FINAL_Florida State CU AR 17x11 (8.5x11)

2012 Annual Report 2012 Annual Report

Branch Locations Bringing Value to Your Financial Life

Leon County Federally Insured by NCUA

Campus Branch
832 W. St. Augustine Street
Scheduled to reopen Fall 2013

Evening Rose Branch
1612 Capital Circle N.E.
Tallahassee, FL 32308

Maclay Branch
3534-B Thomasville Road

Tallahassee, FL 32309

Main Office
2806 Sharer Road
Tallahassee, FL 32312

University Branch
1412 W. Tennessee Street

Tallahassee, FL 32304

Taylor County

Tree Capital Branch
1402 S. Jefferson Street

Perry, FL 32348

Wakulla County

Crawfordville Branch
2190 Crawfordville Highway

Crawfordville, FL 32327

Nationwide Locations

www.creditunion.net

(850) 224-4960 www.fsucu.org

Bringing Agenda BOARD OF DIRECTORS SUPERVISORY
Value to… COMMITTEE
Call to Order
…Our Community Dr. Stacy Sirmans Carolyn Shackelford William S. Agner Dr. Joyce Howard
Welcome Chairman Vice-Chair Treasurer Chair
FSU Credit Union membership is Quorum Determination
open to individuals living and/or Adopt Agenda Robin Haggins Bill Brynes Leslie Fennell Valerie Beynon
working in Leon, Gadsden, Taylor Secretary Director Director Member
and Wakulla County. In addition, Approval of Minutes
we serve FSU graduates who live
and/or work in Franklin, Gadsden, Minutes of April 26, 2012 Meeting
Jefferson, Liberty, Leon, Wakulla
and Bay Counties. We work hard to Reports
actively serve people within our field
of membership and as appropriate, Chair/President
the communities in which they live. Treasurer
Through direct financial support Loan
or other in-kind contributions to Supervisory Committee
worthwhile local organizations, and
by participating in public service Old Business
activities, FSU Credit Union strives
to bring value to our community. New Business

…Our Membership Report of Nominating Committee
Recognition of Retiring Employee
FSU Credit Union is a not-for-profit
financial cooperative owned and Adjournment
operated by its members. The
Credit Union strives daily to offer David Sagaser Mark Striffler Bill Woodyard David White
services designed to improve the Director Director Director Member
economic and social well-being of all
members from all social economic MANAGEMENT TEAM Special thanks to
backgrounds, including our low- and Kay Green for over
moderate-income members, and Left to Right (standing) Kay Green 17 years of service!
return financial value to all those who Charles Adcock, III, Chief Operations Officer Taylor County We wish her the best on
participate in our member-owned Keith Hay, I.T. Director, Operations Director her retirement.
financial cooperative. Michael Phillips, V.P. of Operations
Kimberly Adcock, A.V.P. Human Resources 11
…Your Financial Life Harmony Nagy, Marketing Director
J. Bradley Blake, President/CEO
The goal of a financial cooperative Jennifer Durden, Chief Financial Officer
is to act on behalf of a unified group
as a traditional banking service. We
differentiate ourselves by offering
above-average service along with
competitive rates for lending and
deposits products.

2

NOMINATING COMMITTEE REPORT 2012 Meeting Minutes

FSU Credit Union’s Nominating Committee, consisting of Chuck Adcock, Chair; Bill Brynes; and Leslie Fennell, reviewed Call to Order The fifty-seventh meeting of the membership of the Florida State University Credit Union was
a list of qualified candidates and officially nominates Dr. Stacy Sirmans, Mark Striffler and William Woodyard to each convened on Thursday, April 26, 2012, with the calling to order of the meeting by Dr. Stacy
serve one three-year term on the Board of Directors. In addition, the nominating committee has nominated David White Sirmans, Chair, at 6:37 p.m. The meeting was held in the FSU Alumni Association Grand Ballroom
to serve one three-year term on the Supervisory Committee. All positions are unpaid and voluntary. located at 1030 W. Tennessee Street, Tallahassee, FL 32304. The meeting was simulcast to the
Perry Elks Club #1851 located at 305 Puckett Road, Perry, FL 32348.

Roll Call/ After the meeting was called to order, Mrs. Robin Haggins, Secretary, determined there was
Quorum a quorum present to conduct business. There were 158 members, total at both locations, in
attendance for the business meeting.

