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Board of Directors Meeting
Noon, Friday, August 30, 2019
Knicely Conference Center Bowling Green, KY
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Agenda
August 30, 2019
The agenda for the business meeting will be as follows: Page
I. Call to order, Ascertainment of Quorum
II. Review of Minutes of the July business meeting 4
III. Treasurer’s Report – Carol Glaser 10
IV. Committee ReportsA. Investment Committee–Carol Glaser 15 B. ALCO/Risk Management Committee–James McCaslinC. Supervisory Committee–Steve Winfrey 18 D. IT/Cybersecurity Oversite Committee-Richard Miller 20
V. Vice President-Lending ReportA. Associate LoansB. Charge-offs 25
VI. President’s ReportA. Interest Rate Risk Policy 36 B. Information Security Policy/Acceptable Use Policy 37 C. Strategic Planning UpdateD. SARS – Justin MorrisE. Meeting Dates and Strategic Planning
SKYCTC KATI Center– September 21
VII. Chair’s Report – Pat StewartMotions 38 A. Approval of the Consent Agenda
a. Minutesb. Dividend Transferc. Membership Applicationd. ODP Charge-offs
B. Approval of the charge-offs for the month ofAugust in the amount of $46,859.33.
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C. Approval of payment of July monthly dividends of $132,400.83. D. Approval of Interest Rate Risk Policy updates. E. Approval of the Information Security Policy updates.
Adjournment
Upcoming Board Recommendations September Cyber Security Policy Associate Handbook Liquidity and Funding Policy
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MINUTES OF SERVICE ONE CREDIT UNION BOARD OF DIRECTORS
July 26, 2019 CALL TO ORDER
Chair Pat Stewart called the meeting of Service One Credit Union Board of Directors to order at 12:23 PM at the Knicely Center, Bowling Green, KY. A quorum was present.
ROLL CALL Present: Excused: Pat Stewart , Chair James McCaslin
Harold Little, Director Richard Miller Brenda Willoughby, Director Brooke Justice Carol Glaser, Director Peggy Crowe
Robert Deane, Supervisory Committee Stephen Carrico Gary Meszaros, Supervisory Committee Steve Winfrey Chris George, Supervisory Committee Chris Royse, Supervisory Committee Judy Glass, Supervisory Committee Rebecca Stone, President/CEO Tony Spitz, EVP, Chief Operations and Technology Officer
Mark Floyd, VP, Chief Credit Officer Sean Moore, VP, Strategic Implementation
Justin Morris, VP, Enterprise Risk Management Michelle Dyer, VP, HR and Organizational Development Sarah Vaughn, Recording Secretary
MINUTES OF THE SECRETARY Chair Stewart asked for additions or corrections to the June Board minutes included in the packet. Hearing no updates, Stewart recommended approval. Motion to approve by Carol Glaser, seconded by Brenda Willoughby. The Board concurred.
TREASURER'S REPORT
Carol Glaser reported Total Assets increased by $1,789,475 from the previous month to $171,816,600. Total liabilities increased $1,723,800 from the previous month-end. Member deposits increased $1,751,600 this change is comprised of increases in Savings, $771,700 and $1,443,500 in CDs while checking accounts decreased $463,600. Remaining liabilities decreased a total of $26,500.
Members’ Equity increased $65,600 from $52,000 in the prior month and an increase of $13,000 in Accumulated Other Comprehensive Gain on
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Investments. This change was attributable to increases in asset market values compared to their cost bases. Carol referred to the Statement of Income and reported June interest income was $627,100 of which $281,500 was from Consumer Loans, $224,700 was from Mortgage Loans, $55,600 was from Credit Cards and $65,400 was from Investments. Year-to-date interest income was 4.857% above the budget. Interest Expense was $122,600 and is $180,600 over the year-to-date budget. The Provision for Loan Losses was $66,200 in June and the YTD balance of $84,500 is significantly below the YTD Budgeted amount of $255,000. Non-Interest Income totaled $229,000. Resulting in a total of $93,000 below YTD budget. Non-Interest Expenses totaled $642,100 for June, bringing year-to-date to $3,712,000 or 2.811% above budget of $3,611,000. Glaser stated the Comparative Statements of Financial Condition as of month-end June 30, 2019, 2018, 2017 are included in the packet. Carol noted Total Assets grew $6,429,000 from 2017 to 2018 and $9,488,000 from 2018 to 2019. Total Net Loan growth increased during the same periods at $8,329,000 and $10,773,000 respectively. Total deposit liabilities grew $4,734,000 from 2017 to 2018 and grew $7,953,000 from 2018 to 2019. Carol reviewed the Comparative Statements of Income included in the packet and referred the members to the Board site for additional information. YTD Net Interest Income increased by 10.52% from 2017 to 2018 and increased by 14.12% from 2018 to 2019. From 2017 to 2018, the YTD Provision for Loan Losses increased 16.76% and from 2018 to 2019, the provision decreased 65.55%. YTD Non-interest income decreased by 8.81% from 2017 to 2018 and increased by 3.69% from 2018 to 2019. YTD Non-interest expenses were up 8.25% from 2017 to 2018 and up 21.14% from 2018 to 2019. Finally, year-to-date Net Income decreased by 11.33% from 2017 to 2018 and decreased by 28.08% from, 2018 to 2019. The decrease is a result of the project cost of core and digital conversions. Glaser noted that peer group ratios were on page 16 of the Board Report. Some key ratios included Net Worth/Total Assets which is 11.95%. Delinquent Loans/Total Loans is 0.42%. Net Charge-offs/Average Loans is 0.32%. Return on Average Assets is 0.71%. After some discussion, Carol noted the complete financial report is included in the packet. Harold Little made a motion to approve the financial report, Brenda Willoughby seconded. The Board concurred.
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COMMITTEE REPORTS Chair Stewart asked for reports from committees.
INVESTMENT COMMITTEE: Carol Glaser reported a list of Non-Negotiable CDs was included in the Board packet. In June, one CD matured for a total of $250,000 We purchased five CDs, totaling $1,240,000. No negotiable CDs were purchased or matured.
Other investments had a total reporting value of $4,930,000, which exceeded their original cost by $649,000. The increases in value result from both earnings capitalized on the investments and from cumulative increases in their market values over their original cost. Carol directed them to review the complete investment report included in the Board packet.
ALCO COMMITTEE REPORT: Justin Morris reported, in the absence of James McCaslin, the ALCO committee met on June 20 and discussed the interest rate criteria for our in-house business loans, reviewed the Asset Liability Reports dated September & December 2018, and Service One’s ALM summary, with ratios, for first quarter 2019.
SUPERVISORY COMMITTEE REPORT: Justin Morris reported, in the absence of Steve Winfrey, the committee met June 17 and noted three audits for the second quarter of this year were completed. Minutes are included in the packet. Justin stated assignments were scheduled for the 3rd quarter of the year and the committee plans to complete them by the end of August.
IT/CYBERSECURITY COMMITTEE REPORT: Tony Spitz reported in the absence of Dr. Richard Miller on the results of the first data Core validation and testing. Spitz stated deposits balanced. However, loans have three areas that did not balance – accrued interest is off by one day, YTD late charges paid, and available line of credit (commitment amount). It appears this is simply the difference in the way the two systems accrue interest based on the time of payment. Accounting will get clarification from Share One and will test again in the second data validation test cycle.
Spitz told the Board and Committee members “scrub reports” were very clean. There are a few things to clean up but is manageable. Fiserv is happy with the pre-data cut approach we recommended and are going to make it their standard to run the scrub reports on the preliminary capture for all future clients. Spitz mentioned there are 50 Data Cut 1 related ServicePoint cases with Fiserv and our team is actively working all cases with Fiserv. None of these are out of the ordinary and many appear to be data mapping corrections. Fiserv provided a Data Cut Acknowledgement upon completion of data validation. Testing began Monday, July 22nd and
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is slated to be completed by August 16th. Test teams have been identified and notified. Test cases have been shared with them. Tony summarized that the team met the expectations and are on target. Data validation was completed two days ahead of schedule and there are no risks or concerns at this time. Tony gave an update on the digital wallet campaign. After a soft launch, there are 109 cards registered on 129 devices. We are now marketing digital wallet on the website and in the branches. LOAN VICE PRESIDENT REPORT: Mark Floyd updated the board on the William Gonzalez-Quevedo foreclosure sold at master commissioner auction. Estimated loss is $43,500 and will be realized after final documentation and payoff form master commissioner is received. Mark then reviewed the charge-off report and recommended charge-offs of $39,084.64 for June. The Board asked questions and discussed the reports. He then mentioned there were no bankruptcies filed in June. There are 24 YTD and 20 reaffirmations. Mark discussed special mention commercial participation loans as followed: KLB Holdings LLC was downgraded due to vacancy, Cloverleaf Partners LLC was downgraded due to death default, JL Guild LLC was downgraded due to death default, STH Enterprises LLC was downgraded due to tenant eviction, WP Properties QOZB LLC was downgraded due to death default and VBP INC was downgraded due to loan past maturity date. Floyd reported loan delinquency was 0.42% for the month of June. Mark presented four insider loan applications to the board. Each applicant has a credit score over 700 and good DTI ratio. There were no underwriting exceptions. Board recommended approval for all loans. PRESIDENT’S REPORTS: Rebecca Stone advised Board members that the Federal Reserve is most likely to lower interest rates in their next scheduled meeting. Rebecca reviewed recommended CD interest rate changes and indicated the 25 months special CD was being discontinued. Rebecca Stone and Justin Morris reviewed the mid-year budget with the Board. Net revenue is down primarily because of conversion costs which are approximately $220,000 YTD and salaries that are up by $255,000 as we position ourselves for conversion training and “Go Live” preparedness. Justin Morris presented to the Board and Committee members to Texas Capital Bank as a potential correspodent for a Money Market Account. He stated Service One Credit Union strives to maximize the yield on excess
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liquidity, Justin explained that most of our excess cash is in an account with our primary correspondent, Corporate One FCU. Texas Capital Bank due diligence was performed and a financial report was distributed to Board members. An assessment indicated Texas Capital Bank appears to be a solid financial institution reporting a healthy net interest margin, return on assets, efficiency ratio, and capital ratio. Justin directed members to an attached financial summary. Currently, Texas Capital is offering a money market account to their Correspondent Financial Institution paying 40 basis points over the overnight rate currently received by Corporate One.
Rebecca noted the Strategic Planning meeting is scheduled for Saturday, September 21 at SKYCTC KATII with the Board meeting to follow. The 10K Classic is also on September 21, so plan your route in advance to avoid the WKU and downtown areas.
CHAIR’S REPORT Pat noted there were no new SARs to report for June.
NEW BUSINESS The following motions were moved, seconded, and passed by the Board of Directors:
A. To approve the Consent Agenda.1. Minutes2. Dividend Transfer3. Membership Applications4. ODP Charge-offs (Carol Glaser, Brenda Willoughby)
B. To approve the charge-offs for July in the amount of $39,084.64.(Harold Little, Brenda Willoughby)
C. To approve the payment of June monthly dividends of $122,584.65.(Carol Glasser, Harold Little)
D. To approve the transfer of 2nd Quarter Net Income of $206,658.61to Undivided Earnings. (Brenda Willoughby, Harold Little)
E. To approve the Disaster Recovery and Business Continuity Policyupdates. (Carol Glaser, Brenda Willoughby)
F. To approve the Budget updates. (Carol Glaser, Harold Little)
G. To approve opening an account with Texas Capital Bank and placingdeposits in excess of the FDIC insurance limits. (Harold Little, Carol
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Glaser)
UNFINISHED BUSINESS The following dates have been set for the board meetings at noon:
August 30-Knicely Conference Center
Reminder of location change starting in September to SKYCTC-Kentucky Advanced Technology Institute (KATI) 1127 Morgantown Road Bowling Green, KY 42101 Directions: Turn off Morgantown Road like you are turning into Wal-Mart at the light. Take the left road and you will see the large glass building. We will be in the upstairs round glass area.
