2015 Georgia United Annual Report

Annu

ual Re2p0o1r5t

Georgia United team and community members volunteer at
Junior Achievement’s Discovery Center in Gwinnett.

Shared Strength is the idea that
looking out for one another is not
just the right way, but the only
way.

growing through s

Georgia United Credit Union would like to thank our mem
support and partnership. Thank you for sharing the value
workers. As an organization wholly-owned by its members,
and every one of you. In fact, as a not-for-profit, our earnin
members enjoy, as well as our local communities and scho
to positively impact the lives of our members, team memb
financially stable lives.
This annual report will help you better understand how yo
provide you with convenient and valued services and finan
and communities the center of every decision we make, we
This gives you the power to get the things you want out of
We would like to welcome our newest 5,000+ members fr
and Etowah Valley Federal Credit Union in Cartersville, GA
and services along with more convenience and value. With
United remains committed to building stronger communiti

shared strength

mber-owners and our team members for your continued loyalty,
of Georgia United with your family members, friends and co-

s, our strength and success is directly tied to how well we serve each
ngs are reinvested into the great rates, products and services our
ools. As we move ahead into 2016, our GUCUcares commitment is
bers and the communities we serve to help people live happier, more
our credit union performed in 2015, and the progress we’ve made to
ncial solutions. By making the needs of our members, team members
e ensure our resources directly help you reach your financial goals.
f life.
rom the mergers of HealthCom Federal Credit Union in Dalton, GA
A. These partnerships have provided you with additional products
h over 148,000 members strong and our Shared Strength, Georgia
ies because Georgia United cares.

1

In 2015, Woodward
Elementary School in DeKalb
County won the
School CrashersSM grand
prize makeover.

2



President’s report | serving wit

I want to personally thank each of you for our many accomplis
these past few years and we continue to grow. This is an exciti
financial institution of choice for so many by consistently excee

In 2015, Georgia United surpassed Georgia United stands
$1 billion in assets, a milestone we marketplace because w
reached through our Shared Strength great pride in sponsori
and commitment. Much time and effort programs that support
has been devoted to improving our financial literacy and c
infrastructure—including developing and second annual School
strengthening our team members, our was a huge success, pr
products and services and our communities. “makeover” to DeKalb
Our journey is on an upward course, but it Elementary. The Title 1
is not yet complete. over 1,000 students w
As we continue to strengthen relationships same year the credit u
with our current partner companies, we Since DeKalb County S
will also look for opportunities to expand founding sponsor grou
within our existing markets. Throughout we are honored to onc
our growth, we aim to positively impact the circle.
lives of our members, team members and We are approaching 60
the communities we serve. We are excited to is as youthful as ever. T
share our initiatives with you as we strive to our fresh approach to
bring you compelling products, convenience also to some of our ne
and exceptional service. we launched two new y

th care

shments in 2015! We have undergone tremendous growth
ing time for Georgia United as we become the convenient
eding our members’ and team members’ expectations.

s out in the offering a fun way for kids 11 and younger
we care. We take to save, as well as a new account for teens
ing events and ages 12 to 17. The future is coming, and we
t school systems, are proud to be a positive influence in the
communities. Our lives of our young members.
CrashersSM event Thank you all for a great year! Your loyalty
roviding a facility as a member and support in the community
County’s Woodward has helped us achieve remarkable success.
1 school with just My heartfelt appreciation also goes to the
was built in1958, the outstanding team members of
union was established. Georgia United; our organization shines
School system was the because of you. Through our Shared
up of our credit union, Strength, guided by the wise counsel of
ce again come full our Board of Directors, we are building the
0 years and our spirit future together in exciting ways.
This is due in part to
mobile access, but
ew members! Last year
youth accounts,

3

Members | Every Member Counts

Georgia United Credit Union brings efficiently resolve mem
together more than 148,000 member- questions. Secondly, w
owners to provide better rates, lower fees, to the smallest details
greater savings and exceptional value in exceptional service. In
accessing the tools and resources that our Member Loyalty su
can help you reach your financial goals. valuable feedback on o
We would not exist without the members areas where we need t
we serve. Thank you for allowing us the deliver new ideas and
opportunity to meet your financial needs. serve our members thr
Our approach—and our success—stands Georgia United debute
on four business principles. First, our credit cards, enhanced
knowledgeable team members confidently online payments. We w
answer member questions and provide union in our market to
valued advice on products and services. chip technology to imp
The creation of an internal help desk has security. And last, but
aided this process and has become a vital our financial strength c
resource for team members to quickly and sound decisions regard
lending and the overal

