2019 PECU Annual Report

2019

ANNUAL REPORT

2020 Annual Meeting Agenda accounts, fund deposit accounts and sign up for additional
member services through their mobile phone, tablet, or PC.
I. Call Meeting to order
II. Ascertain that a quorum is present PECU strives to achieve the highest level of accountability
III. Appoint Recording Secretary and establish rules and for our members. We expect to receive good reports from
examiners and auditors. By every measurement the reports
procedures for Meeting received from examiners and auditors in 2018 were excellent.
IV. Minutes of the 2019 Annual Meeting Public Employees Credit Union performed well financially
V. Reports in 2018. Loans continue to have strong growth and the
A. Board of Directors — Lanny Wadle loan portfolio is performing very well. All risks of the loan
B. President — Gary Whitcomb portfolio are well managed.
VI. Unfinished Business, if any
VII. New Business Members are both the biggest contributors and the biggest
VIII. Report of Nominating Committee recipients of the credit union success. As a member, the
IX. Elections more products and services you utilize, the more you
X. Door Prizes maximize the value of your membership. Gary Whitcomb
XI. Adjourn thanked all of the employees for working hard to meet the
needs of the members and for making 2018 a successful year.
2019 Annual Meeting Minutes He then introduced the members of the senior management
team. In closing he thanked the members for their
Chairman Burrell presented the minutes from the 2018 loyal support.
Annual Meeting. Jesus Franco made a motion to dispense
with the reading of the 2018 Annual Meeting minutes. Pat Unfinished Business
Liddy seconded the motion and the motion carried with a
voice vote of the membership. There were no items of unfinished business.

Reports New Business

Chairman Burrell referred to the Board of Directors report as There were no items of new business.
printed in the Annual Report. He commented that 2018 was
another good year for PECU. Total assets and outstanding Report of the
loans all increased from December 31, 2017 to December 31, Nominating Committee
2018. The credit union continues to offer new and improved
electronic and in-person services, allowing both remote and Chairman Burrell called upon Hal ten Brink, to give the
in-person services to continue to serve our members well. In report of the nominating committee. He reported that there
closing, he congratulated staff for their accomplishments of were two (2) vacancies on the Board and that current board
2018 and recognized the Board for their efforts in providing members Lanny Wadle and Claire McGuinness were standing
for quality financial products and services while also for re-election for 3 year terms. No other nominations were
maintaining the financial stability and strength of the credit received for a position on the Board of Directors.
union. No questions were asked from the floor.
Elections
Gary Whitcomb, PECU President, presented the President’s
Report. He began by welcoming everyone to PECU’s 66th Chairman Burrell presented the incumbents Wadle and
Annual Meeting. Mr. Whitcomb thanked the members of McGuinness for re-election. Member Winston Anderson
the volunteer Board of Directors and noted that PECU was moved that the nominees be accepted by acclamation. Buck
fortunate to be led by a professional and talented Board Henderson seconded and the nominees were accepted with
of Directors. Credit unions decisions are governed by what a voice vote of the membership.
is best for the members. We are committed to growing
our community impact while offering financial solutions to Door Prizes
enhance every phase of life for our members.
Twenty door prizes of $25 each in PECU zipper bags were
Gary Whitcomb stated the credit union is prepared to given to members whose tickets were drawn.
leverage technology and allow safe and secure remote
access to products and services. He then proceeded to Meeting Adjourned
discuss PECU’s online account opening feature. Members and
prospective members can join the credit union, open deposit The meeting was adjourned at 7:34.

Board of Directors Report such, we were able to bring our “people helping people”
mantra to life in a number of ways that helped not only our
Welcome to the 67th Annual Meeting of PECU. Thank you members, but our communities.
for being here, and for being truly connected member-
owners. Texas has 446 credit unions with more than 9.1 PECU performed well in 2019. As our credit union
million members and total assets of more than $107 billion. membership grows, so do our assets, which is one of
These figures reflect a robust and healthy credit union the primary indicators of how well our members are
system, of which PECU is a part. Since our credit union receiving the products and services we offer. PECU is a
opened for business in 1952, we are proud of how far we’ve well-capitalized financial institution. Total Assets at the end
come, and our many accomplishments would not have of 2019 were over $350,000,000.
been possible without the ongoing energy, optimism, and
commitment from everyone involved in the operation We’d like to express our deepest confidence in the
of this credit union. Because of the work we’ve all done leadership of PECU, the wisdom and guidance of our
together, this credit union is thriving. esteemed Board of Directors, the commitment of our
The strength of our commitment is key to our long-term dedicated staff, and the support and loyalty of our member-
sustainability and prosperity. The Board is greatly humbled owners. We look optimistically into the future because
by the trust members have placed in us. As a united body PECU is well positioned to face any challenge and seize any
of leadership, we are responsible for ensuring that we have opportunity that presents itself in 2020.
a competent, qualified, and trustworthy management team,
and I can say unequivocally that we do. We wish you and your families the very best in 2020.
Our commitment to community involvement is just one of
the things that makes credit unions different from other Board Members
financial institutions. Some of our community activities in
2019 include: Lanny Wadle, Chairman
• W e co-sponsored more than two dozen community Hal ten Brink, Chairman Emeritus
events including numerous youth activities and high school Will Etheredge, Vice Chairman
organizations Tommy Gregg, Secretary
• W e participated in 9 health and benefit fairs, and held Claire McGuinness, Treasurer
quarterly member appreciation events LC Wadle, Assistant Secretary
• W e co-sponsored community programs such as March of Patrick Marotta, Board Member
Dimes, Partners In Education, Brown Santa, and the Capital
Area Parkinson’s Society. Audit Report
From a business perspective, your credit union continues its
steady trajectory forward and upward, with our focus finely Nearman, Maynard, and Vallez, a certified public accounting
tuned to the things that really matter to our members. As firm, conducted their annual audit as of March 31, 2019.
Nearman, Maynard, and Vallez certified the accuracy of
PECU’s financial statements in accordance with Generally
Accepted Accounting Principles.