September 21-Strategic Planning and BOD Meeting-8:00 AM
October 25, 2019 November 22 December 17 January 24, 2020 February 28, 2020 March 27, 2020 April 24, 2020 May 22, 2020 June 26, 2020 July 24, 2020 August 28, 2020
Chair Stewart adjourned the meeting at 2:26 PM.
Approved, Respectfully Submitted,
J. Pat Stewart Carol Glaser Sarah Vaughn Chair Secretary/Treasurer Recording Secretary
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ASSETS 07/31/19 06/30/19 Change
Cash and cash equivalents 13,956,378.38$ 16,873,019.11$ (2,916,640.73)$ Available-for-sale securities 8,737,351.05 9,235,433.82 (498,082.77)Loans receivable: Consumer loans 48,937,529.15 48,178,316.12 759,213.03 Real estate loans 41,643,229.62 40,786,196.17 857,033.45 Credit card loans 6,389,924.42 6,475,507.49 (85,583.07) Commercial loans 444,347.41 27,225.93 417,121.48 Participation Loans 25,011,446.04 24,333,734.11 677,711.93 Total loans receivable 122,426,476.64 119,800,979.82 2,625,496.82Less allowance for loan losses (880,295.77) (839,754.57) (40,541.20) Net loans 121,546,180.87 118,961,225.25 2,584,955.62Overdrawn shares, net of allowance 83,378.45 81,420.13 1,958.32Certificates of deposit 6,968,000.00 7,022,977.85 (54,977.85)Other investments 4,949,258.48 4,930,941.41 18,317.07FHLB stock 843,100.00 843,100.00 0.00Accrued interest receivable 500,291.07 488,614.33 11,676.74Property and equipment, net 4,328,078.13 4,337,291.79 (9,213.66)NCUSIF deposit 1,290,416.76 1,290,416.76 0.00Deferred compensation assets 5,548,270.39 6,060,999.54 (512,729.15)Prepaid expenses and other assets 1,495,341.53 1,691,199.70 (195,858.17)
Total Assets 170,246,045.11$ 171,816,639.69$ (1,570,594.58)$
LIABILITIES AND MEMBERS' EQUITY
LIABILITIES
Savings accounts 56,896,233.69$ 57,973,853.21$ (1,077,619.52)$ Checking accounts 42,837,618.48 45,527,332.87 (2,689,714.39)Certificates of deposit 49,083,884.58 46,388,604.40 2,695,280.18 Total deposit liabilities 148,817,736.75 149,889,790.48 (1,072,053.73)Deferred compensation liabilities 353,661.96 890,681.67 (537,019.71)Corporate One Fixed Rate Loan 0.00 0.00 0.00Accounts payable & other liabilities 506,186.55 512,904.28 (6,717.73)
Total Liabilities 149,677,585.26 151,293,376.43 (1,615,791.17)
MEMBERS' EQUITY, substantially restricted
Appropriated regular reserve 2,152,517.59 2,152,517.59 0.00Unappropriated earnings 17,779,243.62 17,779,243.62 0.00Accumulated other comprehensive gain (loss) 519.30 (1,357.40) 1,876.70Net income year-to-date 636,179.34 592,859.45 43,319.89
Total Members' Equity 20,568,459.85 20,523,263.26 45,196.59
Total Liabilities and Members' Equity 170,246,045.11$ 171,816,639.69$ (1,570,594.58)$
SERVICE ONE CREDIT UNIONSTATEMENTS OF FINANCIAL CONDITION
AS OF JULY 31 & JUNE 30, 2019
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Y-T-D Budget AnnualMonth Q-T-D Y-T-D Budget Variance Budget
INTEREST INCOME Loans to members: Interest on Consumer Loans 292,216.52$ 292,216.52$ 1,941,239.47$ 1,968,460.66$ -1.383% 3,511,718.11$ Interest on Mortgage Loans 238,984.05 238,984.05 1,586,094.07 1,588,735.71 -0.166% 2,786,303.92 Interest on Credit Cards 56,449.43 56,449.43 384,436.94 381,936.29 0.655% 663,168.33 Investments 54,602.87 54,602.87 355,846.56 322,420.44 10.367% 544,782.64 Total Interest Income 642,252.87 642,252.87 4,267,617.04 4,261,553.10 0.142% 7,505,973.00
INTEREST EXPENSE Interest on members' deposits 132,385.43 132,385.43 780,405.52 781,890.86 -0.190% 1,427,989.00 Interest on borrowed funds 15.40 15.40 28,160.63 28,145.23 0.055% 28,145.23 Total Interest Expense 132,400.83 132,400.83 808,566.15 810,036.09 -0.181% 1,456,134.23
Net Interest Income 509,852.04 509,852.04 3,459,050.89 3,451,517.01 0.218% 6,049,838.77
Provision (credit) for Loan Losses 82,439.25 82,439.25 166,976.50 123,422.07 35.289% 385,000.01
Net Interest Income after provision (credit) for Loan Losses 427,412.79 427,412.79 3,292,074.39 3,328,094.94 -1.082% 5,664,838.76
NON-INTEREST INCOME Fees and Service Charges 288,364.66 288,364.66 1,623,491.30 1,611,846.87 0.722% 2,893,686.17
NON-INTEREST EXPENSES Dues & Subscriptions 3,551.30 3,551.30 24,606.77 24,686.91 -0.325% 42,500.00 Examination & Supervision 3,569.09 3,569.09 24,983.63 25,696.47 -2.774% 45,232.89 Supplies & Materials 12,957.83 12,957.83 87,587.80 79,136.61 10.679% 121,700.13 Computer Supplies 6,406.76 6,406.76 21,241.11 16,754.43 26.779% 30,425.05 Postage & Telephone 8,323.24 8,323.24 68,222.65 80,766.12 -15.531% 155,470.42 Marketing & Promotions 8,459.17 8,459.17 145,739.57 177,053.99 -17.686% 325,800.02 Collection & Loan 32,192.94 32,192.94 271,741.24 264,780.15 2.629% 446,126.82 Legal & Professional Services 22,465.72 22,465.72 139,316.94 144,010.57 -3.259% 259,999.97
ODP Operations 500.00 500.00 3,500.00 3,503.33 -0.095% 6,000.01 Provision for Overdraft Losses 10,528.93 10,528.93 41,295.10 29,641.02 39.317% 30,413.59 Draft, ACH & Digital Data Processing 7,244.75 7,244.75 43,629.91 48,708.79 -10.427% 91,215.07 Cash Short (Over) (576.09) (576.09) 542.56 698.96 -22.376% 666.05 Bank Service Charges 1,030.58 1,030.58 7,549.78 10,393.92 -27.363% 21,070.29 Compensation and Benefits 381,024.36 381,024.36 2,255,427.36 2,212,909.14 1.921% 3,800,000.00 Staff Acquisition & Training 5,795.40 5,795.40 31,861.49 45,656.58 -30.215% 120,199.99 Travel, Meals & Entertainment 6,719.19 6,719.19 38,476.21 31,597.11 21.771% 55,800.01 Accounting Service Data Processing 10,503.58 10,503.58 70,333.22 73,289.02 -4.033% 126,695.02 Miscellanous 355.86 355.86 7,384.27 8,010.63 -7.819% 12,856.16 Debit Card Operations 47,729.01 47,729.01 310,259.29 330,165.96 -6.029% 607,099.43 Credit Card Operations 18,518.17 18,518.17 137,031.13 135,884.20 0.844% 239,936.95 Depreciation 23,656.47 23,656.47 166,320.72 170,451.57 -2.423% 296,669.90 Repairs & Maintenance 8,903.85 8,903.85 82,372.44 67,120.69 22.723% 114,771.93 Office Occupancy 24,406.91 24,406.91 129,177.99 134,783.17 -4.159% 245,374.45 Insurance 5,542.93 5,542.93 38,800.46 39,290.78 -1.248% 68,096.89 Core & Digital Banking Conversion 2,299.37 2,299.37 38,707.39 47,087.47 -17.797% 119,124.00 Conversion Consultation 30,209.44 30,209.44 209,085.48 210,198.06 -0.529% 367,152.04Non-Interest Expenses 682,318.76 682,318.76 4,395,194.51 4,412,275.65 -0.387% 7,750,397.08
Operating Income 33,458.69 33,458.69 520,371.18 527,666.16 -1.382% 808,127.85
Non-Operating Gains (Losses) Other Non-Operating Gains (Losses) 9,861.20 9,861.20 115,808.16 71,931.36 0.000% 71,931.36
Net Income 43,319.89$ 43,319.89$ 636,179.34$ 599,597.52$ 6.101% 880,059.21$
SERVICE ONE CREDIT UNIONSTATEMENTS OF INCOME
PERIODS ENDED JULY 31, 2019
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ASSETS 07/31/19 07/31/18 07/31/17
Cash and cash equivalents 13,956,378.38$ 11,022,124.84$ 9,129,383.80$ Available-for-sale securities 8,737,351.05 13,630,753.16 15,704,779.60Loans receivable: Consumer loans 48,937,529.15 42,519,170.61 40,474,761.89 Real estate loans 41,643,229.62 39,795,151.66 40,219,730.61 Credit card loans 6,389,924.42 6,686,483.78 6,455,105.85 Commercial loans 444,347.41 0.00 0.00 Participation Loans 25,011,446.04 20,738,158.20 13,913,155.01 Total loans receivable 122,426,476.64 109,738,964.25 101,062,753.36Less allowance for loan losses (880,295.77) (954,902.82) (802,033.16) Net loans 121,546,180.87 108,784,061.43 100,260,720.20Overdrawn shares, net of allowance 83,378.45 92,454.69 88,765.87Certificates of deposit 6,968,000.00 7,974,000.00 10,487,801.66Other investments 4,949,258.48 5,060,280.63 4,802,289.06FHLB stock 843,100.00 843,100.00 843,100.00Accrued interest receivable 500,291.07 456,595.72 402,168.27Property and equipment, net 4,328,078.13 4,336,633.89 4,465,246.90NCUSIF deposit 1,290,416.76 1,320,458.25 1,270,279.10Deferred compensation assets 5,548,270.39 5,897,137.32 5,714,776.01Prepaid expenses and other assets 1,495,341.53 1,663,177.45 1,018,565.31
Total Assets 170,246,045.11$ 146,495,121.40$ 137,681,063.02$
LIABILITIES AND MEMBERS' EQUITY
LIABILITIES
Savings accounts 56,896,233.69$ 60,803,527.75$ 57,934,209.00$ Checking accounts 42,837,618.48 45,837,875.55 40,225,115.74Certificates of deposit 49,083,884.58 33,846,091.17 37,134,374.86 Total deposit liabilities 148,817,736.75 140,487,494.47 135,293,699.60Deferred compensation liabilities 353,661.96 686,287.18 921,060.21Corporate One Fixed Rate Loan 0.00 0.00 0.00Accounts payable & other liabilities 506,186.55 438,143.98 382,802.22
Total Liabilities 149,677,585.26 141,611,925.63 136,597,562.03
MEMBERS' EQUITY, substantially restricted
Appropriated regular reserve 2,152,517.59 2,152,517.59 2,152,517.59Unappropriated earnings 17,779,243.62 15,857,646.95 13,919,901.20Accumulated other comprehensive gain (loss) 519.30 467,546.66 420,862.72Net income year-to-date 636,179.34 991,140.55 1,097,032.24
Total Members' Equity 20,568,459.85 19,468,851.75 17,590,313.75
Total Liabilities and Members' Equity 170,246,045.11$ 161,080,777.38$ 154,187,875.78$
SERVICE ONE CREDIT UNIONSTATEMENTS OF FINANCIAL CONDITION
AS OF JULY 31 2019, 2018 & 2017
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7/31/19 07/31/18 7/31/17
INTEREST INCOME Loans to members:
Interest on Consumer Loans 1,941,239.47$ 1,671,642.32$ 1,592,159.69$ Interest on Mortgage Loans 1,586,094.07 1,385,618.68 1,168,042.17 Interest on Credit Cards 384,436.94 351,941.92 347,357.88