4

s

mber-related organization. In 2015, Georgia United
we pay attention created a new loan origination system to
provide quicker response times and more
in order to offer consistent loan decisions.
2015, we introduced Thank you to all of our members for your
urveys to gather loyalty. Whether you are a community
our strengths and on member, a county or state agency
to improve. Thirdly, we employee, Board of Regents employee,
technology to better part of a county school system or any of
rough innovation. our partner companies, we are proud to
ed a new line of count you as part of the Georgia United
d mobile banking and community.
were the first credit
o introduce EMV
prove member fraud
t certainly not least,
comes from making
ding business issues,
ll growth of our

Scholarships Wash M

Me Pink Credit Union Awareness Event
5

Team Members | strength from t

Georgia United’s success begins with give us good marks, b
our knowledgeable team members and states, “Top Workplac
radiates outward through the tangible better places to work
value they provide to the members and likely to have greater
communities we serve. The care and organizations.”
dedication of our entire team makes In 2015, we grew our
up the backbone of our strength and is by 26%. Our goal is a
ultimately what makes Georgia United our incredibly talente
successful. Each year the Atlanta committed to ensurin
Journal-Constitution names the city’s satisfaction and cond
Top 150 Workplaces — based solely internal survey last ye
upon annual surveys completed by we are doing. As we r
employees. We are proud to say that in we are committed to
2015 Georgia United Credit Union was Georgia United. In 20
listed as a Top 25 Workplace within the make every effort to e
mid-size company category. Not only is United remains a pref
it an honor to have our team members

What Team Members are saying about us:

“Our CEO tells us often how important we are and “I like working
always strives to make Georgia United even better!” environment a
6 that’s growing

the inside

but the AJC both today and in the future.
ces are not only While much of our focus last year was
k but are more on improving our infrastructure, 2016
will be focused on both internal and
success than peer external service to enhance your daily
r team members experience at Georgia United. We are
always to retain dedicated to improving communication
ed team. We are and delivering the necessary tools
ng team member and resources for our team members
ducted our own to perform their jobs effectively. In
ear to gauge how order to provide exceptional service
review the results, to our members, we know we must
building a better continue to provide exceptional service
016, we plan to internally as well.
ensure Georgia
ferred employer,

“You care about us. No
other job I’ve had even
tried to pretend like they
did.”
g for Georgia United because of the teamwork
and great management. They are an organization
g and well positioned for the future.”

Button Down Dash
CMN Bowl-A-THon

Team Day

wash me pink Jingle Jam 7

Community | financial educatio

We believe that teaching youth how to save stated, “The JA partne
and spend wisely is an important step in fit. As one of Georgia’s
preparing them for financial responsibility credit unions, we’re co
that will last a lifetime. our youth build core fi
In 2015, we partnered with Junior and economic educatio
Achievement (JA) of Georgia to educate experiences that inspir
Gwinnett County students about workforce life. We want to empow
readiness, entrepreneurship and financial successful, productive
literacy through experiential, hands- we can build stronger
on programs. Georgia United is jointly Georgia United has als
sponsoring a BizTown® storefront at the new opportunities to partne
JA Gwinnett Discovery Center, along with markets – for example
Delta Community Credit Union. Finance in Dalton High
BizTown is a simulation of a town containing JA initiatives in the Sav
storefronts comprised of many types of provide team member
businesses that participate in a simulated the Gwinnett and Atlan
economy, such as financial services, retail 2015, we worked with
establishments, utilities, manufacturing or Advanced Studies (AAS
other professional services. Debbie Smith, County Board of Educa
president and CEO of Georgia United functional in-school bra
students. McDonough,

8

on

ership is a natural branch, opened at AAS in January 2016.
s largest educator’s We continue to look for other markets
ommitted to helping to provide these educational activities to
financial literacy youth.
on skills through Providing financial literacy to our members
re success in work and and partner companies continues to be
wer students to be a goal of Georgia United. Through our
citizens, so together seminar series, we strive to enhance the
communities.” financial well-being through education and
so created product information.
er with JA in other Through our young member programs, we
e, we sponsor Personal provide tools and learning vehicles to assist
h Schools, support parents, teachers and students. We know
avannah market and the importance of teaching strong financial
r volunteers at both routines to our communities and are a
nta locations. In proud supporter of the Banzai Program
h the Academy for within some of our markets.
S) and the Henry
ation to create a fully
anch supported by
, our first in-school

GwibnenceottmCinogunJtAy CMitiidzednles Sfochr othoel Sdtauyd.ents

Georgia United
volunteers cut the
ribbon in front of our
new BizTown store.

