Community Strong Since 1941
2016
BOARD OF DIRECTORS
John Paul McGee, Chair
A. Roy Dunn Jr., Vice Chair
Sadie Hawkins, Secretary/Treasurer
Barbara Oliver
Curt Stracke
Amy Thomason
Paul Wing
Annual Report
SUPERVISORY COMMITTEE
Juli Tuson, Chair
Jim Pentony
Keith Simmons
Patti Woods
AUDITOR’S REPORT
We were engaged by the Supervisory Committee of Our Community
Credit Union to assist the Committee in satisfying its responsibility for
performing an annual audit of the Credit Union’s financial statements as
of June 30, 2016 and for the twelve months then ended.
We completed our audit of the Credit Union’s financial statements as
of June 30, 2016 and for the twelve months then ended and issued an
unqualified opinion in our report thereon, dated October 27, 2016. We
also formally presented the results of our opinion audit to the Supervisory Committee during the year. The December 31, 2016 financial
information accompanying this annual report is unaudited.
Roger A. Jones, CPA
Managing Partner
Jones & Sas LLC
SUPERVISORY COMMITTEE REPORT
The Supervisory Committee represents the Credit Union members in
the oversight of the internal auditing functions and process as internal auditors. The Committee’s key responsibility is to determine that
accounting records and reports accurately reflect operations and that the
Credit Union’s established policies are followed.
During 2016, audits were performed by a qualified, contracted internal
auditor with oversight by the Supervisory Committee as well as independent certified public accountants. As a result of this year’s activities we
have determined that your Credit Union is in compliance with generally
accepted accounting principles and that the affairs of the Credit Union
are being properly handled.
Juli Tuson
Corporate Office: 526 W Cedar Street, Shelton, WA 98584
Mailing Address: PO Box 1670, Shelton, WA 98584-5002
Toll Free: 800. 426.5657
Local: 360.426.9701
Corporate Fax: 360.427.3414
www.ourcu.com
Simpson Logging Camp #3
Joint Report from the President and the Board Chairman
T
Financial Statements
STATEMENT OF
FINANCIAL CONDITION
ASSETS
Loans
2016
2015
156,256,644.04 136,371,691.34
Cash, Government Securities
and Other Investments
167,485,482.97 166,468,012.02
Furniture, Fixtures,
Accounts Receivable, Other Assets
2,361,565.23 1,581,447.07
Land and Buildings
6,877,039.21 6,703,622.44
(1,165,498.04)
(1,401,769.67)
331,815,233.41 309,723,003.20
Allowance for Loan Losses
Total
LIABILITIES & EQUITY
Dividends Payable to Shares
97,805.62 94,317.38
Other Liabilities
13,034,290.45 7,347,852.43
Undivided Earnings & Reserves
37,943,388.53 35,737,487.42
IRA, Checking, Share Certificates,
and Regular Shares
280,739,748.81 �266,543,345.97
Total
331,815,233.41 309,723,003.20
STATEMENT OF
INCOME & EXPENSES
Income
Interest On Loans
7,685,873.57 7,431,903.64
Investment Income
4,731,148.44 4,608,272.49
Other Income
3,962,616.23 3,649,529.10
Total Income
16,379,638.24 Expenses Operating Expenses
13,049,492.56
Dividends Paid to Members
Net Income from Operations
15,689,705.23
11,548,262.17
1,124,244.57
1,115,606.03
2,205,901.11
3,025,837.03
o our valued members and all others in the communities we serve, the following is a
summary of key operational highlights, financial results and other notes of interest
over the course of 2016 at Our Community Credit Union.
2016 proved to be a solid year, financially, for OCCU. The economy, as a whole, continued
to sputter and this proved even more so in the communities OCCU directly serves, where our
members continue being challenged during these times. Through all of this, Our Community
Credit Union continues to remain financially strong and stable; we realized membership
growth of 4% and asset growth of 7% over the past year. The following provides an overview
of the 2016 financial and community achievements of OCCU.
OCCU performed well financially throughout 2016 despite a continually challenging,
economic environment. We finished the year with a net gain of $2,206,000, compared to a
net gain of $3,026,000 in 2015, and $37,943,000 in capital (equaling 11.44% of all OCCU
assets). In addition, we ended the year with $15,000,000 more in capital than required by our
regulator. Federal and state regulators consider a credit union “well-capitalized” at 7%. We are
extremely proud that we were able to accomplish this during such challenging economic times.
OCCU realized loan growth of 15% for the year 2016 and our loan delinquency finished
at 0.27%, down from the 0.48% in 2015. Our reserve for loan loss finished the year with a
surplus of 23% over the regulatory mandated minimums, which we use to help insure against
potential future losses.