Investments 355,846.56 315,508.56 260,611.85 Total Interest Income 4,267,617.04 3,724,711.48 3,368,171.59
INTEREST EXPENSE Interest on members' deposits 780,405.52 404,878.59 378,440.93 Interest on borrowed funds 28,160.63 0.00 122.29 Total Interest Expense 808,566.15 404,878.59 378,563.22
Net Interest Income 3,459,050.89 3,319,832.89 2,989,608.37
Provision (credit) for Loan Losses 166,976.50 307,761.89 225,081.88
Net Interest Income after provision (credit) for Loan Losses 3,292,074.39 3,012,071.00 2,764,526.49
NON-INTEREST INCOME Fees and Service Charges 1,623,491.30 1,667,354.75 1,697,610.52
NON-INTEREST EXPENSES Association Dues 24,606.77 22,061.75 21,599.74 Examination & Supervision 24,983.63 35,470.05 5,734.96 Supplies & Materials 87,587.80 99,022.32 60,937.68 Computer Supplies 21,241.11 28,859.23 11,719.56 Postage & Telephone 68,222.65 75,678.26 99,111.13 Marketing & Promotions 145,739.57 118,945.86 123,283.73 Collection & Loan 271,741.24 246,870.16 196,828.30 Legal & Professional Services 139,316.94 223,768.49 82,273.04ODP Operations 3,500.00 57,806.43 57,238.98
Provision for Overdraft Losses 41,295.10 9,698.31 31,315.95 Draft, ACH & Digital Data Processing 43,629.91 52,862.92 73,620.00 Cash Short (Over) 542.56 406.54 (635.63) Bank Service Charges 7,549.78 12,674.56 12,356.49 Compensation and Benefits 2,255,427.36 1,730,098.35 1,709,060.65 Staff Acquisition & Training 31,861.49 3,938.42 4,746.04 Travel, Meals & Entertainment 38,476.21 29,407.37 14,765.82 Accounting Service Data Processing 70,333.22 69,694.34 66,761.50 Miscellanous 7,384.27 16,373.30 15,312.93 Debit Card Operations 310,259.29 318,222.07 273,018.51 Credit Card Operations 137,031.13 132,822.50 124,340.45 Depreciation 166,320.72 163,732.93 153,044.89 Repairs & Maintenance 82,372.44 67,013.04 70,456.34 Office Occupancy 129,177.99 134,249.38 115,634.46 Insurance 38,800.46 38,608.62 42,579.25 Core & Digital Banking Conversion 38,707.39 0.00 0.00 Conversion Consultation 209,085.48 0.00 0.00Non-Interest Expenses 4,395,194.51 3,688,285.20 3,365,104.77
Operating Income 520,371.18 991,140.55 1,097,032.24
Non-Operating Gains (Losses) Other Non-Operating Gains (Losses) 115,808.16 0.00 0.00
Net Income 636,179.34$ 991,140.55$ 1,097,032.24$
SERVICE ONE CREDIT UNIONSTATEMENTS OF INCOME
YEARS-TO-DATE ENDED JULY 31 2019, 2018 & 2017
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Accumulated OtherAllowance for Regular ComprehensiveLoan Losses Reserve Gains (Losses)
Beginning Balances 918,750.73$ 2,152,517.59$ 507,664.17$
Provision for (credit to) loan losses 166,976.50Recoveries of write-offs 50,748.29Reclassify Visa Stock & Allowance (584,758.08)Loan write-offs in January (38,743.07)Change in value of AFS securities 4,726.20Loan write-offs in February (24,839.65)Change in value of AFS securities 16,654.55Loan write-offs in March (33,302.80)Change in value of AFS securities 19,917.72Loan write-offs in April (14,011.12)Change in value of AFS securities 6,013.80Loan write-offs in May (31,195.02)Change in value of AFS securities 15,453.18Loan write-offs in June (67,228.76)Change in value of AFS securities 12,971.06Loan write-offs in July (46,859.33)Change in value of AFS securities 1,876.70Loan write-offs in AugustChange in value of AFS securitiesLoan write-offs in SeptemberChange in value of AFS securitiesLoan write-offs in OctoberChange in value of AFS securitiesLoan write-offs in NovemberChange in value of AFS securitiesLoan write-offs in DecemberChange in value of AFS securitiesFirst quarter income allocationSecond quarter income allocationThird quarter income allocationFourth quarter income allocationEnding Balances 880,295.77$ 2,152,517.59$ 519.30$
SERVICE ONE CREDIT UNIONSTATEMENT OF CHANGES IN MEMBERS' EQUITY
YEAR ENDING DECEMBER 31, 2019
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Current Original or Market or OtherType of Maturity Coupon Wtd Amortized Reporting % of
Investment Date Rate Rate Cost Value Total
NEGOTIABLE CERTIFICATES OF DEPOSIT
Morgan Stanley Bank (Duncan Williams) 09/30/19 2.30% 0.33% 248,000.00 249,988.96 1.21%Sharonview FCU (Duncan Williams) 12/09/19 1.90% 0.27% 248,000.00 247,925.60 1.20%General Electric CU (Duncan Williams) 08/14/20 3.00% 0.43% 249,000.00 251,582.13 1.22%Aneca FCU (First Empire) 09/21/20 1.90% 0.27% 248,000.00 247,719.76 1.20%USAlliance FCU (First Empire) 09/22/20 2.90% 0.41% 248,000.00 250,244.40 1.21%Affinity CU (First Empire) 09/29/20 1.95% 0.28% 248,000.00 247,851.20 1.20%Heritage Family FCU (First Empire) 12/10/21 3.25% 0.46% 248,000.00 254,634.00 1.23%
Average coupon rate 2.45% 1,737,000.00 1,749,946.05 8.47%
GOVERNMENT AGENCIES - CALLABLE WITH STEP-UP
FHLMC Bond #3134G9V95 11/22/19 2.00% 0.14% 500,000.00 499,930.00 2.42%FNMA Bond # 3136G4GU1 11/25/19 1.40% 0.20% 999,831.75 996,800.00 4.83%FNMA Bond #3136G4MM2 02/28/20 1.65% 0.12% 500,000.00 498,700.00 2.41%FHLB Bond #3130ABNV4 07/13/20 1.75% 0.13% 500,000.00 498,530.00 2.41%FHLMC Bond #3134GBYR7 07/27/20 1.75% 0.13% 500,000.00 498,395.00 2.41%FHLMC Bond #3134GAHE7 09/30/20 1.50% 0.11% 500,000.00 499,405.00 2.42%FHLB Bond #3130ACJ21 10/19/20 1.75% 0.13% 500,000.00 499,185.00 2.42%FHLB Bond #3130A9UA7 11/16/20 1.63% 0.12% 500,000.00 498,560.00 2.41%FHLMC Bond #3134GAWW0 11/23/20 1.75% 0.13% 500,000.00 499,115.00 2.42%FHLB Bond #3130A9XU0 11/23/20 2.00% 0.14% 500,000.00 499,880.00 2.42%FHLMC Bond #3134G9GX9 05/25/21 2.50% 0.18% 500,000.00 500,150.00 2.42%FHLB Bond #3130A8WH2 08/24/21 1.50% 0.11% 500,000.00 499,070.00 2.42%FHLMC Bond #3134GA6S8 03/22/22 2.50% 0.18% 500,000.00 499,685.00 2.42%
Average coupon rate 1.82% 6,999,831.75 6,987,405.00 33.83%
TOTAL AFS SECURITIES (with Average Coupon Rate) 1.95% 8,736,831.75 8,737,351.05 42.30%
CERTIFICATES OF DEPOSITCorporate One FCU 08/29/19 2.51% 0.09% 250,000.00 250,000.00 1.21%Florida CU (SimpliCD) 09/26/19 1.72% 0.06% 248,000.00 248,000.00 1.20%Metro CU (SimpliCD) 09/30/19 1.70% 0.06% 248,000.00 248,000.00 1.20%Chaffey FCU 10/25/19 1.95% 0.07% 249,000.00 249,000.00 1.21%Corporate One FCU 10/28/19 2.53% 0.09% 250,000.00 250,000.00 1.21%Corporate One FCU 12/27/19 2.54% 0.09% 250,000.00 250,000.00 1.21%Corporate One FCU 02/27/20 2.54% 0.09% 250,000.00 250,000.00 1.21%Affinity FCU (SimpliCD) 03/02/20 2.75% 0.10% 248,000.00 248,000.00 1.20%Corporate One FCU 04/30/20 2.55% 0.09% 250,000.00 250,000.00 1.21%Corporate One FCU 04/30/20 2.55% 0.09% 250,000.00 250,000.00 1.21%Corporate America Family CU (SimpliCD) 05/26/20 2.40% 0.09% 248,000.00 248,000.00 1.20%Evangelical Christian CU (SimpliCD) 06/03/20 2.30% 0.08% 248,000.00 248,000.00 1.20%Bank of Ozark (SimpliCD) 06/03/20 2.37% 0.08% 248,000.00 248,000.00 1.20%Greenstate CU (SimpliCD) 06/08/20 2.36% 0.08% 248,000.00 248,000.00 1.20%Clearpath FCU 07/14/20 1.75% 0.06% 249,000.00 249,000.00 1.21%Bellco CU (SimpliCD) 07/13/20 2.15% 0.08% 248,000.00 248,000.00 1.20%Sooper CU (SimpliCD) 08/10/20 2.90% 0.10% 248,000.00 248,000.00 1.20%Money One FCU 09/12/20 1.85% 0.07% 249,000.00 249,000.00 1.21%Citadel FCU 09/25/20 1.85% 0.07% 248,000.00 248,000.00 1.20%Triumph Bank (SimpliCD) 10/19/20 2.40% 0.09% 248,000.00 248,000.00 1.20%United FCU 11/05/20 1.90% 0.07% 249,000.00 249,000.00 1.21%American First CU (SimpliCD) 11/17/20 2.40% 0.09% 248,000.00 248,000.00 1.20%Capital One Bank (SimpliCD) 05/14/21 2.60% 0.09% 248,000.00 248,000.00 1.20%Morgan Stanley Bank (SimpliCD) 06/07/21 2.50% 0.09% 248,000.00 248,000.00 1.20%UK Federal Credit Union 06/30/22 2.81% 0.40% 1,000,000.00 1,000,000.00 4.84%
Average coupon rate 2.37% 6,968,000.00 6,968,000.00 33.74%
CAPITAL STOCK Federal Home Loan Bank 0.00% N/A 0.00 843,100.00 4.08%
CORPORATE ONE FCU
SERVICE ONE CREDIT UNION INVESTMENT PORTFOLIO REPORT
July 31, 2019
15
Current Original or Market or OtherType of Maturity Coupon Wtd Amortized Reporting % of
Investment Date Rate Rate Cost Value Total
SERVICE ONE CREDIT UNION INVESTMENT PORTFOLIO REPORT
July 31, 2019
Perpetual Contributed Capital 0.35% 0.35% 900,000.00 900,000.00 4.36%
COMMON STOCK Visa, Inc. N/A 0.00 788,896.00 3.82% Visa, Inc. Valuation Allowance N/A 0.00 (394,448.00) -1.91%
0.00% N/A 0.00 394,448.00 1.91%
COMPANY OWNED LIFE INSURANCE (COLI) North American Life Insurance Co. 2.51% 1.26% 1,320,906.00 1,426,066.87 6.90% Midland Life Insurance Co. 2.51% 1.26% 1,320,906.00 1,426,413.15 6.91%
2.52% 2,641,812.00 2,852,480.02 13.81%
16
Budgeted Actual Peer Group1
07/31/19 06/30/19 07/31/18 12/31/19 03/31/19 03/31/19CAPITAL ADEQUACY
Net Worth / Total Assets ** 12.08% 11.95% 11.80% 12.02% 11.86% 11.30%Total Delinquent Loans / Net Worth 2.50% 2.43% 2.87% 2.40% 2.18% 4.03%Allowance for Loan Losses / Loans 0.72% 0.70% 0.87% 0.71% N/A N/ATotal Assets / Total Deposits 114.40% 114.63% 114.66% 114.43% N/A N/A
ASSET QUALITYDelinquent Loans / Total Loans ** 0.42% 0.42% 0.50% 0.40% 0.38% 0.63%Net Charge-Offs / Average Loans (Current Month) 0.04% 0.05% 0.03% 0.05% N/A N/ANet Charge-Offs / Average Loans (Current Year)* ** 0.34% 0.32% 0.29% 0.05% 0.30% 0.48%Delinquent Loans / Assets 0.30% 0.29% 0.34% 0.29% 0.26% 0.42%