Students developing a marketing 9
slogan and dance in the Georgia

United BizTown store.

Community | Share our Strength

At Georgia United, we are committed to building stronger local commun
charitable giving and volunteering. We take great pride in being an activ
responsible member of the communities we serve. We believe giving bac
credit union philosophy of “People Helping People.”
Each year, Georgia United sponsors many programs and events focused
communities, financial literacy and school systems near our branch loca

CMN Bowl-A-Thon

Jacket 2 Jacket Georgia United
members raise

$6,18

for Children’s M
Network of Atla

9Students in SHARED S
participating
schools read over

1,000,000

pages

h Junior ACHIEVEMENT

nities through H3elp0ed ,000
ve and
ck reflects the students learn about
on supporting financial education
ations.
Teddy Bear Toss
d team
ed

85
Miracle
anta

STRENGTH

Georgia United helped

4,000collect over

stuffed animals for
Emergency First
Responder Units

Volunteer Income
Tax Assistance

2,500(VITA) Prepared
tax returns

#GUC

Can Hunger Wish
4th Annual 26th A

27.5Collected

tons of food

School Crashers SM

2nd Annual 1,650+

volunteer hours
were donated to
improve five schools
throughout Georgia

CUcares Shred Days

Tree 1,288 gifts 10members brought in over
Annual tons of
were collected and paper to shred
delivered to local 11
foster children

Continued Growth Updated Technology
• Surpassed $1 billion in assets. • Enhanced mobile banking and
• Merged with HealthCom Federal online payments through Apple Pay.
Credit Union and Etowah Valley • Improved member fraud security
Federal Credit Union. with EMV chip technology; the first
• Grew loans almost $100 million or credit union in our market.
18.4%.

2015 Highlights

EMV chip card
technology

12

Emphasized Member Services Improved Lending
• Launched a new loan origination
• Created Member Loyalty Program system to provide quicker response
to gain valuable feedback. times and more consistent loan
• Built an internal help desk to better decisions.
support front-line interactions with • Debuted a new, competitive Cash
members. Back Credit Card with a monthly
• Launched two youth programs: return of 1.5% on all purchases.
Money Mammals and
Money Masters.

Focusing on our members,
team members and communities
help make all things possible.
We value your support and
commitment to Georgia United
now and moving forward.

2016 Initiatives

Increase Accessibility & Improve Commu
Convenience Efficiency
• Redesigning checking account • Improving how w
products to provide simplicity, with our partner co
convenience and value. members.
• Updating many ATMs to accept • Enhancing home
image deposits. and refinance expe
• Launching new mobile apps. • Redesigning mem
• Improving new member application • Launching new in
process. member communic
• Evaluating new branch sites in fast better support mem
growing communities.

Georgia United’s Executive Team:
Standing: Cynthia Gore, Chief
People Officer; Mike London, SVP
of Lending; Michelle Shelton, Chief
Marketing Officer; Shawn Turpin,
SVP Sales & Service; Todd Gustafson,
Executive VP & CFO
Bottom Row: Mark Bartholomew,
Chief Information Officer;
Debbie Smith, CEO & President; Eric
Jenkins, SVP of Operations

unications Support OUR young members
we communicate • Promoting new youth account
ompanies and savings programs.
• Continuing School Crashers SM and
loan purchase high school scholarships.
eriences. • Promoting youth month.
mber statements. • Building a young adult program.
nternal team • Opening our McDonough
cation tools to branch with student team members.
mber service. • JA volunteer opportunities for our
team members.

