CHAIRPERSON’S REPORT
On behalf of the Board of Directors of the B&V Credit Union, I am pleased to submit this report
summarizing our Credit Union’s operations and financial results for the year ended December 31, 2010,
our 56th year serving our members. Our credit union continues to function in keeping with our charter
and the basic principles on which it was founded. As in the past, much of our success is attributable
to the commitment of the Credit Union staff and our volunteer committee and board members as well as
the support of our sponsor, Black & Veatch Corporation.
Highlights of 2010
In 2009, Total Assets increased significantly; this trend remained unchanged during 2010. With an increase
of $4.3 million during 2010 this brings Total Assets to $54.3 million which is once again a noteworthy milestone
for our credit union. On the other side of the balance sheet, our members’ equity, which is made up of Regular
Shares and Share Certificates (CDs), at the end of 2010 was approximately $48 million, which is an increase of nearly $4 million during 2010.
This increase in Assets is, in part, due to our Field of Membership being a financially conservative group which recognizes B&V Credit Union
to be a safe, reliable, and liquid vehicle where they can place surplus funds and receive a very competitive rate of return.
The state of the economy continues to be somewhat sluggish which has a direct impact on our Investments. One of the most significant challenges
of this past year have been finding solid, safe investments that provide a good rate of return. Certificates of Deposit (CDs) are our primary investment instrument.
However, the rates being offered during 2010 have been some of the lowest rates we have experienced in some time. While we are not the only financial
institutions being affected by this, our Investment Committee remains committed to finding the best rate of return while continuing to stay within the
FDIC insurance limits of $250,000 which has been extended indefinitely.
At the close of 2010, our outstanding loans to members stood at $15.2 million, a decrease of $635,000 from the previous year. Our total loans as a
percentage of Total Assets was 28.1% down from 31.8% in 2009.
While a concern, this reduction is once again contributable to the current state of the economy along with the record unemployment
rates during 2010, this is a situation that is affecting many other financial institutions throughout the entire country.
In an effort to increase loan volume, the Credit Committee recommended a “Big” temporary rate reduction for our New Auto loan program.
This rate offers a 2.99% for up to a 60 month loan, a 3.99% rate for72 month loans and 4.99% for 84 month new auto loans.
While there were several new auto loans processed with the promotion, the Credit Committee recommended and the Board of Directors
agreed to continue this promotion through the end of 2010 and into the first quarter of 2011. The committee will continue to analyze
Credit Union loan activity in comparison to other lending institutions and make recommendations to enhance our loan programs.
During 2010 our dividend rates were lowered during two of the four quarters. In an effort to stabilize our Total Assets
and due to our declining loan volume and investment returns we felt this to be necessary in keeping in line with other financial institutions.
During 2010 a hardware and software upgrade was installed on our current system. The primary motivation for this upgrade was to begin offering a
wider range of services to our members, mainly our Virtual Branch (Home Banking) service. This service should be implemented by the 2nd quarter of 2011.
Also during 2011 we are expecting to be able to begin offering debit cards that will be directly tied to our members share accounts.
The office staff level remained at three, full-time personnel for 2010. However, in December, Carole Bielefeld (President) announced her retirement plans.
Effective January 1, 2011 Sandy Bartholomew will assume the responsibilities as President of the Credit Union. Carole will serve as Executive Vice President on
a full time basis until the second quarter of 2011 when she will then move to part time status. On behalf of the Credit Union Board and Committee members I want to
extend our thanks to Carole for her 35 years of continuing service with B&V Credit Union.
On behalf of the Credit Union’s Board and Committees, I wish to acknowledge and thank the entire Credit Union Staff-Carole, Sandy and Lois, whose hard work and attention to
detail in supporting our members and the daily operations of the Credit Union simplify our jobs a great deal. I also thank the members of the Board and our committees for
their commitment to the ongoing success of B & V Credit Union.
In closing, although the current economic crisis continues to impact the Credit Union, we are confident that we can maintain a superior level of service and products
to our members and provide a financially sound institution.
Board of Directors
William G. Stannard, Chairperson
Lawrence F. Beil, III, Vice Chairperson
Stuart M. Storrs, Treasurer
David J. Johnson, Assistant Treasurer
Howard O. Andrews, Secretary