2016 Annual Report

2016 Annual Report

President’s Message

2016 was a banner year at TwinStar Credit Union. Loans grew by almost $100 million and increased in every category. Similarly, TwinStar’s deposit base grew by $108 million. It is important for credit unions in a growth mode to maintain balance between deposits and loans. Our capital remained at healthy and safe levels, which is another important metric during growth periods.

TwinStar’s growth was fueled by existing members and the new members we welcomed in 2016. Our ongoing survey process regularly reveals referral is the primary way new members find their way to TwinStar Credit Union. We have you to thank for that! On our end, we will continue to work at creating an first-rate experience each time you contact TwinStar - whether it’s in person, by phone, by computer or mobile phone application. Thank you for telling your friends and family members about your positive experience with TwinStar Credit Union.

As you might imagine, the pace of technological change is rapid right now. I’m pleased to report all the banking technology we have released will either make something easier for you, provide more security and protection for you, or both! TwinStar launched Card Manager in 2016, which is a phone app that allows you to turn your card off/on and receive alerts each time your debit or credit card is used. Card Manager allows TwinStar members to manage the risk of fraud on their own terms. Look for more customized mobile banking features to be released in 2017 and beyond.

In our branches, visitors to the Hazel Dell branch will notice a new layout. Our members are less reliant on branches to conduct transactions these days, but still want space to ask questions, get the best product mix and make plans for their finances. Our new branch layout allows just that, and provides special areas within the branch to download our phone applications and become familiar with how they work. We are opening a brand new branch in Aberdeen in 2017 with a similar focus.

Finally, there are a few values that are very important to us - in our past and for our future. TwinStar Credit Union is inclusive of all people in our service areas. We will treat everybody with dignity and respect. We will be friendly, knowledgeable and accurate; we will be transparent if we make a mistake. We are driven to provide a good deal for each of our members.

Thank you for your continued patronage of TwinStar Credit Union. I would like to thank our volunteers, management team and staff for their continued dedication to our financial cooperative.

Respectfully submitted,
Jeff Kennedy
President/CEO


Board Report

It’s a pleasure to report to you 2016 was an exceptional year of growth for TwinStar Credit Union, financially and in households. We offer guidance, education, tools and innovative programs to meet our members’ needs wherever they are in their fiscal journey. Our growth positions us, as a cooperative, to help even more people reach their financial dreams with products, services, communication and conveniences that make our lives richer.

Total assets for 2016 ended at $1,168,460,971, reflecting nearly $120,000,000 in growth over 2015 year-end.

Major Accomplishments

Besides our accomplishment in asset growth in 2016, some additional accomplishments included:

  • Total Households: We gained 8,799 new households ending the year with 95,874 total households! We have found this is a better measure of member growth for us.
  • Products: TwinStar aggressively placed EMV chip cards in all its members’ hands ahead of schedule. This enhancement will greatly reduce the occurrence of fraud and represents an important security update for the entire banking industry.
  • Employees: The number of TwinStar employees participating in the credit union’s 401k retirement program hit a record high of 97%!
  • TwinStar Community Foundation: As we grew, so did the amount for the 16 Higher Education Scholarship awards – from $1,000 to $2,000 per student. In our Classroom Cash Grant Program, we awarded a record high 230 teachers $130 each for a total of approximately $30,000.

Thanks to All

I would like to convey my gratitude to my fellow Board of Directors’ for their hard work and dedication to TwinStar Credit Union. Along with Management, we appreciate the memberships’ trust in us to provide genuine returns in savings, in money know-how, in executing and advancing our current products, all to make our lives fuller and to build strong, thriving communities.

Respectfully submitted,
Rhodetta Seward, Chair
Board of Directors


2015 Supervisory Committee Report

The Supervisory Committee is comprised of five elected members who volunteer their time to serve TwinStar Credit Union’s membership. The Committee has the responsibility of supervising the Internal Audit department. Along with the credit union’s Management Team and the Board of Directors the Supervisory Committee ensures the credit union is operating in a safe and prudent manner and in the best interests of our membership. To fulfill our responsibilities, we engage a CPA auditing firm, CliftonLarsonAllen, LLP, to perform the annual opinion audit and a verification of member accounts.

The Committee also utilizes a full-time Internal Audit department and has the benefit of the federal examination by the National Credit Union Association and the state examination by the Department of Financial Institutions. TwinStar Credit Union received favorable reviews for financial soundness and management in the 2016 examination reports from both entities and determined the credit union is well capitalized.

Our last external audit again verified TwinStar is operating in accordance with generally accepted accounting principles. In addition, the Internal Audit department conducts audits on an ongoing basis and in accordance with an annual plan based on the credit union’s risk assessment which better ensures the membership’s interests and improves controls within the credit union.

Under the Board of Directors’ governance and the credit union’s management, actions are always implemented to improve the credit union’s ability to meet the current and future needs of the membership.

As the Chairman of the Supervisory Committee, I speak on behalf of the Committee members when I say it has been our pleasure to serve you in 2016. The Committee will continue to work diligently in 2017 to ensure the credit union remains a safe and sound institution.

