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Annual Report

Annual Chair Report 2016

KimJackson_edited2016_web

UCCU is celebrating its 60th anniversary in 2016. It is an institution built to last and is based on enduring principles of thrift, honesty, conservative and steady growth, managed risk and people helping people.

During 2016 we will be telling the story of the rich heritage of UCCU. In 1956, seven BYU employees started UCCU with only $35 from their own pockets. Resources were scarce back then, but the credit union grew because it was a financial institution that valued people over profits. In his prayer at the dedication of the Stadium Branch in 1977, resident N. Eldon Tanner, a member of the first presidency of the LDS church, said, “We pray that those who are managing this organization may all be blessed with the ability, desire and determination to do what they do in the interests of those whom they serve, and that it may benefit those who contribute, who have their savings here, and who are depending on this organization to help them in time of need; that they may be honest and honorable and upright in every way in their dealings.”

2015 was one of the best years in UCCU’s history. UCCU exceeded the billion dollar mark in total assets—an annual increase of $110 million; and membership increased by 7,000, to 129,000. Loans to members grew over 25% for the year as members took advantage of
a strong economy and record low loan rates.

UCCU is a leader in the county as an issuer of mortgage loans, home equity loans and automobile loans which helps our members buy homes, cars and other necessary items. For the most part our members are using credit wisely and the credit union has programs
to provide members with additional services and tools to help them safely manage their money. UCCU has established mini branches in several area high schools and recently partnered with Utah Valley University to provide financial education and planning for students. UCCU continues to offer our “Be Money Smart” program to provide financial literacy experiences and education to our youngest members.

The excellent financial results for the year have contributed to a strong net worth capital ratio of 10.59%. This ratio is a measure of the capital strength of a credit union and reflects on the credit union’s ability to weather financial storms. UCCU is considered well
capitalized by NCUA, the credit union industry regulator, and by Bauer Financial, an independent entity that rates financial institutions. The conservative company gave us a five star superior rating and listed us on their Recommended Report which means we are considered a “safe, financially sound credit union, operating well above regulatory
capital requirements.”

In anticipation of reaching the next billion dollars, we are in the final stages of completing the 7 story UCCU Financial Center in the heart of the Lehi business district. The Lehi branch will occupy the main level, and we will lease out the upper floors until the space is needed. UCCU is also in the process of upgrading the computer system to support the growth in membership well into the future and provide a base for future technological developments.

UCCU management and employees are professional, experienced and courteous. They train for many hours to provide you with the best financial products and services in the industry. They contribute countless hours in community service providing income tax
preparation and other services that benefit those in need. UCCU continues to shine in the community and was once again voted #1 in the Best of Utah Valley poll.

It is UCCU’s mission and desire to be our members’ first choice for financial services and information. Any input and suggestions are always welcome as we strive to improve and serve our members.

I’m grateful I have had the opportunity to serve this past year as Chair of the Board of Directors and to work with the other members of the Board, the Supervisory Committee, the management team, and our great employees. I believe that this credit union is built on principles that will allow it to outlast the test of time. We have enjoyed membership in an institution that is 60 years old. I believe it will last another 60 years and beyond if we will continue to abide by those inspired dedicatory words, “that those who are managing this organization may all be blessed with the ability, desire and determination to do what they do in the interests of those whom they serve”.

Kim Jackson
Chair 2015-2016
Board of Directors

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The Chairman's Report 2014

Gallery  Comment

As shown on the charts, UCCU continued its steady growth in membership and financial strength during 2013 despite the lingering difficult economic environment. During the year, assets increased by 3.81% to over $879 million at the close of the year. It is important to note that this growth has not come through increased risk-taking. A commonly used measure for Federal regulators to assess the riskiness of a bank or credit union is the capitalization ratio. This ratio compares the net worth or capital for an institution to its total assets. UCCU is considered by the credit union regulator, the National Credit Union Administration (NCUA), to be in its highest capitalization category, Well Capitalized. UCCU’s capitalization ratio at the end of 2013 of 10.27% is well in excess of the standard that has been established for multinational banks.

Members benefit from this ongoing growth in assets because it allows UCCU to provide an increasing range of services. An important element of our mission is to provide financial education to our members and the community. We continued with the Be Money Smart program and last year had over 22,000 youth participating in the program. UCCU also sponsored the Family Festival held in October with over 16,000 community members attending.

