February 17, 2010
PROXY REPORT:
As of December 31, 2009 we had a total of $11,642,339.51 in shares, equaling a total of 465,696 proxies. The Board of Directors holds 371,667 of those shares, which represents 79% of all shares.
CHAIRPERSONS REPORT:
I am pleased to welcome everyone to the 69th annual shareholders meeting of the ADM Credit Union.
This past year brought significant changes to the ADM Credit Union, foremost was moving the credit union to a new location. The relocation was part of a business strategy developed in 2008 by the board of directors in the effort to improve accessibility to our members. Additional decisions focused on providing new services to our members and marketing strategies to increase membership.
Efforts to increase our membership through promotional incentives and expanding our visible presence to potential members has resulted in a steady monthly increase. This increase although lower than hoped has seen our membership total surpass 3000, which was also a target goal established at the 2008 strategy session. We will continue to develop opportunities and evaluate promotional concepts to maintain this growth trend.
One year ago I reported that total assets of the ADM Credit Union surpassed $12 million at the end of 2008, growth continued during 2009, with total assets now over $14 million.
Even though the ADM Credit Union had gains in membership and rising total assets it did experience a decrease in net income for 2009.
As we face new challenges this coming year I am confident that the ADM Credit Union will continue to provide the excellent service our members have experienced in the past.
I want to thank the board, staff, and members for their support this past year and look forward to a successful 2010.
Sincerely,
Nick Charveron
Chairman – ADM Credit Union
TREASURERS REPORT:
2009 was a difficult year for our credit union, as it was for all financial institutions. We saw the conservatorship of US Central FCU, a wholesale credit union and Westcorp FCU, a corporate credit union in March of 2009. While this may seem far removed from Decatur, IL, the ramification were felt nationwide. The NCUA, our Federal Regulatory Agency and our Insurer mandated that we ‘write down’ a total of $64,194.65 for the Share Insurance Fund and $ 27,910.72 for Members Insurance Expense. Then in April we had to ‘refund’ the NCUA $20,324.11, for a grand total of expenses of $112,429.48.
In addition to the NCUA Stabilization funding, our own corporate credit union, Members United FCU, was affected by the conservatorship of US Central. In turn, we were affected, and our membership shares were decreased by, $70,732.82 a direct expense to our bottom line. I have spoken with our State examiner and he suggested that I allocate an additional $30,000 for 2010 for more NCUA expense. I have added this to our budget for 2010.
We have expensed out in excess of $180,000 during the year of which we had no control. While this has decreased our capital by 3.62%, we are still well capitalized at 17.63%.
CREDIT REPORT:
The Credit Union made 2128 loans for a total of $5,942,626.58
Our beginning VISA loans January 1, 2009- $129,899.64
Our ending VISA loans December 31, 2009 - $123,467.67
We denied 87 loans for a total of $753,225.49
SUPERVISORY COMMITTEE REPORT:
ADM Credit Union was audited by McGuire, Yuhas , Huffman & Buckley , P.C. and the findings were discussed at a January Board meeting. We have changed some procedures to follow recommendations by the auditors. We also will have bank statements sent to Supervisory committee and then turned over to Don. After January board meeting we did a cash count and found some reconciliation problems that were correct that day. we will make more surprise cash counts in the future.
MEMBERSHIP REPORT:
Starting Membership – 2839
New Members - 332
Withdrawn Member - 127
Net increase - 205
Ending Membership – 3044
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