Message from the Chairman
Alan M. Potter
I would like to share with you a quote from one of your Board Members.
“It has been a distinct privilege to work with the UNFCU Board of Directors. It has also been a terrific experience working with our CEO and President Michael Connery, steering such a unique institution as is UNFCU. He and his great team of 350 dedicated staff daily put into practice our UNFCU motto, serving the people who serve the world®. With our loyal 86,000 members from Afghanistan to Zimbabwe and some 200 countries and territories in-between, we are proud to serve the staff and families of our sole sponsor, the United Nations and its specialized agencies who are one of the most dynamic, mobile and awe-inspiring community in the world.”
This is an excerpt from the acceptance speech of Vice-Chairman Joseph Toochin, at the Credit Union Executive Society (CUES) Directors Conference in December 2009, where he was the recipient of the Director of the Year Award after being nominated by the UNFCU Board of Directors. He was the unanimous choice of all nine CUES Directors who were responsible for the selection of the winner in 2009. He was the 25th recipient of this award. Joe will be completing his final term on the Board in June of this year after being elected and serving as a volunteer on the UNFCU Board for the maximum term of 15 years.
I know that you join me in wishing him well with the free time that he will have after June to spend with his family and other interests.
The year-end has gone by and I want to provide you with some of the unaudited financial highlights that I have available at this time. Our external auditors are currently conducting the year-end audit and I do not expect the results to reflect significant differences to what I am reporting to you today. The Board of Directors is always very conscious of the safety and soundness of UNFCU’s operations. If you have been a member for ten years or more you will recall that we hit the 1 Billion USD mark in total assets in 1999, 2 Billion USD in 2004 and in 2009 we surpassed the 3 Billion USD mark. All of this in spite of tough economic times in 2008 and 2009. We have reached these levels in spite of having to absorb 9.2 Million USD losses in investments from the Corporate Credit Union System. The Corporate Credit Unions are the equivalent to a Correspondent Bank for the Credit Union System. We use the Corporate Credit Unions for check clearing, short term liquidity if we need it, overnight funds investing and consulting services.
In addition, due to the increased level of insured savings from 100,000 USD to 250,000 USD and the failure of other credit unions, our federal share insurance premiums were 3.7 Million USD in 2009 and we can expect this premium to increase up to at least 6.2 Million USD and it may reach a maximum of 11 Million USD.
These large numbers notwithstanding, UNFCU remains well-capitalized with a Capital Ratio of 9.10%. Our loans have grown 6%, investments 20%, shares 12%, assets 12% and membership by 6%. Although our delinquencies have grown to 0.84% and charge-offs to 0.35%, these ratios are well below our peer Credit Union averages.
Furthermore, I am pleased to report that the Board made charitable contributions in 2009 to support the health and welfare of youth in Africa and Asia, the Start Smart Scholarship Fund and to provide medical services, through a hospital in Long Island City, Queens, NY, to the children and their families who live in the shelters of the boroughs of New York City.
On a key administrative front, I also want to remind you that the Nominating Committee filed its nominations for the 2010 Election for the three available positions on the Board of Directors on 4 February 2010. Please exercise your right as a member to vote for the candidate of your choice when you receive your ballot. Your vote can make a difference.
The Board invites you to provide feedback on any issue, or question that you may have regarding UNFCU. Please send your comments and suggestions to the Board by email at firstname.lastname@example.org, or by letter to Chairman of the Board, UNFCU, Court Square Place, 24-01 44th Road, Long Island City, NY 11101-4605, USA.