With our members increasingly accessing financial services using the internet and mobile devices, UCCU continues to improve our ability to provide those services. During 2013, active users of Personal Branch increased from 58,898 to 63,557 which is over half of the total UCCU members. Among other transactions, these members undertook 1.5 million funds transfers with a total value of $905 million. Members also used UCCU’s Bill Pay service to pay 570,000 bills totaling $210 million. Mobile apps usage continued to grow as well. Using the mobile deposit service, members deposited over 89,000 checks with a value exceeding $33 million.

Even with the growing usage of digital transactions, members continue to use our physical branches. To ensure that the members receive the highest quality service, during 2013 UCCU employees spent over 8200 hours in training to improve their skills. Over 94% of front-line staff have completed training and testing and have certified in their current positions. The other 6% are newer employees and are in the certification process. Although no new branches have been opened in the past few years, UCCU management continues to evaluate membership population trends with the perspective of providing physical branches as needed.

Going forward, most forecasters predict slow improvement in the economy. Nevertheless, UCCU will face several challenges. I will note two that are particularly critical.

Interest Rate Risk. We are currently in an unusually low interest rate environment. Interest rates will increase in the future, but there is great uncertainty as to when this will occur. UCCU, as do all financial institutions, accepts short-term deposits and makes long-term loans. When interest rates increase, the rate that UCCU pays to depositors will go up as well. However, since many of the long-term loans are made with fixed interest rates, UCCU will not be able to increase the rates charged on those loans. Hence there is a risk that the interest income from the loans will be less than the interest paid out to depositors. Management is well aware of this risk and has been managing the portfolio of deposits and loans to lessen it.

Consumer Financial Protection Bureau (CFPB) Regulations. The CFPB was created by Congress in response to perceived financial abuse of individual consumers that came to light during and may have caused the recent financial crisis. These perceived abuses were promoted by large financial institutions not credit unions. Nevertheless, UCCU and all financial institutions will have to deal with the new regulations, such as more strict requirements for mortgages. UCCU has consciously maintained a conservative lending philosophy, and we don’t expect to have any difficulties in complying with the forthcoming regulations. However, these regulations will increase compliance costs for UCCU and perhaps cause inconvenience for our members.

I am confident the quality of our members will allow UCCU to deal with these and other challenges. I have appreciated the opportunity during the past year to have served as Chair. Our Board of Directors, Supervisory Committee, Management team, and Employees exemplify high standards of integrity, service, dedication, and sacrifice.

Brent Wilson
Chair 2013-2014
Board of Directors

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Chairman’s Report

Consistent with UCCU’s performance over the past few years, 2011 was another positive year for the credit union, despite the lingering economic slowdown.  I see three main contributing factors to UCCU’s success in these trying times: fiscally responsible members, excellent employees, and outstanding management.  Below is an overview of UCCU’s 2011 financial summary:


In this sluggish economy our members have tightened their belts and showed financial restraint, reducing their debt and saving more.  While high unemployment strained budgets, our loan delinquency ratios were well below both national and Utah statewide averages.  We thank our members for being ‘money smart’ and working to live within their means.  Our members’ financial success is a key contributor to UCCU’s success and UCCU strives to contribute back to our members’ to help them achieve their financial goals.  It is UCCU’s mission to be our members’ first choice for financial services and information.

Our employees are the finest anywhere. During 2011 UCCU employees spent over 8,000 hours in training to improve their skills.  Their efficiency helped UCCU to achieve outstanding reductions in operating expenses. In addition to the superior service and positive, can-do attitudes in serving our members, our employees were big contributors to the community.  Last year UCCU employees donated more than $172,000 to charity and performed more than 1,500 hours of community service, with 100% of UCCU employees participating.  For example, UCCU staff volunteered 432 hours to help low income residents with their tax returns, completing more than 295 returns at a total refund value of over $626,000.00.   This is one of many volunteer efforts.  I salute and congratulate UCCU’s excellent employees.  They reflect the high values of the organization and serve with distinction.

