FLAGSHIP
STEWARDSHIP LEADERSHIP
FELLOWSHIP
PARTNERSHIP
OUR
Mission To serve as the primary financial partner with credit unions in providing superior products, services and support.
Table
OF CONTENTS Partnership:
Member Survey Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Fellowship: FORUM’19 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Leadership: Superior Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Stewardship: Enterprise Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Flagship: WE ARE VOLCORP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Corporate Information: Chairman/President’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Treasurer’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Supervisory Committee’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Senior Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Member Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
from our
MEMBER SURVEY
WHAT MAKES YOUR VOLCORP EXPERIENCE UNIQUE?
We have no other partners like VolCorp. Readily accessible and always willing to help. VolCorp looks out for our best interest; they’re not just making a pro t off us. VolCorp knows our business. They make us feel like we are their number one partner. VolCorp’s mission is our success. They make us feel like we are their number one partner. VolCorp is not only our Corporate, but our partner in getting the business accomplished that we need for our members. Our concerns are VolCorp’s.
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from our
MEMBER SURVEY
ARE YOU LIKELY TO RECOMMEND VOLCORP TO YOUR PEERS?
YES! 97.46%
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from our
MEMBER SURVEY
WHAT ONE WORD OR PHRASE BEST DESCRIBES VOLCORP?
Cooperative
Professional Vendor Simple ValueExcellent Critical Quality
Help Great Resource
Dependable
Completely Committed
Integrity
Easy
Help
Service
Satis ed EfficientNecessary
PartnerTrust
Win Ally Amazing
Knowledgeable
Strategic
Relationship Awesome
Solid
Expanding
Friendly
Courteous
Ours
Reliable Quality Friend
Honesty Committed
Reliable Needed
Collaboration
Ongoing Relationship
Good Competitive
Accommodating
Valuable
Needed
Enjoyable
StrongDependablePartnership Stable Con dence Steadfast
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Turn
from our
TO VOLCORP...
MEMBER SURVEY
for a
PARTNERSHIP
ARE YOU VERY SATISFIED you can trust! OR SATISFIED WITH YOUR RELATIONSHIP WITH VOLCORP?
YES! 96.61%
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Amanda Thomas President, TwoScore
Rock & Roll Pianos at Ravenswood Mansion
Ted Ahn President, CRF Advisors
Artists at work at the AR Workshop
Golfers at Vanderb
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Dr. Samuel L. Jones Raising the B.A.R.
Matt Davis Founder, gameFI
Je Merry CEO/President, VolCorp
David Mills Carr, Riggs & Ingram
Phillip Fulmer University of Tennessee Athletic Director
Coach Fulmer with VolCorp Credit Union Members
bilt Lengends Club
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Enterprise Risk Management (ERM) is the
process narrows the gap between risk
process of identifying and determining risk
management and decision making.
appetite corporate-wide. A well-structured
Strategic, competitive, economic, credit,
program encompasses the culture,
compliance, operational, nancial and
capabilities, and practices, integrated with
reputational risks are all identi ed and
strategy-setting and performance, which
assessed by VolCorp’s board and
organizations rely on to manage risk in
management. VolCorp’s program ties all risk areas together including strategic planning,
creating, preserving, and realizing value.
regulatory and legal compliance, vendor management, business continuity,
VolCorp’s ERM program provides a
operational controls and security, along with
framework for risk management that
nancial and credit risk. This framework
proactively addresses risks and
strengthens each process individually and
opportunities that will create value to the
facilitates a strong unity of all resources to
corporate and to our members. The ERM
better protect and serve you, our member.
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MATT HOLDEN VP LENDING - BOWATER CU
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2019 CHAIRMAN AND PRESIDENT’S REPORT A year of reinforcing foundational strength – that would
With that accomplishment would come the ability to
be a good way to characterize 2019 for VolCorp.
count all Perpetual Contributed Capital in our Tier One
Throughout the year, we put much emphasis into
Leverage Ratio. We achieved that milestone in March
strengthening areas such as our regulatory posture, our
of 2019, providing further evidence in our numbers of
systems, culture, and
what we already
risk management
knew, which was that
processes, and our
VolCorp was on a
support of the
solid nancial
movement as a whole.
foundation.
