REPORT
OF THE TREASURER
Your Credit
Union experienced favorable financial performance in 2005. Some
of the highlights are:
| 1. |
An average
dividend rate of 2.49% was paid on shares for the year compared
to 1.98% in 2004. Total dividends paid of $5.6 million represents
63.4% of the Credit Union’s total income of $8.9 million
for 2005. |
| 2. |
The operating
expense ratio continues to be one of the lowest in the Credit
Union industry at 27.5%. |
| 3. |
The percentage
of delinquent loans at 0.21% is lower than year-end 2004 mark
of 0.64%. Loan losses on member loans at $82,509 reflects a
$48,153 increase over year-end 2004. |
| 4. |
Reserves
and retained earnings increased $732,485 from $20.2 million
to $20.9 million. |
| 5. |
The net
worth ratio continues to be very strong at 8.48% and is reflective
of our goals to provide members with the highest possible dividends
and lowest possible loan rates. |
Other trends
of significance were:
| 1. |
Total
assets decreased $9.1 million from $249.5 million to $240.4
million, a 3.6% decrease. |
| 2. |
Total
share account deposits decreased by $9.2 million from $229.3
million to $220.1 million, a 4.0% decrease. |
| 3. |
Loans
increased $5.5 million from $28.0 million to $33.5 million.
The average return on loans for the year was 5.6% and was down
slightly from the 5.9% yield earned in 2004 |
| 4. |
Investments
decreased $14.9 million from $217.3 million to $202.4 million,
a decrease of 6.9%. The average return on investments for the
year was 3.3% compared to 3.1% for 2004. |
The Credit
Union looks forward to a relatively stable year in 2006. We anticipate
member share and loan account volumes to remain constant. Given
the general interest rate environment that we are currently experiencing,
we anticipate that our return on investments will increase slightly.
James W. Ford
Treasurer
| TOTAL
ASSETS |
 |
| 2001
Year End |
$171.2
million |
|
|
| 2002
Year End |
$211.2
million |
|
|
| 2003
Year End |
$237.3
million |
|
|
| 2004
Year End |
$249.5
million |
|
|
| 2005
Year End |
$240.4
million |
|
| MEMBER
SHARES |
|
| 2001
Year End |
$155.9
million |
|
|
| 2002
Year End |
$194.1
million |
|
|
| 2003
Year End |
$218.4
million |
|
|
| 2004
Year End |
$229.3
million |
|
|
| 2005
Year End |
$220.1
million |
|
| TOTAL
RESERVES |
|
| 2001
Year End |
$15.1
million |
|
|
| 2002
Year End |
$16.9
million |
|
|
| 2003
Year End |
$18.7
million |
|
|
| 2004
Year End |
$20.2
million |
|
|
| 2005
Year End |
$20.9
million |
|
|