James E. Tidwell II, Chairman, Board of Directors
Deseret First Credit Union has completed another very successful year with strong earnings and membership growth. While the Credit Union is well-positioned to continue this pattern of growth, it will not take on unacceptable levels of risk to seek high earnings. Nor will it pursue membership growth at the expense of serving its existing members.
In 2013, the Board of Directors and Management completed a thorough review and reevaluation of the Credit Union’s mission and core values. A solid business plan and budget, based on strategic objectives that focus on core values of the LDS community, were developed with specific financial expectations for 2014 and future years. The Credit Union is confident it can meet and exceed these expectations.
Credit unions operate in an increasingly complex and uncertain world. The economic downturn that began in 2008 has resulted in a tsunami of regulatory oversight and economic uncertainty, complicating business and increasing costs.
While interest rates and inflation may remain low for the foreseeable future, it is critical to be prepared for the time when such conditions change. Deseret First carefully and regularly monitors the impact of potential rising interest rates and is in a strong position to meet such changes.
Ongoing advances in technology provide wonderful opportunities to enhance member services. However, technology also brings certain challenges. It has been said that the world produces as much data every two days as it did in the previous 5,000 years. Gathering enormous amounts of data is relatively simple. The challenge is to effectively filter, analyze, and protect this information. Deseret First is committed to protect and securely use members’ sensitive data.
Supreme Court Justice Oliver Wendell Holmes once said, "I would not give a fig for the simplicity this side of complexity, but I would give my life for the simplicity on the other side of complexity.” Management and staff of Deseret First Credit Union work tirelessly to analyze and simplify today’s financial complexities and risks, in order to facilitate your ability to make prudent financial choices and meet your needs. We appreciate and honor your trust and confidence.
Shane C. London, President/CEO
We recently received a brief, touching note from a 92 year-old member of Deseret First Credit Union. She wrote that she was one of the first members when we opened our doors in a small office in the Church Administration Building in 1955 and has been with us ever since. Her kind comments also included that joining Deseret First was the "best financial decision” she ever made. With great changes happening in the financial services sector – much of them driven by advances in technology – this woman’s note brought home the core of our mission, which remains unchanged since our beginning 58 years ago, which is fostering the financial independence and well-being of our members.
2013 was an active and good year for Deseret First. Financial results were strong as we closed the year with assets of $431 million, an increase of $7 million over 2012. Net earnings for the year were at $2.4 million.
The most visible highlight of 2013 was the launch of our redesigned website - www.dfcu.com. Along with a more appealing look with customizable backgrounds, the site has improved organization and navigation of the information you need about the products and services of Deseret First. Other advancements during the year included progress toward the unveiling of the much-anticipated mobile app and improved online banking platform, expected to be introduced in early 2014. The mobile app will give our members the ability to access and manage their accounts anytime, anywhere, and our new online banking platform will provide helpful budget and savings tools to help you stay on top of your finances.
Deseret First welcomed two new members to the Board of Directors in 2013 - Randy Ploeger and Rich Madsen. I am appreciative of all of our directors for their support and the work they do to move the credit union forward and make it a stronger institution for our members.
We had another successful year in our sponsorship of the Deseret First Duel, the athletic rivalry between Brigham Young University and the University of Utah. The Utes won the 2012-2013 season in a tiebreaker.
We look forward to another exciting year in 2014 as we constantly strive for new and better ways to serve you. We welcome your suggestions and feedback. Thank you for your continued support.
Supervisory Committee 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 2013 annual audit. The audit for 2013 operations is currently in progress but is not yet complete. Upon completion of the audit, expected in spring 2014, an opinion will be rendered regarding the 2013 financial statements.
A copy of the 2013 audit report is available for your review by calling the Accounting Department at (801) 456-7100. Based on the audit and our ongoing examination of credit union operations, we are of the opinion that the financial statements accurately represent the financial position of Deseret First Credit Union and its operations for 2013. In addition to the external auditor and regulatory auditors, Deseret First has a very qualified internal auditor. In keeping with industry standard, 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.