Finally, the UCCU management team is second to none.  With confidence I assure UCCU’s members that ours is one of the finest Credit Union Management teams in the nation.  They have followed conservative financial practices in both lean times and times of plenty.  In fact, UCCU currently outperforms peer credit unions today largely because our credit union management and board avoided riskier—and seemingly higher payback—practices when the economy was stronger.  These conservative and time-proven practices allow UCCU not only to outperform peer credit unions, but also to meet or exceed financial excellence goals in all of our key metrics, such as Return on Assets and Net Worth Capital For UCCU’s members this means a stable credit union with market-leading rates.  In 2011, the team continued UCCU’s leading technology efforts with the new UCCU Mobile app and an upgrade to Personal Branch.  More than 250 million transactions were completed in Personal Branch in 2011 (Average: 21 million transactions per month).

I reiterate Mike Orme’s comments in last year’s Chairman’s report: “We will not change our basic credit union philosophy of service that has defined us now for over 55 years. Our members will continue to use good judgment and thrift in ordering their financial affairs. Our excellent management team will continue to innovate and lead.”  I add that our employees will continue to serve our members in a professional and cheerful manner.  Truly, UCCU is exemplary in every way today and will continue to be so in the future.

I am grateful for the quality of our members. I express my gratitude for the opportunity to have served as Chair with the Board of Directors, Supervisory Committee, Management team, and Employees who exemplify such high standards of integrity, service, dedication, and sacrifice.

Steve Mann, Chair

Board of Directors

Utah Community Credit Union

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Chairman's Report

Consistent with UCCU’s performance over the past few years, 2011 was another positive year for the credit union, despite the lingering economic slowdown.  I see three main contributing factors to UCCU’s success in these trying times: fiscally responsible members, excellent employees, and outstanding management.  Below is an overview of UCCU’s 2011 financial summary:


In this sluggish economy our members have tightened their belts and showed financial restraint, reducing their debt and saving more.  While high unemployment strained budgets, our loan delinquency ratios were well below both national and Utah statewide averages.  We thank our members for being ‘money smart’ and working to live within their means.  Our members’ financial success is a key contributor to UCCU’s success and UCCU strives to contribute back to our members’ to help them achieve their financial goals.  It is UCCU’s mission to be our members’ first choice for financial services and information.

Our employees are the finest anywhere. During 2011 UCCU employees spent over 8,000 hours in training to improve their skills.  Their efficiency helped UCCU to achieve outstanding reductions in operating expenses. In addition to the superior service and positive, can-do attitudes in serving our members, our employees were big contributors to the community.  Last year UCCU employees donated more than $172,000 to charity and performed more than 1,500 hours of community service, with 100% of UCCU employees participating.  For example, UCCU staff volunteered 432 hours to help low income residents with their tax returns, completing more than 295 returns at a total refund value of over $626,000.00.   This is one of many volunteer efforts.  I salute and congratulate UCCU’s excellent employees.  They reflect the high values of the organization and serve with distinction.

Finally, the UCCU management team is second to none.  With confidence I assure UCCU’s members that ours is one of the finest Credit Union Management teams in the nation.  They have followed conservative financial practices in both lean times and times of plenty.  In fact, UCCU currently outperforms peer credit unions today largely because our credit union management and board avoided riskier—and seemingly higher payback—practices when the economy was stronger.  These conservative and time-proven practices allow UCCU not only to outperform peer credit unions, but also to meet or exceed financial excellence goals in all of our key metrics, such as Return on Assets and Net Worth Capital For UCCU’s members this means a stable credit union with market-leading rates.  In 2011, the team continued UCCU’s leading technology efforts with the new UCCU Mobile app and an upgrade to Personal Branch.  More than 250 million transactions were completed in Personal Branch in 2011 (Average: 21 million transactions per month).

I reiterate Mike Orme’s comments in last year’s Chairman’s report: “We will not change our basic credit union philosophy of service that has defined us now for over 55 years. Our members will continue to use good judgment and thrift in ordering their financial affairs. Our excellent management team will continue to innovate and lead.”  I add that our employees will continue to serve our members in a professional and cheerful manner.  Truly, UCCU is exemplary in every way today and will continue to be so in the future.

I am grateful for the quality of our members. I express my gratitude for the opportunity to have served as Chair with the Board of Directors, Supervisory Committee, Management team, and Employees who exemplify such high standards of integrity, service, dedication, and sacrifice.

Steve Mann, Chair

Board of Directors

Utah Community Credit Union

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