2017 annual report - golden1.com · 1040 e. cypress avenue ..... redding 741 pleasant grove blvd....
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exceptional service. Our members’ deposits exceeded $10 billion and we granted $4.3 billion in loans including auto and home as well as credit card purchases. In fact, we provided $13.5 million in credit card cash rebates directly to our members. In addition our members saved, on average, more than $2,000 in closing costs on their home loans.
These results provide a solid foundation for continued expansion and enable the credit union to invest in the communities we serve. We delivered on our commitment to improving the financial well-being of Californians and their diverse communities by providing scholarships for deserving students, donations to food banks, and support for victims of natural disasters. Also, in July, we announced a $1 million contribution over a three year period to reduce homelessness among youth and young adults in Sacramento.
Golden 1 Credit Union continued our growth trajectory in an increasingly competitive market for financial services by staying true to our core values of service excellence, respect, integrity, and financial stability. We place our members at the center of everything that we do, helping hard-working people reach their financial goals through lower loan rates, no to low fees, and competitive returns on savings. In 2017, we continued to invest in people and technology to enhance member service. Our membership grew to 922,000 and assets reached $11.5 billion, which ranks Golden 1 as the sixth largest credit union in the United States. This significant growth, coupled with a robust net capital position of $1.31 billion, underscores our long-term financial strength and stability.
As California’s leading credit union, Golden 1 delivered on our mission of delivering financial solutions with value, convenience, and
The future of Golden 1 Credit Union, our valued membership, and our community is bright. Together, we can accomplish more than any one of us can alone. We are Stronger Together!
Ting Lan SunChair
Craig L. BrownSecretary/Treasurer
Donna A. BlandPresident and Chief Executive Officer
ANNUAL REPORT OFTHE BOARD OF DIRECTORS
ANNUAL REPORT OF THE SUPERVISORY COMMITTEE
One of the core values of Golden 1 Credit Union is financial stability. We strive to ensure that Golden 1 members can rely on our financial strength and security. With this in mind, the Supervisory Committee is responsible for ensuring that Credit Union policies and procedures adequately protect our members’ interests. We are also responsible for providing reasonable assurance that the regulations, policies, and procedures that govern the institution are properly followed and for providing an annual report on the Credit Union’s financial condition and the results of its operations.
The Committee is assisted in carrying out its responsibilities by our Audit Services Department. The Credit Union is also periodically examined by regulatory agencies, such as the California Department of Business Oversight and the National Credit Union Administration.
We retained the services of the independent accounting firm of Moss Adams LLP, Certified Public Accountants, to perform an audit of the Credit Union’s financial statements as of and for the years ended December 31, 2017 and December 31, 2016. In their opinion, the balance sheets and related statements of income present fairly, in all material respects, the financial position and results of operations for Golden 1 Credit Union in conformity with generally accepted accounting principles.
We wish to express our appreciation to the Board of Directors, management, and staff for their continued support.
Respectfully submitted,
Supervisory Committee
L to R, Timothy Bryan/Chair, Carol A. Nelson, Michael Dendorfer, Diana Emanavin, Kevin Chan
2016
$7,327,621,227 35,482,125
(40,832,441) 7,322,270,911
147,749,233 462,093,461
1,512,381,743 542,879,408 397,680,249 73,335,180
158,998,792 $10,617,388,977
$2,073,713,049 5,588,916,665 1,610,606,363 9,273,236,077
2,304,551
120,128,138 9,395,668,766
78,110,584 1,145,755,874
(2,146,247) $10,617,388,977
ASSETSLoans to members
Net deferred loan costsLess allowance for loan losses
CashInterest-bearing deposits and other investments
Investment securities available for saleInvestment securities held to maturity
Payroll deduction/ACH receivableProperty and equipment, net
Other assets
LIABILITIES & EQUITYMembers’ shares:
Regular sharesChecking and money market accounts
Certificates of deposit
Share dividends payableOther liabilities
Members’ equity:Appropriated retained earnings
Unappropriated retained earningsAccumulated other comprehensive loss
2017
$8,121,992,450 39,657,119
(51,313,682) 8,110,335,887
155,135,401 767,141,272
1,485,893,603321,290,387399,459,145 75,111,416
172,393,713 $11,486,760,824
$2,433,688,164 5,904,236,967 1,687,155,644
10,025,080,775
2,611,164159,927,263
10,187,619,202
78,110,584 1,235,612,536
(14,581,498) $11,486,760,824
BALANCESHEETSDECEMBER 31,2017 AND 2016
STATEMENTS OF INCOMEYEARS ENDEDDECEMBER 31,2017 AND 2016
2016
$242,858,278 14,305,549 36,618,284
293,782,111
27,562,104 5,625,688
260,594,319
22,334,535 238,259,784
26,483,089 4,469,346 5,081,719 6,421,775
65,011,139 107,467,068
117,532,497 89,103,469 19,420,837 19,614,033
430,704 8,249,347
254,350,887
$91,375,965
INTEREST INCOMELoans
Interest-bearing deposits and other investmentsInvestment securities
INTEREST EXPENSEDividends on members’ shares
Other interestNet interest income
Provision for loan lossesNet interest income after provision for loan losses
NON-INTEREST INCOMEChecking accounts fee incomeVisa® fee income, net of rebate
Loan fee incomeGain on sale of investments, loans, and other real estate owned
Other revenues
NON-INTEREST EXPENSECompensation and benefits
OperationsData processing
Occupancy(Gain) loss on sale of assets
Other
Net Income
2017
$281,684,200 32,741,476 30,313,619
344,739,295
29,169,192 18,982,024
296,588,079
45,995,056 250,593,023
30,398,865 4,863,134 5,705,254 6,070,432
63,882,869 110,920,554
129,981,977 93,921,324 18,937,279 20,867,936
(2,691)7,951,090
271,656,915
$89,856,662
Our Stronger Together philosophy provides the foundation for our Corporate Giving programs. We believe our success is inextricably linked with improved quality of life in the communities we serve.
