What does it mean w EXPECT MORE
Your credit union will get our best each and every ti members. It’s what a partner does.
You will get great value for your money. Just like yo to make less go further, now more than ever before Knowing you can depend on us. Understanding tha Knowing that we are looking out for your best intere
We’re not just order-takers. Sure, we helpwith you ensure those present needs align withfuture n your VolCorp products and services to make credit unio
That’s exactly what a partner does.
when we say you can fromVolCorp?
ime. Our staffis focused on taking care of our
ou, we’re a credit union.We understand your need e. at you can callVolCorp whenever you have a need. ests. immediate needs. But we go further to your needs, suggesting and implementing other ns even more effective.
In 2023,VolCorp introduced FedNow Faster Payments, transitioned to forACH and wire transfers, and began the process to upgrade share dra processing, check collection and check imaging services.
CHAIRMAN& P’RESIDENTS REPORT
JOHN JACOWAY Board Chairman
According toWebster, the definition of‘Progress’is “a forward or onward movement (as to an object or to a goal).” VolCorp revealed over the last couple of years our intent is to consistently becomeso you Bigger. Be er. Bolder. couldfrom us in pursuit of our Expect More ongoing evolution towards the goal of always earning the opportunity to be yourTrusted Strategic Partner.With an aggressive Strategic Plan to that end, we made significant progress last year in doing just that.
The reality is Cybersecurity is becoming more and more critical as the bad actors are ge ing more and more sophisticated. Our #1 priority is to protect you and your corporate in this regard.With that in mind, in 2023, we implemented Okta, a premier identity management platform, to help ensure data and access integrity.Another example of progress towards our goal was the conversion of our electronic payments platform to the newAptys platform in 2023. While the conversion was certainly not easy to execute, the completion of it leavesVolCorp and our members in a much stronger position, with a be er product, and more optimistic about our ability to be nimble with our service offering for you as the payments landscape continues to evolve.Additionally,VolCorp saw adoption continue with its Real-Time Payments funding agent relationship as well as ourfirst members
implementing FedNow.As the tools to manage these instant payments avenues continue to progress, so does our collective effort to ensure credit union relevancy.These, and the completion of some internal initiatives, are just a handful of thingsVolCorp executed in 2023 to beand to continue Bigger. Be er. Bolder. progress in a meaningful way to show you. More
A recap of the year would be anything but complete if we didn’t discuss the continued progress made by Symphony LLC,VolCorp’s wholly owned CUSO, as well.We knew from our research before launching Symphony it would address several key needs for credit unions of all sizes. But, we have still been amazed and humbled by how quickly it has taken offand how strongly it has been embraced by credit unions across the country whom have already engaged its services. Symphony completed 2023 out-performing expectations and with a great deal of reason to be excited about the prospects for an even stronger 2024.
For those who have spent any time in the Capital Markets space, you are very familiar with the old saying,“past performance does not guarantee future results.”It’s true.
continued...
JMEFFERRY President and Chief ExOfficer ecutive
It doesn’t. However, it can provide some fantastic lessons learned and roadmaps for future success.Another well-known saying is “learn from other people’s mistakes, because you will never live long enough to make them all yourself.”If you take both of those sayings
...you couldfrom us in pu Expect More
the goal of always earning the opportuni
into consideration, you can see how they serve as part of the foundation ofVolCorp’s balance sheet and earnings management over the years. Our capital adequacy is what protected our members during the Financial Crises while we watched others have a different experience. Having that experience to leverage for future thinking, we remained focused on how to safely manage the balance sheet with a strong balance of earnings and liquidity provision, all while never deviating from our proven risk posture.Aided by prudent balance sheet management, sound investment portfolio management, US CentralAsset Management Estate distributions totaling $9 million in 2023, and the loyalty and support of the credit unions we are trusted to serve,VolCorp ended 2023 with aRatio of 12.30%, Leverage a Retained Earnings ratio of 7.42%, and a Tier I Risk-Based Capital Ratio of 94.82%.
That lastfigure might, in fact, be the most important one as it illustrates howVolCorp continues to operate and make decisions with protecting you and what is yours as our top priority. It is why we were successful during 2008-2009 and is why we feel well positioned
rsuit of our ongoing evolution towards ity to be your. Trusted Strategic Partner
to continue to offer you the confidence you need and deserve in your corporate.
We know every day is an opportunity to earn the right to work with you the next day. We know we cannot stagnate while the world around us evolves.We know being Bigger. Be er. Bolder. is the only way to be what you need us to be.We know it is the only way for us to tell you toand then for us to Expect More deliver.We know your trust in us and your More willingness to partner with us is EVERYTHING. It is what drives us. It is what keeps the word “complacent”as our number one enemy. It is what keeps our eyes looking forward. It is what keepscoming.We atVolCorp are so progress grateful to be able to do what we do for you, and we thank you for trusting us to do so. 2023 was a good year, but 2024 should be even be er.
TREASURERS ’ REPORT
RON SMITH Treasurer
All credits unions dealt with some degree of financial uncertainty during 2023. Relatively elevated interest rates and a heightened emphasis on liquidity management placed more focus on balance sheet management. As your credit union,VolCorp is grateful for the opportunity to serve as your safe haven during these times.
