2013 Annual Report lowres 02 11 13
O
n behalf of the Board of Directors, Supervisory Committee, and staff, it is my pleasure to present this annual report to the members of SF Fire Credit Union.
Many are aware of the Credit Union’s proud history of serving the firefighting community since 1951. Our humble origins trace back to a small office at 17 Engine on Jessie Street, where a group of the San Francisco Fire Department’s finest first made a difference in the financial lives of fellow firefighters and their family members. Art McIntyre, Larry Murray, Larry Kelly, Jake Palu, Ed Mitchell, Bill Mooney, Frank Brissette, John Tully, George Kelley, and others started a tradition of providing members with the services they need, with a level of personal service they deserve. It’s unlikely any of them could have predicted that sixty-two years later, economic and regulatory pressures on small credit unions would result in their need to merge with larger ones, and result in a return to our roots at Jessie Street. Our recent merger with Bay Media Federal Credit Union not only ensures their members continued access to credit union services, but also provides our members with the convenience of a new SF Fire Credit Union branch located just a few steps from where 17 Engine once stood. While the honoring of our history will never waiver, it’s just as important to focus on the present and future. The members of SF Fire Credit Union should know that the core values of this organization remain intact, and will continue to do so. Our respect for the firefighting community is steadfast, as is our pride in serving it. We also understand that as a member-owned financial cooperative, we exist to provide you with the best possible value while operating in a manner which maintains the safety and soundness of the credit union. I believe that the staff and management of SF Fire Credit Union do an excellent job in upholding these values, and thank them for their continued commitment to improving the financial lives of our members. In closing, I’d like to thank our membership for their continued support and loyalty to the organization. You have been the key to our success in the past, and why we will prosper in the future. Best Regards,
John Sweeney
John E. Sweeney Chairman
Brook Baker Francis E. Lee
Edward A. Liggins
James P. Olson
Bridget O’Rourke Nicholas Russo
Sup e rv i s o ry C o mm i t t e e Janet L. Brock William Madsen Chairman Secretary John Diluzio Kevin Kuhn
Michael Moran
Leadership Team Darren Herrmann President Chief Executive Officer
Jennifer Ebert Sr. Vice President Finance/Accounting
Trey Reeme Sr. Vice President Member Connections
62
nd
Board of Directors
Message from the Chairman of the Board
Richard Smith Sr. Vice President Member Experience
Annual Meeting of the Members
S ta f f Aleksey C. Ana S. Angela D. Anna F. Ariana M. Arsen P. Ashton B. Ausra D. Boris B. Brian S. Caitlin R. Carlos V. Chloe M. Chris V.S. Claudia C. Corinna C. Corinna R. Curtis H. Cynthia O. Dave L. David L. Deanne N. Debbie C. Dennis A. Dennis P. Devin H.
Eileen S. Frank L. Gene B. Genie C. Glenn G. Hannah S. Harriett H. Humphrey D. Ian W. Janice B. Jason W. Jeanée B. Jeanette G. Jeffrey L. Jimmy T. Jody Y. Joe A. Joel G. Juanita H. Judy P. Julie M. Julie M. Kathy H. Lillian T. Lory O. Maddison M.
Mae P. Maiya K. Manuela F. Marat B. Margarita J. Maria C. Margarita M. Martin T. Mary Grace C. Matthew C. Matthew S. Max E. Melina M. Michael S. Monica C. Naazia A. Naray S. Natali C. Natalie C. Neil C. Nick C. Noemi R. Olga B. Patricia R. Patrick L. Quyen H.
Back Cover 5.75”
Rebecca Y. Renee R. Renee T. Robert C. Robert P. Ron L. Rujni A. Russ S. Sam M. Sandra B. Sandra G. Sandra L. Shelley P.H. Stephanie D. Stephen S. Tatiana J. Tina C. Uriel d.L. Valerie B. Vicky C. Viki L. William R. Yolanda W.