EARNINGSReturn On Average Assets (Current Month) 0.03% 0.03% 0.10% 0.51% N/A N/AReturn On Average Assets (Current Year)* ** 0.66% 0.71% 1.06% 0.53% 0.93% 0.68%Yield on Average Loans * 5.63% 5.65% 5.41% 5.83% 5.55% 4.97%Yield on Average Investments * 1.85% 1.74% 1.44% 1.62% 1.60% 2.19%Yield on Average Investments (Excluding Cash on Deposit) * 2.79% 2.72% 1.87% 2.38% N/A N/AOperating Exp./ Avg. Assets * 4.51% 4.42% 3.95% 4.62% 4.26% 3.74%Provision For Loan & Lease Losses / Average Assets * 0.22% 0.14% 0.34% 0.25% -0.04% 0.30%Net Interest Margin/Avg. Assets * 3.58% 3.54% 3.57% 3.62% 3.48% 3.34%Operating Exp./Gross Income * 72.48% 72.68% 68.22% 73.72% 72.04% 70.95%Non-earning Assets / Assets 7.59% 7.93% 8.54% 8.02% N/A N/ANet Operating Exp. /Avg. Assets * 2.82% 2.81% 2.16% 2.89% 2.67% 2.97%
EARNINGS - DISTRIBUTION OF GROSS INCOMEInterest on Loans 62.48% 63.58% 54.91% 66.48% N/A N/AIncome on Investments 5.81% 7.40% 4.58% 5.20% N/A N/AMiscellaneous Income 31.71% 29.02% 40.51% 28.32% N/A N/ADividends on Shares 14.08% 13.87% 7.43% 13.91% N/A N/AOperating Expenses 71.43% 72.51% 67.06% 73.72% N/A N/AProvision for Loan Losses 9.89% 7.66% 7.40% 3.97% N/A N/ANet Income 4.61% 5.96% 18.11% 8.40% N/A N/A
ASSET / LIABILITY MANAGEMENTTotal Loans / Total Shares 82.34% 80.00% 78.19% 81.42% 79.37% 75.24%Total Loans / Total Assets 71.98% 69.79% 68.20% 71.15% 69.06% 65.29%
OTHER RATIOSNet Worth Growth * 8.11% 9.01% 9.43% 5.97% 13.82% 6.33%Market (Share) Growth * 17.97% 22.56% 2.85% 12.36% 38.73% 14.46%Loan Growth * 10.37% 7.55% 5.91% 6.64% 5.92% 0.93%Asset Growth * 9.78% 13.36% 3.23% 7.53% 21.67% 13.16%
1 $100 Million to $500 Million in Asset Size
* Ratio is annualized.
** One of the Four Former Key Camel Ratios
SERVICE ONE CREDIT UNIONPEER GROUP RATIO COMPARISON
Peer Group Comparison
Actual
17
Supervisory Committee Insider Loan Review July 8, 2019
Present: Supervisory Committee Members, Peggy Crowe and Chris George, Mark Floyd, Chief Credit Officer, and Shelly Smith, Compliance Manager
Mark Floyd explained terms of an Insider Loan, if the loan is from an associate, official or family member of an associate. He then clarified the $25,000 aggregate amount requiring Board approval.
Mark stated LoansPQ tracks everything regarding touch points within the application. He explained MLA and fraud/alerts and how the lenders were held responsible should an application include these items. Floyd noted the rate sheet was reviewed along with the Qualifying Products screen in LoansPQ.
The review included six (6) Insider Loans. The loan types evaluated included: Mortgage, HELOC, Lifestyle Loan, Commercial Loan and Auto Loans. Sections reviewed were application date, date originated, DTI, credit score and report date, ensuring terms matched rate sheet and Board approval date if applicable.
It was noted two associate mortgages did not have the documents imaged in New Solutions. One of the loans not imaged belonged to the Archival Specialist, associates are restricted from imaging documents into their own account. The HELOC loan reviewed should have had Board approval before being approved/funded, but the application was not marked as an employee, so the appropriate action steps were missed. A procedure has now been implemented allowing only Branch Managers to process these loans. One Commercial Loan did not include an imaged copy of the credit report with the file.
Adjourn.
18
Insider Audit Review
August 19, 2019
Present: Robert Deane, Chris Royse, Justin Morris & Shelly Smith
The purpose of this review was to demonstrate how insider accounts are controlled and audited.
Shelly Smith began the meeting by defining “related party transactions.” She explained by performing insider audits there is no favoritism, conflicts of interest or insider abuse.
Mrs. Smith told committee members when associates are hired, permissions are set limiting access to their accounts and accounts linked to their account. Chris Royse asked if there were different tiers of restriction. Shelly said there is not. Associates are unable to create transactions, refund fees or change personal information on their own account. If they attempt to make a change, an error message will appear. Robert Deane asked if a supervisor could see how many error messages an associate received. Justin Morris said not currently, however with our new core, more information is tracked.
Shelly referenced an internal loan audit performed earlier in the month by showing members where internal loans are noted. When performing internal loans, requests made under $25,000 are discussed in a Loan Review Committee. Loan requests over $25,000 must be presented to the Board for approval. If an insider loan falls delinquent, the loan committee and the Board Chairman are notified.
Mrs. Smith noted the CU does not perform formal reviews of share and loan account activity for insider accounts. The Supervisory Committee conducts audits of insider accounts and annual audits externally.
Shelly explained that Verafin software will be implemented as part of the conversion. This will help access risk to accounts, look for unusual account activity such as check kiting and can even track where certain transactions are conducted based on geographic location.
Royse and Deane reviewed six insider accounts. All accounts had necessary alerts demonstrating they were associate related. Mrs. Smith reviewed transaction history on two accounts that had refunded fees with detailed notes. She then loaded two accounts that had loan products and checked original interest rate to current showing no alterations.
Chris Royse asked if he could help create a best practice form when viewing accounts in future audits. Justin Morris suggested discussing it during the upcoming Supervisory Committee meeting.
With there being no other questions, Deane and Royse adjourned the review.
19
IT and Cyber Security Oversight Committee
August 12, 2019
Present: Tony Spitz, Andrew LaFavers, Justin Morris, Dr. Richard Miller, Dr. Chris George, Brenda Willoughby, Chris Royse, Rebecca Stone
Rich Miller called the meeting to order at 2:30 pm. Rich updated the attendees on the conversion status as it relates to IT. Tony Spitz reported DNA was on schedule. Tony confirmed Data Cut one was completed successfully. As preparation for the next cut begins, a second ‘scrub report’ will take place the end of August. Data Cut two is scheduled to begin on September 29. Miller congratulated Andrew LaFavers on his Nautilus certification. Andrew stated all servers were built. Nautilus setup and configuration continues as well as the final agreement for image migration.
Miller informed committee members Prologue went live in June. Prologue allows for more automation and accountability. He noted accounting will be using new budget software for the 2020 budget. The SOCU Executive team will begin determining this soon. One key feature is evaluating branch profitability. Stone stated Alkami will on-site August 14 and 15. She mentioned the lack of experience of our Project Manager. Miller asked if we had expressed concerns and suggested monitoring the Project Manager to ensure timely completion.
Tony Spitz informed committee members Barracuda and Sophos Endpoint services were purchased on July 29th. He explained this service is strictly an email filter. Barracuda has enhanced threat protection from malware, spam, and phishing. It provides an encrypted internal and external email system. It has advanced archiving services, complete with legal hold and investigative abilities. LaFavers noted the contract was renewed for three years in June. He explained Sophos screens websites and pop-ups windows. SOCU has multiple programs in place for added security. Rich reported the phone system was updated on June 5 to a new version.
Spitz informed members Veeam will back up servers at each branch which are used to assist with logins and DNA synching. It is faster and more reliable at data recovery as well as data compression for better utilization.
Miller asked if there were any past due items. Mr. Spitz explained that TMagic or check capture is past due because of FiServ. The program was scheduled to launch earlier than needed, it will be on schedule again by August 16th.
20
IT and Cyber Security Oversight Committee
Andrew gave a brief update on cyber threat levels. There is a slight elevated status due to tensions with Iran. There were normal amounts of email attack attempts with none being successful. The KnowBe4 software captured one internal clicker in the past five weeks by a newly hired associate.
Morris spoke about the Equifax Settlement Phishing scam and suggested adding a disclaimer on our website. Justin advised committee members to not click on links but to go to the actual site to validate.
Mr. Spitz discussed how to prevent business email compromise fraud. He stated using a two-step verification process to verify wire requests reduced risk. Also, knowing our members and their routines will assist in deterring suspicious wire activity.
Before concluding the meeting, Miller opened the floor for discussion. Rebecca cited the recent effects of social media concerning the reputations of financial institutions. When members are unsatisfied with service, they use social media as an outlet. To combat this, Human Resources is creating coaching courses for front line staff to cut down on member escalation.
Miller adjourned the meeting at 3:30, the next meeting will be Friday, November 15, 2019 at 2:30 in the Campbell Lane green conference room.
