May 2017 – Annual Report of the President
Annual Report of the President
On July 21st, 1937, the eight-original member/owners each purchased a five dollar share to form Virginia Co-Op Credit Union. Member/owners compose those who are members and employees of Virginia area cooperatives. Over the last eighty years there have been many changes: bylaws, volunteers, and locations. But the mission is still the same today as it was back then, to offer deposit and lending products and services to our member/owners.
Even though we are a mature organization, the financial results of 2017 can be summarized in one word: GROWTH! We achieved our fourth straight year of positive earnings with a Return on Assets of 0.53%, twice the national average of similar sized credit unions. The increase in revenue was mainly due to our loan growth. Our loan portfolio grew 13.6% putting us in the 86th percentile of similar sized credit union. In the past five years, we have nearly doubled the amount of loans to help our member/owners achieve their own financial goals. More member/owners are trusting us with their deposits as the amount of our shares and drafts grew 5% last year. The deposits have grown almost 50% in the past six years. That shows that hard work by our staff and board of directors in making your credit union a viable choice as a primary financial intuition.
For the past few years, Management and the Board of Directors have four key areas to help us continue to grow and better service our member/owners needs in the future. The first goal is increased accessibility. We just completed our first full year at 811 4th St. North and it has been a great move. The building is at a busy intersection making it more visible and more convenient for traffic. We are currently working with the City of Virginia to acquire more land to expand our parking lot and build a north-bound access to 9th Street. We added an ATM to our facility for the first time to allow our members better access to cash during non-working hours. There were struggles in operating the machine at the beginning, but a heater in the unit fixed the issues. ATMs were not built with Iron Range winters in mind! The ATM is increasing in usage every month and we believe it was a good investment for our members. The second goal is diversification of membership. Average age of members is the key to our focus as younger members will be the future of the credit union. The new building was strategically built across from the elementary school and near the community college. The building is bright and clean, which is an advantage over our previous building to attract this demographic. We have seen a decrease in the average age of our borrowers, trending towards prime borrowing ages. The median age from of our borrower has dropped two years since 2012, and it is now at 52.
The two other strategic objectives involve growing our loans, both consumer and mortgage portfolio. Consumer loan growth is what achieved our great results in 2016. The staff has cultivated relationship with local dealers so our member/owners can now ask the dealers to finance their loans though the credit union. We are expanding our Real Estate offerings by partnering with other CUSOs so member/owners coming to us for purchase, FHA, USDA, construction, or first time homebuyers now have options through our credit union. These products will supplement our traditional in-house fixed rate mortgage and line of credit offerings. We now have a second NMLS licensed Mortgage Loan Officer on our staff to assist our member/owners.
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.
Virginia Coop Credit Union