2013 ANNUAL REPORT 1 Federally insured by NCUA Corporate Information CORPORATE PROFILE CORPORATE HEADQUARTERS VacationLand Federal Credit Union (VLFCU) was founded in 1956 VacationLand Federal Credit Union by employees of the Sandusky, Ohio General Motors Plant. In 2409 East Perkins Avenue 2001, VLFCU expanded its fi eld of membership to include anyone Sandusky, Ohio 44870 who lives, works, worships, attends school or has a business or Telephone: 419.625.9025 organization in Erie County, Ohio. Toll Free 800.691.9299 In 2010, VacationLand Federal Credit Union extended its membership ANNUAL MEETING into Huron County, Ohio by merging with School Employees Federal The Annual Meeting of the Credit Union’s owners will be held at Credit Union (SEFCU) to include employees of the Boards of Education 6:00 P.M. on Thursday, March 13, 2014 at UAW Local 913 Hall, who work in Huron County and employees of the Board of Education 3114 Hayes Avenue, Sandusky, Ohio 44870. of EHOVE Joint Vocational School in Erie County. Today, VacationLand Federal Credit Union is a member-owned, INDEPENDENT AUDITORS not-for-profi t cooperative committed to being the lifetime fi nancial CBS Certifi ed Public Accountants, LLC institution of its members, by providing services at lower or no 34305 Solon Road, Suite 10 fees, loans with lower rates plus deposit products with higher Solon, Ohio 44139 dividend rates. PRIVACY POLICY The Credit Union offers its members a full suite of personal fi nancial The Privacy Policy of VacationLand Federal Credit Union describes products including mortgage, home equity, consumer, student how we safeguard our members’ fi nancial privacy. Your fi nancial and credit card loans and a wide array of checking, money-market privacy is our priority. For more information, visit us at www.vlfcu. and deposit products. Business loan products include: equipment, org or call 419.625.9025. auto, truck, lines of credit and real estate loans. CONTENTS With $155 million in assets, VacationLand Federal Credit Union, Corporate In formation .........................................................................2 headquartered in Sandusky, Ohio serves over 16,400 members, Who We Are ...........................................................................................3 businesses and organizations at four branch offi ces and nine Chairman’s M essage ............................................................................4 ATMs in the cities of Sandusky, Norwalk and Vermilion plus at over Chief Executive Offi cer’s Message .....................................................4 5,000 CO-OP Shared branches and 2,000 self-service locations Board Treasurer’s Message .................................................................5 in the United States. Through 24-hour online banking, we serve The Governing Bodies of Our Credit Union ......................................6 members wherever they are. We Are Here to Serve You ....................................................................7 VacationLand Federal Credit Union is a member of Corporate Financial Hi ghlights ..............................................................................8 One Federal Credit Union and the Federal Home Loan Bank of Chief Financial Offi cer’s Message ......................................................9 Cincinnati and is an Equal Housing Lender. Improving Our Communities.............................................................10 INSURED DEPOSITS The Credit Union’s member depository accounts are insured up to $500,000. The fi rst $250,000 of insurance is provided by NCUA’s National Credit Union Share Insurance Fund while the second $250,000 is made available through private insurance from Excess Share Insurance Company, paid for by VacationLand. 2 Who We Are OUR VISION OUR CORE VALUES AND BELIEFS To be our members’ chosen lifetime fi nancial partner and to Resourcefulness - Finding solutions improve our communities for future generations. Excellence - Achieving the best possible outcome Strategy - Thoughtful execution OUR MISSION Passion - Heartfelt action Guided by our core values, we exist as a not-for-profi t cooperative Empowerment - Invest authority to succeed to serve and surpass by providing value and fi nancial freedom. Commitment - Dedicated service Trust - Serving with integrity The VacationLand Federal Credit Union Difference Many people may not know what makes VacationLand Federal Credit Union different from other fi nancial institutions. Here are just a few ways that demonstrate our uniqueness. WE ARE MEMBER-OWNED WE ARE A COOPERATIVE As a member-owner, regardless how much you save or borrow, you Cooperatives pool resources for the common good. In like fashion, determine who serves on the Board of Directors. You have one vote depositors