April 2019 Annual Report of the President

President's Message from Donald Rausch, VCCU CEO

Annual Report of the President

2018 was a record-breaking year for the Virginia Coop Credit Union. We achieved the highest net income in our 82-year history. This was aided by a strong economy and an easing of the margin compression from the last decade. In short, our industry had a good year, both banks and credit unions. But we did even better than our peer averages due to our growth. We grew more than 90% of credit unions of our similar size did in deposits, loans, and net worth. We were better than 80% of our peers in membership growth and return on assets.

2018 was not an anomaly as we have finished in the top third of our peer group in loan growth and return on assets each of the past six years. In the past decade we have grown 77% in deposits and 115% in loans.

The growth has been fueled by several factors. The economy certainly helps, but that has only been the past handful of years. Our new building has better accessibility and better visibility. We have increased membership, but our deposit growth is coming from members who opened their accounts prior to us moving. Our members are utilizing the benefits of their credit union membership more.

Our goal is to provide solutions for our members financial needs. We have become more innovative in products, specifically in lending. Most of our loan growth in 2018 came from our mortgage portfolio which is serviced in-house and our relationships with local auto dealerships. Half of the loans coming from the dealerships are current members.

Our staffing has certainly helped our growth. Our goal is to hire, train, and retain the employees that understand their job relies upon serving our membership. There are a lot of financial institutions in the area, yet we are growing consistently in deposits because of the front-line staff’s member-centric focus. The common thread from our growth is our members are trusting us with their financial needs, be it deposits or loans.

Management and the Board of Directors at VCCU fully aim to continue this trend into the future. Our goal is to be our members’ primary financial institution. A primary financial intuition is where our members have their primary checking and savings account. It is their first call when they need a loan. Our recent growth shows we are getting there, but we also realize we need to upgrade technology to become competitive. We are reinvesting the gains from this year to upgrade technology services we offer our membership. We have signed a contract to upgrade our computer systems in the fall of 2020. Shortly after our conversion we will be rolling out remote deposit capture and bill pay. Our online presence will be more integrated. These deposit services will put us on par the other financial institutions in town.

We thank you again for your patronage of Virginia Coop Credit Union. Our successes and growth are due to a lot of things, but it all comes back to our members trusting us with their financial needs. It is a commitment of management, staff, and the Board of Directors to make sure we continue to fulfill your financial needs now and into the future.

Management and the Board of Directors have committed to upgrading technology on a yearly basis. In 2016, we added the ATM machine to help with accessibility for our member/owners. We also converted our debit and credit cards to chip-based technology which helps minimize point-of-sale fraud. In the next two years we will be adding remote deposit capture and bill pay services. These two products will put us at parity with most of our competitors in technological offerings.

I want to thank the staff and volunteers of our credit union, not only the current staff but those that have put in hard work over the last 80 years to make the credit union what it is today. I want to especially thank the past and present membership, because without your support we would not have made it to this milestone. It is a pleasure to manage an organization with a rich history that also has a bright future serving our member/owners and community.

Sincerely,

Donald Rausch
President/CEO

photo of VCCU office

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