2016 also saw OCCU receive the following awards: “Best Credit
Union” in Mason County by Mason County Journal reader’s choice,
we were named the 93rd Healthiest Credit Union in America (out
of 6,550) by DepositAccount.com and we received a 5-Star Credit
Union rating (the highest rating available) from Bauer Financial, the
nation’s leading bank rating and research firm!
OCCU’s commitment to the local community and our
membership remained firm in 2016.
Our employees embrace the term “community is in our name” in
Bert Fisher
their volunteer efforts. In a time when many institutions are cutting
President / CEO
back on community involvement, OCCU once again demonstrated
a strong resolve to share our time and talent.
Here are a few highlights:
• Once again, OCCU purchased an entire year’s supply of dog
food for the Mason County Sheriff’s K-9 unit. Their K-9 program
now advertises, “Our Dogs are Fueled by OCCU”.
• We purchased investigative hardware for the Shelton Police
Department.
• OCCU continues to offer scholarships to graduating
seniors in our local high schools. We actually increased the number
John Paul McGee
of scholarships awarded from 3 to 6!
Chair, Board of
• Our employees are actively involved in: the MGH
Directors
Foundation, Relay for Life (we sponsor a team), Toys for Kids,
Rotary, Lions Club, Oysterfest, Kiwanis, Chamber of Commerce, United Way, youth team
sponsorship, Mason Area Fair, volunteer coaching of assorted sports and many, many more
activities.
Community is in our name and, in that vein, OCCU will continue to represent and execute
this commitment to the highest standard possible. Our employees finished the year giving over
1900 hours of their time to more than 45 different organizations.
OCCU continues to expand and upgrade member services in our commitment to you, our
members, to provide industry-leading products and services. Highlights include the launch
of our new mobile app and online live chat, e-Statements, online account opening, online
banking upgrades, shared branching, e-Checking, Online payments for loans, Cyber security
focus and much more. The technological aspect of the financial industry also continues to
evolve and change at an accelerating pace and OCCU is firmly committed to keep pace with
the changes, while protecting your personal information.
Our Community Credit Union houses two business units to help serve our membership
with financial advisement and mortgage originations.
The Community Financial Center is run by our Financial Advisor Mark Mager, who has
been with us for 12 years. Mark holds a “Masters of Science in Financial Services” degree
(MSFS), which required an intensive 3-year educational program focusing on annuities, estate
and financial planning, investments, mutual funds, portfolio management and more. As a
direct result of his integrity and character, Mark’s business continues to grow through these
challenging economic times, and he continues to be a shining star in this industry.
The Community Mortgage Center continues to engage with reputable business partners
in order to bring you updated products and services to meet your mortgage needs. These
include: VA, FHA, USDA zero down and assorted land and Home Equity Line of Credit
(HELOC) options. Jolyn Southwick, our in-house mortgage professional, will be retiring in
the 1st quarter of 2017. Renee West, a longtime, very experienced employee will take Jolyn’s
place. Renee is highly capable, knowledgeable and committed to professional and personal
caring service while finding affordable solutions for our members.
As we look ahead in 2017, we foresee some of the same challenges that faced us in 2016.
The economy continues to show slow and inconsistent progress. Sierra Pacific Industries is on
pace to open up their new waterfront mill in Shelton in early 2017. The areas we serve continue
to have almost double-digit unemployment and, hopefully, 2017 will see this reduced a bit.
OCCU will continue to be challenged by low loan demand, limited investment options,
increased expenses, card breaches, cyber-security issues, delinquency and charge-off issues in
addition to low interest rates. Our 2017 business plan addresses these challenges. We believe
our financial plan is very achievable and will maintain our ability to offer and provide full
member service to our existing and prospective members.
During the 2nd or early 3rd quarter 2017, OCCU will open a new branch in the
Steamboat Square location right off Highway 101. This will be our first branch in
Thurston County, giving us a great opportunity to continue to connect our footprint
with our ever-expanding membership base. Membership fact: 20% to 50% of our new
members every month come from word of mouth, so please start spreading the word!
In closing, we are grateful to all of our employees for their continued passion,
dedication and commitment towards implementing our brand of “personal,
professional, caring service” with each member or potential member encountered. We,
also, wish to thank our Board of Directors and Supervisory Committee volunteers for
their tireless efforts throughout the year in providing strong governance and leadership
to Our Community Credit Union. Finally, and most importantly, many thanks to
you, our Members… we realize each of you has many choices as to which financial
institution to use and we are grateful that you have chosen Our Community Credit
Union for your financial needs.