2020
AN N UAL REPORT
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We put your dreams within reach
Vision Bringing people together through innovation, convenience and trust to provide banking without limitations.
Mission Empowering people to explore their dreams.
Core Values 1
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We provide equal access and economic opportunity to our members.
We are committed to excellence both in service and innovation.
We believe in your financial success through empowerment and education.
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Chairman’s Message
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020 was a transformative year for every industry and business due to the COVID-19 pandemic; and it was no different for We Florida Financial. We stood ready to help you in these uncertain times proving that, as an organization, we are here for you always.
Despite the shutdown, we remained open to continue to offer financial services while meeting the CDC guidelines for social distancing with our Call 24, expanded drive-thru services and lobby appointments. To help reduce impacts of the pandemic, we quickly responded with assistance by funding over $600,000 in emergency relief loans and granting nearly 3,000 extensions. To do this, we had to find new ways to connect, so we went digital! We implemented electronic signatures for loan documents and new membership applications; and created an online response team to ensure that there was always someone available to answer your questions even if it wasn’t in person. In the spirit of people helping people, in February, we announced a new program for individuals with no established credit history. The First-Time Car Buyer Program gave successful candidates $1,000 towards their down payment and helped get people back on the road during a time when a car was critical. Despite these trying times, We Florida Financial secured a 5-star “Superior” rating from BauerFinancial, the nation’s leading bank and credit union rating and research firm. A 5-star rating indicates that the credit union excels in the areas of capital adequacy, asset quality and more. We also received our certification by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI). CDFIs are mission-driven financial institutions dedicated to providing services to meet the needs of economically disadvantaged individuals in underserved communities. In order to become a CDFI, a financial institution must have a primary mission of promoting community development, providing financial services, must serve one or more defined low income target markets, maintain accountability to the community it serves and be a legal non-governmental entity. 2020 was also a year of new leadership. The Board of Directors appointed Robert D. Ramirez as the new President and CEO to grow its mission of community service and financial inclusion. Looking back, it was a year of uncertainty and growth. In addition to our strong fiscal standing, we are proud of the fact that our credit union remains fully committed to supporting the local community with affordable products. Despite the challenge of this particular time, our financial strength and the support of our members will move us forward and enable us to continue on our mission of service for many years to come. Sneeze guards, floor stickers, and face masks aside, the aim is to continue to have a wonderful member experience and to make sure we are looking at new and better ways of meeting your individual financial needs. When we do get back to our new normal, whatever that is, one thing is clear: we must keep moving forward. On behalf of your Board of Directors, thank you for your support in 2020. We can’t wait to see what 2021 brings.
Damon R. Adams
Damon R. Adams, Chairman of the Board
President’s Message
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ur world changed with the unprecedented events of a pandemic, and at We Florida Financial, we were prepared and supportive of health authorities’ requests for social distancing while focusing our efforts to meet the needs of our members, the community we serve and our most important asset, our dedicated employees. We assisted our members facing financial challenges due to the pandemic and we provided a full array of options to meet the needs of our membership, including new branch hours, special services loan programs, digital banking options, and ATMs. Our members continued to have access to their accounts online 24/7 with our We Florida Financial mobile app. As part of our program to assist our members, we made every effort to waive fees in order to provide our members relief from their financial challenges. We also offered the following special loan programs: • Deferred loan payments for 60 days • Emergency relief loans for members up to $2,500 and no payments for 90 days • Mortgage loan payment extensions • Credit card extensions • Student loan extensions • Auto loan extensions Despite the financial lows of 2020, We Florida Financial continued to focus on being financially fit. We saw total assets of $592M and total member deposits of $530M both an increase from 2019. Total member equity saw a 3.6% increase in 2020 ending the year at $54M. Moreover, Net Income ended the year at $1.7M while total member loans ended the year at $412M. Despite the changes 2020 brought, one thing remained the same, our commitment to the philosophy of people helping people. It was kept alive through the everyday interactions that we had with our members struggling through this pandemic. I personally subscribe to a philosophy that my mother instilled in me as a young child, “in order to get something you have to give something”. I am very proud of our team’s effort during this pandemic, they gave their time and energy to ensure that offering assistance to our members’ who faced financial challenges became our number one priority. In closing, I want to reassure you that we have been proactive in assisting you and the communities that we service by remaining open and offering financial assistance to those in need. As we embark on a new journey together in 2021, we will continue to bring people together through innovation, convenience and trust while empowering people to explore their dreams!
