MITLL-2015-annualreport

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2015
ANNUAL
REPORT
1940-2015
Our Purpose
To fulfill dreams and
enrich the lives of others.
Past. Present. Future.
Being part of a community where excellence is a way of life, we often find ourselves humbled by the
brilliance and historical significance that has defined our community. On April 17, 2015 we
commemorated an important day for MIT Federal Credit Union: 75 years of service to our members and
the MIT community.
past
Have you ever wondered why we were created and how far we have come in 75 years? When Frank
Conant (Member #1) and eleven like-minded people in the MIT community got together to establish
the MIT Employees Federal Credit Union in the basement of Building 3 in 1940, they thought it was a
good idea to offer savings, loans and thrift to people they worked with. Back in 1949, a member could
have up to $2,000 in savings and up to $200 in loans. A few years later our Lincoln Laboratory branch
opened in Building A, coincidentally also in a basement office. In 1964, our MIT Campus branch
moved to Building E19, where we stayed until moving to Technology Square in 2007. Throughout the
1990s and 2000s, we expanded our products and services to truly become a full service credit union.
Additional highlights included our first mortgage program, the creation of the mitfcu.org website,
and electronic services like online banking and bill pay.
present
This year, we celebrated the important milestone of our 75th Anniversary at our Annual Business
Meeting and dinner reception for members and volunteers, held at the MIT Media Lab. Throughout
the year, we invited members to share their most memorable MIT FCU moments. Members recounted
how the Credit Union made a difference in their lives by making the challenges we all face less
difficult. We have shared some of these stories in the pages throughout this report.
As we continue to improve our products and services in order to continue fulfilling dreams and
enriching lives, everything we focus on reflects our commitment to being the most secure, accessible,
and convenient option for you, our members. In 2015, we introduced a new website design that
presents user-friendly information for every screen size and device. And now our credit cards include
the security of an EMV chip and can be used with Apple Pay™.
future
As we look toward 2016, we look to make significant enhancements to how we serve you in person
and online, by redesigning and updating our branch centers and ATM technology and deploying a
state of the art account opening and consumer loan system for our mobile and web channels. These
changes will make your experience second to none, and one that is worthy of the MIT community.
Keep an eye out for these as 2016 evolves.
We hold very close to our heart the stories and memories of how and why MIT Federal Credit Union was
founded. From very humble beginnings, we looked to provide savings and thrift to those in need. Today,
we continue these traditions by giving you better financial solutions and helping you make better
financial choices throughout your life.
Thank you for being one of our 34,000 owners. It is our pleasure and honor to serve you.
Respectfully submitted,
John M. McDonald - Chairman
1960’s
2
Today
John McDonald, Chairman of MIT FCU’s Board of Directors,
and Brian Ducharme, President/CEO of MIT FCU.
Brian W. Ducharme - President/CEO
3
MIT Federal Credit Union Leadership
Board of Directors
From left to right:
John M. McDonald
Chairman
David E. Markuson
Vice Chairman
Maureen A. McCaffrey
Secretary
Robert M. Dankese
Treasurer
Richard B. Flanagan
Director
Mai Luo
Director
Clinton Blackburn
Director
Sheelah Britt
Director Emeritus
Richard R. Fenner
Director Emeritus
Executive Management
From left to right:
Brian W. Ducharme
President/Chief Executive Officer
Nancy J. Fales
Supervisory Report
The Supervisory Committee continues to perform
its charter to ensure that the financial reporting
requirements are properly completed and the credit
union has effective procedures to safeguard members’
assets. The committee meets regularly to review the
financial and internal control audits as well as other
operational topics of interest. We are assisted in our
efforts by outside firms that provide audit support of the
credit union’s finances, policies, and procedures.
Internal audits continued to receive significant
attention during 2015. Wolf & Company, P.C. performed
six planned internal audits during the year to test
credit union procedures and controls in various areas
including funds availability and insider lending and
overdrafts and lending compliance. They also assessed
compliance with the Secure and Fair Enforcement Act
(SAFE) and the Truth in Savings Act (TISA). Focus on
information technology continued this year due to
increasing occurrences of company security breaches.
The committee reviewed the findings and management’s
responses, and actively worked with Wolf & Company,
P.C. and MIT FCU management on the suggested areas for
improving procedures, security, and controls.
Senior Vice President, Lending and Operations
Cynthia M. Hudson
Senior Vice President, Chief Financial Officer
Kim Mandola
Senior Vice President, Member Services
Kimberly A. Shooter
Vice President, Corporate Initiatives
Kathryn V. Carty
Vice President, Information Technology
Scott M. Hanna
Vice President, Marketing
“I could really tell MIT FCU did all in its power to make
sure I got the compensation I needed. I trust MIT FCU
completely in handling any issues that may arise.”