In 2017, the credit union contributed more than $945,000 to causes such as scholarship programs, food banks, and help for the homeless. We also provided disaster relief for victims of the devastating California wildfires.
In addition, we announced a $1 million donation over three years to support a center for homeless youth and young adults in downtown Sacramento. The program provides food and shelter along with prevention programs to help youth avoid becoming chronically homeless adults.
Golden 1 employees logged hundreds of volunteer hours in their communities, supporting youth and family initiatives, coordinating and participating in fundraisers, and serving on nonprofit boards.
We also hosted 47 nonprofit organizations at Sacramento Kings games, concerts, and special events in the Community Suite at Golden 1 Center. In all, more than 750 people enjoyed this memorable experience.
Finally, 2017 saw the launch of our Financial Wellness Center, a suite of online tools, learning lab modules, and other resources to educate consumers about personal finance.
Golden 1 is proud to invest in California’s communities, making us all Stronger Together.
COMMUNITY
Golden 1 Credit Union is a caring community partner and leader, giving back to communities and organizations that make a positive impact on the people we serve. We strive to increase educational opportunity, strengthen financial well-being, and make our communities great.
HISTORY BRANCHES
1933Eleven state employees meet in Sacramento as the Board of Directors of the newly formed California State Employees’ Credit Union #1 (CSECU #1).
1934Membership reaches 131.
1950Membership grows to 4,565.
1952 Assets reach $1 million.
1961 CSECU #1 staff move into first permanent office and administrative headquarters in the State Employees building at 1108 O Street.
1977Assets reach $100 million. Name of Credit Union is changed to Golden 1 Credit Union.
1982 Membership grows to more than 100,000. Assets reach $225 million. First seven automated teller machines (ATMs) go into service.
1990Total of 21 branches are open statewide. Assets reach $820 million.
1992Assets reach more than $1 billion. Membership stands at 215,000.
1994Assets grow to almost $1.56 billion. Membership is more than 274,000, and the Credit Union now has 44 branches statewide.
1998Assets reach more than $2.33 billion. Website is launched. The Credit Union now has 50 full-service branches, five non-teller branches, and 210 ATMs.
2000Membership grows to more than 400,000. Assets reach $3.1 billion.
2004Membership grows to more than 600,000. Assets reach $5.4 billion.
2007A total of 74 branches are open statewide. Elected into the Sacramento Metro Chamber of Commerce Business Hall of Fame.
2009 Assets reach more than $7.6 billion. New products debut—Mobile and Text Banking. The Credit Union now has 83 branches. Now able to serve all who live or work in 34 of California’s 58 counties
2011Mobile Deposit is launched, and “No-Envelope” ATMs are introduced. Golden 1 wins several awards for community outreach.
2012Golden 1 launches a new college scholarship program for members and their dependents.
201380th anniversary. Assets reach more than $8 billion. The Credit Union awards $368,000 in grants to support literacy and foster youth. Golden 1 recognized as “Best Bank or Credit Union” in several communities.
2014Golden 1 launches its “Stronger Together” brand campaign. A special, one-time $18 million Member Giveback program is distributed. Membership grows to more than 700,000.
2015Golden 1 expands charter in Southern California to now serve 38 counties. Obtains naming rights to Golden 1 Center. Upgrades every Golden 1 debit and credit card with chip technology.
2016Assets reach more than $10 billion. Membership grows to over 800,000 strong. Golden 1 Center debuts as the most technologically advanced arena in the world.
2017Golden 1 launches the Financial Wellness Center, an online financial education portal designed to improve the financial well-being of people throughout California. Golden 1 receives “Best of” awards in many of our local communities.
