19 small businesses enrolled at 12/31/123/17/2013 Cooperative Federal Annual Meeting 23
Abigail Hensen, owner of LoFo, launched her life-long dream with help from aMatched Savings Account and a microloan from Cooperative Federal. Now youcan visit LoFo in Armory Square, and get a meal that is wholesome and locallysourced – whether you crave bacon and Annualor kale miso soup.3/17/2013 Cooperative Federal eggs Meeting 24
Youth Credit Union Hands-on learning in under-served communities. 2012 Initiatives: • Student Saving Days every Friday at Ed Smith, now run by PTSO volunteers • Falcons’ Trust student-run branch at Fowler • Organizing groups at Henninger and Nottingham • Youth Life Skills Video Project • Job Experience Internships at CU branches Youth Credit Union accounts: 219 3/17/2013 Cooperative Federal Annual Meeting 25
Natalie Mooney and Emily Carlson point out the future home of NottinghamFederal. Their team just participated in the regional DECA competition,presenting a plan to open a youth-run branch and bring financial education totheir peers.3/17/2013 Cooperative Federal Annual Meeting 26
Financial ReportRon Ehrenreich, Treasurer/CEO*Please see the Welcome table for copies of our Financial Statement, Ratio Analysis and FPR Guide
Key Financial Ratios Earnings Capital Adequacy Asset Quality About Peer Ratios • Average for CUs with $10 - $50 million in assets • Only 2.9% of all CUs are CDFIs3/17/2013 Cooperative Federal Annual Meeting 28
Earnings Return On Average Assets 0.5 0.21 0.24 0.0 -0.5 12/08 12/09 12/10 12/11 12/12 -0.26 -1.0 -1.5 -1.33 -2.0 -2.5 -2.24 Net Income / Average Assets (annualized) Peer3/17/2013 Cooperative Federal Annual Meeting 29
Turning the Corner Modest surplus after 3 unprecedented years Impact of the financial crash & recession Low interest rates = lost income • -$382 K for 2012 (vs 2007 rates) • -$1.3 million for 2008-2012 (vs 2007 rates) Bailout Expenses • $17.7 K in 2012 (NCUSIF assessments & accruals) • $243.2 K since 2009 Grant and Contract Income – From 2008: $579,000 (35% gross income) – Bottomed out in 2011: $201,000 (14% gross income) – In 2012, increased to $282,517 (19% gross income) Business plan to adapt to hard times3/17/2013 Cooperative Federal Annual Meeting 30
Re-Aligning Income & Expenses Building on changes made in 2009-11 More back-office automation New Courtesy Overdraft Pay option Converted LOCs to risk-based pricing 41% growth in grant & contract income Efficiency through Self Service options • Web Teller Upgrade + Online Bill Pay Staff can focus on solving problems and helping those with the greatest needs.3/17/2013 Cooperative Federal Annual Meeting 31
Re-Aligning Income & Expenses Income vs. Expenses$2,000,000$1,750,000 8.2% Avg Loan Yield at 9/31$1,500,000$1,250,000$1,000,000 $750,000 $500,000 $250,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 Total Income Total Expenses3/17/2013 Cooperative Federal Annual Meeting 32
Re-Aligning Income & Expenses Income vs. Expenses$2,000,000 6.9% Avg Loan Yield at 12/31$1,750,000$1,500,000$1,250,000$1,000,000 $750,000 $500,000 $250,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 Total Income Total Expenses3/17/2013 Cooperative Federal Annual Meeting 33
Re-Aligning Income & Expenses Income vs. Expenses$2,000,000 5.9% Avg Loan$1,750,000 Yield at 12/31$1,500,000$1,250,000$1,000,000 $750,000 $500,000 $250,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 Total Income Total Expenses3/17/2013 Cooperative Federal Annual Meeting 34
Bottom Line 2009 to 2010: + $124,863 2010 to 2011: + $169,824 2011 to 2012: + $95,194 5 consecutive profitable Qs at 12/31/12 Working for continued progress in 20133/17/2013 Cooperative Federal Annual Meeting 35
Capital Adequacy Net Worth To Average Assets 16 14 12 10.18 10 7.80 7.56 8 6.29 6.51 6 4 2 0 12/08 12/09 12/10 12/11 12/12 Net Worth / Avg Assets Peer3/17/2013 Cooperative Federal Annual Meeting 36
