BOARD AGENDA
#375 April 23, 2009
BOARD – Yvette Rubio, Ian Schachner, Bill Goodman, Suzanne Reine, Sharron Thrasher,
Kenny Christianson, Jim Fravil, Diana Drucker, Tom Terrizzi, Alison Christie, Leslie Strebel
ABSENT –
STAFF – Tristram Coffin, Leni Hochman, Joe Welch, Deirdre Silverman, Eric Levine, Lenore
Olmstead, Carol Chernikoff
Next Board Meeting: May 28, 6:30PM
1) Review of Agenda
2) Vote on Consent Agenda
3) Guest Presentation
a) Judy McIntosh-Mengel, Metzger, Barr
4) Board Votes and Action Items
a) Changes to Loan Policy/elimination of unused products (Carol)
5) Discussion
a) Financial Update
b) Example of Possible New Policy format
6) CEO Update
a) Review of Metrics
b) Research Visit
c) FHLB Home Counseling
d) Industry Involvement
7) Reports
a) Budget Metrics
8) Committee Reports
List of Attachments
a) Balance Sheet
b) Net Interest Income
c) CAMEL Ratios
d) Delinquent Loan Report
e) Grants Report
1
1) Review of Agenda
a) Review and approve Consent Agenda
b) Additions and Deletions to Agenda
2) Consent Agenda
a) Membership Officer:
March 2009
92
NEW
73
CLOSED
# of Accounts Closed
March 2008
108
97
Reason
March 2007
96
118
15
Closed by Collections
58
Closed by MSRs per member’s request
# of Accounts
Closed
Reason
27
Not needed/Not using
8
No Response
8
4
3
3
3
2
Moved/Moving
Consolidating Accounts
Loan is Paid Off
Need the Money
Closed Business
Statement Fee
b) SAR’s Report: Two SAR’s were filed in March 2009. YTD SAR’s total is four.
c) Write offs:
i) There are 4 loan write offs, totaling $14,269.49 proposed for April, 2009. Our
allowance for loan loss is targeted at no more than $15,000.00 monthly.
ii) 22 overdrawn account write offs proposed for April 2009 with a total of $1,284.89.
Of that, $434.98 is for write off (a real loss) and $850.55 will be a loss of fee income
(reversal of fees that have not been paid). Our target for negative accounts is no more
than $1,000.00 monthly.
iii) The March delinquency rate went up from February –to1.66% from 1.48%. The rate
without the secured portion of delinquent loans is 1.19%. Our target is no more than
2.5%. The number of loans on the list went up by 17 and the total dollars delinquent
went up $78,207.94. Total loans outstanding went up $789,456.31.
(1) Mortgage delinquency went down to 1.26% from 1.40%.
(2) Consumer delinquency went down to 1.32% from 1.76%.
(3) Business delinquency went up to 5.10% from 0.94%.
d) Leslie and Paul Strebel applied for a home equity loan. Board approved loan via e-mail
on April 8, 2009.
e) Approve minutes of March 26, 2009
2
3) Guest Presentation
a) Judy McIntosh-Mengel, Metzger, Barr
4) Board Votes and Action Items
a) Statement of Voting Item: Delete mortgage products from Loan Policy that have not
been used for a long time.
i) If there was a former policy this is overriding, please put here and highlight the
changes.
Loan Policy, Mortgages,
#9 Fresh Start Mortgage
#11 100% Mortgage financing
#12 All in one rehab Future Value Mortgage
#13 40 Year Amortization with 15 year Balloon
ii) Rationale for change
We have not closed any of these products for a long time (none since Janet has been
here). They also all require fixed rate money and we save most of the 30 year fixed
rate money (when we have any) for first home club borrowers. Deleting unused
products make training easier and more efficient for staff. We will continue to clean
up loan policy, remove unused products, move procedures to a procedures manual
and make it a more easily useable document.
Implementation plan:
Delete from Loan Policy
COMMITTEE RECOMMENDS THIS.
3
5) Discussion
a) Financial Update
b) Example of Possible New Policy format
6) CEO Update - Here is a brief recap of recent events at Alternatives:
a) Review of Metrics - A copy of the most recent “Alternatives at a Glance” is attached.
The VITA program concluded its most successful tax season to date. The write-down of
our NCUA deposit has warped our financial picture, however we have received approval
of a new secondary capital plan which will allow us to borrow funds to replace that which
has been earmarked for the Corporates. Our credit card portfolio sale will be signed this
week, and the income should help improve our capital ratio by next quarter. Service
quality as measured by our surveys continues to be outstanding.
b) Research Visit - Alternatives recently hosted Greg Fairchild, a faculty member from the
University of Virginia Business School who is traveling to thirty CDFIs for a major
research project to analyze and understand our industry. The visit generated many
insights into our success which may be worked into a teaching case study.
c) FHLB Home Counseling - Alternatives was recently approved by the Federal Home
Loan Bank to conduct homebuyer education for participants in the First Home Club IDA
program. Previously we had referred these borrowers to Better Housing of Tompkins
County, among others. Not only will this approval allow us to exert greater control over
the service levels delivered to clients, but we will be paid $500 per borrower by FHLB
for our efforts. Our first payment has been received with several more in the pipeline.
d) Industry Involvement - I was recently appointed to the Government Affairs Committee
of the Credit Union Association of New York (formerly the League), which involves
setting legislative priorities for credit unions at the state level. I will also be participating
in a networking meeting of New York CDCUs in Albany to discuss opportunities for
collaboration and capacity building.