8727 El Camino Real ........................ Atascadero
2248 Grass Valley Highway ...................... Auburn
4106 California Avenue ..................... Bakersfield
4005 Manzanita Avenue .................... Carmichael
5901 Sunrise Blvd. ....................... Citrus Heights
239 West 2nd Street ................................. Chico
1030 Shaw Avenue ................................... Clovis
508 Second Street .................................... Davis
4311 Town Center Blvd. .............. El Dorado Hills
8469 Elk Grove Boulevard .................... Elk Grove
8405 Elk Grove Florin Rd. .................... Elk Grove
5050 Laguna Boulevard ....................... Elk Grove
9600 Bruceville Road .......................... Elk Grove
1380 Holiday Lane ................................ Fairfield
1117 East Bidwell Street ......................... Folsom
1860 Prairie City Road ............................ Folsom
5280 N. Jackson Ave. (CSUF) .................. Fresno
6040 N. Figarden Drive ........................... Fresno
2970 E. Nees Avenue .............................. Fresno
111 E. Shaw Avenue ............................... Fresno
8379 Church Street ................................... Gilroy
5676 Calle Real ....................................... Goleta
109 W. Eighth Street ............................. Hanford
339 Preston Avenue .................................... Ione
12120 Industry Boulevard ....................... Jackson
65 Lincoln Boulevard .............................. Lincoln
320 W. Fourth Street ........................ Los Angeles
1934 Howard Road ................................ Madera
2001 McHenry Avenue .......................... Modesto
1150 Imola Avenue ................................... Napa
40044 Highway 49 .............................. Oakhurst
111 Grand Ave. (Room 300) .................. Oakland
1495 Clay Street ................................... Oakland
2254 S. Euclid Avenue ............................ Ontario
128 Niblick Road ............................ Paso Robles
3966 Missouri Flat Road ..................... Placerville
11099 Olson Drive ..................... Rancho Cordova
1040 E. Cypress Avenue ........................ Redding
741 Pleasant Grove Blvd. ...................... Roseville
1701 Santa Clara Drive ......................... Roseville
4011 Woodcreek Oaks Blvd. .................. Roseville
670 J Street ......................................Sacramento
1108 O Street .................................. Sacramento
515 La Sierra Drive .......................... Sacramento
7770 College Town Dr. ...................... Sacramento
5337 Elkhorn Boulevard ................... Sacramento
1330 Florin Road ............................. Sacramento
4430 Florin Road ............................. Sacramento
2360 Stockton Blvd. ........................ Sacramento
2550 W. El Camino Ave. ................... Sacramento
3280 Arena Boulevard ...................... Sacramento
1301 Exposition Blvd. ...................... Sacramento
7465 Rush River Drive ..................... Sacramento
1109 L Street .................................. Sacramento
2120 K Street .................................. Sacramento
1326 Broadway ................................ Sacramento
1273 N. Davis Road ................................ Salinas
500 Golden Gate Ave. .................... San Francisco
500 Parnassus Avenue ................... San Francisco
185 Park Avenue .................................. San Jose
852 E. Foothill Blvd. .................. San Luis Obispo
1328 W. Hillsdale Blvd. ...................... San Mateo
850 W. March Lane .............................. Stockton
4321 Morada Lane ............................... Stockton
2942 Main Street ............................... Susanville
3202 W. Grant Line Road ............................ Tracy
2450 Geer Road ...................................... Turlock
196 Nut Tree Parkway .......................... Vacaville
766 Admiral Callaghan Lane ..................... Vallejo
772 Ikea Court ......................... West Sacramento
1801 E. Gibson Road .......................... Woodland
1282 Stabler Lane .............................. Yuba City
THE BOARD OF DIRECTORSAND CEO
MANAGEMENT
Paris D. ColemanVice Chair
Ting Lan SunChair
P. Craig CornettDirector
Craig L. BrownSecretary/Treasurer
James H. GomezDirector
Samantha LuiDirector
Aeisha MastagniDirector
Cassanndra H. B. JenningsDirector
John R. HarriganDirector
Keri L. ThomasDirector
Donna A. BlandPresident/CEO
Senior Vice Presidents
Douglas AguiarChief Marketing Officer
Greg BrownChief Lending Officer
Chad CarringtonSecurity, Technology Infrastructure, and Facilities
Jose DelgadoChief Retail Officer
Kathy FlynnService Operations
Elizabeth FreemanStrategic Planning and Chief Investment Officer
Allyson HillChief Financial Officer
Courtney LinnGeneral Counsel
George MyersChief Human Resources Officer
Vice Presidents
Walter Anasovitch, Collections and Subservicing Oversight
James Deas, Branch Channel Delivery
Diana Forti, Cards
Marlen Foster, Digital Channel Delivery
Joseph Harrison, Compliance Officer
Ryan Kelly, Audit Services
Ryan Little, Consumer Lending
Kyle Long, Corporate Strategy
Molly Mallinson, Integrated Solutions
Michael Popp, Home Loans
Paul Sidhu, Enterprise Application Services
Erica Taylor, Communications and Community Relations
John Tennant, Member Service Contact Center
Denise Zboralske, Finance
Donna A. BlandPresident and CEO
Executive Vice Presidents
Tom GenessyService Operations, Security, and Technology
Dustin LutonFinance, Risk and Administration
Richard MusciProducts and Delivery