Capital Adequacy Returned to being “Well Capitalized” Raised Secondary Capital • $ 565,641 total at 12/31/12 Controlled spontaneous growth Decrease in 2009-2011 mirrors the trend across peer CUs • Reflects negative earnings and rapid growth • Reserves since 1982 provided a “cushion”3/17/2013 Cooperative Federal Annual Meeting 37
Asset Quality Delinquency Rates vs. Peer Delinquency & Net Charge-Offs 10 8.61 8.26 8 7.33 6.31 6 5.10 4 2 0 12/08 12/09 12/10 12/11 12/12 Delinquent loans / loans Net Charge-offs / Averge Assets Peer Delinquency Peer Net Charge-offs3/17/2013 Cooperative Federal Annual Meeting 38
Asset Quality Charge-Off Rates vs. Peer Delinquency & Net Charge-Offs 10 8 6 4 0.71 0.69 0.74 0.34 0.50 2 0 12/08 12/09 12/10 12/11 12/12 Delinquent loans / loans Net Charge-offs / Averge Assets Peer Delinquency Peer Net Charge-offs3/17/2013 Cooperative Federal Annual Meeting 39
Asset Quality Hands-on approach to delinquency • History of successfully managing above peer DQ ratio • Working with members to prevent losses • Other CDFIs: 15% “minimum prudent standard” • Risk Based rates pays for active DQ management Recession fears in 2010 decreased DQ DQ increased in Q4 2011 - 2012 due to small number of large, past-due mortgages • Potential losses mitigate by 1st liens on good collateral Losses near or below peer for past 20+ years3/17/2013 Cooperative Federal Annual Meeting 40
From the Filene Institute: “The lending experience of Community Development Credit Unions (CDCUS)… indicates that delinquency rates run higher in CDCUS than in other credit unions, but the charge-off rates are consistent with overall credit union rates.” – Albert E Burger & Mary Zellmer, in Strategic Opportunities in Serving Low to Moderate Income Members3/17/2013 Cooperative Federal Annual Meeting 41
Impact CDFIs are also evaluated based on • Growth in members, shares, loan, assets – Meeting community needs – Achieving a sustainable scale • Deployment of shares & assets in the form of loans – Using our resources to improve communities – Local and socially responsible3/17/2013 Cooperative Federal Annual Meeting 42
Growth Where we are at 12/31/12: • $20.1 million in Assets • $15.7 million in Loans Graphic by Eddie Colla • $17.8 million in Shares & Deposits • 3,764 member households and organizations Word-of-mouth fueled growth during recession Slowed loan & share growth in 2012 • Strengthen net worth ratio • Make operations more sustainable3/17/2013 Cooperative Federal Annual Meeting 43
Growth But - member growth accelerated Patterns: • Smaller average loan sizes Graphic by Eddie Colla – Credit Cards – Step Up Loans – Hybrid Helper ARMs to First Time Buyers – Personal Credit to the Under-Banked • Mission-driven “switches” with no loans3/17/2013 Cooperative Federal Annual Meeting 45
Growth Member Growth 2012 3,764 2011 3,320 2010 3,308 2009 3,016 2008 2,874 2007 2,592 0 1,000 2,000 3,000 4,000Coop Fed growth in 2011: 13.4%Peer Group growth in 2011: >0.1%3/17/2013 Cooperative Federal Annual Meeting 46
Growth3/17/2013 Cooperative Federal Annual Meeting 47
Deployment Loans to Deposits 2012 Loans Loans $15,720,7912012 Deposits Members $14,714,925 Nonmembers $3,102,027 2011 Loans Loans $15,087,8672011Deposits Members $13,517,984 Nonmembers $3,833,399 2010 Loans Loans $14,065,2632010 Deposits Nonmembers Members $12,525,245 $2,822,517 2009 Loans Loans $12,599,6952009 Deposits Nonmembers Members $11,519,037 $2,344,768 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 3/17/2013 Cooperative Federal Annual Meeting 49
Deployment for Maximum Impact Assets concentrated in loans to members – not stock market investments, Euro funds, or gold More than 100% of member shares are kept working in the local economy • 12/31/12: 107% loans to member deposits • ’09 -’11 avg: 111% loans to member deposits Mission-based nonmember deposits increase our lending capacity3/17/2013 Cooperative Federal Annual Meeting 50
Looking forward: 2013 Continue to raise Net Worth • Increased earnings • +$100,000 in Secondary Capital Room to grow in loans and members • Add some marketing • Serve more members where banks have closed • Expand Small Business Services • Range of competitive mortgage products • Loan Growth can boost income and reserves “Game changing” proposal submitted to CDFI Fund3/17/2013 Cooperative Federal Annual Meeting 51