4
7) Reports
Net Income
Total Assets
Capital Ratio
Total Grant Income
Delinquency Ratio
Charge Loan
Offs
Overdrawn
Accounts
March-09
March-09
Month
YTD
YTD
YTD
Actual
($332,419)
$55,641,835
6.6
$17,187
1.66%
$7,500
($8)
Budget
$13,788
$56,210,069
7.5
$35,015
2.50%
$15,000
$1,000
Variance
-2510.93%
-1.01%
-12.00%
-50.92%
33.60%
50.00%
100.80%
Actual
($331,293)
$80,575
$29,058
$1,150
Budget
$118,585
$104,180
$45,000
$3,000
Variance
-379.37%
-22.66%
35.43%
61.67%
12
11.5
11
10.5
10
9.5
9
8.5
8
7.5
7
6.5
6
5.5
5
4.5
4
4t 1s
h t Q
Qu t
a r 20
t 0
2n 3 er 2 9
r
d d 0 0
Q
4t ua Q 2 8
h rt 0 0
Q e
3r ua r 20 8
d q rte 0
2n ua r 2 8
d Q rt 00
4t ua er 2 7
h rt 00
Q
4t ua er 2 7
h rt 0 0
Q e
4t ua r 2 7
h rte 00
Q
4t ua r 2 6
h rt 0 0
Q er 5
ua 2
rte 00
r 2 4
00
3
Axis Title
Capital Ratio
5
goal 7.5% or higher
Net Income / Provision for Ln Loss
250000
150000
50000
Net Income
-50000
Provision for Loan Loss
-150000
-250000
-350000
De Ap Au De Ap Au De Ap Au De
c- r- g- c- r- g- c- r- g- c05 06 06 06 07 07 07 08 08 08
Capital
10
9
8
7
Total Capital
6
Core Capital
5
4
3
2
1
09/30/2005
06/30/2006
03/31/2007
12/31/2007
09/30/2008
6
Total Assets / Mortgages
60000000
50000000
40000000
Total Assets
Mortgages
30000000
20000000
10000000
38625
38806
38990
39171
39355
39538
39721
39903
DQ & Fixed Asset Ratios
7
6
5
Fixed Asset Raio
4
DQ Ratio
3
2
1
09/30/2005 06/30/2006 03/31/2007 12/31/2007 09/30/2008
__________________________________
SECRETARY’S SIGNATURE
7
_____________
DATE
8) Committee Reports
1) Human Resources Committee
a) Date: April 10, 2009
b) Present: Barbara Coman, Ian Schachner, Tristram Coffin, Lenore Olmstead
c) Absent: Alison Christie, Diana Drucker, Sharron Thrasher
d) Next meeting date: Friday, May 8, 2009 at 9 a.m.
e) CEO Review - Alison will contact Yvette and Leslie about the status of the CEO Review
Team. Some of the issues that need to be further clarified are the time frame of the
review and the instruments to be used. Tristram’s anniversary date is July 25th. The
review can look at the previous four quarters and the accompanying goals from the
strategic plan or decide to move the review time period to the calendar year. The timing
of the salary review can be determined with what works best for the CEO and the board.
The CEO Review includes metrics related to the strategic plan, a survey of direct reports,
and a self-evaluation. What metrics will be used? A suggestion is that the survey should
be concise, very specific, and related to effective leadership and supervision.
f) Holiday Bonus - We brainstormed about how the board wants to deal with this bonus
which is usually given the first pay period in December. This bonus has been $300 for
each staff person (pro-rated if hired recently) for last number of years. Alison suggested
earlier that we brainstorm guidelines but not bring it to the board until July when we will
have more information about the CDFI grant and prospective income for this year. She
suggested calling it a year-end bonus. The committee’s suggestion is to make this a board
appreciation gift (not a performance-based bonus) with an electronic card signed by all
the board members. We will look at this issue in July and if we are dealing with financial
problems, this is an area to review for possible cuts.
g) Internships - Ian raised issues around how to do effective involvement of Cornell students
with Alternatives and how to educate students on the values and career paths at credit
unions. Business schools do not seem to know that credit unions exist. Many students at
top schools can be debt free and work for non-profits for three or four years before
getting an MBA. Ian suggests that we work with the Cornell Tradition program for an
intern for the summer who can continue to do service hours during the year. Tristram
referred to our work with the Natural Leaders Initiative and that working with Cornell
Commitment scholars would be a good addition.