Robert D. Ramirez
Robert D. Ramirez, President /CEO
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Striving to be a Partner, Advocate & Leader for our Communities’ Condition COMMUNITY RELATIONS
Since 1952, employees at We Florida Financial have come together to support local charities and organizations in the state of Florida. The entire staff at We Florida Financial has a sense of pride and an internal drive to help our communities – that’s a big part of our DNA. The credit union’s management provides support but also participates in many of the activities. Employees are encouraged and supported to provide volunteer help and to become one with the community. We are certified by the US Department of the Treasury as a Community Development Financial Institution dedicated to providing services to meet the needs of economically disadvantaged individuals in underserved communities. This helps with programs that generate muchdesired loans, financial education, debt counseling and community development. We deliver financial literacy classes to youth and adults, host lunch-andlearns with Business Partners and provide other educational activities to empower our neighbors. In 2020, a year of hard times, we focused our efforts on fundraising for local food banks by raising money for The Pantry of Broward and Feeding Florida.
Loan and Share Growth 2015-2020 $450,000,000
LOAN GROWTH 2020
$400,000,000
408
$350,000,000
$
$300,000,000
million
$250,000,000
$200,000,000
2015
2016
2017
2018
2019
2020
$550,000,000
$500,000,000
SHARE GROWTH 2020
530
$
$450,000,000
$400,000,000
million
$350,000,000
$300,000,000
2015
2016
2017
2018
2019
2020
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Equity and Asset Growth 2015-2020 $55,000,000
EQUITY GROWTH 2020
$53,000,000
53.6
$
$51,000,000
$49,000,000
million
$47,000,000
$45,000,000
2015
2016
2017
2018
2019
2020
$650,000,000
$600,000,000
$550,000,000
592
$500,000,000
$
$450,000,000
$400,000,000
$350,000,000
$300,000,000
ASSET GROWTH 2020
2015
2016
2017
2018
2019
2020
million
Share, Asset and Loan Mix 2020 All Other Certificates
17.21%
IRA Certificates
4.51% Shares
50.38%
Money Market
12.26%
IRA Shares
1.15%
Club Accounts
4.96%
NCUSIF Deposit Share Drafts
9.53%
0.83%
Prepaid Expenses and Other Assets
2.69%
Cash and Equivalents
Property and Equipment (NET)
3.66%
11.27%
Accrued Interest Receivable
0.21%
Total Investments
12.21%
Loans Held for Sale
0.14% Member Business Loans
1.07%
Credit Card Loans
3.76%
Misc & Other Loans
14.82%
Other Unsecured Loans
1.76%
The College Network Loans
0.15%
New Vehicle Loans
20.36%
Loans receivable (Net of allowance for loan losses)
68.99%
Other Real Estate Loans
10.24%
First Mortgage Loans
17.54%
Used Vehicle Loans
30.30%
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Financial Condition YEAR END 2020 AUDITED
AUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION ASSETS
Year-End 2020
Year-End 2019
$66,602,460
$28,012,629
137.76%
Available-for-sale
61,788,530
20,983,238
194.47%
Other
10,360,701
4,530,496
128.69%
813,800
316,000
157.53%
408,191,057
415,294,783
-1.71% -2.84%
ASSETS Cash and equivalents
% of Change
Investments
Loans held for sale Loans receivable (Net of allowance for loan losses) Accrued interest receivable Property and equipment (Net) NCUSIF deposit Other real estate owned Notes receivable Company owned life insurance
1,192,452
1,227,253
15,898,875
16,680,220
-4.68%
4,883,678
4,403,735
10.90%
0
0
NA
6,284,119
6,124,442
2.61%
10,638,804
10,362,121
2.67%
Intellectual properties
0
117,500
-100.00%
Core deposit intangible
0
78,506
-100.00%
4,663,305
4,590,102
1.59%
$591,317,781
$512,721,025
15.33%
Prepaid expenses and other assets TOTAL ASSETS LIABILITIES AND MEMBERS' EQUITY Members' Share and savings accounts
$529,650,852
$446,830,759
18.54%
Borrowed Funds
5,100,000
10,000,000
-49.00%
Accounts Payable
1,803,984
2,283,178
-20.99%
2,530
2,389
5.90%
1,015,413
1,734,108
-41.44%
$537,572,779
$460,850,434
16.65%
$0
$0
0.00%
$13,648,950
$13,648,950
0.00%
39,958,420
38,287,378
4.36%
137,632
-65,737
309.37%
$53,745,002
$51,870,591
3.61%
$591,317,781
$512,721,025
15.33%
Dividends Payable Other Liabilities TOTAL LIABILITIES COMMITMENTS AND CONTINGENT LIABILITIES MEMBERS' EQUITY, SUBSTANTIALLY RESTRICTED Appropriated regular reserve Unappropriated undivided earnings Accumulated other comprehensive income TOTAL MEMBERS' EQUITY TOTAL LIABILITIES & MEMBERS' EQUITY
AUDITED CONSOLIDATED STATEMENT OF INCOME & EXPENSES
