Mission and Purpose
The credit union's objective is to provide its members with share accounts and loan services at a fair and favorable rate in a friendly, courteous atmosphere.
History
On October 8, 1945, Fr. Francis Druehe, OFM, Pastor of St, Mary's Catholic Church, Metamora, IL, started the Credit Union to help members of the parish borrow money at low interest rates. Seven members signed the original Charter and by-laws. During the first financial reporting period, 35 individuals became members of the Credit Union. The share balance at the end of the first reporting period was $961.00.
Today
The credit union is chartered and regulated by the Illinois Department of Financial Institutions.
The National Credit Union Administration (NCUA), a United States Government Agency, insures deposits at the credit union to $250,000.
SUMMARY OF 2010 OPERATIONS
Welcome to the 64th Annual Meeting of the Parish Members Credit Union. The Credit Union ended the year with total assets of $3,728,074. This was an increase of $84,237 from last year. Net income (loss) for the year amounted to 2,217. This amount was added to our accumulated surplus account.
The Credit Union experienced the following changes/events/actions this past year:
* Chuck Kahler resigned as a Director during the course of the year and was replaced by former Director Marlene Robertson.
* Implemented a dormant account fee effective as of January 1, 2010. The dormant account fee generated $1,364 in additional revenue for PMCU for the year.
* Began offering Christmas Club accounts. The dividend rate on Christmas Club accounts was set at an additional .25% over the normal share tiered dividend rate for the amount of funds in a similar share account.
* PMCU incurred $16,581 in Corporate Credit Union Stabilization Fund assessments mandated by the NCUA during the past year. The purpose of the Stabilization Fund is to repay the Treasury over multiple years for borrowings by the NCUA to stabilize the corporate credit union system.
* The Board continued to explore options to improve profitability and to remain competitive as a small independent credit union in Central Illinois. During the past year the Board researched offering online banking, researched offering stored value & debit cards, and researched offering courtesy mortgages. While none of these services was implemented, the Board continues to investigate the viability of offering courtesy mortgages.
The Credit/Loan Committee approved 81 new loans this past year. Loans for the year amounted to $731,868 and principal payments received during the year amounted to $687,141. The member's loan balances of $1,374,773 include Visa credit card loans in the amount of $45,069. During the year, loans in the amount of $15,918 were charged off and $9,359 in recoveries was made from loans previously charged off. We ended the year with 166 loans outstanding and 60 credit card accounts on file.
The Supervisory Committee performed its annual audit on the Credit Union books and records and submitted a report to the State of IL Division of Financial Institutions. The Credit Union was also examined by the State of IL Division of Financial Institutions and the National Credit Union Administration during 2010. The Division of Financial Institutions (DFI) requested that the Credit Union take swift action to rebuild its net worth to a level that is commensurate with industry averages and to appropriately price its products and services to increase profitability and to reflect the local market. The Board has taken some steps to address these concerns.
The Board approved and paid, based on the recommendation of the Investment Committee, dividends in the amount of $26,853. The Board structured and set the five tiered dividend rates in the second half of 2010 in an attempt to comply with the DFI recommendations and to increase the net worth ratio of the credit union.
The Membership Committee continues to look for opportunities and methods for expansion of our current membership. Our membership for the year 2010 consisted of 681 members, which resulted in a net decrease of 36 members from the prior year.
Dennis Koch
Chairman of the Board
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