Respectfully submitted,
Erik M. Kupka, Chair
Supervisory Committee

Statement of Financial Condition as of December 31, 2016

Assets2016201520142013 2012
Cash and Cash Equivalents106,702,973119,881,32974,289,89663,309,830 86,945,699
Member Loans
(Net after Allowance for Loan Loss)
876,864,439777,923,559697,486,237 595,261,565 549,499,503
Investments98,911,41381,915,64886,111,928159,899,936 116,301,779
Fixed Assets 34,937,25027,860,35128,034,190 27,470,90628,029,188
Other Assets51,014,89741,852,29239,720,42435,749,32151,063,321
Total Assets1,168,430,9711,049,433,179925,642,675881,691,558831,839,490
Member Shares
Member Shares1,028,245,865921,072,953818,352,130786,501,452 737,342,278
Net Worth
Regular Reserves8,492,2588,492,2588,492,2588,492,258 8,492,258
Accumulated Unrealized Gain/Loss on Investments(1,095,701)(869,784)(1,162,999) (4,328,844)673,207
Undivided Earnings105,871,26097,107,71789,053,157 80,358,23772,145,721
Total Net Worth 113,267,817104,730,19196,382,41684,521,65181,311,186
Liabilities
Accounts Payable & Other Liabilities26,917,23223,629,90210,908,02810,668,373 13,185,948
Accrued Payable Interest or Dividends 571341018278
Total Liabilities26,917,28923,630,03510,908,12910,668,45513,186,026
Total Member Shares,
Net Worth & Liabilities
1,168,430,9711,049,433,179925,642,675881,691,558831,839,490

Note: Unaudited Financial Statement as prepared by TwinStar Credit Union. Reflects only TwinStar Credit Union.


Financial Asset Growth
1938$1,473
1950$36,774
1960$467,129
1970$2,378,773
1980$20,545,115
1990$113,963,792
2000$354,800,950
2010$726,006,240
2011$781,764,275
2012$831,839,490
2013$881,691,558
2014$925,642,675
2015$1,049,433,179
2015$1,168,460,971

Loan Productivity Comparison
Loan Type 2013 201420152016
Consumer 16,294 loans for $212.6M 15,000 loans for $168.6M17,531 loans for $207.9M17,464 loans for $218.8M
Dealer Financing2,449 loans for $58.2M 4,177 loans for $103.7M4,800 loans for $122.6M5,198 loans for $137.5M
Mortgage 871 loans for $144.9M 473 loans for $80.4M668 loans for $121.1M730 loans for $146.5M

TWINSTAR CREDIT UNION 78th ANNUAL MEETING MINUTES

Red Lion Hotel, Olympia • March 5, 2016

I. WELCOME AND INTRODUCTIONS

Gayla Duerr welcomed everyone to the 78th TwinStar Annual meeting and led attendees in the Flag Salute. During breakfast, drawings were conducted for children and adult prizes.

II. CALL TO ORDER

Gayla Duerr introduced Jeff Kennedy, CEO. Jeff introduced the following members of TwinStar’s Senior Management Team: Becky Breen, Scott Daukas, Matt Devlin, Jerrod Keller, Aaron Palmer, Kim Peterson, Mary Beth Spuck, Sharon Weinberg, Elkan Wollenberg and Tammy Teeter. Jeff introduced the credit union’s Board Chair, Rhodetta Seward, who called the 78th Annual Meeting to order at 10:35 a.m. Tammy Teeter was appointed Recording Secretary and Jerry Morrissette was appointed Parliamentarian.

III. INTRODUCTIONS

Rhodetta introduced the Board of Directors and Interns, Supervisory Committee and Intern and their guests. She requested all credit union volunteers stand and be recognized for their many hours of service. Rhodetta also recognized all employees in attendance and noted the Board’s appreciation for their dedication and support of the credit union’s vision and mission.

IV. 2015 ANNUAL MEETING MINUTES & CHAIR REPORTS

Rhodetta began the business portion of the meeting by establishing a quorum of 15 voting members was present. She noted a copy of the 2015 Annual Meeting minutes and a wrap up of the credit union’s financials at each table.

Rhodetta called for a motion to approve the minutes. The motion was made, seconded and approved.

The 2015 reports from the CEO (Treasurer), Board and Supervisory Committee Chairs were presented. Rhodetta asked for a motion to approve the reports. The motion was made, seconded and approved.

V. ELECTIONS

Rhodetta introduced the Nominating Committee Chair, Scott Horner, who introduced the Nominating Committee as Kim Martin, Donna Feliciano, Brock Williams, and Nicole Colgan. He announced the following slate of candidates running for election:

  • Board of Directors – 3 year terms: Gayla Gjertsen, Mark Neary, Dale Tosland
  • Supervisory Committee – 3 year term: Erik Kupka, Steve Marcotte

Since the five open positions were uncontested, Scott called for a motion to accept the slate of candidates as presented. The motion was made, seconded and approved. Scott thanked and congratulated each newly elected official.

VI. NEW BUSINESS

Rhodetta called for any new business. No new business was presented.

VII. ADJOURNMENT

Rhodetta thanked everyone for attending the Annual Meeting and requested a motion to adjourn. The motion was made, seconded and approved. The business meeting was adjourned at 10:40 a.m.

VIII. ENTERTAINMENT AND PRIZE DRAWINGS

Gayla Duerr introduced the band, Wally & the Beavs. The morning celebrations concluded at 12:10 p.m. with the remaining prize drawings, awarding of the centerpieces and distribution of membership appreciation gifts.

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