Chairman's Report

Shaka Kariuki, Chairman, Board of Directors

Deseret First Credit Union experienced a positive year on a number of fronts in 2012.

The year was highlighted by welcoming Shane London as Deseret First’s new president and CEO. Shane has been a part of Deseret First for many years, most recently as our Chief Financial Officer.  We are excited about the experience he brings as CEO, as he has contributed to the growth of  the credit union over the years and understands the needs of our members.  With Shane’s promotion, we bid goodbye to our previous president/CEO Clint Gurney, who steadily guided Deseret First through our nation’s recent economic turbulence to a position of greater stability and strength. We wish him well as he enjoys retirement. 

We began the year by settling into the new City Creek branch located at City Creek Center. We are pleased to be a part of this retail, office, and housing development that has changed the face of downtown Salt Lake City. Like its previous locations downtown, the branch remains a short walk from The Church of Jesus Christ of Latter-day Saints Office Building and other church facilities, giving the many downtown-based church employees a convenient branch in which to do their banking with us. 

2012 also saw the improvement of Deseret First’s financial standing and overall strength, thanks to an improving economy. This stability gives Deseret First the flexibility to offer new products and services that benefit our members, but rest assured that Deseret First will always practice measures of financial prudence and efficiency that serve to keep us strong now and in the future. 

In the social media world, we reached nearly 10,000 followers on Facebook, an additional platform from which to inform our members about Deseret First and provide personal-finance information and advice.

2012 also saw the groundwork laid on several other initiatives that we are excited to unveil in 2013. We appreciate the opportunity to serve you, our valued members, and look forward to continuing to do so in the future.

President's Report

Shane C. London, President/CEO

Oliver Wendell Holmes said:  "Man’s mind stretched to a new idea never goes back to its original dimensions.”  Thanks to the vision of a group of individuals in 1955, Deseret First Credit Union has grown and developed to meet and exceed the needs of its members.  While financial services have changed since our foundation, our commitment as a cooperative established to serve its members remains at the forefront.

I express appreciation to the Board of Directors for their support and confidence.  I’ve had a long relationship with the credit union and am firmly committed to its mission and on-going success.  I am grateful to our volunteers for their dedicated commitment and service, and I also want to express sincere thanks to staff for their support and acceptance in my new role as CEO.  
During 2012, we achieved solid financial results due primarily to improved economic conditions.  Net earnings for the year were $5.1 million compared to $1.1 million in 2011.  Our assets increased by $12 million to a year-end balance of $424 million.  Our key financial indicators reflected solid performance in every area of our operation.  Delinquency levels remained relatively level at 1.51%, loan charge-offs declined by $4.8 million and our overall net worth position improved by $5.1 million.

We introduced several new products and services in 2012 that have been well received by our members.  Among those are our new ‘First Choice Checking’ accounts which provide increased options for members to choose a checking account that best fits their financial situation.  Additionally, we implemented an on-line account-opening system that allows members to join the credit union regardless of their physical location.

We were able to deploy new ATMs in two locations as well as integrate a new phone system to better serve our members.  Deseret First members continue to have access to over 28,000 ‘fee free’ ATMs through our CO-OP network and 5,000 shared branching locations nationwide.

Finally, we enjoyed another successful year in our sponsorship of the Deseret First Duel.  BYU won in 2011-2012 with an overall score of BYU 31 Utah 16.

We are excited about several new product and service enhancements that will be implemented in 2013 to better assist you.  As always, we welcome your suggestions on how we can better serve you and look forward to continuing our association with you.  Thank you for your continued support. We look forward to another great year.

Supervisory Commitee Report

Mark Andromidas, Committee Chairman

The Supervisory Committee’s primary objective is to examine and evaluate the adequacy and effectiveness of internal controls within the credit union and to assure that the credit union’s goals can be met efficiently and economically. The committee also determines compliance with existing policies, plans, procedures, laws, and regulations, which could have a significant impact on credit union operations and reports. 

Additionally, the committee evaluates the effectiveness of management and employees in carrying out their assigned responsibilities. This is accomplished through audits of credit union operations, interaction with personnel, and involvement in monthly board and other executive meetings. 

Annually, the committee engages the services of an independent Certified Public Accounting firm to audit the credit union’s financial statements. The committee selected, in coordination with management, the accounting firm of Moss Adams to complete the 2012 annual audit. The audit for 2012 operations is currently in progress but is not yet complete. Upon completion of the audit in spring 2013, an opinion will be rendered regarding the 2012 financial statements. 

A copy of the 2011 audit report is available for your review by calling the Accounting Department at (801) 456-7100. For 2011, Moss Adams concluded "In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Deseret First Federal Credit Union and Subsidiary as of December 31, 2011 and 2010, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.”

In addition to the external auditor and regulatory auditors, Deseret First employs an internal auditor. In keeping with best practices, the internal auditor reports directly to the Supervisory Committee. His audit plan was developed from a risk-based matrix that was developed in conjunction with the Supervisory Committee and Senior Management. 

If you have questions about our role within Deseret First Credit Union, please feel free to contact me or any Supervisory Committee member.

 For the Year Ending  2012  2011  2010
 Balance Sheet
Cash & Equivalents
Allowance for Loan Losses
Other Real Estate Owned
Fixed Assets (net)
Other Assets
 Total Assets 423,914  411,270  418,738 
 Liabilities & Capital:
Payables & Accruals
 Total Liabilities & Capital 423,914  411,270   418,738

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