All the while we Internally, we also
served 332 credit
invested during the
unions in 19 states,
year on further
ranging from under $1
strengthening our
million in assets to
technology, culture,
greater than $5 billion,
and risk
with correspondent services, liquidity solutions, investment
management Jeff Merry President/CEO
John Jacoway Board Chairman
processes to address the new realities in
solutions, and much
which we operate. The technology train is moving fast
more. When these regulatory, internal, and external
and it is paramount we keep up, so we spent time
areas come together with uni ed strength and loyal
making sure the foundation is strong enough to
members, you have a recipe for success.
handle all that needs to be built on top of it in this The strengthening of VolCorp’s regulatory posture
ever-changing environment. Having that foundation
came in the form of a project beginning nearly a
strong enough for what lies ahead is key to our ability
decade ago when the regulations governing corporate
to support our credit unions in the way you deserve.
credit unions (Part 704) were overhauled and the Externally, VolCorp also stepped up in 2019 to help
lengthy mission of satisfying those capital
support the movement by backing the Open Your Eyes
requirements began. As many of you know, just a
Campaign efforts of CUNA on behalf of our credit
couple of short years ago, the regulation was
unions to support you and your ability to deepen
modernized and the expectations of corporates shifted
relationships in your communities. With hopes that this
to achieving a retained earnings ratio of 2.50%.
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CONTINUED - Chairman and President’s Report campaign will build momentum for all of our credit
scores and will continue to work to, not only live up to
unions, the movement can gain further foundational
these expectations, but to exceed them.
strength and momentum together.
“
We talk a lot at VolCorp about why we do what we do
As we continue to explore ways to strengthen our
leverage our expertise, technology, and relationships to build a member experience for you that is unparalleled anywhere else, we look to your feedback every year to get an idea of how we are doing. And every year, we are proud of what we hear and gladly report some of the highlights back to you. Some of the most important and gratifying feedback from the member survey were the percentage of credit union respondents who
success. We have a phenomenal team here
“
foundation and to
and how each one of our staff is a critical part of our
...we put much emphasis
into strengthening areas such as our regulatory
at VolCorp who are passionate about what they do. We also talk about how each and every one of our members is an essential piece of what we do and we know the
posture, our systems,
passion you have for your
culture, and risk
those dots and realize the
management processes, and our support of the movement as a whole.
indicated they view VolCorp as a Trusted Strategic Partner (96%),
members. We connect
better the experience we create for you, the easier it is for you to take your passion forward to your members. We are honored to be a part of that equation. We are humbled to be able to serve you. And, we are blessed to be a part of helping your
who feel VolCorp stays true to its mission and values
credit union succeed. We thank you for so many years
(97%), who feel VolCorp always operates with integrity
of creating success together and we are excited about
(99%), and who indicated they can always trust
working with you to do that for many more.
VolCorp (99%). Overall satisfaction scores were 4.77 on Respectfully submitted.
a 5.00 scale. We are very humbled and proud of these
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2019 TREASURER’S REPORT As a corporate credit union our primary
and asset-backed securities with
objective is to be a trusted partner,
sufficient collateral and/or credit
providing liquidity and a safe haven for
support continued to dominate the
member deposits with dependable
portfolio composition, both providing
access to funds and services. Over the
that unique balance VolCorp seeks.
last few years, both the economy and
Securities are carefully selected to t the
member loan portfolios have expanded,
conservative risk pro le VolCorp adheres
underscoring the importance for
to while maintaining a balanced focus
VolCorp to maintain a liquidity level
on safety and yield. Unrealized losses of
sufficient to meet members’ needs.