h) Quarterly strategic HR goals - We quickly reviewed the status of the following goals:
i) Implement new Staff Compensation Plan- (Lenore, Leni) - complete 3/09
ii) Implement Supervisory Coaching Training- (Leni, Lenore) – Initiated by June, 2009
iii) Enhanced Cross-Training commenced (Leni, Lenore, Melissa, Joe, Mary)- Initiated
September, 2009
iv) Implement Organizational Diversity Plan- (Lenore, Karl, Leni)- December, 2009
v) Process Improvement Training- (Lenore, Leni, Joe) – Initiated by December, 2009
8
2) Member Service Committee
a) Date: April 17, 2009
b) Present: Lane, Suzanne R., Yvette, Leslie, Leni, Melissa, Suzanne C, Tristram
c) Absent:
d) Next Meeting: Friday, May 22, 2009 11:00.
e) Committee Mission Statement: We reviewed Melissa's first revision and she will do
further fine-tuning.
f) Technology Recommendations
i) Tristram introduced the technology recommendations from Peter McCracken and
David Makar. There are several interesting ideas, as couple of which we'll move
forward with first:
(1) Facebook. The idea of a Facebook page seems to have generated the most
enthusiasm from staff and board. Other Facebook members could become "fans"
of Alternatives. We could use our page as a portal to our website and to other
resources. Our Facebook page could also be used as a place for members to
interact with one another.
(2) Video. The website redesign is already in progress and we plan to add video
member testimonials. Member profiles have already become more automated;
members now have the ability to log in and update their profiles.
(3) Pay It Forward: Tristram told us about Summit CU's (Madison Wisconsin)
program. Here's a snippet from their web site:
(a) About Pay It Forward
(i) People helping people. This is the credit union difference. And at Summit,
we’re giving you a chance to experience our credit union values first hand.
Throughout the spring we’ll tour our 20 branch locations asking, “If we
gave you $10…what would you do for someone else?”
(ii) For your answers, we’ll give you $10-free with the assignment to Pay it
Forward.
(iii)Whatever your plans for the $10, we’ll video tape your intentions and post
it on this site.
(iv) Website visitors can vote on their favorite video responses. The winner
will pocket $500 and Summit will donate $500 to the winner’s charity of
choice!
(b) Perhaps we could have a similar program?
g) Annual Meeting
i) This year's Annual Meeting will
Building. Suzanne and Karl are
local economy. Discussion will
health care costs. In an attempt
highlight community resources
plentiful.
take place on June 3rd at the Women's Community
planning a panel discussion about the state of our
most likely center on housing, transportation and
not to completely depress people, we'll be sure to
offered to assist people. And balloons will be
9
3) Loan Policy Committee
a) Date: April 17, 2009
b) Present: Everett, Bob, Brian, Diana, Leslie, Carol
c) Absent: Ian, Kenny, Jim, Mary
d) Next meeting date: Friday, May 22, 2009, Noon
e) Monthly Reports
i) Mortgage – still very busy. 14 closings for $1,271,065, includes 8 1st mortgages, 7
refi’s and 1 purchase. YTD 29 closings for $2,230,439 compared to 2008 19 for
$891,252. $3m in process.
ii) Consumer-57 loans for $325,569, strong in new and used auto. Numbers are down
from 2008.
iii) Business- 2 closings for $56,000. YTD 13 loans for $310,100. Merchant services
income is down about 20%...a sign of the times.
iv) Collections- The rate is 1.66%, up a bit from last month’s 1.48%. Business dq is up
due to one large loan. We are meeting with the borrowers next week. $7500 was
added to Loan Loss Reserves to establish an allowance for Overdraft Privilege loses.
f) New Business
i) Loan policy changes
See Voting Item: Delete mortgage products from Loan Policy that have not been used
for a long time.
g) Old Business
i) Continue work on mission statement for loan policy committee. These are the ideas
from last meeting. Committee members were going to have e-mail conversation
about them and work on a statement
•
•
•
•
•
•
•
•
•
•
Credit path
Competitive
Practice responsible lending, offer choices in the members best interest
Sound lending guidelines, reasonable profits and low loan losses
Work toward a successful outcome for the CU, member and community
Empowering and educating members about their own finances
Address community needs, offer range of products that fill needs
Establish a relationship of mutual trust
Establish strategic alliances with other organizations and agencies
Loan department operates effectively, efficiently with a high level of service
quality
ii) Diana and Leslie preferred to move this to the next meeting when more members are
present.
10
4) Development/Community Relations Committee
a) Date: April 2, 2009
b)
c) Present: Leslie Strebel, Sharron Thrasher, Tom Terrizzi, Suzanne Cerquone, Karl
Graham, Leslie Ackerman
d) Absent:
e) Next meeting date: May 7, 2009
f) Funding and Program Updates
i) Deirdre
(1) CDFI - Additional funds allocated to the CDFI Fund as part of the stimulus bill.
Grants to be awarded within 90 days. Our application for an additional $1.1
million has been submitted.
(2) Decision about AVF Application in 2009 round 2 or 2010
(3) Empire State Development has received $4 million rather than their usual $1.5
million, and will expand their funding to include business services to white men.
They haven’t sent out the Request for Proposals yet, but it should mean more
money for us.
(4) SBA also hasn’t sent us our grant budget for 2009 yet, even though the first
quarter report is due this month.