13

Director’s report

It has been my honor and a pleasure this record lows. The cont
year to once again serve as Chairman of the economic growth cou
Board of Directors of Georgia United Credit products, has helped
Union. Our goal as your Board of Directors growth. In 2015, Geo
is to work alongside the credit union team over $254 million in
to provide exceptional service for you, our loans, an increase of
member-owners. We seek to help guide the compared to $196 m
president’s goals, while ensuring your credit this is a testament to
union continues to grow as a viable financial organization’s collect
organization. Know that as we strive to Our field of members
make Georgia United even more convenient, grow. We have deepe
personable and secure, your interest remains with existing membe
at the forefront of every decision we make. attracting new memb
Thank you to our dedicated Board of Directors groups and communi
and Supervisory Committee for volunteering welcomed our newest
their time, wise counsel and direction. Thank members from the H
you also to our leaders and team members for Valley credit union m
actively embracing our values and business continue to expand o
principles. It is your focus of providing to meet the needs of
excellent member service that is leading As a Board, we are p
Georgia United into the future. and direction of the c
In December 2015, the Federal Reserve raised union’s Chairman of t
the Federal Funds rate for the first time since from all of us that the
2006 — although rates still remain at near Georgia United.

14

tinued, moderate
upled with our competitive
d to sustain strong loan
orgia United originated

consumer and mortgage
almost 30% when
million in 2014. I believe
o the strength of the
tive whole.

ship has continued to Georgia United’s Board of Directors:
ened our relationships Standing: Dan Jones, Director; Tom Cochran,
ers, and we are actively Director; Dot Dusenberry, Secretary; Randy
bers within the partner Dennis, Treasurer; Monsignor Churchwell, Director;
ities we serve. We also Frank Thach, Jr, Director
t Dalton and Cartersville Bottom Row: Tom Dickson, Chairman; Dr. James
HealthCom and Etowah Williams, Vice Chairman; Dr. Steve Whatley,
mergers. We will also Director
our team where necessary
f our members.
pleased with the progress
credit union. As your credit
the Board, I can attest
e future remains bright for

Supervisory Committee report

Serving as the Supervisory Committee, we conformity with applica
are honored to provide an independent standards. The Commi
appraisal of the safety and soundness of this firm to review aud
the operations and activities of Georgia statements, discuss au
United Credit Union. We are appointed recommendations for i
by the Board of Directors with the goal of of the audited financia
protecting the assets of the credit union. available upon request
Part of our role is to monitor compliance Periodically the Georgi
with applicable laws and regulations, Banking & Finance and
which require more oversight each year Union Association also
as regulations evolve. We also oversee the examinations. They ass
Internal Audit Department activities to financial condition, com
ensure the accuracy of record-keeping and regulations and safety
maintenance of sound internal controls. Supervisory Committee
To aid our efforts, part of our responsibility that the most recent re
is to select an independent public once again validated th
accounting firm. We selected the firm of safety and soundness o
Porter Keadle Moore, LLC to perform the
2015 annual audit and provide an opinion
on the audited financial statements, in

able accounting Georgia United’s Supervisory Committee:
ittee meets with Standing: Dan Jones, Committee Member and
dited financial Tom Cochran, Chairman
udit results and any Bottom Row: Christy Willis, Committee Member
improvement. A copy
al statements are
t.
ia Department of
d the National Credit
o perform supervisory
sess Georgia United’s
mpliance with
and soundness. The
e is pleased to report
egulatory examination
he financial strength,
of your credit union.

15

Treasurer’s report

Georgia United’s financial position is that more than covere
strong as a result of continued solid in operations expense
earnings and further capital growth. Total Assets, or ROA, for 20
capital grew to almost $131 million at the as compared to 0.90%
end of 2015, a $14.1 million, or 12.1%, returns helped to furt
increase when compared with the end of and will be utilized to
2014. The capital ratio ended 2015 at member services, tale
13.01% versus 12.34% a year earlier, growth.
well above the highest regulatory capital Member shares totale
minimum of 7.00%. the end of 2015 and
Net income in 2015 totaled $9.9 million or 8.5%, over the prio
and was $1.2 million, or 13.4%, higher deposit growth elevat
than 2014. This increase was primarily level to $1.09 billion
the result of loan growth, a decline in loan and helped fund grea
losses and higher non-interest revenues our members. Total lo