2012 An n ual Re port
Message from the President & Chief Executive Officer Welcome to the 62nd Annual Meeting of the Members of SF Fire Credit Union. I appreciate having this opportunity to review the significant events of the past year, and share some thoughts regarding what’s in store for us in 2013. 2012 was a very good year for SF Fire Credit Union, certainly in regards to our financial performance. While credit unions are not-for-profit financial cooperatives, being profitable is necessary for long term viability as well as having the ability to offer a full range of products and services to meet members’ needs. I’m pleased to report that our operating profit for 2012 was $7.3 million, more than double the $3.4 million of 2011. This brings SF Fire Credit Union’s total reserves up to $61.6 million, which has us well capitalized and assures we’ll be here to serve our members for many years to come. We’re always striving to improve the level of service we provide, and that continued in 2012. Solar energy and bicycle loans became available for our more energy-conscious members, and small business owners gained access to a full suite of business products and loans. There were enhancements made at our branches, from new state-of-the-art ATMs at California Street and Stonestown to the extension of weekday hours to 6:00 p.m. at all locations. Our merger with Bay Media Federal Credit Union was another significant event of the year, happening at the end of 2012. As a small newspaper employee credit union, they faced challenges held by many credit unions of a similar size. An increasingly complicated regulatory environment, as well as a changing industry led them to seek a merger with SF Fire Credit Union. This decision by Bay Media’s Board of Directors ensured long term access to credit union services for their members, while at the same time providing our members with the convenience of their Mint Plaza branch which we acquired through the merger. As we enter 2013, I do so with optimism for what the year will have in store for us. The economic recovery seems to be gaining momentum, with employment and housing indicators on the rise. The rate environment is likely to stay low, which certainly impacts our members. Those who will have borrowing needs in the coming year (such as purchasing a first home or refinancing an existing mortgage) will benefit from continued low rates. However, retired members dependent on dividends from savings are likely to be discouraged. To those needing a higher rate of return, I can’t predict when we’ll see deposit rates rise. However, I do encourage them to utilize the services offered by our financial advisors, who can assist members in assessing their financial goals and understanding all the available investment options to achieve them. This year will see continued efforts to make accessing your accounts easier, with the launch of a new online banking platform. We’ll also enhance the level of service provided in our branches, by giving members the ability to make appointments to do business with us. Whether meeting with a financial advisor, seeing a mortgage specialist, applying for a consumer loan, opening a new account, or getting a document notarized, we want it to be at a time that’s most convenient for you. In closing, know that all of us at SF Fire Credit Union consider it an honor and privilege to be your financial institution of choice. We appreciate your loyalty and continued support.
Sup e r v i s o r y C o mm i t t e e R e p o r t
$
The Supervisory Committee independently evaluates the soundness of SF Fire
As the Senior Vice President of
Credit Union’s operations and activities, ensuring that management implements
Finance & Accounting for SF Fire
sound internal controls and maintains practices and procedures that adhere to
Credit Union, it’s my pleasure to
accepted general accounting principles. In doing so, they carry out the following
provide this financial summary and
primary responsibilities:
highlights for the past year.
• Protection of members’ funds and interests
$35 30
Michael R. Moran
Based on the results of the 2012 annual audit performed by certified public accountants Moss-Adams LLP as well as periodic audits conducted by American Share Insurance and the California Department of Financial Institutions, we conclude that SF Fire Credit Union has adequate financial control and is financially sound. Copies of these audits are available to members upon request.
2008
2009
2010
2011
2012
$900
cial services provider and look
Kevin Kuhn
2007
Assets / Shares / Loans Totals (in millions)
request of the Board of Directors. Each member reviews specific areas in executare:
0
come. We are proud to be your finan-
ing his or her responsibilities to the membership at large. Committee members
5
ability to serve you for many years to
Committee members also serve on other standing and special committees at the
William Madsen
10
dation for our continued success and
to the overall financial condition of SF Fire Credit Union. The Supervisory
15
growth in net worth builds the foun-
an annual financial audit and issue certified financial statements as they relate
John L. Diluzio
20
and in our overall net worth. The
as auditing matters. It also retains an independent accounting firm to perform
Janet L. Brock
25
in total assets and member deposits
The Committee meets regularly to review and discuss internal controls as well
Income Expense Dividend
30
a year with significant growth – both
• Reliability of financial records
Income / Expense / Dividend Totals (in millions)
$35
While just an overview, it does tell of
• Safeguarding of assets • Compliance with regulations, policies and procedures
25 20 15 10 5 0
$900
600 $900
800
800
700
30
30
600
25
25
500
Jennifer Ebert 20 Sr.Vice President 15 Finance & Accounting
200
5
5
100
0 20082008 2009 2009
2010
2011
2012
2010 2008 2011 2009 2012 2010 2007
2011
60%
Janet L. Brock Chairman
32% 7%
7% 32%
Operating Expenses DIVIDENDS UNDIVIDED EARNINGS
7%
400 300
700
32% 7%
600 500 400
200
300
10
2007
500
400
10
20070
60%
family in the future. $35
15
800 700
$35
20
Assets Shares Loans
forward to serving you and your
Income Distribution (as of 12/31/12)
Annual Meeting of the Members
President & Chief Operating Officer
F i n a n c i a l Summ a r y a n d h i g h l i g h t s
100
300 200 100
0 2012 2007
0 2008
0 2007 2008 2009 2010 2009 2007 2010 2008 2011 2009 2012 2010 2011
2012
Income Sources (as of 12/31/12)
72%
60%
60% 12%
12%
13%
13% 12%
32%
2011
2012
Loans Investments Other Income
13%
72%
72%
n behalf of the Board of Directors, Supervisory Committee, and staff, it is my pleasure to present this annual report to the members of SF Fire Credit Union.