(5) New VISTA positions - Approved for 3 new VISTA’s: financial education,
VITA, and outreach. Recruitment begins soon. Goal is to have candidates at the
latest, prior to the August in-service training.
ii) Karl
(1) VITA
(a) On April 7, Brian Kunk-Czaplicki, VITA VISTA transitions to full time
mortgage loan officer. VITA Assistant Site Coordinators, Tanya Garger and
Peter Eliason extending their hours. Both are DSS employees and their extra
hours will be covered under the DSS funding.
(2) ATMs
(a) $15,000 grant from NCUA for new and replacement ATMs. We are looking
to replace 3 ATM’s and place 2 at new sites: possibly the Dryden Community
Café and Gimme in Trumansburg. ShareNet has contacted us again about
forming a local group of CUs to join their ATM network. We’re in the process
of finding out more information.
iii) Suzanne
(1) Annual meeting update: Looking at June 2 or 3 as the date (June 3 it is!). After the
Ithaca Festival and college graduations. Meeting will feature a panel discussion
on the local effects of the economic downturn. We discussed possible panelists,
including elected officials, an economic expert from IC or Cornell, and someone
to speak on the impact of high health insurance costs.
(2) Living Wage - Press conference to announce the living wage update scheduled for
Friday, April 24 at 11am.
iv) Leslie
(1) Two items from the Chamber of Commerce’s Business Information Network
meeting this morning.
(a) The Showcase Tompkins business fair will be held this year on Wednesday,
June 24, 4 to 7pm at the Farmers Market. Last year we had a booth. This year
may be an opportunity for board members to work the booth along side staff.
(b) The Chamber will publicize and co-sponsor Business CENTS’ 2 part
11
workshop on sales in May. Chamber asked us to forego our sliding scale fee
system in favor of a single fee for Chamber members. We declined, feeling
that our sliding scale is fairer.
g) Community Relations
i) Karl
(1) Tompkins County Democratic Committee hosting a panel discussion: "Local
Implications of the National Economic Crisis", Monday, May 4, 7-9 pm, at the
Town of Ithaca Hall. Here’s their event description: We plan 4 panelists, Eric
Lerner acting as moderator. Plan on a ten-minute talk on local implications as you
see them from your vantage point. When all 4 panelists have completed their tenminute presentations, we will re-convene in 4 small groups, with a panelist and a
facilitator in each group. There will be an opportunity for questions and
comments in the small groups, as well as the chance to identify any potential
follow-up on actions or activities, should those be appropriate. We will end the
evening with bringing the large group back together, and hearing a synopsis of
each small-group discussion. We will also hand out index cards, and encourage
each participant to write something that they want to follow up on to take home
with them.
(2) Discussion item
(a) Yvette, Tristram, and Karl met March 31 with Margo Hittleman and Neisha
Butler of Natural Leaders Initiative (NLI) to discuss inclusion and leadership
development. A result of our discussion was realization that we need internal
discussions to come to consensus on what an inclusive board/committee
structure would look like.
(i) What would a diverse/inclusive board of directors and committees look
like? Some points from the committee’s discussion:
1. Inclusion can have a broader focus than race, gender or class.
Politically, we’re fairly homogenous. Can we integrate someone who
is politically and socially conservative? If that person supports the
mission, we should be able to agree to disagree on other issues.
2. Many boards recruit for specific skills. What skills do our
board/committee members need? How does this affect inclusion
efforts?
3. It can take a long period of time to learn the many aspects of our
business, even for board members who are highly educated. What
must we put in place to help less educated persons be successful board
members? Mentors and on-going orientation sessions were mentioned.
To make it easier for people to attend her program, Margo Hittleman
offers child care, meals, and even gives gas cards to those who live
outside the city. That is an example of adapting to the needs of low
income or single parent families.
4. Rather than bring new members directly onto the board, we can utilize
our committees to orient and train potential board members. A way to
recruit members who use our community programs is to form advisory
boards for those programs. Not only might this yield future committee
and board members, it might highlight to the membership that they
have an ownership stake in the credit union.
ii) Meeting Schedule for 2009: Jun 4, Jul 2, Aug 6, Sep 3, Oct 1, Nov 5, Dec 3
12
5) Budget Committee
a) Date: April14, 2009
b) Present: David, Tristram, Joe, Yvette, Mary, Kenny
c) Absent: Jim, Leni, Deirdre, Carol
d) Next meeting date: Tuesday, May 19, 2009 Noon
e) 2009 Meeting Schedule - 6/16, 7/14, 8/18, 9/15, 10/20, 11/17, 12/15
f) Financials: (pp 2-6)
i) Balance Sheet (Actual, Budget, Beg Year)
ii) Net Interest Income (Month and YTD)
iii) CAMEL Ratios
iv) QuarterYTD analysis
g) Delinquency / Charge offs - (pp 7-8)
h) PRESENTATION - FINANCIAL DATA
i) UPDATES:
i) NCUA EXAM (4/30)
ii) Mengel Metzger Barr-audit (4/23)
iii) Members United
iv) Insurance fund capitalization
v) Grants:SBA, ESD, CDFI
13
6) Supervisory Committee
a) Date: Wednesday, April 22, Noon
b) Present: David Gallahan, Chris Strebel, Bill Goodman and Amy Smith
c) Absent:
d) Next meeting date: May 13, 2009 at 12:00 PM
e) Old Business:
i) We do not need a PO Box – we will get the keys and return them to the Post Office.
ii) We reviewed the procedure for handling returned mail and decided that there is very
little risk regarding returned mail and no need for further action by the committee at
this time.
iii) We were expecting to see something in the Currents, looking for new committee
members – but it wasn’t there. Next time?
iv) Here is what we have regarding the authority given to staff:
(1) Staff start with $5K limit. For new non-member service staff, this probably won't
change.
