I am happy to report that your credit union ended the year with a profit of $287,524, a significant improvement over 2011 results. Looking at our 2012 year-end balance sheet, our loans, deposits and total assets remained “flat” compared to 2011. Numbers, though, can sometimes be deceiving!
A deeper look at 2012 performance reveals something far more dynamic and transformative underway. As I’ve discussed in prior communications, 2012 was the year that began our journey to more proactive member interaction, improved technology, more appealing product offerings, and expansion outside the local Michiana community.
Let’s look under the hood at some incredible changes in 2012 that validate this point. In 2012, your credit union originated over $96 million in mortgage loans. This was more than twice the amount of our 2011 performance!
In order to properly manage our interest rate risk, many of these loans were sold. However, we retained all mortgage servicing to ensure the highest level of member satisfaction was maintained.
During the past year, auto loans increased nearly $20 million, the fastest increase in our history. Credit card balances also showed impressive growth by rising to nearly $30 million.
These incredible results did not happen by accident. They were the result of a coordinated effort by all Notre Dame FCU partners to go the extra mile for both their members as well as for each other. The result was an exceptional increase in productivity and efficiency.
Why then were our aggregate numbers flat? Two reasons. The first was normal runoff of our amortizing loans, amplified by members continuing to refinance to obtain and lock-in lower interest rates.
The second reason, and I have discussed this extensively in the past, was the accelerating runoff of what was once a major source of business for us, Federal Guaranteed Student Loans (GSLs). In 2012 alone, our GSL portfolio shrank by nearly $20 million, due to government incentive programs to consolidate all existing GSLs with Sallie Mae.
If it wasn’t for these two items, both industry-wide in nature, 2012 would have been an even more impressive year than what appeared on paper.
In 2012, your credit union began reaching out to both current and prospective members outside our immediate geographic area. Multiple events were sponsored with Notre Dame alumni throughout the country, and it was inspiring to hear so many people supportive of our efforts to offer our services nationwide.
What does the future hold for your credit union? Expect to see more targeted outreach to you, our valued members, offering solutions that not only save you money, but empower you to take better control of your financial lives. There will also be more outreach nationwide, with the Chicago, Indianapolis, and Detroit markets being our initial targeted areas. Behind the scenes we are hard at work re-engineering our core systems to ensure you receive full access to all your financial information, plus have the tools necessary to conduct all your business, if you desire, online.
As you can see, there are exciting and progressive changes underway at Notre Dame FCU, but it is all for nothing if we are not providing the products and services that you desire. If you need something, ask us. If you see a financial product elsewhere that you would like to see at your own credit union, tell us. We rely heavily on our members to provide ideas for our next product, service, or promotion.
As always, I am at your disposal to assist in any way that I can. Thank you for being a Notre Dame FCU member, and please consider us for any and all of your financial needs.<
Thomas J Gryp