Many are aware of the Credit Union’s proud history of serving the firefighting community since 1951. Our humble origins trace back to a small office at 17 Engine on Jessie Street, where a group of the San Francisco Fire Department’s finest first made a difference in the financial lives of fellow firefighters and their family members. Art McIntyre, Larry Murray, Larry Kelly, Jake Palu, Ed Mitchell, Bill Mooney, Frank Brissette, John Tully, George Kelley, and others started a tradition of providing members with the services they need, with a level of personal service they deserve. It’s unlikely any of them could have predicted that sixty-two years later, economic and regulatory pressures on small credit unions would result in their need to merge with larger ones, and result in a return to our roots at Jessie Street. Our recent merger with Bay Media Federal Credit Union not only ensures their members continued access to credit union services, but also provides our members with the convenience of a new SF Fire Credit Union branch located just a few steps from where 17 Engine once stood. While the honoring of our history will never waiver, it’s just as important to focus on the present and future. The members of SF Fire Credit Union should know that the core values of this organization remain intact, and will continue to do so. Our respect for the firefighting community is steadfast, as is our pride in serving it. We also understand that as a member-owned financial cooperative, we exist to provide you with the best possible value while operating in a manner which maintains the safety and soundness of the credit union. I believe that the staff and management of SF Fire Credit Union do an excellent job in upholding these values, and thank them for their continued commitment to improving the financial lives of our members. In closing, I’d like to thank our membership for their continued support and loyalty to the organization. You have been the key to our success in the past, and why we will prosper in the future. Best Regards,
John Sweeney
John E. Sweeney Chairman
Brook Baker Francis E. Lee
Edward A. Liggins
James P. Olson
Bridget O’Rourke Nicholas Russo
Sup e rv i s o ry C o mm i t t e e Janet L. Brock William Madsen Chairman Secretary John Diluzio Kevin Kuhn
Michael Moran
Leadership Team Darren Herrmann President Chief Executive Officer
Jennifer Ebert Sr. Vice President Finance/Accounting
Trey Reeme Sr. Vice President Member Connections
62
nd
Board of Directors
Message from the Chairman of the Board
Richard Smith Sr. Vice President Member Experience
Annual Meeting of the Members
S ta f f Aleksey C. Ana S. Angela D. Anna F. Ariana M. Arsen P. Ashton B. Ausra D. Boris B. Brian S. Caitlin R. Carlos V. Chloe M. Chris V.S. Claudia C. Corinna C. Corinna R. Curtis H. Cynthia O. Dave L. David L. Deanne N. Debbie C. Dennis A. Dennis P. Devin H.
Eileen S. Frank L. Gene B. Genie C. Glenn G. Hannah S. Harriett H. Humphrey D. Ian W. Janice B. Jason W. Jeanée B. Jeanette G. Jeffrey L. Jimmy T. Jody Y. Joe A. Joel G. Juanita H. Judy P. Julie M. Julie M. Kathy H. Lillian T. Lory O. Maddison M.
Mae P. Maiya K. Manuela F. Marat B. Margarita J. Maria C. Margarita M. Martin T. Mary Grace C. Matthew C. Matthew S. Max E. Melina M. Michael S. Monica C. Naazia A. Naray S. Natali C. Natalie C. Neil C. Nick C. Noemi R. Olga B. Patricia R. Patrick L. Quyen H.
Back Cover 5.75”
Rebecca Y. Renee R. Renee T. Robert C. Robert P. Ron L. Rujni A. Russ S. Sam M. Sandra B. Sandra G. Sandra L. Shelley P.H. Stephanie D. Stephen S. Tatiana J. Tina C. Uriel d.L. Valerie B. Vicky C. Viki L. William R. Yolanda W.
