ANNUAL REPORT
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2022 Annual Meeting Agenda I. Call Meeting to order II. Ascertain that a quorum is present III. Appoint Recording Secretary and establish rules and procedures for Meeting IV. Minutes of the 2021 Annual Meeting V. Reports A. Board of Directors—Lanny Wadle B. President—Gary Whitcomb VI. Unfinished Business, if any VII. New Business VIII. Report of Nominating Committee IX. Elections X. Door Prizes XI. Adjourn
2021 Annual Meeting Minutes Chairman Wadle presented the minutes from the 2020 Annual Meeting. The minutes were provided to all registered participants via email prior to the meeting and were available through the online chat feature. Chairman Wadle asked if there were any corrections to the minutes as presented. Hearing none, the minutes were approved by acclamation.
Credit union employees were labeled essential and that PECU’s branches have remained open throughout the pandemic, as closure was not an option. He proceeded to express his appreciation to all employees and gave examples of how PECU’s commitment to its members and their service allowed members to transact business safely while successfully meeting their needs. Mr. Whitcomb then discussed the credit union’s commitment to leveraging technology to enhance the member experience. This includes increasing ease of access to the credit union and enhancing safety and security. Public Employees Credit Union performed well financially in 2020. Members conservatively saved their money as total member deposits grew $44.8 million and total assets increased $48.2 million to end 2020 at $398.8 million. Mr. Whitcomb stated that the credit union loaned out $110 million to members in 2020 and that all these accomplishments were because of member support and loyalty. In closing, Mr. Whitcomb thanked the Board and staff, but most importantly the members—who are the be all and end all of the credit union, and who drive its success.
Unfinished Business There were no items of unfinished business.
Reports
New Business
Chairman Wadle referred to the Board of Directors report as contained in the Annual Report. He commented that the past year has been challenging due to the ongoing pandemic, but that PECU has adapted and maintained the excellent member service that all have enjoyed for years. While lobbies have remained closed except for appointments only, more members are utilizing the drive-thru lanes and electronic channels to conduct their business. Chairman Wadle then mentioned that Texas has 437 credit unions with assets of more than $124 billion and that PECU was a well-capitalized institution with assets growing nearly $50 million in 2020 to end the year at just over $398 million. In closing, he referenced that the Board was humbled by the trust members placed in them and that they ensured that the management team was competent, qualified and trustworthy and thanked the leadership for their wisdom and guidance they provided to the Board and for the commitment of staff.
There were no items of new business.
Gary Whitcomb, PECU President, presented the President’s Report. He began by welcoming everyone to PECU’s 68th annual meeting. Mr. Whitcomb discussed the challenges of the COVID-19 pandemic and that the health and safety of members and employees was of primary importance.
The meeting was adjourned at 5:25 p.m.
Report of the Nominating Committee Chairman Wadle called upon Claire McGuinness, PECU’s Treasurer, to give the report of the nominating committee. She reported that there were two (2) vacancies on the Board and that current Board member Lawrence (LC) Wadle and new Board member Leonard Reese were elected for 3 year terms. As there were no objections, the motion of the nominating committee was approved.
Door Prizes Twenty door prizes of $25.00 were awarded to attendees based upon random drawings.
Meeting Adjourned Board of Directors Report Thank you for joining us. We’d like to welcome you to PECU’s 69th Annual Meeting. We greatly appreciate each
and every one of you for choosing our credit union, utilizing our products and services, and being a loyal member-owner of this financial institution. We’re honored that you’ve chosen PECU. Now, more than ever, Public Employees Credit Union is here to help you. We’ve assisted State of Texas employees and members of the community with their financial services needs since 1952. We always strive to provide quality financial products and services at the greatest value to our members in a professional and personal manner while maintaining financial strength and stability. During 2021, PECU remained resilient for our members, our employees, and our community despite the unprecedented challenges presented by the pandemic. Through one of the toughest periods in recent history, PECU has persevered and grown. We accelerated technology enhancements, improved digital capabilities, and worked to better serve you. This included granting loan extensions, offering skip-a-pays, deferring payments, and increasing member financial educational efforts. At PECU, we measure success not just by financial results, but also by how many people we’ve helped. This “people helping people” philosophy is the heart of the credit union difference. All of our members have at least $500,000 of their deposits insured by the federal government and a private insurer. Each member’s deposits are insured up to $250,000 and are backed by the full faith and credit of the United States government. PECU purchases another $250,000 per member of private insurance at no cost to our members.
interest rates, higher dividend rates, or additional services. PECU is here to help you achieve and enhance your financial well-being in 2022 and beyond. On behalf of our dedicated employees and Board of Directors, we send you our heartfelt thanks and best wishes for a prosperous 2022.
Board Members Lanny Wadle, Chairman Hal ten Brink, Chairman Emeritus Claire McGuinness, Vice Chairman Tommy Gregg, Secretary LC Wadle, Treasurer Patrick Marotta, Assistant Treasurer Leonard Reese, Assistant Secretary
Audit Report An annual financial audit is conducted by Nearman, Maynard, and Vallez, a certified public accounting firm. Nearman, Maynard, and Vallez also conducts internal audits throughout the year. Periodic examinations are conducted by the Texas Credit Union Department, the regulatory agency for all state charted credit unions, and the National Credit Union Administration (NCUA). Board and Management is pleased to report that PECU continues to operate in a financially sound manner and has appropriate risk management controls in place.
