Housekeeping Teleconference (Voice Services) Dial-in number: (877) 906-9811 Participant Passcode: 9812138564 Annual Meeting Minutes Please review before meeting at www.creditunion.coca-cola.com Resources/2016 Annual Meeting Prize Drawing Must be logged into online Open meeting Member in good standing Questions Please submit questions via Open meeting chat panel. Questions will be answered during the ‘Other Business’ segment.
Chairman’s Introduction Welcome Call to Order
Agenda Introduction of the Board Ivor Longo Approval of Annual Meeting Minutes Margaret Sherrod Supervisory Committee Report Karen Brey Chairman’s Report Ivor Longo President’s Report Rob Hatefi Nominating Committee Report Shilvi Leinwand Other Business Ivor Longo Q & A Ivor Longo Closing Remarks/Adjourn Meeting Ivor Longo Prize Drawing
Board of Directors Ivor Longo Chairman Karen Brey Vice Chairman Nick Nichols Chief Financial Officer Margaret Sherrod Chief Recording Officer Anita DeMyers Board Member Cameron Tyer Board Member Chris Nolan Board Member Katherine Fithen Board Member Mike Gregorio Board Member Livingstone Johnson Board Member Michael La Kier Board Member Shilvi Leinwand Board Member Peter Pearson Board Member
Ivor Longo - Board Chairman
Karen Brey – Vice Chairman
Nick Nichols – Chief Financial Officer
Margaret Sherrod - Chief Recording Officer
Anita DeMyers – Board Member
Cameron Tyer – Board Member
Katherine Fithen – Board Member
Mike Gregorio – Board Member
Livingstone Johnson – Board Member
Michael La Kier – Board Member
Shilvi Leinwand – Board Member
Chris Nolan – Board Member
Peter Pearson – Board Member
Board Committees • Finance Committee • Supervisory Committee • Committee on Directors Committee • Marketing Committee • Loan Review Committee • Technology/ Security Committee • Advisory Council Committee • Membership Committee • Personnel Committee • Contract Review Committee
Annual Meeting Minutes Approval of Annual Meeting Minutes Chief Recording Officer, Margaret Sherrod
Annual Meeting Minutes
Supervisory Committee Report Supervisory Committee Chairman Karen Brey
Chairman’s Report Board Chairman Ivor Longo
Chairman’s Message
President’s Report Statement of Condition EARNINGS RATIOS 2016 2015 2014 Yield on average Loans 4.2% 4.2% 4.3% Yield on Investments 1.3% 1.0% 0.6% Gross Income/Average Assets 4.0% 3.9% 3.8% Cost of Funds 0.1% 0.1% 0.1% Net Interest Margin 3.0% 2.9% 2.8% Operating Expense Ratio 3.3% 3.4% 3.4% Return on Average Assets 0.6% 0.3% 0.3%
Financial Ratios 2016/2015 2015/2014 Growth Growth 2014 2016 2015 Total Loans $ 115.5 4.7% $ 110.3 3.4% $ 106.7 Total Investments $ 64.4 10.8% $ 58.1 0.3% $ 57.9 Total Assets $ 182.0 7.2% $ 169.7 2.5% $ 165.5 Total Shares $ 164.1 7.7% $ 152.4 3.6% $ 147.1 Total Equity $ 14.8 -1.3% $ 15.0 0.7% $ 14.9 Net Worth Ratio 9.0% -1.1% 9.1% 1.1% 9.0% Loan to Share Ratio 70.4% -2.2% 72.0% -1.0% 72.7% Total Number of Members 14,115 0.2% 14,088 -0.6% 14,177
Financial Results 2016/2015 2015/2014 2016 2015 2014 EARNINGS (in thousands) Growth Growth Operating Income $ 7,100.2 8.1% $ 6,568.9 5.1% $ 6,247.9 Provision for Loan Losses 146.6 -57.2% 342.2 255.7% 96.2 Operating Expenses 5,866.2 3.9% 5,645.2 2.1% 5,530.4 Dividend Expense 176.3 9.4% 161.1 -0.7% 162.3 Net Income from Operations 911.1 116.7% 420.4 -8.4% 459.0 Non-Operating Gains/(Losses) 60.4 57.7% 38.3 - Net Income 971.5 111.7% 458.8 0.0% 459.0
Nominating Committee Report Nominating Committee Chair Election of Board of Directors
Other Business Old Business New Business
Closing Remarks Chairman’s Closing Comments