16

ed an increase almost $100 million, or 18.4%, when
e. The Return on compared to the end of 2014 and totaled
015 was 0.96% $640 million at the 2015 year-end.
% in 2014. These We will continue to focus our efforts on
ther build capital sustaining financial strength to meet our
o fund investments in members’ needs and provide capital for
ent, technology and future growth. We also utilize prudent
ed $940 million at risk management techniques to ensure
grew $73 million, the safety and liquidity of our members’
or year-end. This deposits and the balance sheet as a
ted the total asset whole.
at the end of 2015
ater loan amounts to
oan balances rose

Condensed Statements of income

($ AMOUNTS IN THOUSANDS)

Interest Income
Interest income on loans
Interest on securities and interest bearing deposits
Total interest income

Interest Expense
Dividends on shares
Interest paid on borrowings
Total interest expense

Net Interest Income
Provision for possible loan losses
Net interest income after provision for possible loan losses

Non-Interest Income
Interchange income
Checking and other share fees
Mortgage and other loan-related revenues
Other
Total non-interest income

Non-Interest Expense
Salaries and employee benefits
Office operations and occupancy
Advertising and business development
Other
Total non-interest expense
Net income

e years ended December 31, 2015 and 2014 (unaudited)

2015 2014 NON-INTEREST INCOME
(IN THOUSANDS)
$26,423 $24,537
4,888 5,017 $25,000
31,311 20,000
29,554 15,000
3,000 10,000
- 3,075 0
- 2011 2012 2013 2014 2015
3,000
28,311 3,075 $12,000 NET INCOME
1,500 26,479 10,000 (IN THOUSANDS)
26,811 8,000
1,850 6,000 2011 2012 2013 2014 2015
6,004 24,629 4,000
9,888 2,000
5,435 0
44 7,489
6,231 1,365
20,267 2,837
17,126
19,495
10,456 16,645
2,025 9,662
5,245 1,731
37,221 5,026
$9,857 33,064
$8,691

*Audited Financial Statements Available Upon Request

17

assets as of December 31, 2015 and 2014 (unaudited)

($ AMOUNTS IN THOUSANDS)

Loans
Autos
Real estate
Member business
Other
Total loans
Less: Allowance for possible loan losses
Net loans
Cash and due from bank
Securities and interest bearing deposits
Other assets
Total Assets

18

2015 2014 $700,000 LOAN GROWTH
600,000 (IN THOUSANDS)
$270,025 $212,416 500,000
244,222 192,974 400,000 2011 2012 2013 2014 2015
50,698 58,737 300,000
72,260 76,504 200,000
639,905 540,631 0

(5,009) (5,157) $1,200,000 ASSET GROWTH
634,896 535,474 1,000,000 (IN THOUSANDS)
800,000
29,235 33,931 600,000 2011 2012 2013 2014 2015
341,627 349,298 400,000
80,766 0
$1,086,524 78,517
$997,220

*Audited Financial Statements Available Upon Request

Shares, liabilities and members’ eq

($ AMOUNTS IN THOUSANDS)

Shares
Checking
Savings and Money Market
Certificates
Total shares

Other liabilities
Total Shares and Liabilities

Members’ Equity
Regular reserves and undivided earnings
Equity acquired in merger
Accumulated other comprehensive income (loss)
Total Members’ Equity
Total Shares, Liabilities and Members’ Equity

equity as of December 31, 2015 and 2014 (unaudited)

2015 2014 DEPOSIT GROWTH
(IN THOUSANDS)
$153,351 $132,856
608,604 548,555 $1,000,000
178,259 185,475
940,214 866,886 800,000

15,478 13,588 600,000
955,692 880,474
400,000
109,765 99,846
22,629 18,167 0
(1,562) (1,267)
130,832 116,746 2011 2012 2013 2014 2015
$1,086,524 $997,220
EQUITY GROWTH
(IN THOUSANDS)

$140,000 2011 2012 2013 2014 2015
120,000
100,000
80,000
60,000
40,000
0

*Audited Financial Statements Available Upon Request

19

We are committed to helpin

Money Education

CCaann HHuunnggeerr

20

ng Georgia Families succeed.

#GUCUcares

WWiisshh TTrreeee

SM

SScchhooooll CCrraasshheerrssSM

By actively and respectfully caring for our m
Georgia United is bigger than a credit union. We a

members, team members and communities,
are the SHARED STRENGTH of our entire community.



This credit union is federally insured by
the National Credit Union Administration,
a U.S. Government Agency.