ANNUAL REPORT 20 NOTRE DAME FEDERAL CREDIT UNION 22
THOMAS PRESIDENT / CEO 1 WATCH OUR 2022 RECAP
Cheers to another great year at Notre Dame FCU! We pride ourselves on serving you, our Owners, and we continued to do just that in 2022. Our credit union family continues to grow, with our credit union growing to meet your needs. In 2022 we expanded our Phoenix branch and opened our new Tucson office, accommodating our growing membership in Arizona. We always say “We go where you go” in reference to our 4,000+ shared branches and over 32,000 fee-free ATMs, but we also put our money where our mouth is to bring you our own brick-andmortar locations as well. Our credit union remained busy in 2022 as we tried to stay ahead of the multiple rate hikes by the U.S. Federal Reserve. While such rate increases can certainly lead to financial stress for our borrowing members, our mission of putting people on the path toward financial empowerment holds strong. Our priority remains saving you money whenever and wherever we can. In 2022, we saved our owners over $3 million, while also putting over $2 million back into the communities we serve. Our ELEVATE program alone was responsible for donating over $400,000 back to nonprofit organizations. None of this would be possible without the tireless work of our Notre Dame FCU partners. As an institution, we answer to you, our Owners, but our partners are the ones dedicated to serving you day in and day out. They’re the heartbeat of our credit union, the ones who strive to genuinely listen to your needs and do whatever they can to assist. Without these wonderful folks, Notre Dame FCU would just be another financial institution. As always, I am incredibly thankful for your support and loyalty to our credit union. I am humbled every time I hear someone singing the praises of Notre Dame FCU. They say word-of-mouth is the best form of marketing, and our Owners are great marketers! In 2022 we were named Michiana’s Best Financial Institution in the South Bend Tribune Best of the Best Awards for the 10th consecutive year. Our decade-long run is a testament to our credit union family being in synch with one another, working together to provide a seamless and enjoyable banking experience and trying to make each of our lives just a little bit better. As always, if you have any questions, suggestions, comments, or complaints, please do not hesitate to contact me at [email protected]. Dear Fellow Owners, Thomas J. Gryp President/CEO 2
Through our Financial Physician program, Member incentives, and warranty products, we have saved our Member/Owners over $3.0 Million and gave back $2.0 Million+ directly to our Owners in 2022. By partnering with new organizations through our fundraising program and our continued commitment to investing in our communities, we were able to increase our giving. • Andre House of Hospital • Arizona Sports Foundation • Arts Alive • Best Week Ever • Big Brothers Big Sisters • Carmelite Home • Catholic Charities • Children’s Miracle Network • CPHS Theatre • CUNA Awareness Initiative • Fallen Hereos • Family & Children’s Center Giving back Over $2.0 Million Total Community Giveback: $2,092,468 • Forever Learning Institute • Gary Chamber of Commerce • Gentlemen & Scholars • WNDU Pack-a-Backpack • Hannah’s House • Hello Gorgeous • HHCC Latino Resource Festival • Junior Achievement • Kiwanis Club of South Bend • La Casa De Amistad • Lexington House of Elkhart • Leadership South Bend • LOGAN Center • Mascot Hall of Fame • National Immigrant Justice Center • National Youth Advocate Program • Neighbor to Neighbor • Operation Ramp It Up • Pet Refuge • Pierogi Fest • Salvation Army • Sojourner Truth House • Tepeyac Leadership • The Peace Education Fund + Many More 3
$ 200 Part of our ongoing mission is to provide the best service, products and resources to our Member/ Owners. In 2022, we increased access to our products and resources by expanding the financial services at our Phoenix branch and opening a new office in Tucson, Arizona. We acquired Mission Management and Trust Co., allowing us to provide trust and investment services to our Owners, and also launched our new user-friendly website. Improving How you Bank Committed to Excellence On the way to providing the best banking experience in 2022, we again received recognition by several national and regional organizations. 4
5 ANDREAN HIGH SCHOOL | MEMBER/OWNER JACK | MEMBER/OWNER HVAC MASTERS | BUSINESS MEMBER/OWNER ST. BENEDICT’S PARISH | MEMBER/OWNER HEIDI | MEMBER/OWNER EMILY | MEMBER/OWNER
6 Notre Dame FCU is a not-for-profit financial cooperative. What started as a conversation between two professors in the summer of 1941 has grown, now over 80 years later, into a full service financial institution with assets of more than $1 Billion and 62,000+ Member/Owners worldwide; serving over 1,200 affiliated groups. When you open a membership, you become a Member/Owner. At Notre Dame FCU, we were founded to serve our Owners. It is the only reason we exist, and we work tirelessly to fulfill that purpose, and will continue to do so in the years to come. Your Story is Our Story SEE OUR MEMBER STORIES