(2) Member Service staff, after successful completion of their probationary period,
are usually raised to $10K.
(3) At one year, member service staff may be raised to $20K.
(4) Vault staff usually have higher limits.
(5) Member service supervisors also have higher limits. This means we have to put in
our password and approve a large dollar transaction for someone with a lower
authority.
(6) Certain senior staff have larger passwords, based on their job demands.
(7) As for the authority to reverse and delete transactions, we wait until at least the
successful completion of the probationary period to grant that authority.
v) Amy will follow up with Larry/Joe W. about how we can efficiently review the audit
reports (M600, M601)
f) New Business:
i) We received a member complaint forwarded from the NCUA. Amy will follow up
and see what our response should be ASAP.
ii) The NCUA examiner requested that we perform an audit of new and closed accounts
at least twice a year. We completed our first one 4/4/09.
iii) We completed the consumer loan file review (4/21/09), and found no issues.
iv) We should have the dormant account report for our next meeting.
v) The auditors will be here tomorrow (4/23/09) at 6:30.
vi) There is a special board meeting next Thursday for the NCUA examiner to report.
14
7) Governance Committee
a) Date: April 2, 2009
b) Present: Bill, Yvette, Tom Alison, Tristram, Eric
c) Absent:
d) Next meeting date: May 14 Noon ((NOTE: CHANGE FROM REGULAR FIRST
THURSDAY SCHEDULE)
e) Elections
i) results will be announced at Annual Meeting; need to review who will count ballots.
f) Policy Manual - looked at Security Policy from existing Manual and reviewed Tristram's
draft of new format for policy.
i) much discussion of how "Policy Governance" model for policies would be written
g) To Be Discussed:
i) Articles on Policy Governance
ii) Natural Leaders Workshop
iii) Officer Candidates
15
ALTERNATIVES FEDERAL CREDIT UNION
BALANCE SHEET
03/31/2009
02/28/2009
Budget
03/31/2009
12/31/2008
Column
1#3
ASSETS
1
2
3
4
Consumer
Mortgage
Business
TOTAL LOANS
5
6
7
ALLOWANCE FOR LOAN L
Allowance for ODP losses
TOTAL ALLOWANCE FOR LOAN LOSS
8
9
10
8,675,968
24,763,709
2,364,195
35,803,871
8,646,590
23,995,178
2,372,294
35,014,062
7,740,029
23,138,658
2,453,326
33,332,014
8,663,518
23,663,993
2,355,435
34,682,947
12.09%
7.02%
(3.63%)
7.42%
(339,667)
(7,500)
(347,167)
(338,383)
0
(338,383)
(311,366)
0
(311,366)
(316,700)
0
(316,700)
9.09%
0.00%
11.50%
Misc Loan Fees Receivable
Misc Receivables - Other
MISC REC.
(12,935)
81,474
68,539
67,847
84,565
152,412
33,591
103,099
136,690
953
72,706
73,659
(138.51%)
(20.97%)
(49.86%)
11
12
13
14
15
Checking (TCTC & FHLB)
Vault Cash
ATM - Cash
Clearing Acounts
TOTAL CASH
120,843
365,354
91,720
72,038
649,955
108,692
282,800
148,980
329,835
870,307
72,802
401,569
130,000
428,238
1,032,609
92,593
325,575
68,540
2,274
488,982
65.99%
(9.02%)
(29.45%)
(83.18%)
(37.06%)
16
INVESTMENTS
16,021,619
15,645,814
18,234,784
17,018,135
(12.14%)
17
18
19
20
21
PRE-PAID INSURANCE
CAPITALIZED CLOS C HELOC
MISC PRE-PAID AND DE
Prepaid Real Estate Taxes
PREPAID
3,435
70,277
60,061
41,419
175,192
6,870
68,801
69,303
46,902
191,877
10,000
67,434
60,000
20,000
157,434
13,740
70,255
24,738
23,795
132,528
(65.65%)
4.22%
0.10%
107.09%
11.28%
22
23
24
25
26
Land
Building
Building Improvements