21
Balance % Cumulative40,612,576.35$ 45.10% 45.10%15,656,119.59$ 17.39% 62.49%16,903,429.73$ 18.77% 81.26%11,656,969.47$ 12.95% 94.21%
3,454,022.12$ 3.84% 98.04%1,763,520.88$ 1.96% 100.00%
90,046,638.14$ 100.00%
978,468.04$ -$
6,389,924.42$ -$
97,415,030.60$ 19,265,934.87$
5,238,323.28$ 507,187.89$
122,426,476.64$ Total Loans (Including Participations)
Consumer Loans not in Risk-Priced ProgramConsumer Loans subject to Soldiers/Sailors ReliefCredit Cards/ELVIS LoansMortgage Loans in ProcessTotal Loans (Excluding Participations)External MBL/ParticipationsStudent/Consolidation & ParticipationExternal Auto Participation
D not to exceed 15%E not to exceed 15%
Total Risk-Priced Consumer Loan Portfolio
A at least 15%B not to exceed 35%C not to exceed 30%
A+ at least 15%
RISK MANAGEMENT SUMMARY REPORTJuly 2019
MANAGED RISK LOANSRisk Grade Loan Policy
22
Delinquency by Sub-Category7/31/19
DQ Balances by Sub-Category
StandardCategory/Standard Sub-Category
Count Delinquent Count Balance Delinquent Balance Delinquency Ratio
Business Lending
Bus. Secured 3 0 $444,347 $0 0%
Subtotal 3 0 $444,347 $0 0%
Commercial Real Estate
Other CRE 103 0 $19,265,935 $0 0%
Subtotal 103 0 $19,265,935 $0 0%
Consumer Lending
Cons. Workout 17 2 $146,706 $13,305 9.07%
Other Sec. Cons. 148 0 $703,883 $0 0%
Cons. New Auto 143 1 $2,164,426 $6,415 .30%
Other Unsec. Cons. 1,378 9 $3,661,229 $20,994 .57%
Student Loan 2,995 9 $5,238,324 $28,153 .54%
Cons. Credit Card 3,881 15 $6,396,406 $40,639 .64%
Cons. Used Auto 3,306 18 $32,223,036 $168,282 .52%
Subtotal 11,868 54 $50,534,009 $277,787 .55%
Residential Real Estate
Workout 11 0 $333,595 $0 0%
HELOC 106 0 $3,036,539 $0 0%
Second Mortgage 293 0 $7,419,377 $0 0%
First Mortgage 435 3 $41,399,156 $236,264 .57%
Subtotal 845 3 $52,188,668 $236,264 .45%
Total 12,819 57 $122,432,959 $514,051 .42%
Powered by Visible Equity | 8/13/2019 11:15 AM
23
Jan-2019 Feb-2019 Mar-2019 Apr-2019 May-2019 Jun-2019 Jul-2019 YTDChapter 7
Filed 1 2 2 2 7 0 4 18Reaffirmed 0 0 1 1 4 0 2 8No Reaffirmation 1 2 3 1 3 0 2 12Undetermined 0 0 0 0 0 0 0 0
Dollars Filed 5,526$ 6,157$ 18,006$ 17,417$ 79,356$ -$ 53,784$ 180,246$ Dollars Reaffirmed -$ -$ 12,826$ 9,668$ 71,351$ -$ 41,739$ 135,584$ Dollars Not Reaffirmed 5,526$ 6,157$ 5,180$ 7,749$ 8,005$ -$ 12,045$ 44,662$ Dollars Undetermined -$ -$ -$ -$ -$ -$ -$ -$
Chapter 13Filed 2 2 3 3 1 0 2 13Reaffirmed 3 4 4 2 1 0 2 16No Reaffirmation 0 0 0 0 0 0 0 0Undetermined 0 0 0 2 0 0 0 2
Dollars Filed 28,520$ 12,642$ 37,136$ 18,530$ 11,870$ -$ 11,258$ 119,956$ Dollars Reaffirmed 28,520$ 12,642$ 37,136$ 7,613$ 11,870$ -$ 11,258$ 109,039$ Dollars Not Reaffirmed -$ -$ -$ -$ -$ -$ -$ -$ Dollars Undetermined -$ -$ -$ 10,917$ -$ -$ -$ 10,917$
TotalFiled 3 4 5 5 8 0 6 31Reaffirmed 3 4 5 3 5 0 4 24No Reaffirmation 1 2 3 1 3 0 2 12Undetermined 0 0 0 2 0 0 0 2
Dollars Filed 34,046$ 18,799$ 55,142$ 35,947$ 91,226$ -$ 65,042$ 300,202$ Dollars Reaffirmed 28,520$ 12,642$ 49,962$ 17,281$ 83,221$ -$ 52,997$ 244,623$ Dollars Not Reaffirmed 5,526$ 6,157$ 5,180$ 7,749$ 8,005$ -$ 12,045$ 44,662$ Dollars Undetermined -$ -$ -$ 10,917$ -$ -$ -$ 10,917$
Bankruptcy SummaryJuly 2019
24
BANKRUPTCYMEMBER # SUFFIX MEMBER DPD OFFICER LOAN TYPE ORIG DATE ORIG SCORE POOL $ AMOUNT FOM REMARKS
52594 75 Thomas Willoughby 105 Alicia Strode Mills Personal Loan (Closed- End) 11/18/16 675 2 5,729.45$ Insight BK Chapter 7.52594 1 Thomas Wiloughby 180 NA VISA 02/22/18 733 1 6,316.00$ Insight BK Chapter 7.35181 85 Sabrina R Eadens 138 Alicia Strode Mills Other Collateral (Closed- End) 12/06/17 627 6 2,599.34$ WKU Alumni BK Chapter 13. SOCU will be paid inside plan.
TOTAL BANKRUPTCY 14,644.79$
RESIDUAL BALANCEMEMBER # SUFFIX MEMBER DPD OFFICER LOAN TYPE ORIG DATE ORIG SCORE POOL $ AMOUNT FOM REMARKS
53311 25 Henry de Haas 156 Kristie Kennedy Used Auto (Closed- End) 05/21/14 654 4 2,501.25$ BRADD Deceased. Voluntary repo. Sold for $2,750.62927 88 Zachary Noe 139 Adam Marcum Indirect Auto Other Collateral Vehicle 04/30/18 737 5 10,068.46$ BRADD Repo. Sold for $4,300. 2013 VW CC.
TOTAL RESIDUAL 12,569.71$
UNABLE TO COLLECTMEMBER # SUFFIX MEMBER DPD OFFICER LOAN TYPE ORIG DATE ORIG SCORE POOL $ AMOUNT FOM REMARKS
55899 76 Ruby N Edmonds 150 Carol Wooley Personal Loan (Closed- End) 06/01/18 514 2 202.06$ BRADD Fixed income. Health issues. Can't pay.55899 74 Ruby N Edmonds 150 Carol Wooley Holiday Loan (Closed- End) 11/02/18 524 2 423.73$ BRADD Fixed income. Health issues. Can't pay.46853 4 Jeff Hansen 180 NA VISA 08/08/11 662 1 3,263.67$ WKU Student Send for suit and garnishment.48058 1 Clayton Hadley 180 NA VISA 08/12/16 640 1 3,337.55$ BRADD Injured on job. Send for suit and garnishment.47985 1 Dovianne Grogan 180 NA VISA 09/25/17 664 1 1,127.92$ G Newell MD Changed jobs. Not paying any creditors.58650 1 Terry D Harris 180 NA VISA 03/26/18 664 1 4,187.77$ BRADD Send for suit and garnishment.52523 1 Julia Rasdall 180 NA VISA 09/20/18 553 1 4,091.88$ Community Medical Atty settled. SOCU will receive $100/month.
593475 3 Sherry D Mills 180 NA VISA 04/08/94 738 1 3,010.25$ Downing Mcpeak Send to Atty for judgment.
TOTAL UNABLE TO COLLECT 19,644.83$
GRAND TOTAL 46,859.33$
CHARGE OFF REPORTJULY 2019
25
Account # Account Name Total
Charge-offCharged-Off
NSF Fees Charged-off
Principal xxx64 Wilronnie D Childress $1,178.67 $0.00 $1,178.67xxx38 Jonathan Andrew Jones $2,729.71 $49.50 $2,680.21xxx71 Brandon M Taylor $874.50 $99.00 $775.50xxx61 Breanna Rene Spaulding $588.57 $247.50 $341.07xxx64 Kelsey J Kirk $538.80 $74.25 $464.55xxx82 Gabriel W Partin $405.24 $74.25 $330.99xxx64 Vincent J Cardillo $10.99 $0.00 $10.99xxx97 David Lee Beck $435.60 $123.75 $311.85xxx41 Shelbie D Workman $68.15 $49.50 $18.65xxx86 Nicolette Ann Bailey $181.98 $24.75 $157.23xxx49 Celexia Aubrieana Wooten $74.00 $74.00 $0.00xxx73 Sean K Hopson $23.99 $23.99 $0.00xxx50 Dakota Roger Shepherd $126.21 $99.00 $27.21xxx91 Eryn Kaye Mason $707.27 $272.25 $435.02xxx87 Siddartha Malprendez Murph $508.78 $123.75 $385.03xxx47 Lacy Deandrea Martin $473.95 $247.50 $226.45xxx72 Salman K Alotaibi $300.46 $99.00 $201.46xxx08 Vickie F Coleman $23.24 $23.24 $0.00xxx87 Joseph Akers $527.66 $123.75 $403.91xxx38 Jason Khamsay $136.14 $136.14 $0.00xxx33 Dennis Ray Hylton Herron $80.23 $0.00 $80.23xxx97 James Dale $465.61 $222.75 $242.86xxx38 Cindy A Williams $162.19 $49.50 $112.69xxx91 Trey Devon Posey $519.42 $49.50 $469.92
$11,141.36 $2,286.87 $8,854.49
ODP Charge-OffJuly 2019
26
# of Checks during month
# of unique members during
month
Total of Dollars
Jan-19 573 207 197,795.25$
Feb-19 528 193 190,495.80$
Mar-19 567 205 233,453.00$
Apr-19 498 199 203,894.68$
May-19 524 207 188,882.43$
Jun-19 488 194 213,933.52$
Jul-19 515 205 220,082.27$
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
TOTALS 3693 1410 1,448,536.95$
Remote Deposit Capture
27