Prizes Eligibility • Member in Good Standing • Must attend meeting via Open meeting • Board, volunteers and staff are not eligible Money will be transferred into winners’ account today 3 rd Prize $ 50 2 nd Prize $100 1 st Prize $150
Thank You & Have a Great Day creditunion.coca-cola.com
Statement of Income for the years ended December 31, 2016 & 2015 2016 2015 Change % Income Interest Income $ 5,425,357 $ 5,076,104 $ 349,253 6.9 % Other Income 1,674,812 1,492,845 181,967 12.2 % Total Income 7,100,169 6,568,949 531,220 8.1 % Expenses Salaries & Benefits 3,362,895 3,270,812 92,083 2.8 % Office Operations 2,401,047 2,316,316 84,731 3.7 % Provision for Loan Losses 146,617 342,209 (195,592) (57.2)% Other 96,124 52,069 44,055 84.6 % Total Operating Expenses 6,006,683 5,981,406 25,277 0.4 % Income Before Dividends & Interest 1,093,486 587,543 505,943 86.1 % Dividends & Interest Expense 182,376 167,122 15,254 9.1 % Net Income from Operations 911,110 420,421 490,689 116.7 % Non-operating Gains/(Losses) 60,387 38,335 22,052 Contribution to Capital Reserves $ 971,497 $ 458,756 $ 512,741 (111.8)%
Statement of Financial Condition as of December 31, 2016 & 2015 2016 2015 Change % Assets Cash and Cash Equivalents $ 12,538,171 $ 20,052,201 $ (7,514,030) (37.5)% Loans to Members 115,920,210 110,303,151 5,617,059 5.1 % Less: Allowance for Loan Losses (800,584) (957,397) 156,813 (16.4)% Net Loans 115,119,626 109,345,754 5,773,872 5.3 % Government Securities and Certificates of Deposit 51,425,822 37,732,410 13,693,412 36.3 % Other Investments 5,135 1,121 4,014 358.1 % Less: Allowance for Investment Losses - - - - Total Investments 51,430,957 37,733,531 13,697,426 36.3 % Other Assets 2,953,878 2,527,390 426,488 16.9 % Total Assets $ 182,042,632 $ 169,658,876 $ 12,383,756 7.3 % Liabilities & Equity Liabilities Share Accounts and Certificates $ 91,767,724 $ 82,707,502 $ 9,060,222 11.0 % Checking Accounts 46,971,001 44,924,323 2,046,678 4.6 % Money Market Accounts 22,446,023 21,885,754 560,269 2.6 % IRA Accounts 2,958,880 2,870,451 88,429 3.1 % Total Shares 164,143,628 152,388,030 11,755,598 7.7 % Accounts Payable and Other Liabilities 3,107,080 2,223,802 883,278 39.7 % Total Liabilities 167,250,708 154,611,832 12,638,876 8.2 % Equity Regular Reserves 2,074,762 2,074,762 - 0.0 % Undivided Earnings 14,257,277 13,285,780 971,497 7.3 % Unrealized Gains (Losses) on Available for Sale Securities (1,540,115) (313,498) (1,226,617) 391.3 % Total Equity 14,791,924 15,047,044 (255,120) (1.7)% Total Liabilities & Equity $ 182,042,632 $ 169,658,876 $ 12,383,756 7.3 %
Assets vs Capital $200.0 $182.0 $180.0 $169.7 $165.5 $163.1 $157.5 $160.0 $140.0 (in Millions) $120.0 $100.0 $80.0 $60.0 $40.0 $14.9 $15.0 $14.8 $20.0 $14.5 $13.6 $- 2012 2013 2014 2015 2016 Year Assets Equity
Loan Growth $80.0 $115.9 $100.5 $110.3 $99.6 $ 106.7 $70.0 $68.8 $70.0 $64.4 $60.4 $59.2 $60.0 $50.0 Loans (in Millions) $40.0 $34.0 $32.9 $30.7 $29.9 $29.5 $30.0 $20.0 $10.0 $7.3 $7.2 $6.8 $6.3 $5.7 $6.2 $5.3 $3.3 $2.6 $2.5 $- 2012 2013 2014 2015 2016 Year Auto Loans Real Estate Credit Cards Other
Share Growth $164. $152.4 $147.1 $141.7 $146.4 $180.0 $3.0 $160.0 $2.9 $22.4 $3.0 $3.3 $3.4 $21.9 $140.0 $23.2 $27.6 $29.5 $120.0 $47.0 Shares (in Millions) $44.9 $38.0 $34.7 $100.0 $31.7 $80.0 $60.0 $91.2 $82.5 $82.1 $80.6 $76.9 $40.0 $20.0 $- 2012 2013 2014 2015 2016 Year Savings Checking Money Market Share Certificates IRA's
Allowance for Loan Loss Secured $123.0 15% Unsecured $98.1 Real Estate 12% $450.5 56% Credit Cards $134.3 17% Secured Unsecured Credit Cards Real Estate
Executive Management Team
Finance Team
Lending Team
Marketing Team
Sales and Service Team
IT Team
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