Thirty Years of Finance for the People Founding Vision: Divestment from the racist Apartheid regime in South Africa; fair services for low-wage workers, people of color, single women, the LGBT community, activists and part- time or nontraditional workers; a non-profit financial cooperative operated by the people, for the people. 1982: The credit union opens with $100,000 in deposit pledges and donated space on the food coop’s back porch. Today: City-wide credit union serving over 3,700 members in neighborhoods the banks have abandoned – showing that a cooperative economy is possible. Over $100 million invested in Syracuse.3/17/2013 Cooperative Federal Annual Meeting 56
CU at the Zoo Our 30th Anniversary Gala3/17/2013 September 22, 2012 at theAnnual Meeting Cooperative Federal Rosamond Gifford Zoo 57
Sold-Out Event with 150+ members and allies.3/17/2013 Cooperative Federal Annual Meeting 58
Raised over $6,000 for Financial Education through sponsorships, ticket sales, MeetingSilent Auction.3/17/2013 Cooperative Federal Annual and 59
Recognized 11 partners in 8 Award Categories.3/17/2013 Cooperative Federal Annual Meeting 60
Recognized 11 partners in 8 Award Categories.3/17/2013 Cooperative Federal Annual Meeting 61
Recognized 11 partners in 8 Award Categories.3/17/2013 Cooperative Federal Annual Meeting 62
Awesome entertainment by the DREAM Freedom Revival,3/17/2013 then DJ, dancing, andAnnual Meeting Cooperative Federal video guestbook. 63
Awesome entertainment by the DREAM Freedom Revival,3/17/2013 then DJ, dancing, andAnnual Meeting Cooperative Federal video guestbook. 64
A Bigger, Better Southwest Office … At last! Larger, more welcoming lobby Better visibility Private office for loan interviews and financial counseling Conference room for mortgage closing and financial education More and better service for the neighborhood.3/17/2013 Cooperative Federal Annual Meeting 65
$8.1 million invested – and counting 50% Home Loans 30% Business Loans 22% M/WBs, 8% other 20% Personal Loans 66% no credit or limited credit (<650) 84% very low income (<60% AMI)3/17/2013 Cooperative Federal Annual Meeting 66
Before3/17/2013 Cooperative Federal Annual Meeting 67
Before3/17/2013 Cooperative Federal Annual Meeting 68
After3/17/2013 Cooperative Federal Annual Meeting 69
After3/17/2013 Cooperative Federal Annual Meeting 70
After3/17/2013 Cooperative Federal Annual Meeting 71
After3/17/2013 Cooperative Federal Annual Meeting 72
Grand Re-Opening Celebration3/17/2013 Nov. 28, 2012 Cooperative Federal Annual Meeting 73
Grand Re-Opening Celebration3/17/2013 Nov. 28, 2012 Cooperative Federal Annual Meeting 74
The Economy Hard times for workers as corporate profits grow • Jobs exported • Wages held down • Productivity turned into profit not wages • Regressive tax policy Jobless Recovery • Stock market has recovered • Job growth is very slow to stalled Low interest rates (forever?)3/17/2013 Cooperative Federal Annual Meeting 76
The Economy and Cooperative Federal Low interest rates mean low earnings on loans Many operating expenses are fixed Efficiency gains to keep expenses down • Automation enables us to grow • Local outsourcing • Member Self Service • Careful pricing of each product for break-even • Volunteer power enables growth Working with members during hard times • Minimize loan losses and hard collections3/17/2013 Cooperative Federal Annual Meeting 77
New Services: 2012 Web Teller Upgrades Online Check Reorder Online Personal Loan Application Financial Management tool Bill Pay3/17/2013 Cooperative Federal Annual Meeting 79
Web Teller - Financial Management3/17/2013 Cooperative Federal Annual Meeting 80
New Services: 2013 Online Loan Application, outside of Web Teller Merchant Card Services Online Business Loan Application Business Credit Reporting3/17/2013 Cooperative Federal Annual Meeting 81