Account Name Eligibility Description Description862 Rigsby,Matthew LWW-BRADD AREA Bypass782 Treece,Samuel D LWW-BRADD AREA Bypass803 Gioconda,Daniella M WKU STUDENT Bypass861 Sutkowski,William WKU STUDENT Bypass800 Clift,Jordan LWW-BRADD AREA Bypass684 Roberson,Justin TOYO AUTOMOTIVE PARTS Bypass686 Driver,Michael LWW-BRADD AREA Bypass761 Ronald,Waswa LWW-BRADD AREA Bypass785 Neff,Sara LWW-BRADD AREA Bypass783 Cooke,Paul LWW-BRADD AREA Bypass765 Baxter,Eric WKU ALUMNI Bypass696 Massey,Justin Tyler LWW-BRADD AREA Bypass747 Gillespie,Leia Marie LWW-BRADD AREA Bypass711 McKee,Jesse WKU ALUMNI Bypass753 Prewitt,Katherine M THE SUN PRODUCTS CORP Bypass748 Casas,Veronica Desiree Bendix Spicer Bypass806 Howard,Christopher Michael LWW-BRADD AREA Bypass755 Nsungu,Tito Sabwa LWW-BRADD AREA Bypass827 Baker,Michael L LWW-BRADD AREA Bypass835 Stevens,Gregory W LWW-BRADD AREA Bypass871 Russell,Thomas W LWW-BRADD AREA Bypass751 Alford,Caroline Martha LWW-BRADD AREA Bypass779 Edwards,April A WARREN CO. Bypass681 Macy,Bill LWW-BRADD AREA Bypass812 Williams,Sayon LWW-BRADD AREA Bypass780 Armistead,Eric H LWW-BRADD AREA Bypass796 Lane,Ralph LWW-BRADD AREA Bypass744 Lane,Tina LWW-BRADD AREA Bypass831 Sweatt,Richard E LWW-BRADD AREA Bypass762 Taylor,Shelly L LWW-BRADD AREA Bypass733 Christmas,Ricky D LWW-BRADD AREA Bypass864 Cassady,Robert Wayne WKU ALUMNI Bypass730 Flener,Douglas LWW-BRADD AREA Bypass698 Lancette,Donald LWW-BRADD AREA Bypass873 Mayfield,Monroe Kay LWW-BRADD AREA Campbell Lane872 Mayfield,Kade Thomas LWW-BRADD AREA Campbell Lane685 Daugherty,Owen L LWW-BRADD AREA Campbell Lane851 Windom,Ethan Isaiah BRADD BUSINESSES FAMILY Campbell Lane824 Allen,Cole Bennett LWW-BRADD AREA Campbell Lane855 Martin,Arijana J LWW-BRADD AREA Campbell Lane823 Allen,Cameron Carter LWW-BRADD AREA Campbell Lane759 Hudson,Harrison Jordan WKU STUDENT FAMILY Campbell Lane742 Perez Vazquez,David LWW-BRADD AREA Campbell Lane706 Conn,Hannah Michelle LWW-BRADD AREA Campbell Lane
New Member Report
28
Account Name Eligibility Description Description853 Burke,Maleigha Taylor LWW-BRADD AREA Campbell Lane687 Thomason,Seth LWW-BRADD AREA Campbell Lane881 Roberts,Tierra A LWW-BRADD AREA Campbell Lane802 Gibson,Marina Emily WKU STUDENT Campbell Lane807 Thien,Myint LWW-BRADD AREA Campbell Lane745 Paden,Kaitlyn Elaine SOCU EMPLOYEE Campbell Lane743 Perez Vazquez,Jahem WKU STUDENT Campbell Lane813 Mcfarland,Kattie Lynn LWW-BRADD AREA Campbell Lane857 Basham,Summer R WARREN CO GOVT EMPLOYEES Campbell Lane766 Christensen,Victoria WKU ALUMNI Campbell Lane695 Cline,Leann LWW-BRADD AREA Campbell Lane734 Haskins,Emily WKU ALUMNI Campbell Lane793 Lee,Timothy LWW-BRADD AREA Campbell Lane699 Strickland,Jonathan Bobby LWW-BRADD AREA Campbell Lane830 Sean,Chanrathana Jennifer CAMPING WORLD Campbell Lane799 Mahaney,Ethan Joseph WKU STUDENT FAMILY Campbell Lane846 Miller,Tyler GRAVES GILBERT Campbell Lane722 Krueger,Krystina Kay LWW-BRADD AREA Campbell Lane716 Keller,Veron Antoine LWW-BRADD AREA Campbell Lane758 Mielke,Heidi A LWW-BRADD AREA Campbell Lane839 Lin,Shan LWW-BRADD AREA Campbell Lane842 Muratovic,Donna Fay LWW-BRADD AREA Campbell Lane804 Durbin,Nicholas LWW-BRADD AREA Campbell Lane843 Long,Chris A WKU ALUMNI Campbell Lane697 Bryant,Kelly D Kobe Aluminum Campbell Lane763 Bennett,Ebony Shunte LWW-BRADD AREA Campbell Lane683 Gilliam,Ahmad D LWW-BRADD AREA Campbell Lane692 Soto,Jolinda Diaz LWW-BRADD AREA Campbell Lane849 Trowbridge,Eli Thomas LWW-BRADD AREA Campbell Lane834 Stranger,Amanda LOGAN CO. Campbell Lane859 Garrett,Charles M LWW-BRADD AREA Campbell Lane731 Appling,Robert C LWW-BRADD AREA Campbell Lane715 Whittinghill,Joel Scott LWW-BRADD AREA Campbell Lane738 Jackson,Kimberly LWW-BRADD AREA Campbell Lane713 Mccann,Kristin Baker LWW-BRADD AREA Campbell Lane781 Gregory,Charles LWW-BRADD AREA Campbell Lane720 Gilpin,Eric LWW-BRADD AREA Campbell Lane714 Barks,Ben Wilford LWW-BRADD AREA Campbell Lane659 White,Renee LWW-BRADD AREA Campbell Lane841 Jones Jr.,Herbert Scott LWW-BRADD AREA Campbell Lane682 Bunch,Kathy Ann LWW-BRADD AREA Campbell Lane795 Payne,Thomas M LWW-BRADD AREA Campbell Lane788 Irizarry,Ruben/Jr. LWW-BRADD AREA Campbell Lane729 Browning,Cathryn Annell WARREN CO. Campbell Lane710 Johnson,Eddie LWW-BRADD AREA Campbell Lane818 Jones,Billy Ray LWW-BRADD AREA Campbell Lane
29
Account Name Eligibility Description Description707 Light,Linda F LWW-BRADD AREA Campbell Lane694 Effler,Donna Bartlett WKU STUDENT FAMILY Campbell Lane767 Klein,Barbara C WKU ALUMNI Campbell Lane701 Buckman,William G LWW-BRADD AREA Campbell Lane740 WKU GREEK WEEK WKU EMPLOYEE Campus737 Gibson,Ian Jie-Ming WKU EMPLOYEE FAMILY Campus865 Palavra,Sadin WKU STUDENT Campus838 Alyami,Majed WKU STUDENT Campus677 Reed,Eric S. WKU EMPLOYEE Campus762 Dressler,Christine A WKU EMPLOYEE FAMILY Campus963 Bybee,Teri D WKU EMPLOYEE Campus799 Lynch,Jillian Harper LWW-BRADD AREA Glasgow798 Lynch,Rylee Grace LWW-BRADD AREA Glasgow717 Jones,Alysa Nicholl LWW-BRADD AREA Glasgow719 Jones,Myra Allyce LWW-BRADD AREA Glasgow525 Parocai,William A BRADD BUSINESSES Glasgow764 Mitchell,Roxanne P LWW-BRADD AREA Glasgow867 Mccord,Taina A LWW-BRADD AREA Glasgow786 Arbogast,Dawsin H LWW-BRADD AREA Glasgow868 Harris,William K LWW-BRADD AREA Glasgow709 Smith,Taylor Beth LWW-BRADD AREA Glasgow704 Wright,Danielle Renee LWW-BRADD AREA Glasgow860 Davis,Tonya N LWW-BRADD AREA Glasgow880 Rhodes,Andrew L LWW-BRADD AREA Glasgow869 Williams,Kerry J LWW-BRADD AREA Glasgow810 Fancher,Michael L LWW-BRADD AREA Glasgow689 Delk,Joann//Ms. LWW-BRADD AREA Glasgow814 Cooper,Robert W LWW-BRADD AREA Glasgow844 Moore,Clarence G LWW-BRADD AREA Glasgow728 Dilley,Freddie L LWW-BRADD AREA Glasgow
30
MONTH YEAR CLN GLAS 31-W CAMP TotalJAN 2018 52 7 42 8 109JAN 2019 67 11 45 5 128
FEB 2018 44 16 56 5 121FEB 2019 48 16 43 6 113
MAR 2018 67 14 57 6 144MAR 2019 69 14 54 6 146
APR 2018 46 19 44 5 114APR 2019 66 17 58 9 150
MAY 2018 64 14 66 7 151MAY 2019 52 21 54 10 138
JUN 2018 66 23 57 8 154JUN 2019 51 12 38 13 114
JULY 2018 70 21 59 7 157JULY 2019 60 19 34 7 120
AUG 2018 76 19 62 21 178AUG 2019
SEPT 2018 42 10 37 6 95SEPT 2019
OCT 2018 60 20 55 7 142OCT 2019
NOV 2018 45 18 45 11 119NOV 2019
DEC 2018 54 8 53 7 122DEC 2019
TOTAL 2018 686 189 633 98 16062019
Age CLN GLAS 31-W CAMP TOTALPercent
ageEstates or Organizations 0 0 0 1 1 0.83%
<18 12 7 3 1 23 19.17%19-25 10 2 3 2 17 14.17%26-35 12 3 10 0 25 20.83%36-45 8 2 3 0 13 10.83%46-55 7 1 8 2 18 15.00%>55 11 4 7 1 23 19.17%
Total 60 19 34 7 120 100.00%
2018-2019 Membership Analysis
New Account ReportJuly-19
31
COUNTIES Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19ALLEN COUNTY 4 6 5 4 1 4 2BARREN COUNTY 15 17 19 17 16 11 14BUTLER COUNTY 5 2 6 3 4 5 3EDMONSON COUNTY 0 1 0 2 1 2 0HART COUNTY 1 4 2 3 2 2 1LOGAN COUNTY 11 10 8 12 7 5 7METCALF COUNTY 0 1 0 2 3 2 2MONROE COUNTY 0 0 3 0 3 1 2SIMPSON COUNTY 10 9 8 4 5 1 3WARREN COUNTY 72 55 83 87 85 76 73OTHER 10 8 12 16 10 5 13
TOTAL 128 113 146 150 137 114 120
Service One Credit UnionNew Accounts by Zip Code Report 2019
32
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19Number of Mobile Users 2533 2617 2796 2945 3072 3110 3191 3170 3249 3289 3346 3388 3462Number of SOCU Tracker Users 3411 3449 3465 3494 3543 3578 3611 3640 3678 3713 3753 3788 3837Number of Active SOCU Tracker Users* 138 128 118 130 142 119 145 143 145 147 142 145 162Number of My Deposit Mobile Transactions 138 473 496 637 518 546 573 528 567 498 524 488 515
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19Number of HB Users Enrolled 12522 12619 12691 12757 16520 16478 16538 16595 16639 16709 16771 16854 16893Number of Active HB Users* 6417 6460 6439 6447 6504 6535 6661 6504 6546 6540 6546 6851 6738Number of Bill Pay Users (1 month lag) 2374 2387 2402 2413 2423 2431 2441 2450 2458 2469 2478 2480 2493Number of E-Stmt Users 6531 6535 6541 6573 6596 6525 6553 6549 6543 6550 6561 6591 6623
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19Total Transactions 142 182 192 196 234 218 174 134 210 186 194 194 238
0250500750
10001250150017502000225025002750300032503500375040004250450047505000525055005750600062506500675070007250
Jul-1
8
Aug-
18
Sep-
18
Oct
-18
Nov
-18
Dec
-18
Jan-
19
Feb-
19
Mar
-19
Apr-1
9
May
-19
Jun-
19
Jul-1
9
No.
of U
sers
Months
Home Branch, Bill Pay & E-Stmt Users
Numberof BillPayUsers (1monthlag)
Numberof ActiveHBUsers*
Numberof E-StmtUsers
0
50
100
150
200
250
Jul-1
8
Aug-
18
Sep-
18
Oct
-18
Nov
-18
Dec
-18
Jan-
19
Feb-
19
Mar
-19
Apr-1
9
May
-19
Jun-
19
Jul-1
9
Audio Response Call History
Total Transactions
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Jul-1
8
Aug-
18
Sep-
18
Oct
-18
Nov
-18
Dec
-18
Jan-
19
Feb-
19
Mar
-19
Apr-1
9
May
-19
Jun-
19
Jul-1
9
No.