Minutes Chair Sirmans asked for a motion to accept the consent agenda. A motion was made to accept
the agenda. The motion was seconded and approved. The minutes of the April 21, 2011 annual
meeting were printed in the Annual Report. A motion was made and seconded to suspend with
the reading of the minutes and to accept them as published in the Annual Report. There was no
discussion and the motion passed.

Dr. Stacy Sirmans Mark Striffler William Woodyard David White Reports Printed reports from the Chairman/President, Treasurer, Credit Manager, Supervisory Committee
and Nominating Committee were outlined in the Annual Report. Mr. Blake gave an update on the
SCHEDULED TO OPEN FALL 2013 merger that took place during the 4th quarter of 2011 and the addition of the University Branch
located on Tennessee Street in Tallahassee, FL. He reminded members about the mission of the
credit union and its strategic placement behind all decisions made. He also provided information
on electronic services offered at the credit union, many of which were improved during 2011. He
then announced a new online money management tool that will be available in 2012. Mr. Blake
thanked the Board, Management and Staff and then deferred to Chair Sirmans to introduce the
Board of Directors. Mr. Agner reported that the credit union experienced solid fiscal growth
and will continue to work towards managed growth in 2012. Mr. Adcock gave an oral loan
report that focused on improved service in the loan department with a renewed commitment
to underwriting, collection efforts and saving members money. Mr. Striffler reported that the
Supervisory Committee confirmed the financial statements were properly audited. Dr. Sirmans
concluded by thanking the membership for their participation in our cooperative and congratulated
management and staff for a job well done.

Old Business There was none.

New Business Report of Nomination Committee and recognition of retiring Tree Capital Credit Union Board and
Committee members.

Report of the Mr. Dave Sagaser, Nominating Committee Chair, gave the Nominating Committee report. The
Nominating Nominating Committee met to review the qualifications of candidates to fill two vacancies on
Committee the Board of Directors and two on the Supervisory Committee. The following individuals were
nominated to serve one three-year term each.

Board of Directors: 1 three-year term
Leslie Fennell (incumbent) 1 three-year term
Carolyn Shackelford (incumbent)

“While Campus is being remodeled, my staff and I look forward to Supervisory Committee: 1 three-year term
serving you at the University Branch. Come in and see us!” Valerie Beynon (incumbent) 1 three-year term
Dr. Joyce Howard
Rebecca Deen, University Branch Supervisor
Adjournment Since no additional nominations had been received via petition and no
The FSUCU Campus Branch which was located at 832 W. St. Augustine Street has been tempoarily closed nominations were received from the floor in accordance with the by-laws,
since September 1, 2012 for site development. The renovation will allow us to continue serving members in the the slate of officers listed above were elected by acclamation.
heart of the FSU Campus. During the temporary closure, the Board of Directors and Management invite you to
visit any of the six FSUCU branches in the Tallahassee area, the closest being the University Branch located just There being no further business, the meeting was adjourned at 6:56 p.m.
a short distance away. The newly renovated Campus Branch is scheduled to reopen in the Fall of 2013.
Robin Haggins, Secretary 3
10

