May 2018 President’s Message
Annual Report of the President
2018 was financially a very successful year for the Credit Union. We had the second highest net income in the in the history of the credit union. It was only the third time the credit union’s net revenues exceeded one million dollars.
Last year is not an anomaly. The credit union has been on this trajectory for several years. In the last five years we have grown 42% in deposits and 95% in loans. In each of those past 5 years we have finished in the top third of our asset size peer group in both loan growth and return on assets.
As a cooperative not-for-profit the important thing is not focusing on the results, but the cooperative values that helped us achieve the results. Our mission is to help our neighborhoods and communities by using deposits of our membership to help fund loans for other members. These loans help your neighbors do such things as buy cars to get to work and fix up houses that make our communities better places to live. Being a depositor of this credit union keeps your investment local in the neighborhoods and communities where you live. Last year our net deposits and loans grew at approximately the same rate, meaning every extra dollar that was deposited went to funding loans for our membership.
There are many reasons for this rapid growth. Our current staffing has played a large part in building relationships with the members. Our new building is more accessible and convenient for most members. The improving economy certainly plays a portion in our growth. The most important piece is our membership trusting us with their deposit and lending needs, the true cooperative spirit.
The results were also achieved by focusing on strategic goals set by our Board of Directors which is elected every meeting by you, our members. The goals are increased accessibility, membership diversification, and loan growth. We are increasing accessibility to physical location and our digital platforms. Last year we acquired the lot adjacent to us and we are working with contractors to develop another exit lane onto 9th Avenue. For digital accessibility we re-designed the website to better communicate with our members. We will increase our online banking speed this spring by connecting to fiber optic cable. We continue to look at technology products that are a good fit for our membership.
We are continuing our focus on Membership Diversification by offering products and services to a wider range of our members. We re-designed our credit card program to better help younger members establish credit. We have other credit building products that can help younger members or members that need our assistance in reestablishing good credit. We strive to offer our members the lending products they need to fulfill their needs.
We are now offering two new products for our members: a 10-year fixed-rate mortgage with low interest rates and closing costs. We are also being proactive and offering a Home Improvement loan, targeting those members that will need to switch their steam heat to gas in the next few years.
Thank you again for your continued membership and support of Virginia Co-op Credit Union. The successes we had are attributable to you believing in keeping your community and neighborhoods strong by using the products and services of your local credit union.