of U
sers
Months
Mobile Users
Number of MobileUsers
Number of SOCUTracker Users
Number of MyDeposit MobileTransactions
33
MBL ParticipationsDate of Report: 07/31/2019
Borrower Name Date of Loan Maturity DatePayment Due
Date Principal Balance Rate Loan Rate Index Risk Rating
Part Principal Balance
Lead Credit Union
KLB HOLDINGS LLC 11/30/2016 12/01/2019 08/01/19 4,511,478.63$ 4.25% FIXED 5 451,147.86$ UNIVERSITY OF KENTUCKY FEDERAL CU CLOVERLEAF PARTNERS LLC 10/08/2015 11/01/2026 08/01/19 5,168,162.64$ 5.00% Treasury 5 204,205.32$ TALERIS CREDIT UNION STH ENTERPRISES LLC 03/31/2015 04/01/2020 08/01/19 1,443,609.60$ 4.50% FIXED 5 213,798.58$ FORT KNOX FEDERAL CREDIT UNION JL GUILD LLC 03/24/2017 04/01/2021 08/01/19 2,332,397.57$ 4.50% FIXED 5 332,133.41$ SHAREFAX CREDIT UNION VALLEY VIEW DEVELOPMENT PARTNERSHIP LLC 06/12/2017 06/01/2027 09/01/19 2,574,773.94$ 4.50% Treasury 4 165,043.00$ DIRECTIONS CREDIT UNION BELLVILLE HOTEL COMPANY LTD 06/12/2017 06/01/2027 08/01/19 1,768,869.29$ 4.50% Treasury 4 113,384.52$ DIRECTIONS CREDIT UNION SAINT PAUL PROPERTIES FUND V LLC 11/28/2018 12/01/2028 08/01/19 1,685,183.34$ 5.25% Treasury 4 172,899.81$ IH CREDIT UNION CROSWELL HIGH ACQUISITION LLC 08/12/2016 09/01/2026 08/01/19 2,172,368.89$ 4.50% Treasury 4 116,873.44$ PATHWAYS FINANCIAL CREDIT UNION BISHOP CHECKMATE LLC 09/29/2017 10/01/2019 08/01/19 4,054,823.91$ 5.00% FIXED 4 324,791.39$ TALERIS CREDIT UNION BISHOP CHECKMATE LLC 03/21/2018 10/01/2019 08/01/19 1,760,155.98$ 5.00% FIXED 4 140,988.49$ TALERIS CREDIT UNION WATERSIDE VILLAGE LIMITED PARTNERSHIP 10/13/2017 11/01/2022 08/01/19 4,182,792.05$ 4.35% FIXED 4 181,951.45$ IH CREDIT UNION VENTURE PARTNERS LLC 06/26/2017 07/01/2022 08/01/19 3,361,346.71$ 4.25% FIXED 4 196,302.64$ GLASS CITY FEDERAL CREDIT UNION WANG BROTHERS INVESTMENTS LLC 01/26/2017 02/01/2022 08/01/19 3,464,232.82$ 4.25% FIXED 4 279,910.01$ UNIVERSITY OF KENTUCKY FEDERAL CU SEDIQE 3810 LLC 10/19/2017 02/01/2023 08/01/19 660,461.74$ 4.75% FIXED 4 66,046.17$ GLASS CITY FEDERAL CREDIT UNION ROBERT M COURY TRUST UAD AUG 1 1986 MOD 08/31/2017 09/01/2022 09/01/19 362,893.16$ 4.75% FIXED 4 90,723.29$ CARDINAL CREDIT UNION BENNETT ENTERPRISES LLC 08/31/2016 03/01/2033 08/01/19 6,222,489.27$ 4.75% Treasury 4 290,590.24$ GLASS CITY FEDERAL CREDIT UNION R P MALONE LLC 05/30/2013 06/01/2023 08/01/19 2,157,490.53$ 5.18% 5 Year Treasury 4 106,101.43$ WRIGHT-PATT CREDIT UNION OHIO HOTELS LLC 05/27/2016 12/01/2027 08/01/19 5,617,921.57$ 5.00% Treasury 4 239,885.24$ DAY AIR CREDIT UNION WATER STREET HOTEL LLC 08/16/2017 03/01/2029 08/01/19 11,248,559.82$ 5.00% Treasury 4 346,455.64$ WRIGHT-PATT CREDIT UNION 800 N HIGH INVESTMENTS LLC 06/28/2018 07/01/2030 09/01/19 27,722,334.53$ 5.25% Prime 4 615,435.81$ WRIGHT-PATT CREDIT UNION MARIETTA OHIO 1209 LLC 07/12/2019 08/01/2029 09/01/19 6,375,000.00$ 5.45% Treasury 4 499,800.00$ OHIO UNIVERSITY CREDIT UNION MAW III LTD 05/30/2018 02/01/2029 08/01/19 984,149.26$ 5.25% Treasury 4 42,613.66$ DIRECTIONS CREDIT UNION MAW III LTD 05/30/2018 12/01/2019 08/01/19 597,799.80$ 6.00% Prime 4 25,884.73$ DIRECTIONS CREDIT UNION MAW III LTD 05/30/2018 02/01/2029 08/01/19 487,597.89$ 5.25% Treasury 4 21,112.98$ DIRECTIONS CREDIT UNION MAW III LTD 05/30/2018 12/01/2019 08/01/19 302,340.00$ 6.00% Prime 4 13,091.32$ DIRECTIONS CREDIT UNION PLATFORM II SUPERIOR LLC 11/05/2018 12/01/2030 09/01/19 1,106,521.87$ 6.50% Prime 4 142,741.31$ DIRECTIONS CREDIT UNION EASTON HOSPITALITY LLC 03/29/2019 10/01/2027 09/01/19 -$ 6.50% Prime 4 -$ DIRECTIONS CREDIT UNION WEBER HOLDINGS NORTH LLC 12/07/2015 01/01/2021 08/01/19 244,259.07$ 4.50% FIXED 4 90,424.84$ FIRST SERVICE FEDERAL CREDIT UNION WEBER HOLDINGS SOUTH LLC 12/07/2015 01/01/2021 08/01/19 123,179.47$ 4.50% FIXED 4 28,553.00$ FIRST SERVICE FEDERAL CREDIT UNION LIBERTY RIDGE PROPERTIES LLC 09/12/2017 10/01/2022 08/01/19 3,428,337.78$ 4.75% FIXED 4 336,662.76$ IMPACT CREDIT UNION LIBERTY RIDGE PROPERTIES LLC 12/04/2018 07/01/2025 08/01/19 1,802,144.57$ 6.25% Prime 4 133,358.69$ IMPACT CREDIT UNION THRIVE MINISTRIES INC 02/26/2019 03/01/2029 08/01/19 4,820,318.63$ 5.63% Treasury 4 248,246.40$ SUN FEDERAL CREDIT UNION CODY COMMERCIAL PROPERTIES II INC 06/23/2017 07/01/2027 09/01/19 2,111,333.77$ 5.00% Treasury 4 211,133.37$ UNIVERSITY OF KENTUCKY FEDERAL CU THE GOAT MY PLACE LLC 05/31/2019 12/01/2030 09/01/19 1,740,855.82$ 5.50% Prime 4 174,085.58$ TALERIS CREDIT UNION GLENCOE BRIDGE LLC 02/09/2018 03/01/2021 08/01/19 478,253.20$ 6.00% FIXED 4 97,563.65$ TELHIO CREDIT UNION WP PROPERTIES QOZB LLC 01/31/2019 02/01/2030 09/01/19 457,019.59$ 6.25% Prime 4 68,552.93$ PATHWAYS FINANCIAL CREDIT UNION PINECRAFT LAND HOLDINGS LLC 04/27/2017 05/01/2028 08/01/19 5,186,150.16$ 5.25% Treasury 4 215,743.84$ OHIO VALLEY COMMUNITY CREDIT UNION PINECRAFT LAND HOLDINGS LLC 04/27/2017 07/31/2019 07/31/19 3,149,550.00$ 7.50% Prime 4 131,021.27$ OHIO VALLEY COMMUNITY CREDIT UNION KENTUCKY HOST LLC 07/25/2014 02/01/2026 09/01/19 6,727,662.61$ 4.25% Treasury 3 435,025.06$ UNIVERSITY OF KENTUCKY FEDERAL CU WEST EDGE ENTERPRIESES LLC 12/30/2015 02/01/2026 08/01/19 822,089.99$ 4.00% Treasury 3 86,977.12$ EATON FAMILY CREDIT UNION SHADOW LANE PROPERTIES LLC 11/10/2016 12/01/2021 08/01/19 476,011.51$ 4.25% FIXED 3 28,560.69$ GLASS CITY FEDERAL CREDIT UNION KELSI MARIE LLC 03/21/2014 04/01/2021 08/01/19 851,716.47$ 4.75% FIXED 3 37,822.93$ SUN FEDERAL CREDIT UNION GALLATIN ASSOCIATES B, LP 12/07/2018 01/01/2030 08/01/19 622,467.56$ 6.50% Prime 3 77,808.44$ OLD HICKORY CREDIT UNION TRI COUNTY PROPERTY HOLDINGS LLC 06/14/2019 07/01/2029 09/01/19 1,357,261.07$ 5.00% Treasury 3 165,569.88$ FIRST SERVICE FEDERAL CREDIT UNION FAIRLAWN PLAZA ASSOCIATES LLC 01/30/2019 02/01/2029 09/01/19 1,461,876.59$ 5.00% Treasury 3 148,163.16$ TOWPATH CREDIT UNION THE COLLECTIVE LEGACY GROUP LLC 05/04/2018 06/01/2023 08/01/19 365,459.50$ 4.50% FIXED 3 63,955.41$ SOUTHEAST FINANCIAL CREDIT UNION THE COLLECTIVE LEGACY GROUP LLC 02/11/2019 03/01/2026 08/01/19 389,516.37$ 5.25% FIXED 3 49,683.21$ SOUTHEAST FINANCIAL CREDIT UNION TOWN CREEK DG LLC 03/18/2019 04/01/2024 08/01/19 634,961.31$ 5.50% FIXED 3 79,497.15$ SOUTHEAST FINANCIAL CREDIT UNION SUFFOLETTA REALTY GROUP LLC 12/14/2015 01/01/2026 09/01/19 1,874,015.17$ 4.25% Treasury 3 218,834.18$ UNIVERSITY OF KENTUCKY FEDERAL CU MALABU REALTY LLC 10/07/2016 11/01/2021 09/01/19 4,582,085.16$ 4.25% FIXED 3 412,387.66$ UNIVERSITY OF KENTUCKY FEDERAL CU HJH SHARONVILLE 1 LLC 12/29/2016 01/01/2022 09/01/19 6,687,865.90$ 4.35% FIXED 3 123,056.72$ UNIVERSITY OF KENTUCKY FEDERAL CU VICTORY PARTNERS EQUITIES LLC 08/26/2016 09/01/2023 08/01/19 5,979,126.25$ 4.50% FIXED 3 280,421.02$ TALERIS CREDIT UNION BEDFORD VENTURES ASSOCIATES LTD 02/02/2018 02/10/2024 08/10/19 998,333.18$ 5.00% FIXED 3 81,463.98$ TALERIS CREDIT UNION DANIEL G KAMIN WAYNESBURG LLC 02/24/2017 02/01/2026 09/01/19 897,900.21$ 4.50% Treasury 3 94,548.89$ GOLDEN CIRCLE CREDIT UNION JJ&W I LTD 04/24/2018 05/01/2028 08/01/19 11,692,477.38$ 4.50% Treasury 3 730,779.83$ GOLDEN CIRCLE CREDIT UNION 3 STAR LLC 12/14/2018 01/01/2029 08/01/19 3,326,016.53$ 5.25% Treasury 3 301,669.69$ GOLDEN CIRCLE CREDIT UNION BOSCO HOLDINGS LLC 12/14/2018 12/01/2023 08/01/19 742,733.98$ 5.50% FIXED 3 42,855.75$ GOLDEN CIRCLE CREDIT UNION 7207 CHAGRIN PARTNERS LLC 03/28/2018 04/01/2023 08/01/19 816,238.21$ 4.50% FIXED 3 49,790.53$ CARDINAL CREDIT UNION WEST PARK CIRCLE PARTNERS I LLC 03/28/2018 04/01/2023 08/01/19 355,303.68$ 4.50% FIXED 3 21,673.52$ CARDINAL CREDIT UNION TECTONICS DEVELOPERS LTD 08/23/2018 08/01/2023 08/01/19 453,768.46$ 4.95% FIXED 3 45,059.20$ CARDINAL CREDIT UNION ASPEN OUTPARCEL ASSOCIATES LLC 08/25/2017 09/01/2027 09/01/19 633,454.77$ 4.50% Treasury 3 87,353.41$ BAYER HERITAGE FEDERAL CREDIT UNION LIBBY MANCHESTER ENTERPRISES LLC 10/06/2017 11/01/2024 09/01/19 4,272,532.52$ 4.65% Treasury 3 471,687.59$ BAYER HERITAGE FEDERAL CREDIT UNION GRAND PROPERTY MANAGEMENT LLC 10/10/2013 11/01/2020 