Directors Report
On behalf of the Board of Directors and Supervisory Committee, we welcome you to the 64th Annual Meeting.
2017 was another successful year for OTIS Federal Credit Union. For the 13th consecutive year, we gave back nearly $350,000 to our borrowers and savers in the form of a Loan Interest Refund and Bonus Dividend. We are proud to report that over the past 13 years, we have returned $4,622,976 to our members via this annual practice. We understand how hard you work for your money: Because you choose to entrust your hard-earned money with OTIS Federal Credit Union, we make it a top priority to ensure that you keep as much of it as possible in your own pocket. Whether it is in the form of lower interest rates, higher dividend rates, or fewer/lower fees, these advantages translate to more money for you, our member!
Our achievements in 2017 included roll-outs of new and improved versions of both OTIS Online and OTIS Mobile. We would like to take a minute to thank you, all of our members, for your patience and understanding as the Credit Union went through this transition. Though change is never easy, and though the old OTIS Online had served us well for twenty years, it was time that OTIS Federal Credit Union invested in newer technology.
Fighting fraud is a priority that remains at the forefront of our operations. Fraud comes in many different forms, and consumers must always be on their “A” games in order to protect themselves. Remember, the first rule of fraud prevention is this: if something seems too good to be true, it probably isn’t true. If you receive a check that you weren’t expecting, if you are asked to be a “Secret Shopper”, or if you are informed that you have a virus on your computer, please know that these communications are most likely illegitimate. Be aware of the fact that fraudsters will use emotional connections and manipulations to reel you into a fraud scheme. Again, you work hard for your money – don’t allow those who would scam you to take any of it! Stop potential fraud at the first conversation and do not give anyone your personal and financial information – ever.
We concluded 2017 by wishing our former President/CEO, Roland Poirier, much success and happiness upon his retirement with OTIS Federal Credit Union. Roland started his career with OTIS FCU back in 1986 and is responsible for growing the Credit Union to what it has become today. His primary mission over the 30+ years of his leadership at OTIS FCU was to make sure that our members were financially well-served. He wisely knew that if he did this, the rest would naturally fall into place. We are very excited to dedicate this year’s Annual Meeting Report to Roland. Congratulations, Roland, on your retirement – we hope that you are enjoying every moment, and we thank you for all that you have done for our past, current, and future members!
Before closing, I would like to take the opportunity to thank each and every employee of OTIS Federal Credit Union. Their hard work and dedication to each of our members is truly something to be commended. We are very fortunate to have such a great team of employees who are committed to the Credit Union’s mission of excellence, professionalism, and continued success.
In closing, we are excited to see what 2018 has in store for us, and I would like to personally extend a thank you to each of our members for your continued support.
Respectfully submitted,
Duane Lake
Chair of the Board of Directors
Supervisory Committee Report
On the basis of our NCUA exam and CPA opinion audit, we are pleased to report that the financial records are properly maintained and fairly represented in all materials in respect to the financial condition of OTIS Federal Credit Union. In addition to the Examination and Opinion Audit, the committee members performed surprise monthly cash counts and reviewed loan documents this past year. All these steps are taken to ensure that proper controls and procedures are in place.
Respectfully submitted,
Stephen Hamilton
Chair of the Supervisory Committee
Statement of Condition as of December 31, 2017
Assets
| Cash | $18,909,823 |
| Investments | $68,223,144 |
| Loans to Members | $69,077,754 |
| Loan Loss Allowance | ($226,383) |
| Land/Buildings – Net | $1,825,012 |
| Other Fixed Assets | $160,120 |
| Other Assets | $1,561,180 |
| TOTAL ASSETS | $159,530,650 |
Liabilities and Equity
| LIABILITIES | |
| Accounts Payable | $820,742 |
| TOTAL LIABILITIES | $820,742 |
| EQUITY | |
| Share Draft Accounts | $15,089,233 |
| Regular Shares | $50,078,724 |
| All Other Shares and Deposits | $66,472,537 |
| TOTAL SHARES | $131,640,494 |
| Regular Reserves | $2,884,692 |
| Accum. Unreal. Pro./Loss | ($5,787) |
| Undivided Earnings | $24,190,509 |
| TOTAL CAPITAL | $27,069,414 |
| TOTAL EQUITY | $158,709,908 |
| TOTAL LIABILITIES & EQUITY | $159,530,650 |
Statement of Income as of December 31, 2017
Interest Income
| Loan Income | $3,626,333 |
| Less Interest Income | ($283,561) |
| Investment Income | $997,943 |
| TOTAL INVESTMENT INCOME | $4,340,715 |
Interest Expenses
| Dividends | $944,573 |
| NET INTEREST | $3,396,142 |
| Provision — Loan Loss | $141,000 |
| NET AFTER LOSS PROVISION | $3,255,142 |
Operating Expenses
| Employee Compensation/Benefits | $1,511,764 |
| Travel/Conference | $137,322 |
| Association Dues | $24,031 |
| Office Occupation | $215,338 |
| Office Operations | $360,806 |
| Education and Promotion | $128,079 |
| Loan Services Expenses | $144,877 |
| Professional/Outside Service | $802,295 |
| Member Insurance and NCUA Fees | $112,198 |
| Annual Meeting Expenses | $5,084 |
| TOTAL OPERATING EXPENSES | $3,441,794 |
| OTHER OPERATING INCOME | |
| Operating Fees and Charges | $1,646,367 |
| Gain/Loss–Disp. Assets | ($14,760) |
| NET INCOME | $1,444,955 |