$581 thousand remain at less than one
Our ALCO committee meets monthly
percent of the portfolio, an impressive
overseeing asset-liability management, investments, and credit risk. The
Ron Smith
position during a period of increasing
Treasurer Enbright Credit Union
interest rates. Strategic new purchases
committee monitors corporate liquidity
and the continued rise of LIBOR and Fed
in order to ensure funds are available when our
overnight rates during the year added to portfolio
members need them, while at the same time allowing
earnings, allowing VolCorp to pass rate increases on to
earnings and growth opportunities for both the
members during the year.
corporate and member credit unions. Financial performance depicts 2019 as another VolCorp strives to be a strategic partner, with whom
exceptional year for your corporate. Regulatory and
our members look to rst for value added services.
nancial ratios re ect strong nancial growth. The
This can only be achieved through a commitment to
retained earnings ratio grew to 2.84% at December 31,
service excellence, offering new and innovative
2019, exceeding the retaining earnings regulatory
products such as iCare and Transfund. Your corporate
threshold at which point all PCC is now included in the
is also devoted to continually enhancing existing
Tier 1 capital calculation. NCUA regulations consider a
premium services such as our V-Portfolio platform.
Tier 1 capital ratio of 4% “adequately capitalized”, while 5% or greater is “well capitalized”. Over the year
At December 31, 2019 VolCorp’s securities portfolio
VolCorp’s Tier 1 capital ratio grew from 6.73% to 8.12%.
stood at $802 million. Government/agency securities
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CONTINUED - Treasurer’s Report A review of the audited nancial statements indicates
accustomed, and we look forward to providing value to
internal operations are sound. VolCorp is well
your credit union in 2020 and for many years to come.
“
positioned to serve members as they have become
“
VolCorp strives to be a strategic partner, with whom our members look to rst for value added services...offering new and innovative products such as iCare and
Transfund. Your corporate is also devoted
to continually enhancing existing premium services such as our V-Portfolio platform.
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2019 SUPERVISORY COMMITTEE’S REPORT The focus of the Supervisory
audit function for VolCorp during
Committee is to oversee management
2019. All audits and their
practices and policies, safeguard
recommendations were reported
member assets, and ensure that
to the Supervisory Committee.
VolCorp’s nancial reporting
Information Security and Cyber
objectives are met. To administer
Security reports were provided to the
these responsibilities the Committee
Committee monthly by Information
must establish audits, inspect or
Security Officer Mr. Tyler McNair.
cause to be inspected the securities Based on the results of the internal
portfolio, cash and other accounts of
audits, security reports, external
VolCorp, to inspect or cause to be
audit and the joint examination by
inspected the internal controls over nancial reporting, to opine on the
Rick Mikels Committee Chairman Tennessee Members 1st Federal Credit Union
nancial statements at the end of the
...
scal year and to cause a full report of these audits to be made to the Board.
Veritas Federal Credit Union
Healthcare Services Credit Union
responsibilities, the independent accounting rm of Carr, Riggs & Ingram, LLC was engaged to perform
Institutions and the National Credit Union Administration conducted
Karen Woodall
Susan Tant
In accordance with these
Tennessee Department of Financial
Nick Arvon West Virginia Federal Credit Union
during scal 2019, the Committee believes that it has properly represented the interests of the membership and its responsibilities to VolCorp.
John Merritt Enrichment Federal Credit Union
VolCorp's annual audit. Their letter
The Committee would like to commend the board of directors,
renders an “unmodi ed” opinion on
management and staff for their
the nancial statements of Volunteer Corporate Credit
continued support and commitment to the audit and
Union as of December 31, 2019 and 2018, and the years
review process and for their continuing dedication of
then ended. Mr. Phillip Reynolds, CPA, CIA, was
services to member credit unions.