Our credit union and our industry remain strong. Texas has 430 federally and state-chartered credit unions with 1,615 branches, nearly 9.7 million members, and total assets of more than $137 billion. Across our great state, there are 26,243 full and part-time credit union employees. These figures reflect a robust and healthy credit union system. PECU is an integral part of that robust and healthy credit union system. Our total assets at the end of 2021 grew to more than $460 million. This is an increase of $62 million over the past year. Your credit union continues its steady trajectory forward and upward. The Board would like to thank the employees of PECU for their dedication and tireless efforts in serving the members of PECU. Your Board of Directors is comprised of unpaid volunteers who want you and our local economy to succeed. We are a non-profit financial institution that returns profits earned back to you, the member and owner, in the form of lower
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BALANCE SHEET (as of December 31, 2021)
ASSETS
2021
Loans Personal Loans Real Estate Loans Allowance for Loan Loss Net Loans Cash, on hand
135,478,720 68,171,183 (621,615) 203,028,288 1,384,112
Investments Marketable Securities
137,010,390
Catalyst Corporate Credit Union
105,880,879
Nat’l Credit Union Share Insurance Fund
3,497,164
Other Investments
2,792,259
Total Investments
249,180,692
Other Assets Land and Building
5,122,690
Other Fixed Assets
327,793
Accrued Interest
708,038
Deferred Assets
396,362
Other Assets TOTAL ASSETS
744,169 $460,892,144
LIABILITIES Accrued Interest and Dividends
70,931
Accounts Payable
424,481
Accrued Expenses
325,453
Other Liabilities
205,675
Dormant Accounts SHARES AND DEPOSITS
82,772 420,209,319
EQUITY Reserves & Undivided Earnings TOTAL LIABILITIES AND EQUITY
39,573,514 $460,892,144
INCOME STATEMENT (as of December 31, 2021)
INCOME Interest on Loans Income from Investments Fee and Other Income Non-Operating Income TOTAL INCOME
2021 7,668,814 859,127 2,087,927 0 10,615,868
EXPENSES Employee Compensation and Benefits Travel and Conference Expense Office Occupancy Expense Office Operations Expense Educational and Promotional Expense Loan Servicing Expense Professional & Outside Services Provision for Loan Losses Supervision & Examination Miscellaneous Expenses
4,444,608 14,320 733,262 1,333,270 181,475 222,085 425,731 (235,924) 34,220 58,510
TOTAL EXPENSE
7,211,558
INCOME BEFORE DIVIDENDS
3,404,310
Dividends & Interest Expense
903,678
NET INCOME
$2,500,632
AT-A-GLANCE inin$1000's $1000's
2015 2015 475,000 2016 475,000 2016 450,000 2017 2017 450,000 2018 425,000 2018 425,000 2019 400,000 2019 400,000 2020 375,000 2020 375,000 2021 350,000 2021 350,000 325,000 325,000 300,000 300,000
inin$1000's $1000's
425,000 2015 425,000 2015 2016 400,000 2016 400,000 2017 2017 375,000 2018 375,000 2018 2019 350,000 2019 350,000 2020 325,000 2020 325,000 2021 2021 300,000
300,000 275,000 275,000
$1000's in in $1000's
2015 2015 2016 240,000 2016 240,000 2017 230,000 2017 230,000 2018 220,000 2018 220,000 2019 210,000 2019 210,000 2020 200,000 2020 200,000 2021 190,000 2021 190,000 180,000 180,000 170,000 170,000 160,000 160,000
in $1000'S in $1000'S
2015 2015 2016 39,000 2016 2017 39,000 2017 2018 34,000 2018 2019 34,000 2019 2020 2020 2021 29,000 2021 29,000 24,000 24,000
TOTALASSETS ASSETS TOTAL TOTAL ASSETS
310,089 310,089 326,729 326,729 336,920 336,920 339,009 339,009 350,675 350,675 398,848 398,848 460,892 460,892
2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 2021
TOTAL TOTALMEMBER MEMBERDEPOSITS DEPOSITS TOTAL MEMBER DEPOSITS 285,328 285,328 300,080 300,080 308,112 308,112 307,094 307,094 314,381 314,381 359,142 359,142 420,209 420,209 2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 2021
TOTAL TOTAL LOANS TOTALLOANS LOANS
175,100 175,100 195,362 195,362 216,290 216,290 233,855 233,855 224,309 224,309 220,191 220,191 203,650 203,650
2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 2021
NET NETWORTH WORTH CAPITAL CAPITAL NET WORTH CAPITAL 24,980 24,980 26,806 26,806 29,055 29,055 32,375 32,375 35,518 35,518 37,930 37,930 40,431 40,431
2015 2015
2016 2016
2017 2017
2018 2018
2019 2019
2020 2020
2021 2021
PECU GREATLY APPRECIATES YOUR MEMBERSHIP!