Fr. James Aboyi is the Pastor at St. Benedict’s Parish in Phoenix, AZ. Originally from Nigeria, Fr. FRJames was ordained in 2004 and received his first priestly ministry assignment to the Diocese of Tucson shortly after. He joined St. Benedict as a Parochial Administrator in 2018 before being appointed Pastor at the beginning of 2020. The idea of building a new church gained momentum beginning in 2014, but after experiencing multiple changes in planning and a pandemic in 2020, the project pivoted to a significant renovation of the current building that broke ground in 2021. When it came to funding the build, Fr. James and Parish Finance Council President Debbie Smith browsed financial institutions and ultimately decided Notre Dame Federal Credit Union provided the best loan and service options for their project. St. Benedict’s Parish | Business Member/Owner SINCE 2021 7 “We decided to go with Notre Dame FCU for the funding of our Church project. It has been so wonderful working with them.” - Fr. James
R. James 8Your Story is Our Story Member/OwneR
JAYCOB Member/OwneR 9 Your Story is Our Story SEE HIS STORY
BJaycob is the principal at Andrean High School located in Merrillville, Indiana. In 2020 Andrean High School moved their accounts to Notre Dame Federal Credit Union. As a mission-driven institution, Andrean is a large part of the Lake County community at the pinnacle of college preparatory education. Jaycob draws parallels between Andrean High School and Notre Dame Federal Credit Union, namely providing resources, honest advice, and education with the goal being the betterment of lives and communities. Jaycob considers Notre Dame Federal Credit Union a wonderful partner and an asset in helping Andrean High School build a future filled with greater financial solvency, community support, and philanthropic support. - Jaycob “I would recommend Notre Dame Federal Credit Union’s services to any organization with interest in a community partner, in the faith, and in ensuring success for your institution and your constituents.” 1 0 ANdrean High SChool| Business Member/Owner Since 2020
Jack is both a Vietnam war veteran and a veteran of Notre Dame Federal Credit Union. As an Engineer Captain in the United States Army, Jack was deployed in 1964. After receiving his discharge orders in 1978, Jack bought a home in South Bend and became a Member/Owner at Notre Dame FCU. In addition to serving his country, Jack was an integral part of the space race. He was part of the engineering team that developed the landing feet for NASA’s Apollo 11 moon landing module in 1969. Following years of honorable service to his country, Notre Dame FCU is proud to say we’ve been serving Jack each day for the last 44 years. Jack | Member/Owner Since 1978 “I fully believe I made the right decision to stick with Notre Dame FCU, and I will remain with them until the day I die.” - Jack 1 1
JACK Member/OwneR 1 2Your Story is Our Story SEE HIS STORY
EMILY Member/OwneR 1 3Your Story is Our Story SEE HER STORY
Emily | Member/Owner Since 2008 Emily began her journey as a Member/Owner with Notre Dame Federal Credit Union over 15 years ago. She values the relationship and sense of community provided by Notre Dame FCU. As a freelance photographer, Emily began a pay-it-forward photo series in hopes of inspiring people to truly think about what they can give back to their community and how to best share their gifts. Emily was recently approved for an auto loan through Notre Dame FCU, securing both a vehicle and a rate that she could not be happier with. The added protection offered by GAP (Guaranteed Asset Protection) gives Emily peace of mind knowing that she will be covered if anything ever happens to her vehicle. “I would recommend anyone to Notre Dame FCU for any type of loan and even just general banking because of the experience that I’ve personally had.” - Emily 1 4
Saying goodbye to Rick Burden A lot happened this past year: take a look at what we’ve been up to in our communities. 2022 Community Scrapbook Giving back to St. Monica Catholic Church Our 2022 interns helping out at a local food bank 1 5 Giving Back to St. Casimir through ELEVATE Blessing of the Phoenix branch by The Most Reverend Bishop John Dolan Educating about ELEVATE and giving back Celebrating our 2022 Scholarship Recipients Investing in the LOGAN Center Ribbon cutting ceremony at our new Phoenix branch location
Wishing Pam a happy retirement 1 6 Making a difference for kids in need through Pack-A-Backpack Gathering a crowd and giving back at Best Week Ever Our Team celebrating Cinco De Mayo Supporting Mishawaka Catholic education Investing in faith with Full Gospel Missionary Assembly Educating members at our fraud luncheon Decorating downtown South Bend for the holidays Welcoming Mission Management and Trust to the Notre Dame FCU Family