A corporate credit union must maintain a wellpositioned balance sheet composed of high-quality, liquid assets.VolCorp’s assets are heavily concentrated in risk-free or lowrisk assets such as the Federal Reserve Bank, government guaranteed securities, and agency securities.The investment portfolio is primarily composed offloating rate instruments andVolCorp only holds high credit quality securities. On December 31, 2023, variable rate securities represented 89% ofVolCorp’s total portfolio book value, while the portfolio’s overall unrealized loss was less than 2% of total book value.Alongside the portfolio, cash and cash equivalents represented 55% of yearend assets. Between a highly liquid portfolio,
heavy cash concentration, and access to multiple borrowing sources,VolCorp remained prepared to service member loan demand and potential unexpected share outflow.We realize some degree of risk is inherent for a credit union but believeVolCorp’s members’risk should be concentrated in your mission, not your corporate credit union.This principle and the corresponding asset quality is ultimately reflected inVolCorp’sTier 1 risk-based capital ratio, which stood at 94.82% at year-end, far greater than its respective“well capitalized” threshold of 6.00%.
We realize some degree of risk is inherent for a credit union but believeVolCorp’s members’ risk should be concentrated in your mission, not your corporate credit union.
Member support enabled further strengthening of our collective foundation during 2023.Tier 1 capital grew over $18 million and exceeded $168 million at year-end. Both member share rates andVolCorp’s earnings benefited from short-term interest rate increases, with net interest income totaling $20 million for the year. Like the last few years, distributions from the U.S. CentralAsset Management Estate complemented growth in service-driven reve-
nue, with total non-interest operating income of $17 million.A er closely managed operating expenses of $18 million and net non-operating income of $653 thousand, 2023’s net income totaled $21 million.At year-end,VolCorp’sTier 1 capital or leverage ratio stood“well capitalized”at 12.30% and the retained earnings ratio of 7.42% sat well above regulatory requirements.
VolCorp’sALCO meets monthly overseeing asset-liability management, investments, and credit risk.The commi ee monitors corporate liquidity to ensure funds are available to members in times of need, while also allowing earnings and growth opportunities for both the corporate and member credit unions. A review of the auditedfinancial statements indicates operations are sound.VolCorp is well-positioned to serve its members in 2024 and for many years to come.
SUPERVISORY C’OMMITTEES REPORT
DEBBIE JONES Committee Chair
The focus of the Supervisory Commi ee is to oversee management practices and policies, safeguard member assets and ensure thatVolCorp’sfinancial reporting objectives are met.To administer these responsibilities the Commi ee must establish audits, inspect or cause to be inspected the securities portfolio, cash and other accounts of VolCorp, inspect or cause to be inspected the internal controls overfinancial reporting, to opine on the financial statements at the end of thefiscal year and to cause a full report of these audits to be made to the Board.
2023 S
In accordance with these responsibilities, the independent accountingfirm of Carr, Riggs & Ingram, LLC was engaged to perform VolCorp’s annual audit.Their le er renders an“unmodified”opinion on the consolidated financial statements ofVolunteer Corporate Credit Union as of December 31, 2023, and the year then ended. Mrs. Marla Mackie, CPA, was engaged by the
Commi ee to perform the internal audit function forVolCorp during 2023.All audits and their recommendations were reported to the Supervisory Commi ee. Information Security reports were provided to the Commi ee monthly by Mr. Cody Lee, Information Security Officer.
Based on the results of the internal audits, security reports, external audit and the joint examination byTennessee Department of Financial Institutions and the National Credit UnionAdministration conducted
DEBBIE JONES
Committee Chair
UT Federal Credit Union
NAICKRVON
WestVirginia Federal Credit Union
S CM UPERVISORYOMMITTEEEMBERS
during 2023, the Commi ee believes that it has properly represented the interests of the membership and its responsibilities toVolCorp.
The Commi ee would like to commend the board of directors, management and stafffor their support and commitment to the audit and review process and for their continuing dedication of services to member credit unions.
PAM CASE
Jack Daniel Employees Credit Union
DAVID KING
Heritage South Community Credit Union
KWARENOODALL
Veritas Federal Credit Union
PHILLIP COCHRAN ChiefOfficer Investment Series 7 & 63
LEADERSH
JEFF DATO EVPand Chief Operating Officer
J M EFF Preside Chief Execu
ENIOR HIPTEAM
MERRY ent and Officer utive
HOLT ChiefOfficer Financial
CHRISTINA ADKISON Chief Experience Officer
JUSTIN
DEBBIE JONES
UT Federal Credit Union
RMICKIKELS
TODD SWIMS Vice-Chairman
Leaders Credit Union
2023 BO DIREC
Tennessee Members 1st Federal Credit Union
RON SMITH Treasurer
Enbright Credit Union
JOHN JAC Chairma
Southeast Fi Credit Un
OARD OF CTORS
BRIAN TROTTER
EPB Employees
Credit Union
JUDY HESTER
Northern Kentucky Federal Credit Union
OWAY an nancial nion
MIKE COOPER
Secretary
AllWealth Federal Credit Union
ERIN WALTER
Brown-Forman
EmployeesCredit Union
ADDRESS
2460 AtriumWay Nashville,TN37214
ONLINE volcorp.org
vportfolio.org symphonycuso.org volcorpdesign.org
NUMBERS
(615)232-7900
(800)470-3444
AfterHours:(615)232-7977
OperationsFax:(615)232-7979
EXTENSIONS
1-MemberServices/Operations/ItemProcessing/ACH
2-InvestmentSales
3-Marketing andBusinessDevelopment
4- Administration andPresident’sOffice
8-Symphony CUSO
9-DialByNameDirectory
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.