2012 An n ual Re port
Message from the President & Chief Executive Officer Welcome to the 62nd Annual Meeting of the Members of SF Fire Credit Union. I appreciate having this opportunity to review the significant events of the past year, and share some thoughts regarding what’s in store for us in 2013. 2012 was a very good year for SF Fire Credit Union, certainly in regards to our financial performance. While credit unions are not-for-profit financial cooperatives, being profitable is necessary for long term viability as well as having the ability to offer a full range of products and services to meet members’ needs. I’m pleased to report that our operating profit for 2012 was $7.3 million, more than double the $3.4 million of 2011. This brings SF Fire Credit Union’s total reserves up to $61.6 million, which has us well capitalized and assures we’ll be here to serve our members for many years to come. We’re always striving to improve the level of service we provide, and that continued in 2012. Solar energy and bicycle loans became available for our more energy-conscious members, and small business owners gained access to a full suite of business products and loans. There were enhancements made at our branches, from new state-of-the-art ATMs at California Street and Stonestown to the extension of weekday hours to 6:00 p.m. at all locations. Our merger with Bay Media Federal Credit Union was another significant event of the year, happening at the end of 2012. As a small newspaper employee credit union, they faced challenges held by many credit unions of a similar size. An increasingly complicated regulatory environment, as well as a changing industry led them to seek a merger with SF Fire Credit Union. This decision by Bay Media’s Board of Directors ensured long term access to credit union services for their members, while at the same time providing our members with the convenience of their Mint Plaza branch which we acquired through the merger. As we enter 2013, I do so with optimism for what the year will have in store for us. The economic recovery seems to be gaining momentum, with employment and housing indicators on the rise. The rate environment is likely to stay low, which certainly impacts our members. Those who will have borrowing needs in the coming year (such as purchasing a first home or refinancing an existing mortgage) will benefit from continued low rates. However, retired members dependent on dividends from savings are likely to be discouraged. To those needing a higher rate of return, I can’t predict when we’ll see deposit rates rise. However, I do encourage them to utilize the services offered by our financial advisors, who can assist members in assessing their financial goals and understanding all the available investment options to achieve them. This year will see continued efforts to make accessing your accounts easier, with the launch of a new online banking platform. We’ll also enhance the level of service provided in our branches, by giving members the ability to make appointments to do business with us. Whether meeting with a financial advisor, seeing a mortgage specialist, applying for a consumer loan, opening a new account, or getting a document notarized, we want it to be at a time that’s most convenient for you. In closing, know that all of us at SF Fire Credit Union consider it an honor and privilege to be your financial institution of choice. We appreciate your loyalty and continued support.
Sup e r v i s o r y C o mm i t t e e R e p o r t
$
The Supervisory Committee independently evaluates the soundness of SF Fire
As the Senior Vice President of
Credit Union’s operations and activities, ensuring that management implements
Finance & Accounting for SF Fire
sound internal controls and maintains practices and procedures that adhere to
Credit Union, it’s my pleasure to
accepted general accounting principles. In doing so, they carry out the following
provide this financial summary and
primary responsibilities:
highlights for the past year.
• Protection of members’ funds and interests
$35 30
Michael R. Moran
Based on the results of the 2012 annual audit performed by certified public accountants Moss-Adams LLP as well as periodic audits conducted by American Share Insurance and the California Department of Financial Institutions, we conclude that SF Fire Credit Union has adequate financial control and is financially sound. Copies of these audits are available to members upon request.
2008
2009
2010
2011
2012
$900
cial services provider and look
Kevin Kuhn
2007
Assets / Shares / Loans Totals (in millions)
request of the Board of Directors. Each member reviews specific areas in executare:
0
come. We are proud to be your finan-
ing his or her responsibilities to the membership at large. Committee members
5
ability to serve you for many years to
Committee members also serve on other standing and special committees at the
William Madsen
10
dation for our continued success and
to the overall financial condition of SF Fire Credit Union. The Supervisory
15
growth in net worth builds the foun-
an annual financial audit and issue certified financial statements as they relate
John L. Diluzio
20
and in our overall net worth. The
as auditing matters. It also retains an independent accounting firm to perform
Janet L. Brock
25
in total assets and member deposits
The Committee meets regularly to review and discuss internal controls as well
Income Expense Dividend
30
a year with significant growth – both
• Reliability of financial records
Income / Expense / Dividend Totals (in millions)
$35
While just an overview, it does tell of
• Safeguarding of assets • Compliance with regulations, policies and procedures
25 20 15 10 5 0
$900
600 $900
800
800
700
30
30
600
25
25
500
Jennifer Ebert 20 Sr.Vice President 15 Finance & Accounting
200
5
5
100
0 20082008 2009 2009
2010
2011
2012
2010 2008 2011 2009 2012 2010 2007
2011
60%
Janet L. Brock Chairman
32% 7%
7% 32%
Operating Expenses DIVIDENDS UNDIVIDED EARNINGS
7%
400 300
700
32% 7%
600 500 400
200
300
10
2007
500
400
10
20070
60%
family in the future. $35
15
800 700
$35
20
Assets Shares Loans
forward to serving you and your
Income Distribution (as of 12/31/12)
Annual Meeting of the Members
President & Chief Operating Officer
F i n a n c i a l Summ a r y a n d h i g h l i g h t s
100
300 200 100
0 2012 2007
0 2008
0 2007 2008 2009 2010 2009 2007 2010 2008 2011 2009 2012 2010 2011
2012
Income Sources (as of 12/31/12)
72%
60%
60% 12%
12%
13%
13% 12%
32%
2011
2012
Loans Investments Other Income
13%
72%
72%