of VacationLand Federal Credit Union pool funds to for each open Board of Director seat. Also, as a member-owner, lend to one another. Through our structure and operation, credit annual meetings are open to you. We encourage you to attend. unions carry out the credit union philosophy of “people helping people.” At VacationLand Federal Credit Union, you’re not just an WE ARE NOT-FOR-PROFIT account number—you’re a member helping other members. We are out to protect your wallet, not fi ll our own! We return profi ts to you — the members — in the form of lower loan rates, IN SUMMARY higher dividend rates, and low or no fees for services. Put another way, VacationLand Federal Credit Union is different. We are not a bank. We’re not a payday lender. We are a low WE ARE VOLUNTEER DRIVEN cost fi nancial institution that you will want to be affi liated with Each of our Board of Directors is an unpaid member-volunteer for a lifetime. you have elected to work in your best interest. Directors serve on Asset/Liability management, Policy, Insurance, Marketing We appreciate the opportunity to serve you, and we value your and Facilities committees, assisting management in making membership. If you have experienced the VacationLand Federal decisions on how to improve member products, service and Credit Union Difference, please encourage your family and friends operational effi ciencies. to discover the benefi ts of membership. We appreciate the opportunity to serve you, and we value your membership. If you have experienced the VacationLand Federal Credit Union Difference, please encourage your family and friends to discover the benefi ts of membership. 3 A Message from Our Chairman of the Board of Directors 2013 was an incredible year for VacationLand FCU. needs will continue to be a top priority. We also hope to put more Financially we had one of our very best years ever. focus on how to best serve our diverse membership demographic, Our Net Income increased by nearly 33%, while realizing that all of us have different needs and wants from our Assets grew by over 5% to $155 Million, and key fi nancial institution. Providing safe and secure fi nancial services on ratios exceeded national peers in most categories. different platforms we know is an important service. Furthermore, we will attempt to relate more to our younger members via social media We entered into a new three year collective while at the same time remain accessible to our senior members who bargaining agreement with the UAW Local 913 may not feel comfortable using the latest and greatest technology. last November and broke ground on what will be a brand new Hayes Avenue facility, which will be ready for occupancy mid-year. In order to better understand what is important to you, we need your feedback on how to best serve you, our member. Please plan to The challenge for the Board of Directors in 2014 and beyond will be to attend our Annual Meeting on Thursday, March 13, at 6:00 pm at work with management in developing a strategy on how best to use the UAW hall, just south of our Hayes Avenue offi ce. This will be a our Capital and serve our membership. One initiative that will improve perfect opportunity for us to meet you and get your thoughts on issues member service will occur when the new Hayes Avenue branch opens important to our membership. for business this coming summer. The Board is excited about this venture. We hope you will fi nd that the new facility and the upgrades In closing, we wish all our members the best for 2014! And please made at our Perkins Avenue, Vermilion and Norwalk branches will remember, we are here to serve you! offer you signifi cant improvements in our fi nancial delivery systems. Sincerely yours, The Board, however, realizes that it will take more than just a new Jude T. Hammond building, a fresh coat of paint and improvements to our existing Chairman of the Board of Directors buildings to meet our members’ needs. Ensuring that we offer competitive interest rates and fi nancial products that will meet your A Message from Our Chief Executive Offi cer As a valued member of VacationLand Federal with a modern, environmentally green facility that reduces our carbon Credit Union, you are not just a customer building footprint. Also important, it will give the credit union fi ve to ten years profi ts for stockholders; you are one of over 16,400 of growth capacity. Other accomplishments in 2013 included the owners in a not-for-profi t cooperative which pools implementation of a fi ve-year IT replacement plan and successfully its resources for the benefi t of all members. keeping abreast with compliance in an ever-changing NCUA regulations environment. In general, we concentrated on improving Consequently, each and every member-owner, processes and preparing