4
2015 marked the third year of a 3-year contract with the
audit firm, Nearman, Maynard and Vallez. The audit firm
was engaged to perform our financial statements audit,
which also included a review of internal controls. The
committee met with the audit manager to review the
scope, methods, and findings of their audit work. We
were pleased to note that Nearman, Maynard and Vallez
have concluded that the financial statements, in all
material respects, fairly presented the financial position
of MIT FCU as of December 31, 2015.
The Supervisory Committee is charged to investigate and
respond to unresolved member complaints against credit
union management, as well as whistleblower allegations.
All complaints and inquiries have been adequately
investigated and resolved. MIT FCU is committed to the
highest standards of ethical, moral, and legal business
conduct.
To support this commitment, each employee, manager,
officer, and volunteer must submit a Conflict of Interest
and Code of Ethics affirmation each year. The Supervisory
Committee successfully completed this review and found
no conflicts to report.
The committee had one membership change in the past
year. Theresa Howell was elected as an Associate member
to the Supervisory Committee.
We look forward to serving the MIT FCU community in
2016.
Stephen W. Boyer - Chairman, Supervisory Committee
Supervisory Committee Members
Stephen W. Boyer
Chairman
Theresa Howell
Associate Committee Member
Karon S. McCollin
Secretary
J. Kendall Nowocin
Associate Committee Member
Jordan B. Lewis
Committee Member
Richard B. Flanagan
Board of Directors Representative
“Most recently, you’ve provided a loan with great terms to
help me responsibly pay off credit card debt. Thanks so much
for being there with me through the years.”
5
Treasurer’s Report
2015 Financials
Your Board of Directors is pleased to report that the financial results of 2015 showed a
year of change and growth for MIT Federal Credit Union.
The key financial points that demonstrate those changes include:
Statement of Financial Condition
The financial strength of MIT Federal Credit Union allows us to achieve goals. Thank
you to the members, volunteers, and employees of MIT FCU - the achievements of
2015 were made possible through their support.
Respectfully submitted,
2013
2014
ASSETS
12,516,890
378,083,054
50,684,401
16,775,345
$ 458,059,690
7,150,946
316,496,797
84,043,235
18,346,022
$ 426,037,000
$
Member Shares & Deposits
$ 419,560,508
Accounts Payable & Other Liabilities
3,475,778
Total Liabilities
$ 423,036,286
$ 390,557,170
3,244,563
$ 393,801,733
$ 363,411,182
2,806,788
$ 366,217,970
Cash & Cash Equivalents
Loans, Net
Investment Securities
All Other Assets
Total Assets
Total Assets $458,059,690
Net Loans $378,083,054
Net Income $2,606,007
Total Membership 33,093
2015
$
$
16,647,911
284,288,558
77,766,519
15,767,606
$ 394,470,594
LIABILITIES
RETAINED EARNINGS
Regular & Undivided Earnings
Unrealized Gain (Loss)
on Investments
Total Retained Earnings
Robert M. Dankese - Treasurer, Board of Directors
Key Financial Data
35
35
400
30
30
$
30,473,260
(2,220,636)
$
35,023,404
$
32,235,267
$
28,252,624
0
2013
2014
2015
Interest on Loans & Investments
Fees & Other Income
Total Income
$ 426,037,000
$ 394,470,594
2015
2014
2013
$
15,410,137
2,938,462
18,348,599
$
$
$
14,456,929
1,271,177
14,486
15,742,592
$
2,606,007
$
14,279,503
3,109,656
17,389,159
$
$
$
13,461,129
1,293,297
14,754,426
$
11,974,396
1,347,127
4,732
13,326,255
$
2,634,733
$
2,864,685
$
25
Operating Expenses
Dividend Expenses
Interest on Borrowings
Total Expenses
15
10
5
0
$
13,111,920
3,079,020
16,190,940
EXPENSES
20
33,093
5
$ 458,059,690
INCOME
31,658
2015
33,107,994
(872,727)
Statement of Income & Expense
30,440
2014
10
$35,023,404
2013
15
$32,235,267
0
20
$ 28,252,624
150
$ 458,059,690
200
$426,037,000
250
25
thousands of members
450
millions of dollars
40
$394,470,594
millions of dollars
40
300
$
MEMBERS
500
350
35,714,001
(690,597)
TOTAL LIABILITIES & RETAINED EARNINGS
TOTAL
RETAINED EARNINGS
TOTAL ASSETS
$
2013
2014
2015
$
NET INCOME
Please note: These scheduled reflect audited financial statements.
6
7
A quick glance at our 75th
Anniversary Celebration
Brian Ducharme with the People Helping People Award
winner, Barbara Johnson.
Chester Kurys, former MIT FCU Board Member.
8
MIT FCU contact center and lending department
representatives celebrating our 75th anniversary.
MIT FCU’s 75th anniversary ice sculpture.
It’s great to know
that MIT FCU,
in true MIT spirit,
is looking out for
the interests of
our community.
Call: 617-253-2845 | Click: mitfcu.org | Visit: Cambridge: 700 Tech. Sq. (NE48)
Federally insured by NCUA
84 Mass. Ave. (W20-116)
Lexington: 244 Wood St. (LL-A-100)
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