CHAIR/PRESIDENT REPORT SUPERVISORY COMMITTEE
REPORT
Florida State University Credit Union is a financial cooperative We look forward to the future of providing outstanding
that exists to serve the financial needs of our member financial services to our member owners. Florida The FSU Credit Union Supervisory Committee is charged with providing oversight of the operations of the
owners. The year 2012 was a very successful year for FSU State University Credit Union is estimating a fall 2013 credit union and ensuring that it is operating in a fiscally secure manner and operating within federal, state
Credit Union. The credit union experienced increases in opening date for our new campus office on the corner and credit union guidelines while reporting any material findings to the Board of Directors. The committee
loans to members as well as deposit growth. FSU Credit of Woodward and St. Augustine. The credit union is is pleased to report that the credit union had another excellent year with regard to review, audits and overall
Union had significant increases in earnings and overall also ready to roll out our new mobile and text banking financial indicators.
equity while reducing fees to the membership. The Board service to the membership, which will make access to The Supervisory Committee again continued its relationship with two independent public accounting entities,
and staff are committed to managed growth strategies your finances even easier. Member service will remain Hutto and Carver PA, and Sanders, Holloway and Ryan, which conducted their respective audits of our
while at the same time improving service levels to member a top priority for the Board, Management and Staff as consolidated financial statements, branch tests and procedures pertaining to the Bank Secrecy Act and NACHA
owners. The merger partnership with Tree Capital Credit we work together to build a brighter financial future for regulations, among other audit tests. All audit reports were excellent with few minor exceptions noted.
Union in Perry, Florida, continues to provide members more our credit union community because when we share In keeping up with the ever changing delivery channels in today’s banking environment, the Committee spent
services at a better value because of greater economies together in the cooperative spirit of the credit union considerable energy reviewing the credit union’s technology security. Our review and testing revealed no
of scale and the ability to innovatively deliver more of the movement we all benefit from People Helping People. vulnerabilities. While no technology security is fail proof, the Committee noted that management takes extreme
financial products and services that “maximize members’ care in safeguarding its membership.
financial well-being.” A core principle behind the success Dr. Stacy Sirmans During our monthly meetings, we consistently review delinquent loan information. As indicated in other reports,
of FSU Credit Union is “People Helping People. Because Board Chariman the credit union continues to outperform its peer group in the areas of both delinquent and charged-off loans.
a credit union is a not-for-profit financial cooperative that The committee feels that our credit union is in sound financial standing and commends the management team
seeks to provide cost-effective financial services with a J. Bradley Blake for leading our credit union with integrity and excellent fiscal oversight.
fair return to the member owners, members who use the President/CEO Respectfully submitted,
credit union for their financial needs are not only supporting
the credit union but also the other members that share Dr. Joyce Howard, Chair
in this cooperative. A “member” is not the same as a Supervisory Committee
customer, and Florida State University Credit Union wants
our members to know that we can reach our mission to 9
“maximize members’ financial well-being” together.

Members are our number one priority, and our strategic
initiatives set by the Board of Directors in 2012 continued
to address improvements in how our members access
and use our products and services with a continued
focus on member service. We want FSU Credit Union to
be an inviting place for members to reach their financial
goals, whether you visit one of our branches or visit us
online. We have structured monitoring of service levels
and created an atmosphere of consistency in how we
deliver financial services and also in how we provide
financial products. We have also structured ways to
receive input from members through surveys and email
programs to ensure that your ideas that would benefit
the membership are heard and implemented. A focus
on member service continues to allow FSU Credit
Union to provide loans to our members at low rates and
provide a means to offer competitive rates on deposits
while increasing member equity. The commitment that
our members have for using the credit union’s products
and services and helping the credit union grow truly
helps the entire membership.