engaged by the Committee to perform the internal
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2019 SENIOR MANAGEMENT
Jeff Merry
Phillip Cochran
Jeff Dato
Susan Stack
President/CEO
SVP/CIO
SVP/CRO
SVP/CFO
Ben Williams
Sandy Swofford
Lisa Wright
SVP/CTO
SVP Member Experience/Consulting
VP Administration & Facilities
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2019 BOARD OF DIRECTORS
John Jacoway
Todd Swims
Ron Smith
Mike Cooper
Chairman Southeast Financial CU
Vice-Chairman Leaders CU
Treasurer Enbright CU
Secretary AllWealth FCU
Rick Mikels
Brian Trotter
Sandra Yocum
Tennessee Members 1st FCU
EPB Employees CU
Strip Steel Community FCU
Sandy Lingerfelt
Judy Hester
Clinch eld FCU
Northern KY Educators’ FCU
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MEMBER SERVICES ezfunds ACH
EFT
Liquidity
ACH Settlement ACH Receipt ACH Origination ACH SEG Origination ACH Return (Exception) Handling ACH Contingency Services
Electronic Funds Transfer:
ALM/IRR
Investment
Asset/Liability Management & Interest Rate Risk Management:
V-Portfolio: Online Trading Monthly Reporting Pre-Purchase Analysis Portfolio Accounting Portfolio Analytics Brokerage Service Investment Consultation Certificates of Deposit SimpliCD Securities Settlement and Safekeeping Reverse Repurchase Agreements Loan Participation (LoanStreet)
Lines of Credit Term Loans Secured Loans Unsecured Short-Term Loans Letters of Credit SimpliCD Issuance Central Liquidity Facility (CLF) FRB Discount Window Program Loan Participation (LoanStreet)
ALM/IRR Modeling ALM/IRR Validation Service ALM/IRR Policy Consultation ALM/IRR Seminars ALM/IRR Training
Consulting ACH Audits ACH Risk Assessments BSA Reviews Strategic Planning Charter Expansion/Conversion Corporate Statement Reconciliation Education/Training Policy & Procedure Development & Review Special Projects
Convenience Interactive Website VolCorp Online Access Image-NET NET-Statement e-Alerts
Wire Transfers ezfunds Foreign & Domestic Wires) Tele-Transfer Electronic Debit Transfer (EDT) Wire Contingency Services
Item Processing Member Share Drafts Corporate Share Drafts Money Orders Cashiers Drafts Check Collection (ezcapture): Branch Capture Merchant Capture Image Delivery of Deposit Return Items Receipt & Processing of X9 Files (Check Collection) Home Banking Images
Correspondent Cash Vault Program Federal Reserve Check Collection Federal Reserve Coin & Currency Ordering Treasury, Tax & Loan Depository Reserve Requirement Settlement Pass Through Settlements
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Member Accounts Transaction Account Premier Account Member Managed Fund Account Notice 90 Account Christmas Club Accelerator Perpetual Contributed Capital
Strategic Partnerships Business Services (CU Business Group) Smart Option Private Student Loan Referral Program (Sallie Mae) Bill Pay (My CU Services) Instant Issue Debit Cards (Card@Once) Surcharge Free ATM Services (CULIANCE)
VolCorp Design Web Design & Redesign Web Maintenance Web Hosting Logo Creation Newsletter Design Promotional Items Web Graphics
Address 2460 Atrium Way Nashville, TN 37214 Online volcorp.org vportfolio.volcorp.org v-portfolio.org volcorpdesign.org Numbers (615) 232-7900 (800) 470-3444 After Hours: (615) 232-7977 Operations Fax: (615) 232-7979 Extensions 1 - Member Services/Operations/Item Processing/ACH 2 - Investment Sales 3 - Marketing and Business Development 4 - Administration and President’s OďŹƒce 0 - Operator Hours Monday, Tuesday, Wednesday and Friday: 7:30 a.m. to 4:30 p.m. (Central time). Thursday: 8:30 a.m. to 4:30 p.m. (Central time). Our Member Services Department closes at 4:15 p.m. (Central time) each day. Office closings are coordinated with the Federal Reserve Bank holiday schedule.
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government
Savings Federally Insured to at least $250,000. NCUA, a U.S. Government Agency.