Furniture and Equipment
FIXED ASSETS
588,364
2,094,924
80,448
169,100
2,932,836
588,364
2,100,430
80,755
175,943
2,945,492
588,364
2,094,957
80,493
172,615
2,936,429
588,364
2,111,441
81,370
189,629
2,970,804
0.00%
(0.00%)
(0.06%)
(2.04%)
(0.12%)
27
Accrued Interest Income
199,312
192,527
241,476
215,992
(17.46%)
28
NCUA SHARE INSURANCE
137,678
468,222
450,000
468,222
(69.40%)
55,641,835
55,142,330
56,210,069
55,734,569
(1.01%)
155,839
51,869
912,964
1,120,672
157,234
48,175
915,120
1,120,529
167,380
64,553
949,017
1,180,950
231,225
60,431
922,222
1,213,878
(6.90%)
(19.65%)
(3.80%)
(5.10%)
1,120,672
1,120,529
1,180,950
1,213,878
(5.10%)
13,680,189
21,163,692
10,166,964
5,839,113
50,849,959
13,453,957
20,653,203
10,124,555
5,790,444
50,022,158
13,804,206
20,370,885
10,626,145
5,688,334
50,489,570
14,055,788
20,200,399
10,589,192
5,676,852
50,522,231
(0.90%)
3.89%
(4.32%)
2.65%
0.71%
TOTAL ASSETS
LIABILITIES
29
30
31
32
ACCOUNTS PAYABLE
ACCRUALS
Borrowings
Payables
TOTAL LIABILITIES
EQUITY
33
34
35
36
37
SHARE DRAFT
MEMBER SHARES
CERTIFICATES
IRA'S
Total Deposits
38
Secondary Capital
1,851,000
1,843,000
2,233,154
1,843,000
(17.11%)
39
40
41
42
43
REGULAR RESERVE
UNDIVIDED EARNINGS
UNREALIZED GAIN/LOSS
GENERAL SUSPENSE
OTHER CAPITAL
551,000
1,266,801
3,556
(1,153)
1,820,204
551,000
1,601,404
4,239
(0)
2,156,643
551,000
1,756,496
(1,100)
0
2,306,396
551,000
1,600,278
4,182
0
2,155,461
0.00%
(27.88%)
(423.28%)
0.00%
(21.08%)
TOTAL EQUITY
54,521,163
54,021,801
55,029,119
54,520,691
(0.92%)
LIABILITIES+EQUITY
55,641,835
55,142,330
56,210,069
55,734,569
(1.01%)
ALTERNATIVES FEDERAL CREDIT UNION
Net Interest Income
Budget
03/31/2009
03/31/2009
03/2009 YTD
Budget
03/2009 YTD
INTEREST INCOME
1
2
3
4
Mortgage
Business
Consumer
INTEREST ON LOANS
5
INVESTMENTS
TOTAL INTEREST INCOME
126,480
16,932
70,467
213,878
128,983
15,754
70,761
215,498
374,060
47,933
210,668
632,661
374,680
45,712
212,049
632,441
29,632
39,257
88,555
111,486
243,510
254,755
721,216
743,928
5,293
26,605
632
15,000
47,531
5,978
28,080
575
14,432
49,066
15,031
80,419
1,921
43,328
140,699
17,881
82,510
1,726
42,127
144,244
47,531
49,066
140,699
144,244
195,979
205,689
580,517
599,684
7,500
15,000
29,058
45,000
7,500
188,479
15,000
190,689
29,058
551,459
45,000
554,684
INTEREST EXPENSE
6
7
8
9
10
SHARE ACCOUNTS
CD's
SHARE DRAFT
IRA' and ROTH'S
DIVIDENDS
TOTAL INTEREST EXPENSE
NET INTEREST INCOME
11
PROVISION FOR LOAN LOSS
TOTAL LOSS PROVISION
NET AFTER LOSS PROVISION
OPERATING EXPENSES
12
SALARIES
141,397
139,500
409,346
418,500
13
BENEFITS
28,650
35,920
110,484
121,420
14
TRAINING / TRAVEL
4,813
4,734
9,742
14,176
15
ASSOCIATION DUES
1,801
2,030
7,241
6,074
16
BUILDING
16,937
19,112
56,439
57,312
17
PROMOTION
4,361
7,000
10,795
21,000
18
OPERATING
34,064
35,521
106,489
107,514
19
LOAN SERVICING
11,358
13,013
40,072
45,502
20
PROFESSIONAL SERVICES
347,055
8,213
361,923
24,615
21
NON-PROFIT PROGRAMS
1,081
569
3,542
1,726
22
23
24
INTEREST ON SBA BORROWINGS
INTEREST ON SUB-DEBT
INTEREST ON BORROWINGS
1,821
9,452
11,274
1,653
10,000
11,653
5,672
27,907
33,580
4,835
30,000
34,835
25
OVERDRAFTS
7,492
1,000
8,650
3,000
610,282
278,265
1,158,302
855,674
34,422
7,750
906
17,187
25,094
4,025
89,384
37,950
6,075
1,100
35,015
20,074
1,150
101,364
93,000
18,811
2,945
80,575
74,545
5,675
275,550
112,584
18,225
3,200
104,180
71,261
110,125
419,576
89,384
101,364