4

LOAN REPORT Envision Credit Union to begin underwriting indirect TREASURER’S REPORT
loans for their credit union and its membership on
Despite only slight improvement in the economy in a fee basis. On November 2, 2012, Florida State On behalf of the FSU Credit Union’s Board of Directors, we are pleased to share the Annual Treasurer’s Report
2012, Florida State University Credit Union continued University Credit Union and Envision Credit Union with the credit union membership.
to grow and make more loans per capita than most created iDriveLending, LLC. iDriveLending’s slogan
of our peers. Our success has always been defined is “Credit Union Loans Made Easy.” This additional FSU Credit Union continues to sustain managed growth while maintaining solid financials. This was a year of
by our membership and their use of our products and buying power has already provided for an even greater strengthening equity, membership growth and enhancing the member experience, all while continuing to offer
services, and 2012 proved to be no exception. number of auto loans being made to members of both great products and services. The credit union granted almost $50 million in new loans to members over the
credit unions. course of the year at competitive rates.
Using groundwork and technology that was developed
and deployed in 2011, we focused on delivering Our first full year of lending to our newest membership UÊ/œÌ>Ê>ÃÃiÌÃÊ}ÀiÜÊLÞʙ°™¯ÊvÀœ“Ê̅iÊ«ÀˆœÀÊÞi>ÀÊ̜Êf£ÓÇ]ääÓ]ÈÓÇÊ
world-class service and rates to our membership. base in Taylor County was equally impressive. We
The overall financial performance of the credit union «ÀœÛˆ`i`Ê ÇäÈÊ œ>˜ÃÊ vœÀÊ >««ÀœÝˆ“>ÌiÞÊ fx]{Ι]xää]Ê UÊi“LiÀÊ`i«œÃˆÌÃÊ}ÀiÜÊ̜Êf££Î]Ç{™]äÇÇ]Ê>˜Êˆ˜VÀi>Ãiʜvʙ°Óίʈ˜ÊÓä£ÓÊ
allowed us to keep pace and, in most cases, outpace with 322 being auto loans. You will recall that at the
our competitors in offering the best loan rates in town. time of merger in October 2011, Tree Capital had total UÊ iÌʈ˜Vœ“iÊvœÀÊ̅iÊÞi>ÀÊ̜Ì>i`Êf£]xÓn]näÇÊ
We have been able to save our members hundreds of outstanding loans of just over $8 million. As additionally
thousands of dollars in interest by refinancing existing impressive is the fact that the overall weighted yield on UÊ"ÕÀʘiÌÊܜÀ̅ÊÀ>̈œÊvœÀÊ̅iÊÞi>Àʈ˜VÀi>Ãi`Ê̜ʙ°Èx¯
debt while at the same time making new loans at these loans is almost 200 basis points lower since the
better rates than our competitors. merger. We continue to deliver on the commitment Uʜ>˜ÃÊ̜ʜÕÀʓi“LiÀÃʅ>Ûiʈ˜VÀi>Ãi`Êx°äx¯ÊvÀœ“Ê̅iÊ«ÀˆœÀÊÞi>ÀÊ̜Êfnn]{xx]nÓÓÊ
made to Tree Capital members.
In 2012, Florida State University was the #6 auto UÊ"ÕÀÊ`iˆ˜µÕi˜VÞÊÀ>ÌiÊÜ>ÃÊ°™£¯ÊœvÊ̜Ì>Êœ>˜Ã]Ê܅ˆV…ÊVœ“«>ÀiÃÊv>ۜÀ>LÞÊ̜Ê̅iʘ>̈œ˜>Ê«iiÀ‡}ÀœÕ«Ê
lender in the Big Bend area according to data from When many lenders are still trying to figure out ÊÊÊ>ÛiÀ>}iʜvÊ£°£Ç¯Ê
Experian’s AutoCount service. Most impressively is how to navigate lending in today’s unique economy,
the fact that lenders two through five are national Florida State University Credit Union continues to find UʘÌiÀiÃÌÊÀ>ÌiÃʜ˜Ê“i“LiÀÊ`i«œÃˆÌÃÊÀi“>ˆ˜i`ÊÛiÀÞÊVœ“«ï̈ÛiÊ>˜`ÊVœ˜ÃˆÃÌi˜ÌÊ܈̅ʫiiÀʈ˜Ã̈ÌṎœ˜Ã]Ê>œÜˆ˜}Ê
firms with resources far greater than that which innovative ways to provide funds to its membership ÕÃÊ̜ÊÀiÌÕÀ˜ÊfÇ{Ç]{™£Êˆ˜Ê`ˆÛˆ`i˜`ÃÊ̜Ê̅iʓi“LiÀň«Ê
exists in our local market. We are quite certain they when they need it most, while at the same time
are wondering how a community-based credit union providing the most value to its membership. The year UÊ ÃÊ œvÊ iVi“LiÀÊ Î£]Ê Óä£Ó]Ê œÕÀÊ ÌœÌ>Ê “i“LiÀň«Ê Ã̜œ`Ê >ÌÊ £x]nx{Ê VÀi`ˆÌÊ Õ˜ˆœ˜Ê “i“LiÀÃ°Ê /…iÊ iVœ˜œ“ˆVÊ
is performing in their league. We know the answer: 2012 was just another year of fantastic performance for conditions in Florida and the nation seem to be improving, and FSU Credit Union will continue to be a part of
hard work, commitment to members and a desire to a credit union that continually outperforms its peers. that recovery for its members. Sustained, manageable growth is the key to the success of the credit union. Our
provide the best return to our membership and the staff and board remain committed to providing our membership with a solid credit union that provides the best
FSU and Big Bend communities. The credit union Charles E. Adcock, III service through hard work and innovation.
continues to boast a very healthy delinquency ratio Chief Operations Officer
i˜`ˆ˜}Ê Ì…iÊ Þi>ÀÊ >ÌÊ °™£¯Ê ܅ˆiÊ Ì…iÊ «iiÀÊ }ÀœÕ«Ê …>`Ê Respectfully,
Þi>À‡i˜`Ê `iˆ˜µÕi˜VˆiÃÊ œvÊ £°£Ç¯°Ê "ÕÀÊ œÕÌÃÌ>˜`ˆ˜}Ê
œ>˜Ê ÌœÊ Ã…>ÀiÃÊ œvÊ ÇÇ°ÇÈ¯Ê Vœ˜Ìˆ˜ÕiÃÊ ÌœÊ œÕÌ«>ViÊ œÕÀÊ Bill Agner, Board Treasurer Jennifer G. Durden, CFO
«iiÀÊ}ÀœÕ«]Ê܅ˆV…Ê>ÛiÀ>}iÃÊÈx°È{¯°