INTEREST INCOME Interest on loans Interest on investments TOTAL INTEREST INCOME INTEREST EXPENSE Dividends on members' share and savings accounts Interest on borrowed funds TOTAL INTEREST EXPENSE NET INTEREST INCOME PROVISION FOR LOAN LOSSES
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES NON-INTEREST INCOME Service fees & miscellaneous income Net gain on disposition of investments Net gain on sale of property and equipment Net gain on sale of other real estate owned TOTAL NON-INTEREST INCOME NON-INTEREST EXPENSE General and administrative expenses Compensation and employee benefits Office operations and occupancy Supervisory Fees Other Net loss on repossessed taxi medallions Net loss on repossessions Net loss on disposition of investments TOTAL NON-INTEREST EXPENSE NET INCOME (LOSS)
Year-End 2020
Year-End 2019
% of Change
$17,167,762 783,858
$18,163,014 1,256.695
-5.48% -37.63%
$17,951.620
$19,419.709
-7.56%
$2,153,308 37,752
$2,128,420 78,772
1.17% -52.07%
$2,191,060 $15,760,560 $2,642,076
$2,207,192 $17,212,517 $3,796,189
-0.73% -8.44% -30.40%
$13,118,484
$13,416,328
-2.22%
$10,748,159 0 0 8,488
$12,772,357 626,868 0 0
-15.85% -100.00% 0.00% 100.00%
$10,756,647
$13,399,225
-19.72%
$10,029,227 11,600,393 110,198 236,074 228,197 0 0
$11,192,033 12,093,762 106,142 515,247 349,691 2,250 0
-10.39% -4.08% 3.82% -54.18% -34.74% -100.00% 0.00%
$22,204,089
$24,259,125
-8.47%
$1,671,042
$2,556,428
-34.63%
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2020 Board of Directors and Senior Management BOARD OF DIRECTORS Damon R. Adams, Chairman Ingrid Fils, Vice Chair Mary Ann LaRock, Treasurer Marcia Oban, Secretary Dorothy Cleveland, Director Mack MacVicar, Director Henry Prior, Director
Robert Ramirez, President/CEO
Stephen Spooner,
Rachel Schaming, Vice President of Human Resources
Dawn Clark,
SVP & Chief Financial Officer
Vice President of Marketing
Jerry Ryan,
Janna Simon,
Vice President of IT & Security
Vice President of Consumer & Business Loans
2020 By The Numbers CALL CENTER TRANSACTIONS
104,200 EMERGENCY RELIEF LOANS
$ 608,000 LOAN EXTENSIONS
2,659
CONSUMER LOAN AMOUNTS
MORTGAGES LOANED
$ 41.6 WEBSITE VISITS
1.6M SOCIAL MEDIA IMPRESSIONS
438,263
$ 87M
DELWIN S. • WE FLO R ID A FI N AN CI AL As a CEO for 17 years, I am extremely passionate about customer service. Supervisor Patti Padilla is very special. Her phone voice and tone, follow-up and her determination to resolve your issue was exceptional. You could tell she truly enjoyed helping people. Ms. Padilla is really committed to outstanding service.
KWANNA G. • WE D R IVE CAR PUR CH ASE I would recommend the whole world to WeDrive and We Florida Financial. This establishment is like family. They care, are very courteous, loving and kind - most of all, they are understanding. They go above and beyond to make it happen. If anyone needs a car, WeDrive is the place to go. Bad credit, good credit, or no credit. They will make it happen just the way you want.
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Independent Auditor’s Report Report on the Financial Statements
We have audited the accompanying consolidated financial statements of We Florida Financial and Subsidiary, which comprise the consolidated statements of financial condition as of December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, changes in members' equity and cash flows for the years then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such
The consolidated financial statements in all material respects ended in accordance with accounting principles generally accepted in the United States of America.
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of estimates made by management, as well as, evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of We Florida Financial and Subsidiary as of December 31, 2020 and 2019, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Report on Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the basic financial statements as a whole. The supplementary information on pages 41 through 43 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Pensacola, Florida March 23, 2021
Board of Directors We Florida Financial Report on the Financial Statements We have audited the accompanying consolidated financial statements of We Florida Financial and Subsidiary, which comprise the consolidated statements of financial condition as of December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, changes in members' equity and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; 15this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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