275,550
419,576
0
0
0
0
TOTAL OPERATING EXPENSE
OTHER OPERATING INCOME
26
27
28
29
30
31
32
DEPOSIT FEES
LOAN FEES
MISC FEES
GRANT AND OTHER INCOME
VISA FEES
MISC INCOME
FEES INCOME
TOTAL OTHER OP INCOME
TOTAL NON-OP EXP/INC
NET INCOME
(332,419)
13,788
(331,293)
118,585
ALTERNATIVES FEDERAL CREDIT UNION
CAMEL RATIOS
MEASURE
03/31/2009
12/31/2008
09/30/2008
06/30/2008
03/31/2008
12/31/2007
09/30/2007
06/30/2007
03/31/2007
12/31/2006
09/30/2006
06/30/2006
03/31/2006
12/31/2005
09/30/2005
CAMEL KEY RATIOS
CAPITAL ADEQUACY
Capital/Ttl Assets
Core Cap/Ttl Assets
> 7%
6.60
3.27
7.17
3.87
7.21
3.87
6.84
3.73
7.04
3.77
7.03
3.54
7.21
3.47
7.15
3.40
7.37
3.48
7.54
3.49
7.99
3.70
8.42
3.70
9.00
4.13
9.23
4.36
9.54
4.36
1.66
93.27
5.27
1.88
92.77
5.33
3.02
92.31
5.45
3.06
92.31
5.40
3.49
90.73
5.69
5.13
90.90
5.93
4.47
90.92
6.06
4.03
90.62
6.06
4.84
90.49
6.13
3.43
90.14
6.37
4.34
90.32
6.48
2.73
90.46
6.53
3.05
90.66
6.63
4.26
90.74
6.45
2.40
90.96
6.55
7.18
1.43
0.16
12.79
7.49
1.43
0.24
6.05
7.85
1.36
0.42
5.69
8.66
1.49
0.17
5.84
13.19
1.86
0.39
6.58
8.38
1.84
0.47
5.66
8.10
1.67
0.41
5.58
8.33
1.64
0.29
6.23
10.03
1.77
1.31
6.11
8.21
1.64
3.15
5.57
7.65
1.45
0.43
5.63
8.29
1.52
4.12
6.25
7.79
1.55
2.96
6.49
7.93
1.31
0.01
5.83
7.73
1.33
0.41
5.83
70.41
31.25
68.65
30.58
67.98
30.06
65.30
28.31
65.82
29.62
67.12
31.01
68.12
30.84
66.52
29.63
68.30
29.87
71.18
30.57
73.34
30.60
74.13
30.28
74.95
29.54
73.01
27.67
76.95
29.04
7.13
1.12
2.21
7.31
1.21
2.68
7.44
1.18
1.44
7.55
1.34
2.55
8.27
1.45
3.27
7.59
1.50
4.25
7.70
1.39
4.58
7.81
1.46
4.37
7.84
1.50
4.75
7.21
1.44
4.42
7.35
1.36
4.15
7.58
1.30
3.92
7.20
1.32
3.63
7.27
1.26
3.33
6.86
1.14
3.23
ASSET QUALITY
DQ Loans/Ttl Loans
Earning Assets
Fixed Assets/Total Assets
< 5%
EARNINGS
Income / Assets
Cost of Funds/Assets
Loan Losses / Total Assets
Operating Exp/Assets
LIQUIDITY
Loans/Deposits
Mortgages / Assets
OTHER RATIOS
Operation Statistics
Loan Inc / Loans
Dividends / Deposits
Inv Inc / Investmnt
GRANTS PROGRESS REPORT
April, 2009
Name
Assets for
Independence
Town of
Dryden
Comm. Fnd.
Women’s Fund
Wells Fargo
Housing
Foundation
United WayBank of Amer
OTADA
Acctg firm
donations
UAW Local
2300
IRS VITA
grant
Tompkins
County
Cornell
University
Citizens Bank
County CDBG
CDFI Fund
2009
NFCDCU
HUD 2008`
NCUA
Application
Status
Awarded
9/07
Approved
Applied
3/09
Amount Requested/
Granted
$58,824
G
mostly match funds
$10,000
G
Most for matching
$1,000
G
to AVF
$10,000
G
to AVF
Approved
$1730
G
Approved
$1923
$500
$100
$500
G
G
G
G
Approved
Anticipated Funding
Date
Rec’d 4/23/08
Commitment
from AFCU
Offer IDAs
Duration
IDAs
Early 2009
Offer IDAs
?
VITA
3/10/09
Offer VITA
1 year
Money Wise
and financial
counseling
VITA
Late 2009
Expand MW
and FC
1 year
Rec’d 2/9/09
Offer VITA
1 year
Offer VITA
1 year, to AVF
Offer VITA
1 year
Rec’d 3/30/09
Rec’d 2/20/09
Rec’d 3/11/09
1 /22/09
VITA
VITA
Applied
8/29/08
$7,500
G
Part of Federation
plus consulting $
Tax program
Approved
12/08
Applied
12/08
Approved
3/6/09
Approved
2004
$10,000
to AVF
$10,000
to AVF
$2,000
to AVF
$25,000
G
G
Applied
10/29, add’l
3/26/09
Approved
10/3/08
Approved
9/08
$2,000,000
G
Capital, LLR,
operations
$45,000
may increase
$15,000
G
“
G
ATM
purchase
Empire State
Development
Awarded
11/15/06
$60,000
G
$6,000 grant
$54,000 interest
subsidy
Empire State
Development
Applied
11/29/07
Approved
2/21/08
???
