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Statements of Income and Expense |
| The Report of the Board of Directors and Management for 2010 |
| It is our privilege to present the annual report and financial statements to the membership of Self Reliance New York Federal Credit Union. In 2010 the Credit Union completed its 60th year of continuous service to members and the community. On May 19, 1951, 37 members of the Self Reliance Association of American Ukrainians deposited $314.25 becoming members of the newly founded credit union. The chartering of Self Reliance New York Federal Credit Union as the first Ukrainian-American credit union represented a revival or perhaps a continuation of the Ukrainian credit union movement liquidated in Ukraine by the Soviet regime in 1944. In celebrating our 60th anniversary we pay tribute to the founders (truly pioneers) for their vision and understanding of the importance of the credit union as an economic base to promote the financial well being of its members and the community.
2010 in Review There were signs of the beginnings of an economic recovery in 2010. The S&P 500 was up more than 70% from its March 2008 low. Unemployment remains elevated, but jobs are being created again and both the manufacturing and service sectors are expanding. The country seems to have shifted from the crisis mindset of 2008 and 2009. However, the state of the housing market is a major driving factor behind the health of the economy and credit union soundness. The current tenuous economic recovery has been hindered by weak housing construction and sales while the erosion of home equity has had a significant negative impact on consumer confidence and consumer spending, also negatively impacting the economic recovery. We are pleased to report that in this challenging economic and competitive environment the Credit Union’s results for 2010 exceeded our expectations as we achieved record levels of assets, deposits, loans, capital and earnings. The Credit Union ended 2010 with assets of $779.8 million an increase of $52.7 million or 7.3% over December 2009. Net loans outstanding were $518.6 million, $17.1 million or 3.4% higher than year-end 2009. We will begin 2011 with a loan pipeline consisting of 37 residential loans for $7.0 million and 17 member business loans for $7.8 million. Deposits grew to $632.7 million which is an increase of $46.3 million or 7.9% reflecting the Credit Union’s above-market dividend rates on all deposit products. Excluding unrealized gains and losses, the Credit Union ended the year with equity capital of $144.8 million or 18.6% of assets. The weak economy and high unemployment has had an impact on members ability to meet their mortgage obligations. Delinquencies as a percentage of loans were 2.61% . The profitability picture was also very strong. Net income for the year was $7.7 million compared with $6.1 million in 2009. Driving the profitability increase in 2010 were increases in all income categories and lower divided expense offset by higher loan loss provisions. Operating expenses (excluding loan loss provisions, NCUA assessments and Corporate Credit Union investment capital write downs) increased only 1.8%. The Credit Union’s return on average assets was 1.02% in 2010 compared with 0.89% in 2009. Six hundred forty nine new members joined the Credit Union during 2010 and 629 ended their relationship with the Credit Union for a net increase of 20 members. During the year 108 member relationships were ended due to dormant accounts. The National Credit Union Administration has taken several actions which have negatively impacted our Credit Union’s net income. The Corporate Credit Union Stabilization Fund was created to absorb costs associated with stabilizing the troubled corporate credit union system. In addition, the NCUA has charged credit unions a premium to maintain appropriate reserves in the National Credit Union Share Insurance Fund. Lastly, we wrote down the remaining membership capital we held in our corporate (wholesale) credit union. The following chart shows the impact of the assessments and write downs in 2010 and 2009: 2010 2009 NCUA Corporate Credit Union NCUA Share Insurance Fund Members United Corporate Federal Credit Net Income After Extraordinary Items $7,671,035 $6,060,742 Return on Average Assets 1.02% 0.89% Return on Average Assets Before
Where Do We Stand For the past two years we have reported how Self Reliance New York Federal Credit Union ranks within the American credit union industry. We utilize statistics published by the credit union consulting firm of Callahan & Associates as reported in their annual review of the American credit union industry. This year we are proud to report that our credit union is among the top 5% of American credit unions in terms of size (total assets). Self Reliance New York Federal Credit Union is ranked 233rd of the 7,600 total credit unions in the United States.
Additionally, Self Reliance New York Federal Credit Union has been identified as a leader in seven important performance areas. The first three categories relate to the credit union’s lending activities. Our average loan balance of $93,239 is ranked 8th among American credit unions. Member business loans of $238,052,826 make our MBL portfolio the 19th largest among all credit unions. Finally, our concentration of real estate loans to total loans of 98.06% ranks us third among U.S. credit unions. Self Reliance (NY) Federal Credit Union has historically generated high average share balances per member as our members tend to be “savers”. At $42,287 average shares per member, we rank 10th among credit unions where the industry average is $8,595. The last three categories where our credit union has achieved impressive results are in operating efficiencies. Our Credit Union is ranked 28th in the country in terms of efficiency (operating expenses as a percentage of net interest income and non-interest revenue). Revenue per employee is $788,631 compared to $219,691 for the industry and assets per employee are $17,732,434 compared to $3,832,591 for all credit unions as a group. Our ranking is 15th and 20th respectively. It should be noted that in almost all of the identified performance categories our credit union’s results in 2010 exceeded our results in 2009. Organizational Changes Service to the Community One thing you, our members, can count on is Self Reliance New York Federal Credit Union’s formula for excellence. It’s a simple one: We provide our members with the best value, service and convenience possible. We work hard every day, as a team, to live up to that commitment and earn your trust. A trust we will never take for granted.
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Your
savings federally insured to at least $250,000 and backed by the faith and
credit of the United States Government National Credit Union Administration, a U.S. Government Agency |