08/01/19 1,033,267.01$ 6.98% 5 Year Treasury 3 46,305.66$ EATON FAMILY CREDIT UNION 12031 SHOREHOUSE LLC 12/30/2015 02/01/2026 08/01/19 1,438,657.74$ 4.00% Treasury 3 139,837.53$ EATON FAMILY CREDIT UNION GARDEN WEST ENTERPRISES LLC 12/30/2015 02/01/2026 08/01/19 1,089,032.10$ 4.00% Treasury 3 154,860.36$ EATON FAMILY CREDIT UNION M&B OLMSTED LLC 03/31/2017 04/01/2027 08/01/19 763,640.64$ 4.25% Treasury 3 61,549.43$ EATON FAMILY CREDIT UNION M&B PARMA LLC 03/31/2017 04/01/2027 08/01/19 379,506.13$ 4.25% Treasury 3 30,588.19$ EATON FAMILY CREDIT UNION M&B CLIFTON LLC 03/31/2017 04/01/2027 08/01/19 291,571.85$ 4.25% Treasury 3 23,500.69$ EATON FAMILY CREDIT UNION OLMSTED INDUSTRIAL PARK LLC 03/31/2017 04/01/2027 08/01/19 231,397.66$ 4.25% Treasury 3 18,650.65$ EATON FAMILY CREDIT UNION GEORGESVILLE 1711 MP LLC 01/20/2017 02/01/2027 09/01/19 2,482,937.13$ 4.15% FIXED 3 248,293.71$ TELHIO CREDIT UNION 155 SPE LLC 02/05/2018 03/01/2023 09/01/19 16,370,500.47$ 4.85% FIXED 3 484,566.81$ TELHIO CREDIT UNION LAXMI HOSPITALITY LLC 12/06/2018 01/01/2029 09/01/19 1,459,078.01$ 4.90% Prime 3 364,769.50$ TELHIO CREDIT UNION GALATIANS LLC 11/18/2016 12/01/2026 08/01/19 1,501,528.27$ 4.25% Treasury 3 192,571.00$ PATHWAYS FINANCIAL CREDIT UNION MARKETING RESULTS LTD 11/29/2017 12/01/2027 08/01/19 3,326,879.52$ 4.75% Treasury 3 475,411.08$ PATHWAYS FINANCIAL CREDIT UNION 1400 DUBLIN LLC 05/16/2018 06/01/2028 08/01/19 3,241,725.11$ 4.60% FIXED 3 486,258.76$ PATHWAYS FINANCIAL CREDIT UNION S2A2 EQUITIES LLC 09/06/2018 10/01/2023 08/01/19 496,992.71$ 5.25% FIXED 3 49,301.67$ PATHWAYS FINANCIAL CREDIT UNION CHAHINE LLC 05/09/2019 06/01/2024 08/01/19 534,537.87$ 5.75% FIXED 3 53,453.78$ PATHWAYS FINANCIAL CREDIT UNION HIGHLAND SQUARE LTD 08/03/2015 09/01/2025 08/15/19 3,235,760.00$ 4.75% FIXED 3 98,043.52$ MEDINA COUNTY FEDERAL CREDIT UNION HIGHLAND SQUARE LTD 08/03/2015 09/01/2025 09/15/19 -$ 7.00% Prime 3 -$ MEDINA COUNTY FEDERAL CREDIT UNION MERCHANTS SQUARE LTD 09/04/2015 10/01/2025 08/15/19 2,097,121.47$ 4.75% FIXED 3 136,942.03$ MEDINA COUNTY FEDERAL CREDIT UNION DF REAL ESTATE II LLC 03/21/2017 04/01/2022 08/01/19 968,031.72$ 4.50% FIXED 3 47,336.74$ PARK COMMUNITY CREDIT UNION DF REAL ESTATE II LLC 05/26/2017 06/01/2022 08/01/19 249,535.33$ 4.50% FIXED 3 12,202.27$ PARK COMMUNITY CREDIT UNION HJH COLUMBUS 1 LLC 08/20/2018 09/01/2023 09/01/19 8,090,219.60$ 5.00% FIXED 3 242,706.58$ IH CREDIT UNION
34
MBL ParticipationsDate of Report: 07/31/2019
Borrower Name Date of Loan Maturity DatePayment Due
Date Principal Balance Rate Loan Rate Index Risk Rating
Part Principal Balance
Lead Credit Union
HJH ASHLAND 1 LLC 01/02/2019 01/01/2024 09/01/19 6,862,667.30$ 5.38% FIXED 3 686,266.73$ IH CREDIT UNION MONTGOMERY HOTEL GROUP LLC 02/02/2018 03/01/2028 08/01/19 2,866,720.58$ 5.40% Treasury 3 122,408.97$ VIA CREDIT UNION ELYRIA INDUSTRIAL COMPLEX PARTNERS LLC 02/01/2016 03/01/2021 09/01/19 1,093,280.40$ 3.90% FIXED 2 303,713.29$ CARDINAL CREDIT UNION CASTO INVESTMENTS COMPANY LLLP 03/11/2015 04/01/2025 08/01/19 5,662,034.67$ 4.65% Treasury 2 328,398.01$ KEMBA FINANCIAL CREDIT UNION PENTAGON STORAGE INNS OF AMERICA LLC 11/20/2014 12/01/2024 08/01/19 615,685.47$ 4.13% FIXED 2 62,923.05$ DAY AIR CREDIT UNION S-ONE LLC 03/02/2016 04/01/2026 08/01/19 3,752,063.93$ 4.50% FIXED 2 317,049.40$ CME FEDERAL CREDIT UNION 4675 NORTH HIGH INVESTMENT LLC 02/28/2017 03/01/2027 08/01/19 552,241.63$ 4.15% FIXED 2 55,224.16$ CME FEDERAL CREDIT UNION DLZ CORPORATION 03/29/2017 05/01/2027 08/01/19 9,704,909.10$ 4.75% FIXED 2 463,894.65$ CME FEDERAL CREDIT UNION QUAY III LLC 10/31/2017 11/01/2027 08/01/19 4,003,447.27$ 4.50% FIXED 2 480,814.01$ CME FEDERAL CREDIT UNION 512 WASHINGTON LLC 09/07/2018 08/01/2023 08/01/19 1,663,501.36$ 4.95% FIXED 2 166,350.13$ CARDINAL CREDIT UNION BLACK RIVER COMMUNITY LLC 09/28/2018 10/01/2028 08/01/19 562,400.83$ 5.50% Treasury 2 44,992.06$ CARDINAL CREDIT UNION LAXMI HOSPITALITY LLC 02/06/2017 03/01/2027 09/01/19 3,074,059.59$ 4.25% Prime 2 526,981.64$ TELHIO CREDIT UNION AARTI HOSPITALITY LLC 02/19/2019 09/01/2030 09/01/19 5,723,979.77$ 5.90% Prime 2 527,178.53$ TELHIO CREDIT UNION 6118 WESTERVILLE LLC 07/27/2016 08/01/2026 08/01/19 151,559.95$ 4.50% Treasury 2 30,311.99$ PATHWAYS FINANCIAL CREDIT UNION DLZ CORPORATION 10/12/2017 11/01/2027 08/01/19 620,914.72$ 4.75% FIXED 2 94,068.58$ PATHWAYS FINANCIAL CREDIT UNION GV 815 LLC 05/29/2018 06/01/2028 08/01/19 468,012.11$ 4.25% Treasury 2 46,801.21$ PATHWAYS FINANCIAL CREDIT UNION BEST CORPORATE PROPERTIES II LLC 12/12/2018 01/01/2024 09/01/19 889,400.82$ 5.25% FIXED 2 97,745.15$ PATHWAYS FINANCIAL CREDIT UNION 21 CENTURY HOLDINGS LLC 06/26/2015 07/01/2020 08/01/19 226,570.72$ 4.25% FIXED 2 53,221.46$ PARK COMMUNITY CREDIT UNION NULU GROUP LTD CO 08/23/2016 03/01/2027 08/01/19 184,598.40$ 4.25% Treasury 2 23,074.80$ PARK COMMUNITY CREDIT UNION REDWOOD CORPORATE ONE LLC 07/16/2019 02/01/2020 09/01/19 2,320,000.00$ 5.25% Prime 2 203,464.00$ IH CREDIT UNION 103 283,168,000.21$ 19,265,934.87$
35
Date: August 30, 2019 To: Board of Directors From: Stephen Carrico & Rebecca Stone Re: Annual Review of Interest Rate Risk Policy
The Interest Rate Risk Policy was last reviewed during the August 2018 Board of Directors meeting. Since that time no new regulations have been issued by regulatory agencies that require modifications to the policy. In addition, no comments were included in the June 11, 2018, Examination Report from the Kentucky Department of Financial Institutions related to the credit union’s Asset Liability Management and Interest Rate Risk policies and procedures. Accordingly, no changes have been made to the current report. Based on the foregoing, we recommend the Board approve the the policy as presented.
36
Memo To: Board of Directors; Supervisory Committee
From: Rebecca Stone; Tony Spitz
Date: August 30, 2019
Re: Information Security and Cyber Security Program/Policies
Understanding and complying with information security, document security and cyber security regulations gets more complex every day. The Gramm-Leach-Biliey Act (GLBA), also known as the Financial Service Modernization Act of 1999, among other topics, requires all financial institutions to ensure confidentiality and security of their members’ nonpublic information. Nonpublic information would include items like Social Security numbers, credit and income histories, credit card and bank account numbers, phone numbers and any other personal member information received by the credit union that is not public. Section 16 CFR Part 314 of the act outlines the safeguards and measures each financial institution must have in place to keep member information secure.
The objective of our attached Program is to ensure the security and confidentiality of customer information and protect against any anticipated threats or hazards to the security or integrity of our members’ information.
In the past Service One wrote individual policies related to GLBA and Cybersecurity requirements. Management discussed the benefits of having one comprehensive program allowing us to cross reference each of the GLBA requirements. The cross-reference pages with the Act can be found on page 9 &10 of our Program and Policies.
Companion programs, plans and standards are integral to the success of the Information and Cybersecurity Program and are referenced throughout the document.
Should you have any questions, please let Tony or me know.
37
NEW BUSINESS
MOTIONS
August 30, 2019 Carried Failed
A. Approval of the Consent Agenda.
1. Minutes 2. Dividend Transfer
3. Membership Applications 4. ODP Charge-offs
B. Approval of the charge-off for the month of August in the amount of $46,859.33. C. Approval of payment of July monthly Dividends
of $132,400.83. D. Approval of Interest Rate Risk Policy. E. Approval of the Acceptable Use Policy. E. Approval of the Information Security Policy.
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