$95,000
Approved
9/30/99
$121,800-Year 9
$95,578-Year 10
$130,642-Year 11
Empire State
Development
2009
SBA Microloan
Intermediary
Program
402
404
508
Program
(if any)
IDA
5 years
Offer VITA
1 year
Tax program
$ 3750 1/21/09
50% 5/09
$400 for consulting
rec’d 3/3/09
Rec’d 4/16/09
Offer VITA
1 year
Tax program
Mid-2009
Offer VITA
1 year
G
Tax program
Rec’d 3/18/09
Offer VITA
1 year
G
Business loans
& CENTS
$5,467 rec’d 1/19/06
$4,630 rec’d 9/17/08
$6,070 rec’d 3/18/09
Late 2009
Assist rural
county
businesses
Open
$13,328 rec’d 3/2/09
$13,292 billed 4/15
By 5/ 09
Reimbursement
Offer
programs
Outreach,
ATMs
1 year, renewable
$1800 of grant and
$16200 of interest rec’d
4/07;
$18,000 rec’d 10/6/08
$18,000 rec’d 2/5/09
$47,500 rec’d
10/28/08, remainder
in mid-2009
Lend to
women &
minority
owned
businesses
“
2 years
Billing quarterly
$24,601 rec’d 6/08
$22,030 rec’d 10/08
$17,401 rec’d 11/08
$31,546 billed 1/09
Expand
business
lending
On going
”
Interest rate
subsidy for
business loans
G
CENTS, IDA,
Tax, LLR
3 years
by 4/30/09
1 year
??
CEO,
Business
Lending
ALTERNATIVES AT A GLANCE
Mission: Build wealth and create opportunities for underserved people and communities
Values: Social Justice, Provide Economic Products that Give Real Value, Innovation, Community-Minded, Risk Taking, Balance,
Inclusion, Education
DIVISIONAL PRIORITIES
CURRENT BUSINESS PRIORITIES
1. New Credit Card Program(Mary)
Finance
METRICS
ACTUAL GOAL
- Enhance Operating
2.
Cons.
Lending
through
MSS
YTD
2009
Effectiveness
(Melissa)
Community
o Response to NCUA
3. ATM Service Expansion(Karl)
#Tax Returns
1,500
1,500
o Internal Analysis &
4. Benchmarking Study(Leni)
#IDAs Open-FHC
10
45
Reporting
5. Research CU Collaboration(Joe)
New VITA accounts
44
80
o Reconciliations
6. Expand Outreach (Karl)
# Service
11
18
o ALM tools
7. Develop Organizational Diversity
Partnerships
Plan (Lenore)
Lending
Financial
- Revolutionize the process!
8. Supervisory Coaching (Lenore)
Capital Ratio
6.60%
7.99% DIVISIONAL ACTIVITIES
o Simplified application
Net Income
(331,293) $185,000 Finance
o Faster underwriting
DQ Ratio
1.66%
2.5%
o Expanded distribution
- Divisional Reporting
Grant Income
80,575 $414,990 Lending
o “back office” efficiency
Making Life Easier
- Product Line Maintenance
Community Programs
- Bring Alternatives to the
Service Quality
81%
72% Community Programs
Members!
More Members, Products, Services
o
Growth to new markets
Operations
Total Assets
$55.6MM
$57.6M
o Increase grant income & Sec.
# of Members
9,000
9,200 - Marketing plan implementation/MCIF
Capital
# of New Unbanked
300
o Involve Staff in Outreach
QUEUE LIST
Members
1.
Incorporate
Credit
Path
in
Member
o Support Sustainability efforts
Mortgage Loans
3,716,797
Relationship Mgmt.
Operations
Consumer Loans
2,783,582
2.
Consider
New
Programs
to
address
- be unique/Exceptional service!
Business Loans
1,496,482
recession impact for mbrs.
o Enhance Service Quality
Premier Workplace
o Distribution through MSS
COMPLETED BUSINESS
Employee
1.71
1.90
o Operational efficiency
PRIORITIES
Satisfaction
1. Overdraft Privilege
o Deliver Education to
Diversity
17%
20%
2. New Staff Compensation Plan
Members
Employee Retention
90%
75%
New Council
3. New Marketing Plan
-
Premier Workplace!
METRICS
ACTUAL
YTD
GOAL
2009
Community
#Tax Returns
1,500
#IDAs Open-FHC
45
New VITA accounts
80
# Service
18
Partnerships
Financial
Capital Ratio
7.99%
Net Income
$185,000
DQ Ratio
2.5%
Grant Income
$414,990
Making Life Easier
Service Quality
71%
72%
More Members, Products, Services
Total Assets
$57.6M
# of Members
9,200
# of New Unbanked
300
Members
Mortgage Loans
Consumer Loans
Business Loans
Premier Workplace
Employee
Satisfaction
Diversity
19%
17%
Employee Retention
90%
80%