Additionally, more than five years ago, the credit
union created an indirect lending program designed
to make borrowing easier for its members while
supporting local dealerships’ efforts to sell cars to
the community. Since its inception, our program has
become one of the most successful in the area. We
routinely participate on site during car sales, bringing
our world class rates and service to the dealership
and the member, making for a more seamless
experience. Because of our continued success, the
Florida State University Credit Union was approached
by another credit union in an effort to become a part
of our program. We entered into an agreement with

8 5

STATEMENT OF STATEMENT OF INCOME
FINANCIAL CONDITION

ASSETS 2012 2011 % CHANGE Interest Income 2012 2011 % change
Cash fÓ]{n{]™£xÊ $1,428,120 Ç{°ää¯ Interest on Loans
Investments 28,027,752 22,045,781 ÓÇ°£Î¯ Real Estate f£]ÎÈÎ]x™äÊ $1,537,202 ‡££¯
Credit Card 418,765 Ι{]ÎÓxÊ È¯
LOANS 25,378,320 28,351,386 ‡£ä°{™¯ Other
Real Estate 4,861,663 4,732,787 Ó°ÇÓ¯ Total Interest on Loans 4,128,838 Î]Înn]nÇ™Ê ÓÓ¯
Credit Cards 51,115,768 Investments x]™££]£™ÎÊ 5,320,406 ££¯
Other xn]Ó£x]nÎ™Ê £Î°n™¯ Total Income ™x]Ç£{°ääÊ Ç™¯
Total Loans 88,455,822 84,199,941 5.05% 6,006,907 53,371 12%
Interest Expense 5,373,777
Allowance (812,672) ­™nn]™{n® ‡£Ç°nÓ¯ Dividends on Shares Ç{Ç]{™£Ê Ó¯
Net Total Loans 87,643,150 83,210,993 5.33% Interest on Borrowed Money 0 731,841 ä¯
Total Interest Expense 12 2%
NON-INTEREST x]Óä£]nÇ™Ê x]™xÇ]ä{{Ê ‡£Ó°Èn¯ 747,491
BEARING ASSETS Î]È{{]™Î£Ê 2,877,003 ÓȰș¯ Net Interest Income 731,853 £Î¯
Provision x]Óx™]{£ÈÊ ‡{Ó¯
Fixed Assets 8,846,810 8,834,047 0.14% Net Interest 535,000 {]È{£]™Ó{Ê 27%
Other Assets Income after PLL ™Îä]äääÊ
Total Non-Interest 127,002,627 115,518,941 9.94% 4,724,416 Ón¯
Bearing Assets Non-interest income 3,711,924 Óä¯
Non-interest expense 3,304,254 70%
Total Assets Net Income È]{™™]nÈÎÊ Ó]xnÈ]£Ç™Ê
$1,528,807 x]ΙÈ]xÇnÊ
LIABILITIES, SHARES $901,525
AND EQUITY
Liabilities: 1,004,110 — x£°{n¯
Borrowings 1,004,110 662,867 51.48%
Other Liabilities 662,867
Total Liabilities ££Î]Ç{™]äÇÇÊ ™°Óί
£Ó]Ó{™]{{äÊ 104,135,442 £{°Óȯ
Share Deposits 10,720,632
Equity $127,002,627 9.94%
$115,518,941
Total Liabilities,
Shares and Equity

6 Bringing Value to Your Financial Life 2012 Annual Report 7