Cooperative Federal Annual meeting 2013.03 presentation

521 views

Published on

  • Be the first to comment

  • Be the first to like this

Cooperative Federal Annual meeting 2013.03 presentation

  1. 1. Welcome!2013 Annual Membership Meeting
  2. 2. 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
  3. 3. 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)
  4. 4. Community ImpactsChristina Sauve, Assistant Treasurer
  5. 5. 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 $3.5 M3/17/2013 Cooperative Federal Annual Meeting 5
  6. 6. Homeownership Strengthening neighborhoods. Building family assets. 2012 Mortgage Lending • Residential Purchase, Refinance, Improvement & Repair Home Loans Loans Opened 2012 ($) Originated: 45 $2.0 million3/17/2013 Cooperative Federal Annual Meeting 6
  7. 7. Homeownership 2012 Mortgage Lending • Residential Purchase, Refinance, Improvement & Repair • Housing Loans Originated: 45, $2.0 million Loans Opened 2012 ($) Purchase Loans: 15 $861 K3/17/2013 Cooperative Federal Annual Meeting 7
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. Mary Mayom, a housekeeper at St. Joe’s and a New American from the Finding a New HomeSudan, got $8,500 in matching grants to purchase her house on the Northside –and established a great credit score in the process. Her mortgage is actually a 3/17/2013 Cooperative Federal Annual Meetinglittle less than her former rent! 12
  13. 13. Personal Services Fair access to affordable credit. 2012 Consumer Lending • New/used auto, debt consolidation, credit builder, credit cards, lines of credit, and other personal uses Loans Opened 2012 ($) Personal Loans Originated: 376 $1.4 million3/17/2013 Cooperative Federal Annual Meeting 13
  14. 14. 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
  15. 15. 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
  16. 16. 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 $3,000 in matches in 2012 • 7 members enrolled as of 12/31/123/17/2013 Cooperative Federal Annual Meeting 16
  17. 17. Personal Services Financial Education • Workshops and courses on budgeting, credit, money management, homeownership, car buying … and more! • English, Spanish and ESL • 455 adults and youth attended our classes in 2012 • Service contracts with partnering nonprofits and credit unions help us reach out and sustain our development services. • Credit Consultations at Free Tax Prep Sites help us spread the word about asset-building opportunities3/17/2013 Cooperative Federal Annual Meeting 17
  18. 18. Jennifer Burton learned about our financial counseling program during a credit presentation at her GED class, and started working to improve her credit score through our office hours at CNY Works. Less than a year later, she’s paid off past-due debts and raised her score by 120 points! “That’s the main word. Care. Other places wouldn’t take the time out to care.” - Jennifer3/17/2013 Cooperative Federal Annual Meeting 18
  19. 19. Small Business Development Building an independent, local economy. 2012 Small Business Lending • Microloans, working capital, equipment, commercial real estate and responsible, local landlords Loans Opened 2012 ($) Business Loans Originated: 23 $380 K3/17/2013 Cooperative Federal Annual Meeting 19
  20. 20. Small Business Development 2012 Small Business Lending • Microloans, working capital, equipment, commercial real estate and responsible, local landlords • Business Loans Originated: 23, $380 K Loans Opened 2012 ($) 32% to businesses owned by women or people of color (61% of loan #)3/17/2013 Cooperative Federal Annual Meeting 20
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. Financial ReportRon Ehrenreich, Treasurer/CEO*Please see the Welcome table for copies of our Financial Statement, Ratio Analysis and FPR Guide
  28. 28. 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
  29. 29. 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
  30. 30. 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
  31. 31. 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
  32. 32. 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
  33. 33. 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
  34. 34. 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
  35. 35. 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
  36. 36. 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
  37. 37. 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
  38. 38. 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
  39. 39. 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
  40. 40. 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
  41. 41. 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
  42. 42. 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
  43. 43. 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
  44. 44. Growth16 Loan, Share & Asset Growth141210 8 6 4 2 0 -2 12/08 12/09 12/10 12/11 12/12 Loan Growth Share Growth Asset Growth Peer Loan Peer Share Peer Asset3/17/2013 Cooperative Federal Annual Meeting 44
  45. 45. 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
  46. 46. 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
  47. 47. Growth3/17/2013 Cooperative Federal Annual Meeting 47
  48. 48. Deployment Loans To Assets 90 82.73 77.80 79.57 78.02 78.26 80 70 58.28 60 54.63 52.11 49.58 48.01 50 40 30 20 10 0 12/08 12/09 12/10 12/11 12/12 Loans / Assets Peer3/17/2013 Cooperative Federal Annual Meeting 48
  49. 49. 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
  50. 50. 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
  51. 51. 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
  52. 52. Elections
  53. 53. Unfinished Business
  54. 54. New BusinessA Year of CelebrationThe EconomyNew Services
  55. 55. Part OneA Year of Celebration
  56. 56. 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
  57. 57. CU at the Zoo Our 30th Anniversary Gala3/17/2013 September 22, 2012 at theAnnual Meeting Cooperative Federal Rosamond Gifford Zoo 57
  58. 58. Sold-Out Event with 150+ members and allies.3/17/2013 Cooperative Federal Annual Meeting 58
  59. 59. Raised over $6,000 for Financial Education through sponsorships, ticket sales, MeetingSilent Auction.3/17/2013 Cooperative Federal Annual and 59
  60. 60. Recognized 11 partners in 8 Award Categories.3/17/2013 Cooperative Federal Annual Meeting 60
  61. 61. Recognized 11 partners in 8 Award Categories.3/17/2013 Cooperative Federal Annual Meeting 61
  62. 62. Recognized 11 partners in 8 Award Categories.3/17/2013 Cooperative Federal Annual Meeting 62
  63. 63. Awesome entertainment by the DREAM Freedom Revival,3/17/2013 then DJ, dancing, andAnnual Meeting Cooperative Federal video guestbook. 63
  64. 64. Awesome entertainment by the DREAM Freedom Revival,3/17/2013 then DJ, dancing, andAnnual Meeting Cooperative Federal video guestbook. 64
  65. 65. 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
  66. 66. $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
  67. 67. Before3/17/2013 Cooperative Federal Annual Meeting 67
  68. 68. Before3/17/2013 Cooperative Federal Annual Meeting 68
  69. 69. After3/17/2013 Cooperative Federal Annual Meeting 69
  70. 70. After3/17/2013 Cooperative Federal Annual Meeting 70
  71. 71. After3/17/2013 Cooperative Federal Annual Meeting 71
  72. 72. After3/17/2013 Cooperative Federal Annual Meeting 72
  73. 73. Grand Re-Opening Celebration3/17/2013 Nov. 28, 2012 Cooperative Federal Annual Meeting 73
  74. 74. Grand Re-Opening Celebration3/17/2013 Nov. 28, 2012 Cooperative Federal Annual Meeting 74
  75. 75. Part TwoThe Economy
  76. 76. 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
  77. 77. 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
  78. 78. Part TwoNew Services
  79. 79. 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
  80. 80. Web Teller - Financial Management3/17/2013 Cooperative Federal Annual Meeting 80
  81. 81. 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
  82. 82. Q&A
  83. 83. Elections Results
  84. 84. Meeting Evaluation
  85. 85. AdjournmentDoor Prizes, Turn in Common Cents Ballots….and Join us for Dinner!

×