Theresa Vijarro, iPad winner. Marty Martin Family, Member Appreciation winners.

AT-A-GLANCE

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250,000 2013 2014 2015 2016 2017 2018
2013 2014 2015 2016 2017 2018 2019
2019

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130,000 2013 2014 2015 2016 2017 2018 2019
2013 2014 2015 2016 2017 2018 2019

in i$n1$01000'0S0'S203163,000 NNENETETWTWWOORORTRTHTHHCCAEAPQPIUTITAITALYL
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35,351
2013 2014 2015 2016 2017 2018 2019
2013 2014 2015 2016 2017 2018 2019

BALANCE SHEET

(as of December 31, 2019)

ASSETS 2019

Loans

Personal Loans 157,513,703

Real Estate Loans 66,795,280

Allowance for Loan Loss (775,238)

Net Loans 223,533,745

Cash, on hand 1,181,924

Investments

Marketable Securities 50,218,328

Catalyst Corporate Credit Union 63,568,365

Nat’l Credit Union Share Insurance Fund 2,792,175

Other Investments 1,579,714

Total Investments 118,158,583

Other Assets

Land and Building 5,506,256

Other Fixed Assets 638,269

Accrued Interest 699,059

Deferred Assets 502,730

Other Assets 454,598

TOTAL ASSETS $350,675,163

LIABILTIES 104,827
Accrued Interest and Dividends 316,374
Accounts Payable 244,067
Accrued Expenses 222,956
Other Liabilities 54,847
Dormant Accounts 314,381,342
SHARES AND DEPOSITS

EQUITY 35,350,749
Reserves & Undivided Earnings $350,675,163
TOTAL LIABILITIES AND EQUITY

INCOME STATEMENT

(as of December 31, 2019) 2019 WEB ADDRESS

INCOME 8,985,696 www.pecutx.org
1,881,300
Interest on Loans 1,897,331 MAILING ADDRESS
Income from Investments
Fee and Other Income 1,963 P.O. Box 2205
Non-Operating Income 12,766,290 Austin, TX 78768-2205
TOTAL INCOME
4,223,346 CENTRAL TEXAS
EXPENSES 18,808 PHONE NUMBER
Employee Compensation and Benefits 752,892
Travel and Conference Expense 512.474.1955
Office Occupancy Expense 1,355,031
Office Operations Expense 213,825 PECU LOCATIONS
Educational and Promotional Expense 276,048
Loan Servicing Expense 422,991 Main Office
Professional & Outside Services 987,687 306 E. 10th St.
Provision for Loan Losses 35,467 P.O. Box 2205
Supervision & Examination 109,267 Austin, TX 78768-2205
Miscellaneous Expenses Central Branch
8,395,361 1200 W. 42nd St.
TOTAL EXPENSE Austin, TX
4,370,929 Walnut Creek Branch
INCOME BEFORE DIVIDENDS 8013 Centre Park Dr.
1,228,368 Austin, TX
Dividends & Interest Expense Oak Hill Branch
$3,142,561 5838 Hwy. 290 West
NET INCOME Austin, TX
Drive Thru Branch
Round Rock Branch
15800 RM 620 North
Austin, TX
Beaumont Branch
4215 Eastex Freeway
P.O. Box 7430
Beaumont, TX
77726-7430
Tel: 409.892.3171

Tesa Harding, iPad winner. Taylor Phillips, PECU Birthday winner.

Terms of PECU Board of Directors        

• Chairman, Lanny Wadle — Term expires in 2022
• Chairman Emeritus, Hal ten Brink — Term expires in 2023
• Vice Chairman, Will Etheredge — Term expires in 2021
• Secretary, Tommy Gregg — Term expires in 2023
• Treasurer, Claire McGuinness — Term expires in 2022
• Assistant Treasurer, LC Wadle — Term expires in 2021
• Assistant Secretary, Patrick Marotta — Term expires in 2023

Overview of Significant Changes

• All ATMs were upgraded to Windows 10
• All PCs and workstations were upgraded to Windows 10 and MS Office 2019
• Introduced My Card Rules — A Mobile App for PECU Plastic Cards
• I ntroduced Fast Track MasterCard program — A starter credit card program
designed to help members build their credit
• U pgraded our main and backup core servers to the latest IBM processor for
enhanced speed and security

Membership Size: 23,488

PECUTX.ORG