Jerry Langley Board Chair David Brenner Vice-Chair Fr. Mark B. Thesing, CSC Treasurer Katharine Williams Secretary Pastor Hardie Blake Director Sam Centellas Director Kareemah Fowler Director Maureen Miller Director Mark Neal Director Lou Pierce Director Pat Ruszkowski Director Notre Dame FCU’s Board of Directors are volunteers elected by credit union Owners to oversee the management of our credit union. Included in those duties are hiring the CEO, setting policies, and ensuring the best interests of our Owners are always maintained. Board of Directors 1 7
Notre Dame FCU’s Supervisory Committee monitors the operations of our credit union and its internal control system. Supervisory Committee members not only attend every Board of Directors meeting, they also meet periodically with the regulatory examiners and external auditors to ensure the efficiency and ethical practices of the credit union. Our Supervisory Committee members are Maureen Miller (Committee Chairman), Mike Bieganski, Stephanie Cerney, and Monica Markovich. The Supervisory Committee’s Report The NCUSIF (National Credit Union Share Insurance Fund), an agency of the United States Government, was established exclusively to insure Member/Owners’ deposits held in credit union accounts. Most properly established share accounts are insured up to $250,000, with an additional $250,000 for Individual Retirement and Keogh Accounts. Plante Moran, PLLC, Certified Public Accountants, were hired by the Supervisory Committee to conduct an audit of the 2022 financial statements and to render an opinion thereon. Copies of their audited report are available upon request. It is the opinion of the Supervisory Committee that Notre Dame FCU meets the requirements of State and Federal regulations and credit union by-laws, and continues to focus on efficient and effective operations, as directed by Board policy. Supervisory Committee 1 8
MOREAU BRANCH 1 9
2018 2019 2020 2021 2022 $1,140.0 $1,080.0 $1,020.0 $960.0 $900.0 $840.0 $780.0 $720.0 $660.0 $600.0 TOTAL ASSETS $627.9 $651.9 $855.0 Millions Statement of Financial Condition $903.9 $1,101.0 2 0
December 31, 2021 $108,594,341 — 38,481,556 724,654,199 926,910 4,719,136 4,703,209 — 6,453,658 3,025,000 1,500,000 6,915,312 2,894,724 1,071,712 $903,939,757 $815,861,489 748,034 — 11,858,180 7,259,912 $835,727,615 68,212,142 $903,939,757 Assets Total Cash and Cash Equivalents Certificate of Deposit in Other Financial Institutions Securities Available for Sale Loans–Net Loans Held for Sale Loan Servicing Rights–Net Premises and Equipment–Net Goodwill Credit Union-Owned Life Insurance Federal Home Loan Bank Stock Ownership Capital at Corporate Credit Union Share Insurance Deposits Accrued Interest Receivable Other Assets Total Assets Liabilities and Members’ Equity Liabilities Owners’ Share Accounts Non-Owner Certificates of Deposit–Net Federal Home Loan Bank Advances Subordinated Debt–Net Accrued and Other Liabilities Total Liabilities Owners’ Equity Total Liabilities and Owners’ Equity December 31, 2022 $76,911,261 295,000 33,683,490 947,329,993 1,913,498 4,464,997 5,018,261 2,217,411 6,598,642 6,300,000 1,500,000 7,394,118 3,568,536 4,148,933 $1,101,344,140 $879,600,491 748,034 125,000,000 11,896,918 11,271,832 $1,028,517,275 72,826,865 $ 1,101,344,140 2 1
2 2LAKE COUNTY HEADQUARTERS
2 3PHOENIX BRANCH
2018 2019 2020 2021 2022 $13.5 $12.0 $10.5 $9.0 $7.5 $6.0 $4.5 $3.0 $1.5 0 NET INCOME GIVEBACK $1.8 $4.5 $7.4 $1.2 $1.2 $1.9 Millions Statement of Operation $11.8 $1.8 $9.7 $2.0 2 4 That’s 17% of our total profit!
Income Statement Loans Securities Available for Sale Other Total Interest Income Interest Expense Owners’ Shares Non-Owner Certificates of Deposit Subordinated Debt Federal Reserve Bank Borrowing Total Interest Expense Net Interest Income Provision for Loan Losses Net Interest Income After Provision for Loan Losses Non-Interest Income Service Fees and Charges Mortgage Banking Income Commissions Interchange Fees Other Total Non-Interest Income Non-Interest Expense Salaries and Employee Benefits Occupancy Credit Card Servicing Marketing Equipment and Data Processing Share Insurance Deposit Expense Other Total Non-Interest Expense Net Income December 31, 2022 $35,801,772 512,247 1,191,332 $37,505,351 3,887,502 18,476 795,938 1,075,680 $5,777,596 31,727,755 1,906,500 $29,821,255 5,328,083 3,545,303 3,067,074 5,895,238 2,416,384 $20,252,082 22,376,828 1,914,085 747,831 1,853,336 3,316,055 52,817 10,062,007 $ 40,322,959 $9,750,378 December 31, 2021 $29,995,042 147,432 524,901 $30,667,375 3,129,094 18,476 795,938 62,777 $4,006,285 26,661,090 536,000 $26,125,090 5,266,860 7,584,017 2,755,827 5,939,368 185,870 $21,731,942 19,536,623 2,964,800 1,012,407 1,870,671 3,716,123 44,433 6,839,871 $ 35,984,928 $11,872,104 2 5
2 6TUSCON Office
NMLS ID# 405299